Montserrat’s AML and KYC Regulations: What You Need to Know
The government of Montserrat has implemented strict regulations on Anti-Money Laundering (AML) and Know-Your-Customer (KYC) requirements to combat money laundering, terrorist financing, and other financial crimes. These regulations aim to ensure that businesses operating in the territory take necessary steps to prevent financial crimes.
Identity Verification
Identity verification is a crucial component of AML and KYC compliance. According to Montserrat’s regulations, businesses must verify the identity of their customers by obtaining a bank statement that shows the customer’s address, which cannot be older than three months ago. This process is not limited to a one-time instance, but rather requires multiple instances of verification throughout the relationship.
Timing of Verification
The timing of verification depends on the business’s requirements and conveyance to Shufti Pro. In general, businesses are required to verify customer identity when:
- Onboarding new customers
- Dealing with transaction data exceeding certain monetary thresholds defined in Montserrat’s regulations
- Facing higher risks from their customers
Politically Exposed Persons and EDD Measures
Montserrat’s Enhanced Due Diligence (EDD) requirements require businesses to determine whether their customers are:
- Politically Exposed Persons
- Hold public office
- Exhibit a higher risk profile
Shufti Pro provides an AML screening service that screens an individual’s selected ID attributes against watchlists of global regulatory authorities, foreign and domestic databases, compromised PEPs, and sanctioned individuals.
Reliance on External Services
Montserrat’s regulations allow businesses to seek the services of third-party providers to apply measures of due diligence. However, businesses remain liable for maintaining all compliance and fulfilling AML and KYC obligations, even if they rely on external services.
Record Retention
Finally, Montserrat’s regulations require businesses to retain data for not less than five years as part of their AML and KYC obligations for due diligence. This includes collecting necessary information from third-party providers without undue delay.
By understanding these regulations and requirements, businesses operating in Montserrat can ensure compliance with AML and KYC standards and maintain a secure and reliable financial system.