Immediate Reporting of Suspicious Transactions Required by Banks

In a bid to combat money laundering and terrorist financing, banks in [Country] are now required to submit suspicious transaction reports to the Financial Intelligence Unit (FIU) immediately after detecting any unusual activity.

Strengthening AML/CFT Framework

The new directive is part of the country’s efforts to strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) framework. Under this directive, banks are expected to be vigilant in monitoring their transactions and report any suspicious activities to the FIU without delay.

Third-Party Relationships

Banks are advised to exercise caution when entering into relationships with third-party intermediaries. Before engaging with such parties, banks must:

• Assess the money laundering and terrorist financing risks associated with the country in which they are based.
• Review any customer relationships introduced by the third party.
• Terminate the relationship if the third party is identified as high-risk.

Shell Banks and Cross-Border Correspondent Banking Relationships

Banks are prohibited from entering into correspondent or business relationships with shell banks in foreign countries that allow their accounts to be used by other shell banks. Before establishing cross-border correspondent banking relationships, banks must:

• Gather sufficient information about the respondent bank.
• Evaluate its anti-money laundering and CFT controls measures.

New Products and Business Practices

Banks are required to identify, assess, and mitigate the money laundering or terrorism financing risks associated with new products and business practices, including:

• New delivery mechanisms for existing products.
• New or developing technologies.

Wire or Electronic Transfers

Pursuant to the directive, banks that engage in cross-border wire or electronic transfers must include certain information on the transfer, such as:

• The originator’s full name, address, and account number.
• The recipient’s full name, address, and account number.

Banks are required to keep this information with the transfer throughout the payment chain.

Suspicious Transaction Reporting Requirements

In addition to the above requirements, banks are also required to report suspicious transactions to the FIU immediately. This includes reporting:

• Cross-border wire or electronic transfers exceeding USD 10,000.
• Domestic wire or electronic transfers exceeding 100 million kyats.

The new directive aims to enhance the country’s AML/CFT framework and prevent the misuse of financial systems for illicit activities. Banks are advised to take immediate action to comply with these requirements to ensure the integrity of their operations and reputation.