Financial Crime World

Anti-Money Laundering and Combating Financing of Terrorism Regulations in the Maldives

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The Maldivian government has established a comprehensive set of regulations to prevent money laundering and financing of terrorism. The following sections outline key points, requirements, and definitions related to these regulations.

Suspicious Transaction Reporting

Mandatory Reporting

  • Licensees (banks, money changers, etc.) are required to report transactions suspected to be related to money laundering or financing of terrorism.
  • The Financial Intelligence Unit (FIU) may order the suspension of a transaction for up to 72 hours while conducting an investigation.

Reporting Requirements

Weekly Reports

  • Licensed money changing institutions must submit weekly reports of cash transactions exceeding MVR 200,000 (approximately USD 13,000).
  • Licensed money remittance institutions must submit weekly reports of wire transfers.

Customer Due Diligence

New and Existing Customers

  • Licensees must perform customer due diligence measures for new customers.
  • For existing customers, customer due diligence must be completed within 3 months of the regulation coming into effect.
  • Customer due diligence includes:
    • Identifying beneficial owners
    • Verifying identities
    • Assessing risk levels

Training and Compliance

Employee Training

  • Employees and agents of licensees must be trained on money laundering prevention and reporting requirements.
  • Licensees must designate a compliance officer at management level.

Administrative Penalties

Fines for Non-Compliance

  • The FIU may impose fines ranging from MVR 10,000 to MVR 500,000 (approximately USD 650 to USD 32,500) for non-compliance.
  • Daily fines may be imposed if compliance is not achieved within a specified period.

Definitions

Key Terms

  • Beneficial owner: an individual who ultimately owns or controls a customer.
  • Politically exposed person: an individual who holds a prominent public position.
  • Proceeds of crime: any property, benefit, or advantage derived from criminal activity.