Financial Crime World

Anti-Money Laundering and Combating Financing of Terrorism Regulation in Maldives

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Reporting Obligations

Banks and other financial institutions in Maldives are required to report suspicious transactions to the Financial Intelligence Unit (FIU). This regulation outlines the key provisions for reporting obligations, liability exemptions, programs to combat money laundering and financing of terrorism, employee training, compliance officers, administrative penalties, and transitional provisions.

Reporting Obligations

  • Banks must report suspicious transactions to the FIU.
  • The FIU may also receive reports from other financial institutions, casinos, and designated non-financial businesses and professions.
  • No criminal or civil proceedings can be instituted against banks or their employees who submit reports in good faith.

Liability Exemptions

Banks and their employees are exempt from liability for executing suspicious transactions if a report was made in good faith. This exemption also applies when carrying out transactions at the request of law enforcement authorities.

Programs to Combat Money Laundering and Financing of Terrorism

Each bank must develop and implement internal programs to prevent money laundering and financing of terrorism. These programs should include:

  • Establishing policies, procedures, and controls for hiring employees and ensuring compliance management arrangements.
  • Carrying out internal audits to check conformity with the Act and this regulation.
  • Implementing internal control measures to ensure safety and security of systems and records.

Employee Training

Each bank must ensure that its employees are trained on:

  • The Act and this regulation, and the bank’s internal policies and procedures.
  • Customer due diligence measures and identification of customers and their beneficiaries.
  • Detecting and reporting suspicious transactions.
  • Duties and responsibilities in preventing money laundering and financing of terrorism.

Compliance Officer

Each bank must designate a compliance officer at management level to implement the Act and this regulation. The bank must inform the name and contact details of the compliance officer to the FIU.

Administrative Penalties

The FIU may impose administrative penalties on banks, their directors, officers, or employees who fail to comply with any provision of this regulation. These penalties include:

  • Issuing a notice to comply within a specified period.
  • Imposing fines between 10,000 MVR and 500,000 MVR.
  • Imposing daily fines until compliance is obtained.

Transitional Provisions

Existing customers must undergo customer due diligence measures stipulated in this regulation within three months of the commencement of this regulation. The terms and expressions used in this regulation shall have the same meaning as in the Act, unless otherwise defined below or required by context.