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Financial Institutions Must Enhance Security Measures to Prevent Terrorism Financing and Fraud
In an effort to prevent terrorism financing and fraud, financial institutions in [Country/Region] have been mandated to implement stringent security measures to protect their customers’ assets and data.
New Guidelines Issued by the Central Bank
According to new guidelines issued by the Central Bank, licensed financial institutions must take several steps to prevent unauthorized access to unclaimed funds, digital money, and dormant accounts. These measures include:
- Implementing robust internal risk-based policies
- Conducting regular maintenance of ATMs
- Upgrading payment instruments with the latest technology to prevent counterfeit card fraud
Customer Education and Awareness
The guidelines also require financial institutions to educate their customers on how to protect themselves from fraud, including:
- Avoiding simple passwords
- Protecting access to their checkbooks
- Being cautious when entering PINs at ATMs or point-of-sale terminals
Monitoring and Response to Fraud Activities
In addition, financial institutions must have adequate systems and processes in place to monitor and respond to external fraud activities, including:
- Informing customers of procedures for reporting cases of theft, loss, and fraud
- Documenting trends on the number and type of incidents for fraud, attempted frauds, and customer complaints
Due Diligence and Staff Training
The guidelines also emphasize the importance of conducting thorough due diligence on third-party vendors and ensuring that authorized agents have equivalent levels of fraud control and monitoring. Financial institutions must also provide adequate training to their staff on security controls and ensure that they are aware of their responsibilities in preventing financial crime.
Commitment to Protecting the Financial System
“These new guidelines demonstrate our commitment to protecting the financial system from terrorism financing and fraud,” said [Name], Central Bank Governor. “We urge all licensed financial institutions to take these measures seriously and implement them promptly to ensure the safety and integrity of our financial system.”
Key Requirements and Penalties for Non-Compliance
KEY REQUIREMENTS
- Implement robust internal risk-based policies
- Conduct regular maintenance of ATMs
- Upgrade payment instruments with latest technology
- Educate customers on fraud prevention
- Conduct thorough due diligence on third-party vendors
- Provide adequate training to staff
- Report significant fraud events immediately to the Central Bank
PENALTIES FOR NON-COMPLIANCE
Financial institutions that fail to comply with these guidelines may be subject to penalties and fines.
Contact Information
For more information, please contact [Name], Central Bank, at [Email] or [Phone].