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Staff Requirements Ensure Effective Functioning of Financial Units
The Attorney General has announced new measures to ensure the proper and efficient performance of financial units. These measures include the establishment of a register of reporting entities and strict customer due diligence requirements.
Register of Reporting Entities
Under the new regulations, the Director will establish and maintain a register of reporting entities, which must include the name and details of each entity. Reporting entities are prohibited from providing services or establishing business relationships with customers unless their name is entered on the register.
Customer Due Diligence Requirements
Additionally, reporting entities are required to carry out prescribed identification processes for customers who open accounts, engage in transactions, or conduct business with them. This includes verifying the identity of individuals conducting transactions and beneficial owners.
Record Keeping and Reporting Suspicious Transactions
The regulations also require reporting entities to maintain accurate records and report any suspicious transactions to the Director. Failure to comply with these requirements can result in fines and imprisonment.
According to sources within the financial units, the new regulations are aimed at preventing money laundering and financing of terrorism. “These measures will help us identify and prevent illegal activities more effectively,” said a senior official.
Regulations in Full
- The Attorney General is responsible for determining the terms and conditions of employment for staff members of financial units.
- The Director must establish and maintain a register of reporting entities, which includes the name and details of each entity.
- Reporting entities are prohibited from providing services or establishing business relationships with customers unless their name is entered on the register.
- Reporting entities must carry out prescribed identification processes for customers who open accounts, engage in transactions, or conduct business with them.
- Reporting entities must maintain accurate records and report any suspicious transactions to the Director.
Penalties for Non-Compliance
- Failure to comply with regulations can result in fines and imprisonment for individuals and corporate bodies.
- Fines range from VT25 million to VT100 million, depending on the severity of the offense.
- Imprisonment terms range from 5 years to life, depending on the severity of the offense.
The financial units have welcomed the new regulations, saying they will help to improve transparency and prevent illegal activities.