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Lesotho Government Introduces Stronger Measures to Combat Money Laundering and Terrorist Financing
Maseru, Lesotho - The Government of Lesotho has introduced new regulations aimed at combating money laundering and terrorist financing in the country. The “Money Laundering and Proceeds of Crime Regulations, 2019” came into effect on [date] and sets out stricter measures for financial institutions and service providers to identify and verify client information.
Stricter Measures for Financial Institutions
Under the new regulations, financial institutions and service providers are required to take reasonable measures to:
- Verify the identity of beneficial owners through various means, including identifying natural persons who exercise control over a legal person or holding senior management positions.
- Establish the ownership or control structure of clients or customers in cases where they are legal persons.
Enhanced Measures for Higher-Risk Countries
The regulations also provide for enhanced measures to be applied to clients or customers from higher-risk countries, as identified by the Financial Action Task Force (FATF). These enhanced measures may include:
- Additional customer due diligence requirements
- Reporting obligations
Prohibition of Correspondent Banking Relationships with Shell Banks
Financial institutions and service providers are prohibited from entering into correspondent banking relationships with shell banks. They must also take steps to ensure that their accounts are not used by such banks.
Importance of Cooperation
The Lesotho government has emphasized the importance of cooperation between financial institutions, law enforcement agencies, and regulatory bodies in combating money laundering and terrorist financing. The new regulations aim to strengthen the country’s anti-money laundering and counter-terrorist financing regime and align it with international standards.
Key Provisions
Financial Institutions and Service Providers Must
- Verify the identity of beneficial owners through various means
- Apply enhanced measures to clients or customers from higher-risk countries
- Prohibit correspondent banking relationships with shell banks
- Take steps to ensure that their accounts are not used by shell banks
Implications for Financial Institutions and Service Providers
Conduct Thorough Customer Due Diligence
Financial institutions and service providers must conduct thorough customer due diligence and report suspicious transactions. They must also establish the ownership or control structure of clients or customers in cases where they are legal persons.
Enhanced Measures for Higher-Risk Countries
Enhanced measures will be applied to clients or customers from higher-risk countries, which may include additional customer due diligence requirements and reporting obligations.
Contact
For more information on the “Money Laundering and Proceeds of Crime Regulations, 2019”, please contact the Lesotho Financial Intelligence Centre (LFIC) at [email address] or [phone number].