Preventing Money Laundering and Terrorist Financing: A Comprehensive Approach

The fight against money laundering and terrorist financing requires a multi-faceted approach that involves various stakeholders. The Money Laundering and Terrorist Financing Prevention Act outlines the measures that financial institutions, non-financial businesses, and professions must take to prevent these crimes.

Internal Measures

Financial institutions, non-financial businesses, and professions are required to implement internal measures to prevent money laundering and terrorist financing. These measures include:

Establishing policies and procedures: Financial institutions, non-financial businesses, and professions must establish policies and procedures that ensure compliance with anti-money laundering laws.
Designating a responsible person: A person must be designated to implement the internal measures and ensure their effectiveness.
Employee training: Employees must receive training on anti-money laundering laws and internal measures to prevent money laundering and terrorist financing.
Transaction monitoring: Transactions must be monitored for suspicious activity, and reports must be filed with the Financial Intelligence Unit (FIU).

Reporting

Financial institutions, non-financial businesses, and professions are required to report any suspicious activity to the FIU. This includes:

Reporting suspected proceeds of an offence: Any property suspected of being proceeds of an offence must be reported to the FIU.
Reporting knowledge or suspicion of money laundering or terrorist financing: Financial institutions, non-financial businesses, and professions must report any knowledge or suspicion of money laundering or terrorist financing.
Reporting attempts to conclude a transaction: Attempts to conclude a transaction that may be related to money laundering or terrorist financing must also be reported.

Exemptions

Certain individuals and entities are exempt from reporting requirements. These include:

Attorneys: Attorneys are not required to report information obtained in the course of providing legal services.
Precious metal and precious stone dealers: Precious metal and precious stone dealers must report cash transactions exceeding a certain value set by the Committee.
Real estate agents and brokers: Real estate agents and brokers must report suspicious transactions related to real estate sales or purchases.

Financial Institution Restriction

Financial institutions are prohibited from doing business with individuals or entities that have been designated as high-risk for money laundering or terrorist financing. This includes:

Prohibiting cash transactions: Cash transactions exceeding a certain value set by the Committee must be prohibited.
Prohibiting transactions with sanctioned countries: Transactions with countries or territories subject to sanctions related to terrorism or other criminal activities must also be prohibited.

Cooperation and Information Exchange

Financial institutions, non-financial businesses, and professions are required to cooperate with the FIU and exchange information on suspicious activity. This includes:

Providing information to the FIU: Financial institutions, non-financial businesses, and professions must provide information to the FIU on request.
Sharing information with other authorities: Information must be shared with other competent authorities to combat money laundering and terrorist financing.
Participating in joint investigations and prosecutions: Financial institutions, non-financial businesses, and professions must participate in joint investigations and prosecutions.

Risk-Based Approach

Financial institutions, non-financial businesses, and professions are required to implement a risk-based approach to anti-money laundering measures. This includes:

Identifying and assessing risks: Risks of money laundering and terrorist financing must be identified and assessed.
Developing policies and procedures: Policies and procedures must be developed to mitigate these risks.
Monitoring transactions and reporting suspicious activity: Transactions must be monitored for suspicious activity, and reports must be filed with the FIU.

By implementing these internal measures, reporting requirements, exemptions, financial institution restrictions, cooperation and information exchange, and a risk-based approach, we can effectively prevent money laundering and terrorist financing in our country.