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Anti-Money Laundering
Money Laundering
is the participation in any transaction that seeks to conceal
or disguise the nature or origin of funds derived from illegal
activities including fraud, corruption, organised crime, terrorism,
and many other crimes. Money Laundering is a dynamic activity
conducted with increasing professionalism. Predicate offences
for money laundering are defined by local laws in the diverse
global jurisdictions. In response to the international community's
growing concern about the problem of money laundering and
potential terrorist financing, many countries around the world
are enacting or strengthening their laws and regulations regarding
Anti-Money Laundering requirements.
Thereby the
FATF's (Financial Actions Task Force an inter-governmental
body) 40+9 recommendations are at various stages of being
implemented by the FATF member countries, plus country specific
laws are enforcing financial institutions and other businesses
and professions to implement effective measures and procedures
to detect and prevent money laundering and terrorist financing.
This also requires the provision to employee's of sufficient
information and training on all aspects of money laundering
techniques and the regulations and duties imposed by the respective
country specific Anti-Money Laundering laws. The international
community through numerous international treaties, United
Nations Security Council Resolutions and best practices, has
endorsed the FATF recommendations at the highest political
level.
In addition
to the Money Laundering laws, there is a very clear requirement
to implement an effective New Client Adoption Policy and Procedure
(Know Your Customer).
The prime duties
thereby being:-
• Duty to identify customer.
• Duty to establish economic beneficial ownership of
the funds.
• Duty to report suspicious transactions.
• Duty to make and keep substantive records.
• Duty to take and maintain internal security measures.
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Anti-Money
Laundering