Determination and Staff Training Crucial in Fight Against Money Laundering
In the ongoing battle against money laundering, the Financial Intelligence Unit (FIU) stresses the importance of determination and staff training in detecting and reporting suspicious transactions.
Identifying and Reporting Suspicious Transactions
According to FIU guidelines, banking institutions are required to identify and report any suspicious transactions that may be linked to money laundering or terrorist financing. To achieve this, employees must be trained to recognize and report such transactions, and institutions should have a clear policy on how to handle reports of suspicious activity.
Effective Communication
The FIU has also highlighted the need for effective communication between banking institutions and authorities in reporting suspicious transactions. Institutions must maintain confidentiality and not disclose to customers that a suspicious transaction report is being made.
Staff Training and Refresher Courses
To ensure compliance with guidelines, banking institutions are required to provide regular training to their employees on how to identify and report suspicious transactions. The FIU emphasizes the importance of refresher training for staff to keep them up-to-date with new developments in money laundering techniques.
Protecting Reporting Persons and Staff
The guidelines have been designed to protect reporting persons and staff from criminal and civil liability, provided they report their suspicions in good faith. Additionally, the FIU has prohibited institutions and their employees from disclosing information about suspicious transactions to customers.
Effective Date of Guidelines
The guidelines came into effect on April 1, 2009. Banking institutions are encouraged to provide feedback and comments on the guidelines to the FIU for its consideration.
Examples of Suspicious Transactions
The guidelines provide examples of suspicious transactions that may indicate money laundering or terrorist financing, including:
- Unusually large cash deposits made by an individual or company
- Substantial increases in cash deposits without apparent cause
- Customers who constantly pay-in or deposit cash to cover requests for bankers drafts, money transfers, or other negotiable and readily marketable money instruments
- Frequent exchange of cash into other currencies without exchange control approval
- Customers transferring large sums of money to or from overseas locations with instructions for payment in cash
The FIU emphasizes that these are just a few examples of suspicious transactions, and institutions must be vigilant in identifying and reporting any unusual activity.