Financial Crime World

Bank Takes Measures to Combat Financial Crime

Anti-Money Laundering and Combating the Financing of Terrorism Regulations

A leading financial institution has taken significant steps to ensure its compliance with anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations. The bank’s efforts aim to prevent criminal activities, including money laundering, terrorist financing, and bribery.

Sanctions Compliance

  • The bank does not enter into business relationships with sanctioned individuals or entities.
  • Employees are required to screen customers against internal watch lists, which include names from organizations such as the Office of Foreign Asset Control (OFAC), European Union (EU), and the United Nations (UN).
  • Real-time sanctions screening is conducted for all SWIFT transactions, while enhanced due diligence measures are applied to Politically Exposed Persons (PEPs) to mitigate AML/CFT risks.

Correspondent Banking

  • The bank only engages in correspondent banking relationships with institutions that have implemented sufficient AML/CFT policies and procedures.
  • Annual due diligence is performed on these relationships to ensure compliance.

Prohibited Business Relationships

  • The bank does not open accounts for customers using pseudonyms or numbers instead of actual names.
  • Nor does it maintain relationships with sanctioned individuals or entities.

Risk Assessment

  • The institution conducts regular risk assessments on its customers, products, and services to identify and mitigate AML/CFT risks.
  • The bank also has a zero-tolerance policy for bribery, corruption, fraud, and unethical practices among employees and third parties.

Training and Audits

  • Employee training is conducted annually to ensure they are aware of AML/CFT laws, KYC principles, and red flags of money laundering or terrorism financing.
  • Quarterly internal audits are conducted to test the adequacy of the bank’s AML/CFT functions and ensure compliance with regulations.

Record Retention and Data Protection

  • The bank retains customer identification documents for 7 years after the cessation of the banking relationship.
  • Transaction instruments are retained for 7 years after the transaction date.
  • The institution also adheres to local and international data protection policies, including the National Data Protection Regulations and the European Union General Data Protection Regulation (EU-GDPR).

By implementing these measures, the bank demonstrates its commitment to combating financial crime and protecting its customers from fraudulent activities.