Tougher Regulations to Combat Money Laundering and Terrorist Financing

Regulatory Bodies Implement Stricter Measures

In a bid to combat the growing threat of money laundering and terrorist financing, regulatory bodies have implemented stricter measures to ensure that financial institutions are taking necessary precautions. According to Article (15) of the new law, financial groups must implement group-wide programs against money laundering and terrorism financing.

Key Requirements Include:

• Policies and procedures for exchanging information within the group
• Ensuring that foreign branches and subsidiaries apply Anti-Money Laundering and Counter-Terrorist Financing measures

Reporting Entities Must Take Additional Steps

Reporting entities are required to conduct customer due diligence measures, including identifying politically exposed persons. They must also report any suspicious transactions or activities to the authorities.

Specific Requirements:

• Conduct customer due diligence measures
• Identify politically exposed persons
• Report suspicious transactions or activities to the authorities
• Skip certain procedures in cases where there is a suspicion of money laundering or terrorist financing

Detailed Records and Notification Required

Reporting entities must keep detailed records of all local and international transactions, as well as customer due diligence records, for at least five years. Article (18) requires reporting entities to immediately notify the authorities if they suspect or have reasonable grounds to suspect that funds are the proceeds of money laundering, associated predicate offense, or terrorist financing.

Key Requirements:

• Keep detailed records of all local and international transactions
• Keep customer due diligence records for at least five years
• Notify the authorities immediately in case of suspicious transactions

Whistleblower Protection and Confidentiality

Article (20) ensures that individuals who report suspected money laundering offenses in good faith will not face penal, civil, administrative, or disciplinary liability. Reporting entities are prohibited from disclosing information about reported transactions to anyone other than authorized personnel or regulatory bodies.

Key Requirements:

• Protect whistleblowers from penal, civil, administrative, or disciplinary liability
• Maintain confidentiality of reported transactions

Regulatory Bodies to Monitor Compliance

Article (21) tasks regulatory and supervisory authorities with monitoring compliance with the new law and regulations. This includes conducting on-site and off-site inspections, as well as cooperating with counterpart entities in areas related to Anti-Money Laundering and Counter-Terrorist Financing.

Key Responsibilities:

• Conduct on-site and off-site inspections
• Cooperate with counterpart entities in Anti-Money Laundering and Counter-Terrorist Financing matters

Cooperation and Information Sharing Crucial

Article (22) emphasizes the importance of cooperation and information sharing between regulatory bodies and financial institutions. Competent entities are required to notify the authorities immediately if they detect any suspicion of money laundering, associated predicate offense, or terrorist financing.

Key Requirements:

• Notify the authorities immediately in case of suspicious transactions
• Cooperate with counterpart entities in Anti-Money Laundering and Counter-Terrorist Financing matters

Conclusion

The new regulations aim to enhance transparency and accountability in the financial sector, while also preventing the misuse of funds for illegal activities. By implementing stricter measures and promoting cooperation and information sharing, regulatory bodies are working to combat money laundering and terrorist financing.