Uruguay’s Banking Sector Takes a Strong Stance Against Money Laundering and Terrorist Financing
A Robust System to Prevent Money Laundering and Terrorist Financing
In compliance with national laws and best practices in the industry, Uruguay’s banking sector has implemented stringent measures to prevent money laundering and terrorist financing. The system comprises an organizational structure, operational procedures, policies, and a comprehensive manual.
Organizational Framework for AML/CFT
The organizational framework involves several key bodies:
- Board: The highest authority in AML/CFT matters
- Anti-Money Laundering Commission: Composed of two directors, the General Manager, and the Compliance Officer
- AML Operational Committee: Brings together senior managers from various departments to tackle specific topics
Key Components of the Operational Structure
- 1. AML/TF Risk Management System - SARLAFT
- 2. Customer Acceptance Policy
- 3. Customer Due Diligence Policies and Procedures
- 4. Transactions Monitoring System
- 5. Reporting Process for Unusual and/or Suspicious Transactions
- 6. Financial Transactions Reporting to the Central Bank of Uruguay
- 7. Policies and Procedures regarding Correspondent Banks
- 8. Policies and Procedures regarding Staff
- 9. Independent Review of the Prevention System
Enhancing Effectiveness and Efficiency
The Bank developed an online software tool in 2015 for entering information about transactions involving customers who manage third-party funds through their accounts.
Commitment to Compliance
The Bank’s commitment to compliance is further reflected in its annual revisions and adoption of new versions of the AML/CFT Policies Manual, which incorporates operational and policy settings aimed at achieving best practices. Staff training remains a priority, with direct training sessions conducted across the country, induction courses for newly hired officials, and participation in external courses and events by UPLA (AMLU) team members.
Regional Integration
The Compliance Officer currently holds the position of Vice Chair of the Committee for the Prevention of Money Laundering and Terrorist Financing (COPLAFT) within the Latin American Federation of Banks (FELABAN).
Uruguay’s banking sector is thus firmly positioned at the forefront of regulatory compliance, not only meeting but also surpassing international standards in its efforts to combat money laundering and terrorist financing.