Financial Crime World

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West Sahara Adopts Stringent KYC and AML Regulations

February 13, 2020

In an effort to combat money laundering and terrorist financing activities, the Central Reserve Authority of Western Sahara has introduced a comprehensive Know Your Customer (KYC) and Anti-Money Laundering (AML) policy.

Key Requirements

  • Financial institutions operating in the region must implement robust customer due diligence procedures.
  • Conduct risk assessments and maintain accurate records.
  • Outlines enhanced due diligence requirements for high-risk customers and Politically Exposed Persons (PEPs).

Customer Verification Process

  • Customers will be required to undergo verification procedures, including submission of acceptable identification documents and remote verification methods where applicable.
  • Financial institutions must conduct ongoing monitoring of customer activities and report any suspicious transactions to regulatory authorities.
  • The policy ensures compliance with relevant legal frameworks, including:
    • PCA 2002
    • MLR 2017
    • Banking Act 2017
    • Companies Act 2018
    • FATF (Financial Action Task Force)
    • CTF (Counter-Terrorist Financing) regulations

Employee Training and Accountability

  • Employees of financial institutions operating in Western Sahara must undergo comprehensive training programs to ensure awareness and understanding of KYC and AML procedures.
  • Failure to comply with the policy may result in disciplinary action against employees and legal consequences for the institution.

Designated AML Compliance Officer and Regular Reviews

  • The Central Reserve Authority has designated an AML Compliance Officer who can be contacted for inquiries related to KYC and AML.
  • The authority will conduct regular reviews and updates to ensure compliance with evolving regulations and best practices in AML and KYC procedures.

Conclusion

The new policy is a significant step towards strengthening financial integrity in Western Sahara, demonstrating the country’s commitment to combating money laundering and terrorist financing activities.