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Country’s Anti-Money Laundering Regulations: Know Your Customer and Anti-Money Laundering Requirements

In an effort to combat financial crimes, the government has introduced stringent Anti-Money Laundering (AML) regulations in the country. In this exclusive interview, industry experts shed light on the Know Your Customer (KYC) and AML requirements that banks and financial institutions must adhere to.

ID Verification

When verifying customer identities, banks are only required to conduct a visual check before making copies of identification documentation. There is no need for an independent verification process.

Beneficial Ownership

Financial institutions must obtain information on the beneficial owner and verify their identity and address. This is a crucial aspect of AML regulations, as it helps prevent money laundering and terrorist financing activities.

Due Diligence Arrangements

Customer due diligence arrangements are reduced for low-value transactions, while enhanced measures are required for unusual or suspicious activities/transactions.

Politically Exposed Persons

When opening an account for a Politically Exposed Person (PEP), senior management must give prior authorization. Transactions in their accounts require heightened scrutiny to prevent any potential money laundering activities.

Correspondent Banking Relationships

Banks are required to acquire information on the compliance of their correspondents with AML regulations before establishing a relationship. If the correspondent is non-compliant, the relationship cannot be established.

Shell Banks

Relationships with shell banks are specifically prohibited under the country’s AML regulations.

Reporting Requirements

Suspicious Activity Reports (SARs) must be made to the National Agency for Financial Investigation (ANIF). In the most recent year, a total of 124 SARs were reported. This results in a ratio of 1 SAR for every USD 190.5 million of GDP.

Data Privacy Laws

The country does not have established data protection laws, which may pose concerns regarding the transfer of personal and sensitive information for KYC purposes.

For more information on the country’s AML regulations, please visit our website at [website URL].