Title: Anguilla Cracks Down on Money Laundering: A Look at AML-KYC Regulations and Identity Verification Requirements
Introduction
Anguilla, the Pearl of the Caribbean, is known for its crystal-clear waters, pristine beaches, and lush greenery. However, this idyllic paradise is not immune to the threat of money laundering and terrorist financing. To tackle these illicit activities, Anguilla has introduced stringent anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. In this article, we offer an insight into Anguilla’s AML-KYC regulations, focusing on the identity verification requirements.
Scope
This article references the Anguilla Anti-money Laundering and Terrorist Financing Regulations and the Proceeds of Crime Act. These regulations outline the necessary AML and KYC procedures, emphasizing identity verification requirements.
Definitions
- Client: Shufti Pro’s customer
- Customer: The client’s customer undergoing KYC checks
- End-user: The client’s customer from Shufti Pro’s perspective
- Document Verification: The process of verifying the authenticity of a government-issued identity document
- Identity Verification: The process of confirming a client’s or end-user’s identity
- Proof of Identity: Any government-issued identity document used to identify an individual
AML-KYC Compliance - Key Requirements
4.1. Identity Verification Requirements
Anguilla’s regulations mandate specific identity attributes for individual verification:
- Full name
- Date of birth
- Principal residential address
4.2. Compliant CDD Methods with Shufti Pro
Shufti Pro offers Identity Verification through the following methods, as requested by the Client:
5.1. Document-based verification
Shufti Pro performs verification based on independently sourced identity documents (passport, driving license, or other valid photo IDs), ensuring their authenticity and reliability.
5.2. Real-time video ID verification
Using a live, interactive video session, Shufti Pro verifies the end-user’s identity through a face-to-face interaction, where the user is asked to show their identity documents and perform liveness checks.
5.3. Document verification
Shufti Pro checks the authenticity of end-users’ documents through a specialized Document Verification service, which includes assessment of security features, holograms, tapered/crumpled edges, doctored elements, form inconsistencies, and MRZ, reflecting colors, and microprinting.
4.3. Address Verification and Timing
Address verification is an additional measure that can be taken to ensure the user’s address matches the address provided. Identity Verification is a recurring process and not limited to a single attempt. Clients should employ it during various stages of their operations, such as:
- Onboarding a new customer
- Dealing with high-risk situations
4.4. Politically Exposed Persons (PEPs) and Enhanced Due Diligence (EDD) Measures
Anguilla’s regulations require determining if a Customer is a PEP or holds a public office, or exhibits a higher-risk profile. Shufti Pro offers an AML Screening service, which screens individuals’ selected ID attributes against:
- Global regulatory authorities’ watchlists
- Foreign and domestic databases
- Compromised PEPs
- Sanctioned individuals
4.5. Reliance on External Services
Anguilla’s regulations allow clients to seek the services of a third-party to apply measures of due diligence while remaining responsible for maintaining compliance and fulfilling AML and KYC obligations.
4.6. Record Retention
Clients are required to retain information for at least five years as part of their due diligence obligations. In cases where the information is processed, collected, and managed by a relevant third-party, clients are liable to collect all necessary information from the third party without undue delay.
Anguilla’s AML-KYC regulations ensure a robust and reliable framework for businesses operating in the Caribbean nation, enabling them to maintain full compliance and mitigate the risks of money laundering and terrorist financing.