Maldives Takes Steps to Prevent Financial Crime
The Bank of Maldives is taking a proactive approach to combat financial crime, emphasizing the importance of following laws and regulations to prevent money laundering and terrorism financing.
Prevention of Money Laundering and Financing of Terrorism Act (2014)
According to the Prevention of Money Laundering and Financing of Terrorism Act (10/2014), financial institutions in the Maldives are required to gather specific information from customers to ensure that their accounts are not used for illegal activities. The Bank of Maldives has implemented policies and procedures to comply with these regulations, which include:
- Acquiring valid personal or business information from all customers and beneficial owners
- Verifying the source of funds and purpose of a transaction when certain conditions are met
Global Impact of Money Laundering
The amount of money laundered globally each year is estimated to be between $800 billion and $2 trillion, according to the United Nations Office on Drugs and Crime. To prevent this type of crime, banks like Bank of Maldives must:
- Verify the source of funds and purpose of a transaction when certain conditions are met
- Refuse to process transactions that appear suspicious or if there is doubt about the veracity or adequacy of information provided by customers
Conditions for Enhanced Due Diligence
The bank must apply enhanced due diligence procedures in the following situations:
- Transactions exceeding 50,000 Maldivian Rufiyaa or its equivalent in foreign currencies
- Domestic or international transfers of funds
Customer Cooperation and Confidentiality
Bank of Maldives emphasizes the importance of customer cooperation in preventing financial crime. Customers are required to provide an initial information form and advise the bank of certain details based on the nature, conduct, and/or behavior of their account. The bank ensures that this information is kept confidential.
Supervision and Regulation
The Maldives Monetary Authority (MMA), the country’s central bank, closely monitors financial institutions’ adherence to laws and regulations. Bank of Maldives is subject to supervision and regulation by the MMA and must report any suspicious transactions to its Financial Intelligence Unit.
Commitment to Customer Service and Prevention of Financial Crime
In a statement, Bank of Maldives emphasized its commitment to providing high levels of customer service while ensuring that its customers’ accounts are not used for illegal activities. The bank urges all customers to cooperate in preventing financial crime and to follow the required procedures when establishing and operating their accounts.
By working together, we can prevent financial crime and ensure a safer and more secure financial system.