Financial Crime World

Djibouti Cracks Down on Money Laundering with New Financial Compliance Regulations

Amidst increasing global concern over money laundering and terrorist financing, the tiny Horn of Africa nation of Djibouti has introduced stringent regulations to combat these illegal activities. In this article, we shed light on the key aspects of Djibouti’s “Djibouti-AML KYC Regulations,” focusing primarily on identity verification procedures.

Overview

  • Scope and Definitions: Djibouti’s AML and CTF regulations cover the rights and obligations of both legal and natural persons regarding preventing and identifying money laundering and terrorist financing. These regulations involve customer screening, identification, and verification. (More in Scope and Definitions)
  • Background: The “Djibouti-AML KYC Regulations” document outlines the necessary requirements for AML and KYC procedures, specifically identity verification in Djibouti. (More in Background)
  • Key Measures and Procedures: Identity verification requirements include the collection and verification of specific identity attributes. (More in Identity Verification Requirements)
  • Identity Verification Methods: Shufti Pro offers compliant CDD methods for identity verification. (More in Identity Verification Methods)
  • Documents and Timing: Official identity documents and address verification documents are considered proof of identity. (More in Documents and Timing)
  • PEPs and Enhanced Due Diligence: Shufti Pro provides an AML Screening service for Enhanced Due Diligence procedures. (More in PEPs and Enhanced Due Diligence)

Scope and Definitions 🔝

::: info These regulations cover the rights and obligations of both legal and natural persons in preventing and identifying money laundering and terrorist financing. :::

AML (Anti-Money Laundering): Procedures directed to prevent participants in the financial sector from knowingly transacting or dealing with the proceeds of any illegal activity.

CTF (Counter-Terrorist Financing): Procedures ensuring financial institutions do not knowingly facilitate or support terrorist activities.

Customer Screening: The process of assessing a customer’s suitability for business relationships based on their risk profile, background, and other factors.

Identity Verification: The process of confirming the authenticity of an individual’s identity attribute(s).

Background 🔝

The “Djibouti-AML KYC Regulations” document outlines the necessary requirements for AML and KYC procedures, specifically identity verification in Djibouti. These regulations serve as a comprehensive guide for businesses operating in Djibouti.

Identity Verification Requirements 🔝

Djibouti’s regulations mandate the collection and verification of specific identity attributes, including:

  • Last name and first name
  • Date of birth
  • Place of birth
  • Identification data
  • Address

Identity Verification Methods 🔝

Shufti Pro offers compliant CDD methods for Djibouti clients, including:

  1. Shufti Pro performing identity verification on your behalf using independent sourced documents.
  2. Shufti Pro verifying the authenticity of submitted documents through Document Verification.

For customers who are individuals and not physically present, Shufti Pro can perform identity verification based on provided documents.

Documents and Timing 🔝

Official identity documents (such as an identity card, passport, or driving license) and address verification documents are considered proof of identity in Djibouti. Identity verification is not a one-time process - it is required at multiple instances, including:

  • Customer onboarding
  • Transaction data
  • High-risk customers

PEPs and Enhanced Due Diligence 🔝

Enhanced due diligence (EDD) procedures require determining whether a customer is a Politically Exposed Person (PEP), holds public office, or exhibits a higher risk profile. Shufti Pro provides an AML Screening service, screening an individual’s selected identity attributes against:

  • Global regulatory authorities
  • Foreign and domestic databases
  • Compromised PEPs
  • Sanctioned individuals

Summary 🔝

To maintain regulatory compliance and ensure secure transactions, we recommend adhering to the guidelines provided in Djibouti’s regulations and the “Djibouti-AML KYC Regulations” document. Shufti Pro is committed to supporting our clients in these efforts.