Financial Crime World

Prevention of Money Laundering and Financing of Terrorism Act (Law No. 10/2014)

The Maldives Regulation on Prevention of Money Laundering and Financing of Terrorism

This regulation aims to prevent money laundering and financing of terrorism in the Maldivian banking sector. The key points are outlined below:

CHAPTER ONE: GENERAL PROVISIONS

  • The regulation applies to all banks in the Maldives.
  • Banks must comply with international standards for anti-money laundering and combating financing of terrorism.

CHAPTER TWO: CUSTOMER DUE DILIGENCE

Identifying Customers and Beneficial Owners

Banks must conduct customer due diligence measures, including identifying customers and their beneficial owners. This involves:

  • Verifying identity
  • Conducting background checks
  • Assessing risk

Customer Due Diligence Measures

Customer due diligence includes verifying the identity of customers, conducting background checks, and assessing risk.

CHAPTER THREE: REPORTING SUSPICIOUS TRANSACTIONS

Reporting Requirements

Banks must report suspicious transactions to the Financial Intelligence Unit (FIU). A suspicious transaction is any transaction that may be related to money laundering or financing of terrorism. Reports must include:

  • Details about the customer
  • The transaction
  • Any other relevant information

CHAPTER FOUR: COOPERATION WITH LAW ENFORCEMENT

Cooperation with Law Enforcement Authorities

Banks must cooperate with law enforcement authorities in investigating money laundering and financing of terrorism cases. Banks must provide information and assistance as requested by law enforcement authorities.

CHAPTER FIVE: EXEMPTION FROM LIABILITY

Exemption from Liability for Good Faith Reporting

Banks, their directors, officers, and employees are exempt from liability for reporting suspicious transactions in good faith. This exemption applies even if the transaction is later found to be legitimate.

CHAPTER SIX: PROGRAMS TO COMBAT MONEY LAUNDERING AND FINANCING OF TERRORISM

Developing Internal Programs

Each bank must develop and implement internal programs to prevent money laundering and financing of terrorism. Programs must include measures such as:

  • Customer due diligence
  • Internal audit arrangements
  • Training for employees and agents

CHAPTER SEVEN: TRANSITIONAL PROVISIONS AND DEFINITIONS

Transitional Provisions

Existing customers must undergo customer due diligence within 3 months after the regulation comes into effect.

Definitions

Definitions are provided for key terms used in the regulation, including:

  • Agent
  • Beneficiary
  • Business relationship
  • And others