Here is the rewritten article in markdown format:

Combating Money Laundering and Terrorism Financing: Key Obligations and Regulations

Money laundering and terrorism financing are significant threats to global financial stability. To combat these issues, governments and regulatory bodies have implemented various laws and regulations to ensure that financial institutions take necessary precautions to prevent and report suspicious activities.

General Obligations

Financial institutions, including banks and credit unions, play a crucial role in preventing money laundering and terrorism financing. Some key general obligations include:

• Identifying and reporting suspicious transactions: Financial institutions must be vigilant in identifying and reporting any suspicious transactions that may indicate money laundering or terrorism financing.
• Submitting reports to the Authorized Body: Reporting entities must submit their reports to the Authorized Body in a specific format, providing detailed information about the transaction or business relationship.
• Collaboration with law enforcement agencies: The Authorized Body is responsible for analyzing reports, requesting additional information from reporting entities, and cooperating with law enforcement agencies to investigate and prosecute suspicious activities.

Reporting Obligations

Financial institutions must conduct regular customer due diligence (KYC) and file reports on suspicious transactions or business relationships. Some key requirements include:

• Conducting KYC: Financial institutions must regularly verify the identity of their customers and update this information as necessary.
• Reporting suspicious transactions: Reports should include detailed information such as:
  • Customer name and account number
  • Transaction details (date, amount, type)
  • Reason for suspicion
• Maintaining records: Reporting entities are required to maintain records of transactions for at least 5 years.

Additional Scrutiny

Financial institutions must conduct additional scrutiny on complex or unusually large transactions that may indicate money laundering or terrorism financing. Some key requirements include:

• Scrutinizing complex transactions: Financial institutions should be cautious when processing complex or unusually large transactions, especially those with unusual patterns without apparent economic or legitimate purpose.
• Preventive mechanisms: They should also apply preventive mechanisms to address risks associated with non-face-to-face business relationships or transactions.

Registration and Licensing

When registering a legal person or licensing a financial institution, the founders (or owners) must file a declaration on beneficial owners. The Authorized Body will request information from reporting entities during the registration process.

Authorized Body Functions

The Authorized Body plays a crucial role in enforcing regulations related to combating money laundering and terrorism financing. Some key functions include:

• Receiving and analyzing reports: Receiving and analyzing reports from reporting entities
• Requesting additional information: Requesting additional information from reporting entities or state bodies
• Cooperating with law enforcement agencies: Cooperating with law enforcement agencies to investigate and prosecute suspicious activities
• Issuing assignments for rectifying deficiencies: Issuing assignments for rectifying deficiencies in internal legal acts of reporting entities
• Defining cases and frequency for conducting internal audits: Defining cases and frequency for conducting internal audits by financial institutions
• Imposing sanctions: Imposing sanctions on financial institutions or legal persons that fail to comply with regulations.