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Financial Institutions Urged to Comply with New Money Laundering Guidelines
The Financial Intelligence Unit (FIU) has issued new guidelines aimed at preventing money laundering and combating terrorist financing in the financial sector.
Measures to Prevent Money Laundering
According to the guidelines, financial institutions are required to implement measures to identify and report suspicious transactions to prevent the laundering of proceeds from illegal activities. The guidelines also emphasize the importance of protecting reporting persons and staff from criminal and civil liability for breach of any restriction on disclosure of information.
Examples of Suspicious Transactions
The FIU has identified several examples of suspicious transactions that may indicate money laundering or terrorist financing, including:
- Unusually large cash deposits
- Substantial increases in cash deposits without apparent cause
- Customers who seek to exchange large quantities of low denomination notes for those of higher denomination
Confidentiality and Reporting
Financial institutions are also prohibited from disclosing the fact that a suspicious transaction report is being made to the FIU, as this could tip off the suspect and undermine the investigation.
Compliance with International Standards
The guidelines have been issued to comply with international standards and best practices in anti-money laundering and combating terrorist financing. The FIU has encouraged financial institutions to compile and record any comments or feedback on the guidelines and forward them to the unit for appropriate action.
Key Takeaways
- Financial institutions must implement measures to identify and report suspicious transactions to prevent money laundering and terrorist financing.
- Reporting persons and staff are protected from criminal and civil liability for breach of any restriction on disclosure of information if they report their suspicions in good faith to the FIU.
- Financial institutions are prohibited from disclosing the fact that a suspicious transaction report is being made to the FIU.
- The guidelines have been issued to comply with international standards and best practices in anti-money laundering and combating terrorist financing.
Contact
For more information on the new guidelines, contact the Financial Intelligence Unit at [insert contact information].