Financial Crime World

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Financial Institutions Urged to Enhance Customer Due Diligence Measures

In an effort to combat money laundering and terrorism financing, financial institutions have been instructed to strengthen their customer due diligence (CDD) measures. The new regulations aim to increase transparency and reduce risks associated with complex transactions.

Enhanced CDD Measures for Higher-Risk Customers

For higher-risk customers, financial institutions are required to apply enhanced CDD measures, which may include:

  • Obtaining additional information on customers, such as occupation and asset volume
  • Conducting regular updates of customer identification data
  • Verifying the source of funds or assets
  • Monitoring transactions more frequently

Simplified CDD Measures for Lower-Risk Customers

Simplified CDD measures may be applied for lower-risk customers, but only after a documented risk assessment is conducted. These measures could include:

  • Reducing the frequency of customer identification updates
  • Decreasing the level of on-going monitoring

Business Relationship Engagement and Risk Management

Financial institutions are allowed to engage in business relationships with customers prior to completing the verification process, provided they have implemented effective risk management procedures and manage ML/TF risks effectively.

Maintaining Accurate Customer Information

Financial institutions must maintain accurate and up-to-date customer information throughout the course of the business relationship. This includes:

  • Reviewing existing records at regular intervals
  • Obtaining updated financial statements from customers

Strengthening AML/CFT Measures in Afghanistan’s Financial Sector

The new regulations aim to strengthen anti-money laundering and combating the financing of terrorism (AML/CFT) measures in Afghanistan’s financial sector. Financial institutions are advised to carefully review and implement these guidelines to ensure compliance with AML/CFT regulations.

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Note: This article is for informational purposes only and should not be considered as a sole source of information on the topic. It is recommended that readers consult multiple sources before making any decisions or taking any actions based on this article.