Financial Crime World

Immediate Reporting of Suspicious Transactions: [Bank Name]’s New Directive

In a significant move to enhance its anti-money laundering and combating the financing of terrorism (AML/CFT) measures, [Bank Name] has issued a new directive requiring immediate reporting of any suspicious transactions to the Financial Intelligence Unit (FIU).

Why the Change?

The directive is aimed at strengthening [Bank Name]’s AML/CFT measures by ensuring that all potential money laundering or terrorist financing activities are reported promptly to the FIU. This change reflects the bank’s commitment to preventing and detecting such activities, while also maintaining compliance with relevant laws and regulations.

What Does the Directive Entail?

The directive outlines several key measures that [Bank Name] must take to prevent and detect money laundering and terrorist financing activities. These include:

  • Immediate Reporting: The bank is required to submit a suspicious transaction report to the FIU as soon as it identifies a potential money laundering or terrorist financing activity.
  • Customer Due Diligence: [Bank Name] will conduct thorough customer due diligence on all new customers, including assessing the money laundering and terrorist financing risks associated with the country in which the customer is based.
  • Business Relationships: The bank will not enter into any business relationships with shell banks in foreign countries that allow their accounts to be used by shell banks.
  • Product Risk Assessment: [Bank Name] must identify, assess, and mitigate the money laundering or terrorist financing risks associated with new products, business practices, and technologies.

Additional Measures

The directive also emphasizes the importance of record-keeping and reporting suspicious transactions to the FIU. Specifically:

  • The bank is required to report any cross-border wire or electronic transfers exceeding USD 10,000.
  • Domestic wire or electronic transfers exceeding 100 million kyats must be reported.
  • Any transfer where the originator’s information is incomplete or unavailable must also be reported.

Conclusion

By implementing these measures, [Bank Name] aims to demonstrate its commitment to preventing and detecting money laundering and terrorist financing activities, while also ensuring compliance with relevant laws and regulations. The new directive reflects the bank’s dedication to maintaining a strong AML/CFT framework and protecting its customers from illicit activities.