FINANCIAL INTELLIGENCE CENTRE ISSUES DIRECTIVE ON FREEZING AND PROHIBITION MEASURES FOR VIRTUAL ASSET SERVICE PROVIDERS
Introduction
The Financial Intelligence Centre (FIC) has issued a directive to all institutions under its purview regarding the freezing and prohibition measures for Virtual Asset Service Providers (VASPs). This directive aims to enhance the effectiveness of anti-money laundering (AML), combating the financing of terrorism (CFT), and proliferation financing (PF) efforts.
Reporting Institutions
According to the directive, Reporting Institutions (RIs) are required to cease reporting sanctions screening matches, Terrorism Financing (TF), and Proliferation Financing (PF) suspicions via Suspicious Transaction Reports (STRs) or Suspicious Activities Reports (SARs). Instead, these reports should be filed using new report types designated by the FIC:
- SNMA - Sanction Name Match Activity Report
- TPFA - Terrorist & Proliferation Financing Activity Report
- TPFT - Terrorist & Proliferation Financing Transaction Report
Record-Keeping Requirements
Institutions are also required to keep records of all transactions and activities for a minimum period of five years, with the option to keep records for longer periods if requested by the FIC or other law enforcement bodies.
Asset Freezing and Prohibition Measures
The directive emphasizes that asset freezing and prohibition measures have no time limit and will remain in place until the individual, entity, or group is removed from the relevant UN Sanctions List or a competent authority makes a decision to cancel the freezing.
Exemptions and Responsibilities
Reporting Institutions (RIs) are exempt from certain provisions of the Financial Intelligence Act, but are still required to develop and implement customer acceptance policies and procedures to effectively manage and mitigate risks related to Money Laundering (ML), TF, and PF activities.
Effective Date and Access
The directive can be accessed on the FIC’s website at www.fic.na and is effective immediately.
Key Contact Details
For all correspondence and enquiries, please contact:
- The Director, Financial Intelligence Centre
- P.O. Box 2882, Windhoek
- helpdesk@fic.na