Financial Crime World

New Anti-Money Laundering Regulations Issued

Strengthening the Country’s AML/CFT Framework

The Financial Intelligence Unit (FIU) has issued new regulations aimed at enhancing the country’s anti-money laundering (AML) and combating the financing of terrorism (CFT) framework. These regulations are designed to strengthen the ability of financial institutions to detect and prevent money laundering and terrorist financing activities.

Key Requirements

  • Establishing Source of Wealth: Financial institutions must take reasonable measures to establish the source of wealth and funds of customers and beneficial owners identified as Politically Exposed Persons (PEPs).
  • Enhanced Ongoing Monitoring: Relationships with PEPs require enhanced ongoing monitoring, including determining whether a customer or beneficial owner is a PEP.
  • Additional CDD Measures: Higher-risk business relationships with domestic PEPs are subject to additional Customer Due Diligence (CDD) measures.
  • Life Insurance Policies: Life insurance policies must be reviewed to determine whether beneficiaries or beneficial owners are PEPs. If higher risks are identified, financial institutions must inform senior management before payout and conduct enhanced scrutiny on the business relationship with the policyholder.

Enhanced Due Diligence Measures

  • Cross-Border Correspondent Banking Relationships: These relationships are subject to enhanced due diligence measures, including gathering sufficient information about respondent institutions, assessing their anti-money laundering controls, and obtaining approval from senior management before establishing new relationships.
  • High-Risk Entities: Financial institutions are prohibited from entering into business relationships with entities that have been deemed high-risk or non-cooperative by the FIU.

Mandatory Reporting and Record-Keeping

  • Suspicious Transactions: Financial institutions must report suspicious transactions to the relevant authorities.
  • Record Keeping: They must maintain records of all originator and beneficiary information for at least seven years.

Effective Date

The new regulations will come into effect on [insert date] and financial institutions are expected to comply with the new requirements by that time.

Key Changes:

  1. Establish the source of wealth and funds of customers and beneficial owners identified as PEPs.
  2. Enhanced ongoing monitoring required for relationships with PEPs.
  3. Additional CDD measures for higher-risk business relationships with domestic PEPs.
  4. Life insurance policies must be reviewed to determine whether beneficiaries or beneficial owners are PEPs.
  5. Cross-border correspondent banking relationships subject to enhanced due diligence measures.
  6. Prohibition on entering into business relationships with high-risk entities.
  7. Mandatory reporting of suspicious transactions and record-keeping requirements.

These new regulations aim to improve the country’s AML/CFT framework and enhance its ability to detect and prevent money laundering and terrorist financing activities.