Central Bank of Liberia Regulation on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT)

Purpose

The Central Bank of Liberia has issued a regulation aimed at preventing money laundering and terrorist financing in the country’s financial sector. This regulation requires financial institutions to implement effective AML/CFT measures to protect the integrity of the financial system.

Key Provisions

Customer Due Diligence

Financial institutions must take the following steps to verify customer identity:

• Verify customer identity using reliable documents.
• Conduct risk-based customer due diligence, including assessing the customer’s background, business relationships, and transactions.

Transaction Monitoring

Institutions must monitor complex or unusual transactions and report them to the CBL and FIU (Financial Intelligence Unit).

Wire Transfers

For wire transfers of $1,000 USD or more, institutions must:

• Identify and verify the originator’s identity.
• Obtain and maintain account numbers, addresses, national ID numbers, or date and place of birth.

Correspondent Banks

Institutions are prohibited from entering business relationships with shell banks or executing transactions for or through a shell bank.

Inability to Fulfill Customer Identification or Know Your Customer Obligations

If an institution cannot fulfill customer identification requirements, it must not establish an account or maintain a business relationship with the customer.

Compliance Inspections

The CBL and FIU will conduct compliance inspections to determine the effectiveness of AML/CFT measures. Institutions must provide complete access to documentation, data, records, and transaction records.

Sanctions for Violation

The CBL may impose administrative sanctions, including:

• Monetary penalties
• Civil penalties
• Suspension or revocation of financial licenses
• Removal of employees from their positions