Risk Assessments Key to Effective Anti-Money Laundering and Combatting of Terrorism Financing

New Guidelines Issued by Central Bank

The Central Bank has issued revised guidelines aimed at ensuring that financial institutions conduct effective risk assessments to prevent money laundering and financing of terrorism. The new guidelines come into effect immediately, and all regulated entities must conduct a gap analysis against the requirements by July 13th.

Key Requirements

• Develop a risk-based customer due diligence program tailored to your specific sector and business model.
• Identify and assess the risks associated with money laundering and terrorism financing, and implement measures to mitigate those risks.
• Establish a robust compliance program that includes policies and procedures for detecting and reporting suspicious transactions.
• Conduct regular audits and submit findings to the Central Bank.

Effective Governance and Risk Management

The guidelines emphasize the importance of effective governance and risk management in preventing money laundering and terrorist financing. Financial institutions must:

• Establish a robust compliance program
• Implement measures to mitigate risks associated with money laundering and terrorism financing
• Conduct regular audits and submit findings to the Central Bank

Information Sharing and Disclosure

Financial institutions are required to disclose any suspicious transactions to the Financial Intelligence Unit (FIU) as soon as reasonably practicable. The guidelines also emphasize the importance of sharing information with other regulatory agencies to combat money laundering and terrorist financing.

Consequences of Non-Compliance

Failure to comply with the guidelines can result in serious consequences, including:

• Suspension or revocation of licenses
• Compliance directions issued by the Central Bank

Purpose of the Guidelines

The revised guidelines are designed to help financial institutions prevent money laundering and financing of terrorism, and to protect the integrity of the financial system. By implementing effective risk assessments and compliance programs, financial institutions can mitigate the risks associated with money laundering and terrorist financing.

Note: The Central Bank has been designated as the Anti-Money Laundering/Cryptocurrency Financing (AML/CFT) Supervisory Authority, responsible for reviewing the compliance programs of financial institutions, approving their compliance officers, issuing guidelines, and taking regulatory action against non-compliant entities.