Suriname’s Relationships with PEPs and Correspondent Banks: A Review of Compliance

Managing Relationships with Politically Exposed Persons (PEPs) in Accordance with C.12.2 (b)

Suriname has made significant progress in managing relationships with PEPs in accordance with the requirements of Article 16 of the World Money Transfer Fund Act. According to the latest assessment, Suriname’s Financial Institutions (FIs) are now required to apply the relevant PEP requirements of Article 16, mutatis mutandis, to family members and close relatives of PEPs.

Key Findings

• FIs must apply PEP requirements to family members and close relatives of PEPs
• Clarification was provided in the Explanatory Memorandum for Article 16, which extends the PEP requirements to close associates of PEPs
• However, there is no requirement to determine whether beneficiaries and/or beneficial owners of life insurance policies are PEPs

Rating

Despite this minor shortcoming, Suriname’s efforts have largely addressed the deficiencies noted in previous assessments. As such, the country has been re-rated as “Largely Compliant” for Criterion 12.

Managing Relationships with Correspondent Banks in Accordance with C.13

Suriname’s FIs are required to manage relationships with correspondent banks and similar institutions in accordance with Article 17 of the WMTF Act.

Key Findings

• Suriname has met all the criteria for Criterion 13, including:
  • Ensuring that sufficient information is collected about respondent institutions
  • Assessing their procedures and measures to prevent money laundering and terrorist financing
  • Obtaining senior management approval before establishing new corresponding banking relationships
• The requirements are unchanged from previous assessments, indicating a stable and effective framework for managing relationships with correspondent banks

Rating

As such, Suriname has been found to be “Compliant” with Criterion 13.