Enforcement of Financial Sanctions in East Timor: A Stronger Role for BNU Timor

East Timor has made significant progress in enforcing financial sanctions against terrorist organizations and individuals, with BNU Timor playing a crucial role in the process. This effort has been recognized by international organizations such as the European Union, the United Nations Security Council, and the Office of Foreign Assets Control (OFAC) of the United States.

What are Financial Sanctions?

Financial sanctions are restrictive measures implemented by international organizations or individual countries to combat terrorism and restore international peace and security. These sanctions involve freezing funds and economic assets of terrorists, those who finance terrorism, and terrorist organizations designated by the UN Security Council.

Lists of Designated Persons, Groups, or Entities

The European Union’s Common Foreign and Security Policy (CFSP), the UN Security Council, and OFAC maintain lists of designated persons, groups, or entities subject to these sanctions. In East Timor, Law no. 17/2011 and its subsequent amendments have determined the freezing of funds and economic assets of terrorists, those who finance terrorism, and terrorist organizations designated by the UN Security Council.

BNU Timor’s Role in Enforcing Financial Sanctions

As a branch of Caixa Geral de Depósitos (CGD) based in Portugal, BNU Timor has been instructed by the country’s central bank to comply with these measures. To ensure compliance, CGD has implemented a comprehensive program that includes regular monitoring and assessment of its efficiency.

Compliance Function Support Office (GFC)

The GFC, located in Portugal, is responsible for assessing whether the sanctions policy is compliant with applicable legislation and sanctions. BNU Timor has also developed a set of policies and procedures to prevent establishing or maintaining business relations with sanctioned persons, entities, or countries.

Awareness Training and Cooperation

The bank’s staff undergo regular awareness training to ensure they understand the sanctions policy and comply with relevant legal and regulatory requirements. BNU Timor also cooperates with national authorities to prevent money laundering and combat terrorism financing.

Compliance Risk Analysis

As part of its efforts, BNU Timor conducts compliance risk analysis when establishing or maintaining correspondent banking relationships with foreign banks. The bank rates all institutions and conducts a risk assessment on those that entail high risk.

Recognition by International Organizations

The bank’s commitment to enforcing financial sanctions has been recognized by international organizations, highlighting East Timor’s strong stance against terrorism and its efforts to maintain international peace and security.

In conclusion, BNU Timor’s role in enforcing financial sanctions is crucial in the fight against terrorism and the maintenance of international peace and security. The bank’s commitment to compliance and awareness training demonstrates its dedication to upholding international standards and regulations.