Banks Urged to Report Suspicious Transactions Immediately

As part of efforts to combat money laundering and terrorist financing, banks in [Country] have been reminded of their responsibility to report suspicious transactions to the Financial Intelligence Unit (FIU) immediately.

Banks’ Role in Combating Money Laundering and Terrorist Financing

Banks are encouraged to rely on third-party intermediaries to perform customer due diligence requirements, but only if certain conditions are met. According to Article 37 of the Law, banks should assess the money laundering and terrorist financing risks associated with countries where these intermediaries are based.

Evaluating Correspondent Relationships

Banks have been cautioned against entering into correspondent or business relationships with shell banks in foreign countries that allow their accounts to be used by shell banks. Additionally, banks must evaluate anti-money laundering and combating the financing of terrorism controls implemented by respondent banks before establishing new correspondent relationships.

Risk Assessment and Mitigation

In a bid to prevent money laundering and terrorist financing, banks are also required to:

• Identify, assess, and mitigate risks associated with new products, business practices, and technologies
• Evaluate the reputation of respondent institutions and the quality of supervision to which they are subject

Wire or Electronic Transfers

Banks must include certain information on wire or electronic transfers and ensure that this information remains with the transaction throughout the payment chain. If a bank is unable to comply with these requirements, it must not execute the transfer.

Reporting Suspicious Transactions

The article highlights the importance of reporting suspicious transactions to the FIU. Banks are required to report:

• Cross-border wire or electronic transfers in excess of USD 10,000
• Domestic wire or electronic transfers in excess of 100 million kyats
• Transactions where the originator’s information is incomplete or unavailable

Consequences of Non-Compliance

The authorities have emphasized the need for banks to have effective risk-based preventative procedures in place to determine when to execute, reject, or suspend a wire or electronic transfer lacking required originator or beneficiary information. Failure to comply with these requirements may result in severe consequences.

Conclusion

In conclusion, banks in [Country] are urged to take immediate action and report any suspicious transactions to the FIU as soon as possible. This is a critical step in combating money laundering and terrorist financing, and it is essential that all parties involved in the financial sector work together to ensure compliance with these requirements.