The National Bank Strengthens Customer Identity Verification to Combat Money Laundering and Terrorist Financing
Enhancing Anti-Money Laundering (AML) and Combating Terrorist Financing (CFT) Efforts
In a move to strengthen its AML/CFT efforts, The National Bank has announced a new policy aimed at verifying the identity of all customers and beneficial owners of companies. This policy is designed to protect the integrity of the financial system and prevent the use of the bank’s services for illegal activities.
New Policy Requirements
Under the new policy, customers will be required to provide sufficient and accurate evidence of their identity before opening an account or entering into any business relationship. This includes obtaining information about the true identity of the principal or beneficiary of transactions suspected of being conducted on behalf of non-mandated parties. The bank has emphasized the importance of due diligence in identifying customers, stating that it will not execute transactions or establish business relationships with individuals who fail to provide satisfactory identification documents.
Comprehensive Know Your Customer (KYC) and Customer Due Diligence (CDD) Process
The National Bank has implemented a comprehensive KYC and CDD process to ensure that all transactions are conducted in accordance with the bank’s AML/CFT policies. This includes:
- Identifying customers and beneficial owners of companies
- Verifying their identity through sufficient and accurate evidence
- Conducting ongoing due diligence on high-risk customers and transactions
Treatment of High-Risk Customers and Transactions
The new policy requires the bank to treat business relationships and transactions with caution when dealing with individuals or companies from high-risk jurisdictions or those that do not apply adequate controls against money laundering.
Ongoing Training and Reporting Mechanism
To ensure compliance with AML/CFT regulations, The National Bank will provide ongoing training to its employees on money laundering prevention and combating terrorist financing. The bank has also established a robust reporting mechanism to promptly report any suspected cases of money laundering or terrorist financing. This includes maintaining records of customer identification and transactions for at least 10 years.
Key Takeaways
- Customers are required to provide sufficient and accurate evidence of their identity before opening an account or entering into any business relationship.
- The bank will not execute transactions or establish business relationships with individuals who fail to provide satisfactory identification documents.
- A comprehensive KYC and CDD process is in place to ensure all transactions are conducted in accordance with the bank’s AML/CFT policies.
- Business relationships and transactions with high-risk customers and jurisdictions will be treated with caution.
- Ongoing training is provided to employees on money laundering prevention and combating terrorist financing.
- A robust reporting mechanism is in place to promptly report suspected cases of money laundering or terrorist financing.