Financial Crime World

Here is the rewritten article in Markdown format:

Know Your Customer Regulations in Lesotho: A Comprehensive Overview

======================================================

Lesotho’s financial sector is governed by a plethora of regulations aimed at promoting transparency, stability, and consumer protection. One of the key regulations that have gained significant attention in recent years is the Know Your Customer (KYC) regulation. In this article, we will provide an overview of the KYC regulations in Lesotho, their significance, and compliance requirements.

Background

The KYC regulation in Lesotho was introduced through Legal Notice No. 101 of 2021, which requires financial institutions to verify the identity of their customers and maintain accurate records of such information. The regulation is aimed at preventing money laundering, terrorist financing, and other financial crimes.

Key Requirements

Under the KYC regulation, financial institutions are required to:

  • Conduct due diligence on their customers, including verifying their:
    • Identity
    • Address
    • Purpose of account opening
  • Maintain a record of such information for a minimum period of five years

Additional Regulations

Lesotho’s financial sector is governed by several other regulations aimed at promoting financial stability and consumer protection. These regulations include:

  • Financial Institutions Regulations 2015
  • Banking Act No. 3 of 2024
  • Insurance (Registration & Licensing Requirements) Regulations 2021

Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT)

Financial institutions in Lesotho are also required to comply with AML/CFT regulations, which are aimed at preventing financial crimes such as:

  • Money laundering
  • Terrorist financing
  • Other illicit activities

Conclusion

In conclusion, the Know Your Customer regulation in Lesotho is a critical component of the country’s financial regulatory framework. Financial institutions must ensure compliance with the KYC regulation to prevent financial crimes and maintain the integrity of the financial system.

Additional Resources

Lesotho Government Gazette No. 61 provides additional information on the regulations governing financial institutions in Lesotho, including:

  • Insurance (Licensing of Insurance Intermediaries) Regulations 2016
  • Insurance (Financial Reporting Requirements) Regulations 2016