Financial Crime World

Financial Institutions Must Cooperate with Anti-Money Laundering Unit

Strengthening the Fight Against Money Laundering in [Country/Region]

A new regulation has been introduced to strengthen the fight against money laundering in [Country/Region]. The law requires financial institutions and individuals carrying on scheduled businesses to cooperate fully with the Anti-Money Laundering Unit (AMLU) by providing access to their business transaction records.

Access to Business Transaction Records

According to Section 17 of the Money Laundering Act, any member or person authorized by AMLU can enter a financial institution’s premises during normal working hours to:

  • Examine business transaction records
  • Take notes and make copies of records
  • Ask questions about business transaction records
  • Financial institutions are required to permit such access and answer any questions related to their business transaction records.

Compliance with Instructions

The regulation also requires financial institutions and individuals carrying on scheduled businesses to comply with any instructions issued by AMLU under Section 4(1)(g) of the Financial Intelligence Unit Act, 2011. Failure to comply may result in:

  • Written warning
  • Criminal charges

Reporting Suspicious Transactions

Financial institutions are required to report suspicious transactions to AMLU promptly and in accordance with regulations. The reports must contain:

  • All particulars known by the institution regarding the transaction
  • A statement of the grounds on which they hold their suspicion

The law sets out a standard for determining whether a reasonable suspicion has been formed, which is determined objectively having regard to all the facts and surrounding circumstances.

Confidentiality and Disclosure

In a significant move, the regulation prohibits directors, officers, or employees of financial institutions from disclosing information regarding suspicious transactions to anyone other than:

  • For the purpose of carrying out the provisions of this Act
  • Complying with legal proceedings

Penalties for Non-Compliance

Financial institutions that fail to comply with these regulations face severe penalties, including:

  • Fines
  • Imprisonment

The law aims to strengthen the fight against money laundering by ensuring that financial institutions cooperate fully with AMLU and report suspicious transactions promptly.

[Country/Region] has been ranked among the top countries in terms of its efforts to combat money laundering and terrorist financing.