Boosting Anti-Money Laundering and Terrorism Financing Measures

Financial institutions are required to enhance their anti-money laundering (AML) and combating terrorism financing (CFT) measures to prevent illegal activities. The new law introduces strict requirements for customer due diligence, risk assessment, and monitoring of business relationships.

New Requirements

• Financial institutions must apply strict customer identification and verification procedures, including obtaining identification data and other relevant documentation.
• Develop and implement programs for preventing money laundering and terrorism financing, which include internal policies, procedures, and controls to ensure compliance.
• Conduct regular reviews of existing customer relationships and documents.
• Establish policies and procedures to address specific risks associated with non-face-to-face business relationships.

Risk Assessment

• Financial institutions are required to identify, assess, and monitor their AML/CFT risks, including potential risks arising from new products, business practices, and technologies.

Record-Keeping and Reporting

• Maintain detailed records of all transactions, including domestic and international transactions, as well as correspondence relating to the transactions.
• Report suspicious transactions to relevant authorities.
• Establish mechanisms for sharing information with other members of their financial group.

Penalties for Non-Compliance

• Financial institutions that fail to comply with the new requirements may face severe penalties, including fines and criminal prosecution.

Competent Authorities’ Guidelines and Feedback

To assist financial institutions in implementing the new requirements, competent authorities will establish guidelines to provide clarity on the application of AML/CFT requirements. The authorities will also provide feedback to all reporting entities to ensure compliance.

Call to Action

Financial institutions are urged to act swiftly to implement the new requirements, which come into effect on [Date]. Failure to comply may result in severe penalties.

Conclusion

The new law aims to strengthen the fight against money laundering and terrorism financing by requiring financial institutions to implement enhanced customer due diligence measures and increase monitoring of business relationships. It is essential for financial institutions to take this opportunity to review their AML/CFT programs and ensure compliance with the new requirements.