Financial Crime World

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Anti-Money Laundering (AML) and Know Your Customer (KYC) Compliance in Malawi

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This guide outlines the key requirements for Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance in Malawi.

Identity Verification

Identity verification is an essential step in ensuring AML and KYC compliance. Here are some key points to consider:

  • Required Documents: Passport, driving license, address verification documents (utility bill, government department-issued document, or bank statement).
  • Timing of Verification: Identity verification is not limited to a one-time process and should be conducted in multiple instances as per recommendations.
  • Application and Choice: The application and choice of when to deploy identity verification procedures depend on the organization’s requirements and conveyance to Shufti Pro.

Politically Exposed Persons (PEPs) and Enhanced Due Diligence Measures

Organizations are required to determine if their customers are PEPs, hold a public office, or exhibit a higher risk profile. Here are some key points to consider:

  • Determination of PEPs: Organizations must identify individuals who are PEPs or have a higher risk profile.
  • AML Screening Service: Shufti Pro provides an AML screening service that screens individuals’ selected ID attributes (name and DOB) against global regulatory authorities’ watchlists, foreign and domestic databases, compromised PEPs, and sanctioned individuals.

Reliance on External Services

Organizations may seek the services of a third party to apply measures of due diligence. Here are some key points to consider:

  • Third-Party Services: Organizations may rely on third-party services for AML and KYC compliance.
  • Collection of Diligence Information: Organizations must collect all necessary information from the third party without undue delay.
  • Liability for Compliance: Regardless of reliance on a third party, organizations remain liable for maintaining all compliance and fulfilling AML and KYC obligations.

Record Retention

Organizations are required to retain data for not less than seven (7) years as part of their AML and KYC obligations. Here are some key points to consider:

  • Retention Period: Organizations must retain data for at least 7 years.
  • Collection of Due Diligence Data: In the case where this information is processed, collected, and managed by a relevant third-party, organizations are liable to collect all necessary information (due diligence data) from the third party without undue delay.