Maldives Banks Adopt Zero-Tolerance Policy

Maldives Banks Adopt Zero-Tolerance Policy on Financial Fraud

Combating Financial Crimes in the Maldivian Banking Sector

In an effort to combat the rising threat of financial crimes in the Maldivian banking sector, local banks have adopted a stringent policy against money laundering and terrorism financing. This move comes as part of a broader initiative by the government to strengthen regulations and prevent illicit activities that could destabilize the country’s economy.

Bank of Maldives at the Forefront

According to sources within the industry, Bank of Maldives has been at the forefront of this initiative, working closely with regulatory bodies such as the Maldives Monetary Authority (MMA) to ensure compliance with international standards and local laws. The bank has also implemented detailed policies and procedures aimed at preventing money laundering and terrorism financing.

Stringent Measures in Place

The bank’s spokesperson emphasized the importance of preventing financial crimes: “We take our responsibility very seriously. Our employees undergo rigorous training to identify and report suspicious transactions, and we have strict protocols in place to verify the source of funds and purpose of each transaction.”

Some of the measures implemented by Bank of Maldives include:

Rigorous employee training: Employees are trained to identify and report suspicious transactions.
Strict protocols for verifying customer information: The bank verifies the source of funds and purpose of each transaction.
System for tracking and monitoring transactions: This enables the bank to identify potential money laundering activities early on.

Prevention of Money Laundering and Financing of Terrorism Act

The Prevention of Money Laundering and Financing of Terrorism Act (10/2014) requires banks to acquire valid personal or business information from all customers and beneficial owners. This includes:

Confirming income and expenditure details: Banks must verify the source of funds.
Reporting suspicious transactions: Banks must submit reports to MMA’s Financial Intelligence Unit in cases where suspicious activity is detected.

Reducing the Risk of Financial Crimes

According to estimates by the United Nations Office on Drugs and Crime, between $800 billion and $2 trillion are laundered globally each year. The Maldivian government aims to prevent this illicit flow of funds from undermining the country’s economy and destabilizing its financial systems.

The move towards stricter regulations and heightened vigilance is expected to have a positive impact on the Maldivian banking sector, reducing the risk of financial crimes and maintaining public trust in the industry.