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Financial Institutions Must Prioritize Staff Training on Anti-Money Laundering Measures
In a bid to combat money laundering and terrorist financing, financial institutions in [country] have been directed to prioritize staff training on anti-money laundering (AML) measures. The Financial Intelligence Unit (FIU) has issued guidelines for financial institutions to ensure compliance with the Anti-Money Laundering Act of 2006.
Importance of Staff Training
The guidelines emphasize the importance of identifying and reporting suspicious transactions, as well as protecting reporting persons and staff from criminal and civil liability. Financial institutions are also prohibited from disclosing the fact that a suspicious transaction report is being filed to the customer.
To achieve effective implementation of AML measures, financial institutions have been advised to provide comprehensive training to their staff on the following areas:
- Offenses and Penalties: The offenses and penalties arising from non-reporting and assisting money launderers
- Internal Reporting Procedures: Internal reporting procedures for suspicious transactions
- Verification of Identity and Retention of Records: Verification of identity, retention of records, and disclosure of suspicious transaction reports
Examples of Suspicious Transactions
To aid financial institutions in identifying suspicious transactions, the FIU has provided examples of money laundering using cash transactions and institution accounts. These include:
- Unusually Large Cash Deposits: Unusually large cash deposits made by an individual or company
- Substantial Increases in Cash Deposits: Substantial increases in cash deposits without apparent cause
- Cash Transactions Instead of Cheques: Customers who deposit cash by means of numerous credit slips
- Cash-Denominated Accounts: Company accounts whose transactions are denominated by cash rather than cheques or other instruments
Protection for Reporting Persons and Staff
Financial institutions, their directors, officers, and employees are protected from criminal and civil liability for breach of any restriction on disclosure of information imposed by contract or legislative provision if they report their suspicions in good faith to the FIU.
Review and Feedback
The guidelines also encourage financial institutions to compile and record any comments that arise relative to these Guidelines and forward them to the Financial Intelligence Unit for its appropriate action.
Effective Date: April 1, 2009
By prioritizing staff training on AML measures, financial institutions can play a critical role in preventing money laundering and terrorist financing. The FIU’s guidelines provide a framework for financial institutions to comply with AML regulations and prevent the misuse of their services for illegal activities.