Government Moves to Establish Licensing Requirements for Money Transfer Services
The government has announced plans to establish licensing requirements for money transfer services as part of a broader effort to combat money laundering and terrorist financing.
Background
In an effort to address deficiencies in customer due diligence (CDD), record-keeping, and supervision and regulation, the government is introducing new regulations to prevent fraudulent activities. The move comes as part of a broader effort to strengthen anti-money laundering/combating the financing of terrorism (AML/CFT) measures.
New Regulations
Under the new regulations:
- Money transfer service operators will be required to maintain an updated list of all operators.
- CDD requirements will be expanded to prevent fraudulent activities.
- Politically exposed persons (PEPs) will be subject to additional requirements.
- Measures will be taken to address new technologies that may facilitate customer anonymity.
Implementing Regulations
The government has announced plans to publish implementing regulations for traders in precious stones and metals, as well as casinos. These regulations will include:
- Clarifying the framework for reporting suspicious transactions.
- Explicitly requiring the reporting of suspicions of terrorist financing.
Strengthening Knowledge and Enforcement
The government is taking steps to strengthen knowledge among entities subject to AML/CFT requirements about their obligations regarding suspicious transaction reporting. Additionally, a regulatory authority has been designated for casinos on AML/CFT matters, and administrative sanctions have been established for failure to comply with CDD requirements.
Prevention of Criminal Control
Measures will be put in place to prevent criminals or their accomplices from taking control of a casino.
Assessment of Non-Financial Businesses
The government is assessing whether other non-financial businesses or professions present a risk of money laundering or terrorist financing. If so, they will be subject to AML/CFT preventive measures.
Company Law Reforms
The government has announced plans to repeal the 2005 Anjouan Company Law and create a national register for the registration of companies and other legal persons. Additionally, measures will be put in place to facilitate timely access to beneficial ownership information.
Non-Profit Organizations (NPOs)
The government is developing an information campaign for NPOs to raise awareness about terrorist financing. Plans are also being made to adopt a specific legal framework for NPOs that includes adequate regulatory provisions on transparency and supervisory methods.
International Cooperation
The government is strengthening international cooperation by:
- Ratifying additional protocols to the United Nations Convention Against Organized Transnational Crime.
- Transposing relevant provisions of the Vienna and Palermo conventions into domestic law.
- Introducing mechanisms for providing assistance in a timely and effective manner.
Commitment to Success
These efforts are aimed at combating money laundering and terrorist financing, and the government is committing significant resources to ensure the success of these initiatives.