Financial Crime World

Anti-Money Laundering and Combating Terrorism Financing Regulations

Introduction

This article provides an overview of key concepts and main points related to anti-money laundering (AML) and combating the financing of terrorism (CFT). The text is based on a law regulating AML and CFT, with specific article numbers referenced.

Key Concepts

  • Reporting Entities: These are financial institutions, businesses, or organizations required to report suspicious transactions or business relationships to the Authorized Body.
  • Authorized Body: This refers to a government agency responsible for combating money laundering and terrorism financing.

Main Points

Article 7: Reporting Suspicious Transactions

  • Reporting entities must submit reports on suspicious transactions or business relationships to the Authorized Body.
  • Reports must include detailed information about the transaction or relationship, including:
    • Date and time of the transaction
    • Parties involved
    • Amount and type of transaction
    • Any other relevant details

Article 8: Additional Scrutiny of Complex Transactions

  • Financial institutions must apply additional scrutiny to complex or unusually large transactions.
  • This includes verifying the identity of parties involved, assessing the risk level, and reporting any suspicious activity to the Authorized Body.

Data Maintenance and Reporting

  • Financial institutions must maintain data on all transactions and report them as requested by the Authorized Body.
  • Reports must be accurate, complete, and submitted in a timely manner.

Functions of the Authorized Body

  • Receiving reports from reporting entities
  • Analyzing information received
  • Sending statements to law enforcement agencies
  • Requesting information from reporting entities and state bodies
  • Imposing sanctions on individuals or entities involved in money laundering or terrorism financing activities

Other Points of Interest

Article 9: Identifying Beneficial Owners

  • Reporting entities are required to identify beneficial owners when registering legal persons or making changes in authorized capital.
  • This includes verifying the identity of natural persons who ultimately own or control a business.

Preventing Money Laundering and Terrorism Financing Risks

  • Financial institutions must maintain internal legal acts to prevent money laundering and terrorism financing risks associated with new or developing technologies (Article 8).
  • This includes implementing robust risk management systems, conducting regular audits, and providing training to employees on AML/CFT regulations.