Financial Institutions Urged to Exert Special Vigilance Against Money Laundering and Terrorist Financing

In an effort to combat money laundering and terrorist financing, financial institutions have been instructed to take extra precautions when dealing with certain transactions. The measures aim to establish the origin of sums involved and prevent illegal activities from being carried out.

Documentation and Record-Keeping Requirements

• Financial institutions are required to keep records of transactions involving habitual or casual customers for at least five years after the closure of accounts, discontinuation of relationships, or completion of transactions.
• These records must include information on:
  • Identity of customers
  • Originators
  • Beneficiaries
  • Owners of proxy representatives

Programmes for Prevention of Money Laundering and Terrorist Financing

• Financial institutions are mandated to develop programmes for preventing money laundering and terrorist financing.
• These programmes should include measures to:
  • Identify suspicious transactions
  • Report suspicious transactions to the National Agency for Financial Investigation

Reporting Suspicious Transactions

• Financial institutions are required to report any transactions that may be linked to a crime or offence, or which could be considered as money laundering.
• This includes transactions involving unknown identities of originators or beneficiaries.

Acknowledgment of Receipt and Exemptions from Liability

• The National Agency for Financial Investigation is responsible for acknowledging receipt of reports and referring matters to the State Counsel where necessary.
• Financial institutions that act in good faith when reporting suspicious transactions are exempt from liability, while those who fail to report such transactions can face disciplinary action.

By exercising special vigilance, financial institutions can play a crucial role in preventing money laundering and terrorist financing. It is essential for them to implement effective measures to identify and report suspicious transactions, thereby contributing to the fight against illegal activities.