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MARSHALL ISLANDS BANKING COMMISSIONER ISSUES NEW AML/CFT GUIDELINES FOR BANKS AND FSPs

The Banking Commissioner of the Republic of the Marshall Islands (RMI) has issued new guidelines for Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) for banks and Financial Service Providers (FSPs).

Scope of the Guidelines

The guidelines apply to all banks, FSPs, and their board members, management, and employees operating in the RMI. The guidelines cover a range of topics, including:

  • Money laundering and terrorist financing risks
  • Identification and assessment of AML/CFT risks
  • Governance
  • Customer due diligence
  • Suspicious activity reporting
  • Record keeping

Structure of the Guidelines

The guidelines are divided into eight sections, providing a comprehensive framework for banks and FSPs to comply with AML/CFT regulations. Each section includes references to relevant sections of the AML Regulations 2002.

Key Points

• The guidelines do not constitute additional legislation or regulation and are intended to be read in conjunction with the AML Regulations 2002. • Banks and FSPs must identify, assess, and mitigate ML/TF risks to ensure compliance with AML/CFT regulations. • The guidelines provide guidance on good practices for banks and FSPs to follow, but do not require them to adopt a specific approach. • Banks and FSPs are encouraged to refer to international best practices and guidance material from organizations such as the Financial Action Task Force (FATF) and Asia-Pacific Group on Money Laundering (APG).

Terminology

The guidelines use “must”, “should”, and “may” throughout to provide clarity on the various directions. The terms have specific meanings:

  • “Must” indicates a requirement in legislation or regulation
  • “Should” indicates good practice
  • “May” indicates an option for meeting obligations

Updates and Amendments

The guidelines will be updated or amended from time to time by the Banking Commissioner, as deemed appropriate. Banks and FSPs are encouraged to keep themselves apprised of updates and changes to ensure compliance with AML/CFT regulations.