Financial Crime World

ALL CUSTOMERS UNDER SCRUTINY: NEW REGULATIONS AIM TO COMBAT MONEY LAUNDERING AND TERRORISM FINANCING

Financial institutions are now required to implement enhanced customer due diligence (CDD) measures for all customers, in a bid to combat money laundering and terrorism financing.

Enhanced Customer Due Diligence Measures

According to new regulations, financial institutions must:

  • Identify and verify the identity of their customers using reliable sources, including government-issued identification documents.
  • Conduct ongoing monitoring of business relationships to ensure that transactions are consistent with their knowledge of the customer’s commercial activities and risk profile.

These measures apply in various situations, including: + When opening an account or establishing a business relationship with a customer + Dealing with occasional customers or one-off transactions exceeding $10,000 + Whenever there is suspicion of money laundering or terrorism financing

Additional Requirements

Financial institutions must also: + Obtain information on the purpose and intended nature of the business relationship, as well as the source of funds. + Identify and verify the identity of any person acting on behalf of the customer and ensure that they are authorized to do so.

These regulations have been introduced in response to growing concerns over money laundering and terrorism financing, which pose significant threats to global financial stability and security.

A Major Step Forward

“The introduction of these regulations is a major step forward in our efforts to combat money laundering and terrorism financing,” said a spokesperson for the regulatory body. “By requiring financial institutions to implement enhanced CDD measures, we can ensure that the financial system is safer and more secure for all customers.”

The regulations have been welcomed by anti-money laundering experts, who say they will help prevent illegal activities from being financed through the financial system.

Conclusion

In conclusion, the new regulations require financial institutions to implement enhanced customer due diligence measures to prevent money laundering and terrorism financing. These regulations are aimed at ensuring that the financial system is safe and secure for all customers, and have been welcomed by anti-money laundering experts as a major step forward in combating illegal activities.