Réunion Moves to Enhance Anti-Money Laundering Rules for Financial Institutions

Strengthening AML Regulations in Réunion: A Step Towards Combating Money Laundering and Terrorist Financing

The financial authorities in Réunion have proposed new rules aimed at enhancing anti-money laundering (AML) programs for local banks and other financial institutions. The move is part of efforts to align with international standards set forth in the Anti-Money Laundering Act of 2020.

Proposed Amendments: Key Highlights

• Regular Risk Assessments: Financial institutions will be required to conduct regular risk assessments to identify potential vulnerabilities in their AML programs.
• Effective Customer Due Diligence Procedures: Institutions will need to implement robust customer due diligence procedures to verify the identities of customers and assess their risk profiles.
• National AML/CFT Priorities: The proposed rules would introduce new requirements related to national anti-money laundering (AML) and combating the financing of terrorism (CFT) priorities.
• Ongoing Transaction Monitoring: Financial institutions will be required to continuously monitor transactions for suspicious activity.

Industry Experts Welcome the Move

Industry experts have welcomed the proposal, highlighting its importance in maintaining Réunion’s reputation as a trustworthy financial hub. “This is an essential step towards strengthening our defenses against illicit financial flows,” said a senior banker.

Public Comment Period Opened

The proposed amendments will be open for public comment for 60 days before being finalized. This provides an opportunity for stakeholders to review and provide feedback on the proposed rules.

By strengthening AML regulations, Réunion aims to enhance its position as a leading financial hub in the region while maintaining its commitment to combating money laundering and terrorist financing activities.