Financial Crime World

BANKS IN MARSHALL ISLANDS MUST ENSURE COMPLIANCE WITH TARGETED FINANCIAL SANCTIONS

Introduction

The Office of the Banking Commission in the Marshall Islands has issued a new guidance for banks and financial service providers to ensure compliance with targeted financial sanctions (TFS). This guidance is crucial for maintaining a strong reputation and preventing potential risks associated with non-compliance.

Background on Targeted Financial Sanctions

  • UN Targeted Financial Sanctions (Terrorism & Proliferation) Regulations, 2020: These regulations require banks and financial service providers to freeze assets, prohibit transactions, and report suspicious activities related to TFS designations.
  • United Nations Sanctions (Implementation) Act, 2020: This act obligates banks and financial service providers in the Marshall Islands to implement these regulations and ensure compliance with TFS.

Compliance Requirements

Banks and financial service providers in the Marshall Islands are required to apply policies, procedures, and controls to implement targeted financial sanctions against individuals and entities designated by the United Nations and the Marshall Island authorities. This includes:

  • Freezing assets related to TFS designations
  • Prohibiting transactions related to TFS designations
  • Reporting suspicious activities related to TFS designations

Accessing Guidance and Resources

The guidance is available on the RMI Courts website, and a link will be provided by the Office of the Attorney General. The UN Security Council Consolidated List can also be accessed online at https://www.un.org/securitycouncil/content/un-sc-consolidated-list.

Consequences of Non-Compliance

Failure to comply with TFS regulations may result in severe penalties, including fines and reputational damage.

Next Steps for Banks and Financial Service Providers

Banks and financial service providers are advised to review their policies and procedures to ensure compliance with TFS regulations. They can contact the Office of the Banking Commission or the Financial Intelligence Unit for guidance and assistance. By prioritizing compliance, they can maintain a strong reputation and prevent potential risks associated with non-compliance.