Bank Urged to Report Suspicious Transactions Immediately

Strengthening Anti-Money Laundering and Combating Terrorism Financing Measures

The [Country] government has emphasized the importance of timely reporting of suspicious transactions by banks in a move aimed at strengthening anti-money laundering (AML) and combating terrorism financing (CFT) measures.

New Guidelines Issued by Government Agency

According to new guidelines issued by the [Government Agency], financial institutions are required to submit a suspicious transaction report to the Financial Intelligence Unit (FIU) immediately after identifying any unusual or potentially illegal activity. This is crucial in preventing the misuse of financial systems for illegal activities and protecting the integrity of the country’s financial sector.

Customer Due Diligence Requirements

The guidelines also stress the need for banks to rely on third-party intermediaries, such as accountants and lawyers, to perform customer due diligence requirements. However, before entering into a relationship with these intermediaries, banks must consider the money laundering and terrorist financing risks associated with the country in which they are based.

Prohibitions and Evaluations

The guidelines prohibit banks from establishing correspondent or business relationships with shell banks that allow their accounts to be used by other entities. Banks must also evaluate the anti-money laundering controls implemented by respondent institutions before entering into cross-border correspondent banking relationships.

New Products, Business Practices, and Technologies

In addition, the guidelines require banks to identify, assess, and mitigate money laundering and terrorism financing risks associated with new products, business practices, and technologies.

Accurate Originator and Beneficiary Information

The government has also emphasized the importance of accurate originator and beneficiary information in wire or electronic transfers. Banks are required to include this information in their transactions and ensure that it remains traceable throughout the payment chain.

Consequences of Non-Compliance

Failure to comply with these guidelines may result in severe penalties, including fines and imprisonment. The government’s efforts aim to prevent the misuse of financial systems for illegal activities and protect the integrity of the country’s financial sector.

By following these guidelines, banks can help maintain a safe and secure financial system that is resistant to money laundering and terrorism financing.