Combating Money Laundering, Terrorism Financing, and Proliferation Financing Guidelines

Proliferation Financing (PF)

Proliferation financing refers to the act of raising, moving, or making available funds, assets, or economic resources to persons or entities for purposes of weapons of mass destruction (WMD) proliferation. The following are key points related to PF:

• Definition: PF involves providing financial support to individuals or organizations involved in WMD proliferation.
• Targeted Financial Sanctions- Proliferation Financing (TFS-PF): TFS-PF applies to individuals and entities designated by the United Nations Security Council (UNSC) or relevant committees.

General Principles and Policies

To combat money laundering, terrorism financing, and proliferation financing, financial institutions must adhere to the following principles:

• Prevention: Establish a system to prevent ML/TF/PF and report suspected transactions.
• Compliance: Ensure compliance with laws and regulations, co-operate with law enforcement agencies, establish internal controls, and implement a risk-based approach.
• Customer Due Diligence (CDD): Conduct thorough CDD on customers to verify their identity and assess ML/TF/PF risks.

Internal Programmes and Obligations of the Board

The board of directors is responsible for implementing effective AML/CFT/CPF internal programmes. This includes:

• Policies and Procedures: Establish policies and procedures to prevent ML/TF/PF, ensure ongoing training for employees, co-operate with law enforcement agencies, and monitor and mitigate ML/TF/PF risks.
• Ongoing Training: Provide regular training sessions for employees on AML/CFT/CPF matters to ensure they are equipped to identify and report suspicious transactions.