UN Security Council Resolution: Combating Money Laundering and Terrorist Financing

The United Nations Security Council has issued a resolution aimed at combating money laundering and terrorist financing, emphasizing the need for countries to take effective measures to prevent the misuse of financial systems by criminals.

Key Provisions

Customer Due Diligence: Financial institutions must conduct customer due diligence on all new customers, including Politically Exposed Persons (PEPs), and maintain records of such information for at least five years.
Risk-Based Approach: Financial institutions should apply a risk-based approach when conducting customer due diligence and monitoring business relationships to ensure that the most effective measures are taken to prevent money laundering and terrorist financing.
Record-Keeping: Financial institutions must maintain, for at least five years, all necessary records on transactions, both domestic and international, to enable them to comply swiftly with information requests from competent authorities.
Correspondent Banking: Financial institutions should gather sufficient information about respondent institutions to understand fully the nature of their business and reputation before engaging in cross-border correspondent banking or other similar relationships.
Politically Exposed Persons: Financial institutions must take appropriate risk management systems to determine whether a customer or beneficial owner is a PEP, obtain senior management approval for establishing such business relationships, and conduct enhanced ongoing monitoring of the relationship.

Implementation

Countries are required to implement these measures by [insert date] and report back to the Security Council on their progress. The resolution also emphasizes the need for international cooperation and information sharing to combat money laundering and terrorist financing.

Conclusion

The United Nations Security Council’s resolution is a significant step forward in combating money laundering and terrorist financing. By implementing these measures, countries can help prevent the misuse of financial systems by criminals and disrupt the flow of funds to terrorists. It is essential that countries work together to effectively implement these measures and share information to combat this global threat.