Regulatory Alerts2019-07-21
A circular dated July 17, 2019 regarding the rules governing the classification of financial inclusion products and services
Here is a summary of the AML/CFT guidelines for correspondent banking as provided by the Egyptian Central Bank: 1. Implement AML/CFT policies and procedures that apply to correspondent banking relationships. 2. Establish a customer identification program with due diligence measures for customers in correspondent banking relationships. 3. Conduct ongoing monitoring of transactions, accounts, and relationships for suspicious activity. 4. Establish internal controls and processes to manage the risks associated with correspondent banking relationships. 5. Develop policies and procedures to ensure compliance with the relevant AML/CFT laws and regulations in all jurisdictions where the bank operates. 6. Implement risk-based measures to identify and mitigate the risks associated with correspondent banking relationships, including identifying high-risk jurisdictions and conducting enhanced due diligence on customers in these jurisdictions. 7. Conduct regular training for relevant staff members to ensure their understanding of AML/CFT requirements and practices. 8. Establish a system for reporting suspicious transactions to the appropriate authorities in both the sender's and recipient's countries, as well as maintaining records of such reports for at least five years. 9. Cooperate with foreign financial intelligence units and law enforcement agencies in the investigation and prosecution of money laundering and terrorist financing activities. 10. Conduct regular risk assessments to identify potential risks associated with correspondent banking relationships and develop strategies to manage these risks. 11. Ensure that the bank's AML/CFT policies and procedures are consistently applied across all business lines, including retail banking, wholesale banking, and investment services. 12. Establish a system for reporting suspicious transactions to the appropriate authorities in both the sender's and recipient's countries, as well as maintaining records of such reports for at least five years. 13. Maintain clear and transparent communication with customers about the bank's AML/CFT policies and procedures, including the requirement for customers to provide the necessary information for due diligence purposes. 14. Establish a system for conducting regular audits and reviews of the bank's AML/CFT policies and procedures, as well as maintaining records of these audits and reviews for at least five years. 15. Ensure that the bank has appropriate IT systems in place to support its AML/CFT policies and procedures, including systems for monitoring transactions, screening customers, and reporting suspicious activity. 16. Establish a system for cooperating with foreign financial institutions in the exchange of information related to correspondent banking relationships, including sharing customer due diligence information and other relevant data. 17. Develop policies and procedures to ensure compliance with the relevant AML/CFT laws and regulations in all jurisdictions where the bank operates, including the implementation of any specific requirements applicable to correspondent banking relationships in those jurisdictions. 18. Conduct regular training for relevant staff members to ensure their understanding of AML/CFT requirements and practices, as well as maintaining records of these trainings for at least five years. 19. Establish a system for reporting suspicious transactions to the appropriate authorities in both the sender's and recipient's countries, as well as maintaining records of such reports for at least five years.