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Financial Intelligence Unit Warns Against Terrorist Financing and Money Laundering

LISBON, PORTUGAL - The Financial Intelligence Unit (FIU) has issued a stern warning against terrorist financing and money laundering, emphasizing the importance of strict compliance with anti-money laundering and counter-terrorism financing (AML/CTF) regulations.

According to Article 133 of Portugal’s Criminal Code, terrorist financing is classified as a crime. Similarly, Article 313 of the Penal Code criminalizes money laundering. The FIU has been working closely with financial institutions, including Banco Nacional Ultramarino (BNU), to prevent and detect these illegal activities.

International Operations

CGD, a Portuguese bank, has implemented AML/CTF measures in its international operations. The bank’s internal policy requires branches and subsidiaries in third countries to apply measures equivalent to those laid down by Portuguese law. This includes:

  • Identification
  • Due diligence
  • Correspondent banking
  • Record keeping
  • Training

CGD has also established policies and procedures for internal control, evaluation, risk assessment, and management.

BNU Timor Compliance

BNU Timor, a subsidiary of CGD in East Timor, has adopted all AML/CTF policies and procedures set by Head Office. The bank has implemented customer due diligence measures, including:

  • Filtering IT solutions to check and watch proscribed lists
  • Enhanced due diligence on customers who are Politically Exposed Persons (PEPs)
  • Maintenance of records of customer identification and transactions for a period of seven years

Monitoring and Reporting

BNU Timor’s employees are trained to detect and report suspicious activities, and the bank is required to report any suspicious transactions to the Financial Intelligence Unit of East Timor Central Bank. The bank has also implemented an independent audit and compliance review function to ensure that its policies and procedures comply with applicable legislation and regulatory requirements.

Correspondent Banks

BNU Timor has implemented risk-based due diligence procedures for correspondent banks, including:

  • Understanding their business
  • License to operate
  • Management
  • Ownership
  • AML/CTF regime

The bank also performs ongoing due diligence of correspondent accounts on a regular basis or when circumstances change.

Sanctions Policy

BNU Timor has implemented a sanctions policy to prevent the establishment or maintenance of business relationships with persons, entities, or sanctioned countries. The bank’s sanctions policy is available on its website.

Wolfsberg AML Questionnaire and USA Patriot Act Certificate

BNU Timor follows the principles contained in the Wolfsberg AML Questionnaire and has made its questionnaire available on its website. The bank has also obtained a USA Patriot Act Certificate, which is available on its website.

The FIU urges financial institutions to remain vigilant against terrorist financing and money laundering, emphasizing the importance of strict compliance with AML/CTF regulations.