Financial Crime World

Maldives Lays Down Foundations for Antimoney Laundering Framework for Small Businesses

The Maldivian government has taken significant steps to establish a robust antimoney laundering and counterterrorist financing (AML/CFT) framework, with a focus on small businesses.

Overview of AML/CFT Measures

A recent report provides an overview of the measures in place at the time of an onsite visit in October 2010 and shortly thereafter. The report describes and analyzes the existing AML/CFT measures, including:

  • Customer Due Diligence Procedures: The procedures currently in place for verifying customer identity and conducting due diligence.
  • Record-Keeping Requirements: The requirements for maintaining accurate records of financial transactions and customer information.
  • Reporting Obligations: The obligations for reporting suspicious transactions to the relevant authorities.

Assessment and Recommendations

The report assesses the effectiveness of these measures and identifies areas for improvement. Specifically, it recommends:

  • Strengthening Customer Due Diligence Procedures: Implementing more stringent procedures for verifying customer identity and conducting due diligence.
  • Enhanced Reporting Requirements: Improving reporting requirements for small businesses to ensure timely and accurate reporting of suspicious transactions.
  • Greater Awareness and Training: Providing training and awareness programs for financial institutions and other entities required to comply with AML/CFT regulations.

Assessment of Compliance with International Standards

The report also assesses the Maldives’ level of compliance with the Recommendations of the Financial Action Task Force (FATF). While the country has made significant progress in implementing its AML/CFT framework, there are still areas where it falls short of international standards.

Conclusion

Overall, the report provides valuable insights into the current state of AML/CFT measures for small businesses in the Maldives and offers practical recommendations for improving compliance with international standards.