Financial Institutions Must Implement Stricter Anti-Money Laundering Measures

Combating Money Laundering and Terrorist Financing

The government has introduced new regulations requiring financial institutions and designated non-financial businesses and professions (DNFBPs) to adopt stricter anti-money laundering measures to combat money laundering and terrorist financing.

Key Requirements

Financial institutions and DNFBPs must not open bank accounts, initiate or maintain business relationships, or carry out transactions without conducting thorough customer due diligence.
They must identify and verify the beneficial owners of customers and understand the nature of their businesses or introducing businesses.
In cases where third-party vendors are used to perform these tasks, financial institutions and DNFBPs must ensure that they are responsible for compliance with the regulations.

Enhanced Due Diligence Measures

Financial institutions and DNFBPs must apply enhanced due diligence measures to high-risk customers and transactions, including those involving natural or legal persons from countries identified as high-risk by international authorities.
They must keep customer records up-to-date and relevant on an ongoing basis, conduct regular reviews of existing records, and scrutinize transactions undertaken by customers.

Correspondent Relationships

Financial institutions are prohibited from entering into correspondent relationships or similar arrangements with shell banks.
They must take measures to mitigate the risks associated with such relationships.

Wire Transfers

Financial institutions must obtain accurate information about the originator and beneficiary of wire transfers exceeding a certain value, and attach this information to transfer orders or relevant messages throughout the payment chain.
They are prohibited from carrying out wire transfers with persons and entities listed by international authorities as being involved in money laundering or terrorist financing.

Money or Value Transfer Services

Providers of money or value transfer services must be licensed by the central bank and supervised to ensure compliance with anti-money laundering and combating the financing of terrorism (AML/CFT) measures.

Record-Keeping Requirements

Financial institutions and DNFBPs are required to maintain records of all domestic and international transactions and operations for a minimum of 10 years from the date of conclusion.
They must also make available all information obtained during due diligence processes and transaction records upon request by competent authorities.

Call to Action

The government has emphasized the importance of these regulations in preventing money laundering and terrorist financing, and has called on financial institutions and DNFBPs to implement them promptly and effectively.