Laundering and Combating the Financing of Terrorism: Guidelines for Designated Non-Financial Businesses and Professions
Date: April 1, 2019 | Version: 6.0
To combat money laundering and financing of terrorism, the Committee, Supervisory Authorities, and other Competent Authorities have issued guidelines for Designated Non-Financial Businesses and Professions (DNFBPs) to adhere to.
Key Provisions Affecting Supervised Institutions
The Anti-Money Laundering and Combating the Financing of Terrorism (AML-CFT) Law and Decision contain numerous provisions setting out the rights and obligations of supervised institutions, including DNFBPs. This section highlights some key provisions that are of immediate concern:
Summary of Minimum Statutory Obligations
The AML-CFT Law and Decision set out the minimum statutory obligations of supervised institutions as follows:
- Identify, assess, and understand risks
- Define the scope of due diligence measures and take necessary steps
- Appoint an AML/CFT compliance officer approved by the relevant Supervisory Authority
- Put in place adequate management and information systems to mitigate risks
- Report suspicious transactions and cooperate with Competent Authorities
Confidentiality and Data Protection
Designated Non-Financial Businesses and Professions are obliged to report suspicions of a crime to the Competent Authority. When reporting, they must maintain confidentiality regarding both the information being reported and the act of reporting itself.
- The confidentiality requirement does not apply to communication within the supervised institution or its affiliated group members for purposes related to sharing relevant information to identify, prevent, or report a crime.
- Under no circumstances are DNFBPs permitted to inform customers or business representatives that a report has been made, as this could compromise the reporting process.
Sanctions Against Persons Violating Obligations
DNFBPs and their managers or employees who violate these obligations will face severe penalties. Furthermore, they may not object to statutory reporting of suspicions on grounds of customer confidentiality or data privacy, as this would be considered a violation of the law.
By adhering to these guidelines, DNFBPs can play a crucial role in preventing the misuse of financial systems for illicit activities and advancing the efforts of the Committee, Supervisory Authorities, and other Competent Authorities in combating money laundering and financing of terrorism.