Fiji’s Financial Intelligence Unit Issues Guidelines on Customer Identification Regulations for Banks

Combating Money Laundering and Terrorist Financing

In a bid to combat money laundering and terrorist financing, Fiji’s Financial Intelligence Unit (FIU) has issued a practice guideline to financial institutions requiring them to identify and verify their customers’ identities. The guidelines emphasize the importance of applying customer due diligence measures on a risk-based approach.

Key Requirements

• Conduct customer identification and verification for all new customers before or during the establishment of a continuing business relationship.
• Verify identity information for occasional customers who conduct transactions valued at $5,000 or more.
• Conduct additional due diligence on existing customers whose identity information is deemed inadequate.
• Conduct Customer Due Diligence (CDD) on customers suspected of engaging in money laundering or terrorist financing activities.

Risk-Based Approach

The guidelines aim to ensure that financial institutions prioritize customer identification and verification measures to mitigate the risks associated with money laundering and terrorist financing. By adopting a risk-based approach, institutions can tailor their CDD processes and procedures to suit the specific needs of individual customers, products, services, and geographic locations.

Notable Clarifications

• Once a continuing business relationship has been established with a customer, institutions do not need to re-identify and verify their identity each time they conduct a transaction.

Conclusion

The guidelines issued by Fiji’s FIU are aimed at ensuring that financial institutions prioritize customer identification and verification measures to combat money laundering and terrorist financing. By adopting a risk-based approach, institutions can effectively mitigate these risks and maintain the integrity of the financial system.