Maldives Banks Required to Report Cash Transactions and Fund Transfers
New Regulations Aim to Combat Money Laundering and Financing of Terrorism
In a move to prevent money laundering and financing of terrorism, the Maldivian government has introduced new regulations requiring local banks to report cash transactions and fund transfers.
Reporting Requirements
Under the new rules, banks will be required to submit reports on:
- Cash transactions exceeding MVR 100,000 (approximately USD 6,500)
- Fund transfers worth more than MVR 50,000 (approximately USD 3,250)
The Financial Intelligence Unit (FIU), established under the Prevention of Money Laundering and Financing of Terrorism Act, will be responsible for collecting and analyzing these reports to identify potential suspicious transactions.
Customer Due Diligence
In addition to reporting requirements, banks will also be required to perform customer due diligence measures on existing customers within three months of the regulation’s implementation. This includes:
- Verifying the identity of customers and their beneficial owners
- Identifying any political exposed persons
Penalties for Non-Compliance
The Maldives Monetary Authority (MMA) has introduced administrative penalties for banks that fail to comply with these regulations, including fines ranging from MVR 10,000 to MVR 500,000.
Key Changes
• Banks will be required to report cash transactions exceeding MVR 100,000 and fund transfers worth more than MVR 50,000. • Customer due diligence measures must be performed on existing customers within three months of the regulation’s implementation. • Banks will be required to designate a compliance officer at management level for the implementation of the regulations.
Impact
The new regulations are aimed at preventing money laundering and financing of terrorism in the Maldives. The increased transparency and reporting requirements are expected to help identify and disrupt illegal financial activities.
Banks operating in the country will need to adapt to these new requirements, which are expected to have a significant impact on their operations.
Timeline
The regulation comes into effect immediately, with banks required to submit reports within:
- 30 days of the transaction
- Three months from the implementation date for customer due diligence measures