Financial Crime World

Financial Institution Accused of Allowing False Positive Match

A Central Bank-regulated financial institution in Belize has been accused of allowing a match to be treated as a false positive, despite evidence suggesting otherwise. This incident has raised concerns about the effectiveness of the institution’s sanctions-related policies and procedures.

The Incident

According to sources familiar with the matter, the financial institution had been notified by the Financial Intelligence Unit (FIU) that one of its customers was listed on an official sanctions list. Instead of immediately freezing the customer’s funds or taking other required action, the institution allegedly downplayed the risk and allowed the transaction to proceed.

Investigation

The FIU has launched an investigation into the matter, questioning whether the financial institution had sufficient reason to doubt the accuracy of the match. The Central Bank of Belize is also working closely with the FIU to determine the extent of the breach.

Regulatory Concerns

This incident has raised concerns about the effectiveness of the financial institution’s sanctions-related policies and procedures, as well as its compliance with relevant regulations. Under Belizean law, financial institutions are required to screen customers against official sanctions lists and report any matches to the FIU immediately.

“It is unacceptable for a financial institution to allow a match to be treated as a false positive, particularly when there is evidence suggesting otherwise.” - FIU spokesperson

Consequences

Allowing a false positive match can have severe consequences for financial institutions, including:

  • Fines
  • Penalties
  • Revocation of their license to operate

“The incident serves as a reminder of the importance of ensuring that sanctions-related policies and procedures are robust and effective.” - Central Bank spokesperson

Ongoing Investigation

The investigation is ongoing, and it is unclear at this time what penalties, if any, the financial institution may face as a result of the incident.