Somalia’s Anti-Money Laundering and Know Your Customer Regulations: What You Need to Know
In an effort to combat financial crimes, Somalia has implemented strict regulations for businesses operating in the country. Effective identity verification is a crucial aspect of these regulations, aimed at preventing money laundering and terrorist financing.
Identity Verification Requirements
To comply with Somali regulations, you must verify your customers’ identities using valid documents, including:
- A valid passport
- A current driver’s license
- A National Identity Card
Additionally, address verification is also required. The following documents are considered proof of address:
- A current utility bill (gas, electricity, telephone, or mobile phone)
- A document issued by a government department showing the customer’s address
- A bank statement (no older than three months) showing the customer’s address
Timing of Verification
Identity verification is not a one-time process. It must be performed in multiple instances as per regulations. The timing and frequency of verification depend on your business requirements and conveyance to Shufti Pro.
Politically Exposed Persons and Enhanced Due Diligence Measures
Under Somali regulations, you are required to identify Politically Exposed Persons (PEPs) and conduct enhanced due diligence measures. Shufti Pro provides an AML Screening service that screens individuals’ ID attributes against watchlists of global regulatory authorities, foreign and domestic databases, compromised PEPs, and sanctioned individuals.
Reliance on External Services
In the absence of explicit regulations, clients may seek services from third-party providers to fulfill AML/KYC obligations. However, clients remain liable for maintaining regulatory compliance and fulfilling AML and KYC obligations.
Record Retention
As per Somali regulations, you are required to retain data for not less than five years as part of your AML and KYC obligations for due diligence. If this information is processed, collected, and managed by a third-party provider, you must collect all necessary information (Due Diligence Data) from the third party without undue delay.
Conclusion
By understanding these regulations, businesses operating in Somalia can ensure compliance and mitigate the risk of financial crimes. Shufti Pro’s AML Screening service can help streamline your identity verification process and ensure regulatory compliance.