Banking Institutions Must Take Proactive Measures to Combat Money Laundering

In [Country], the Financial Intelligence Unit (FIU) has issued guidelines to enhance anti-money laundering (AML) and counter-terrorism financing (CFT) measures in banking institutions.

Establishing Internal Policies and Procedures

Banking institutions must establish internal policies and procedures for identifying, reporting, and preventing suspicious transactions.
Employees must be trained to recognize and report suspicious activities.
Institutions must maintain accurate records and provide detailed information on customer transactions.

Protection of Reporting Persons and Staff

Banking institutions, their directors, officers, and employees are protected from criminal and civil liability if they report their suspicions in good faith to the FIU.
This protection is provided by contract or legislative, regulatory, or administrative provision.

Tipping Off

Banking institutions must not disclose to customers that a suspicious transaction report or related information is being reported to the FIU.
This is to prevent tip-offs and protect the integrity of the reporting process.

Refresher Training

To ensure staff remain aware of their responsibilities, banking institutions must provide refresher training at least annually.

Effective Date

The guidelines take effect on April 1st, 2009.
Banking institutions are encouraged to compile and record any comments arising from these guidelines and forward them to the FIU for appropriate action.

Examples of Suspicious Transactions

Unusually large cash deposits made by an individual or company whose ostensible business activities would normally be generated by cheques and other instruments.
Substantial increases in cash deposits without apparent cause, especially if such deposits are subsequently transferred within a short period out of the account and/or to a destination not normally associated with the customer.
Customers who deposit cash by means of numerous credit slips so that the total of each deposit is unremarkable, but the total of all the credits is significant.

Conclusion

These guidelines are a crucial step in combating money laundering and terrorist financing in [Country]. Banking institutions must take proactive measures to prevent these illicit activities from taking place on their premises.