Region

Jurisdiction

Regulator

2017-03-16

Circular CN-FIU/2017/7: AML/CFT Compliance Obligations for Card Issuers and Acquirers

The Maldives Monetary Authority issued this circular to mandate Anti-Money Laundering and Counter-Terrorism Financing compliance for all licensed banks issuing credit or charge cards and providing merchant acquiring services. These institutions are required to verify merchant identities, monitor transactions for expected activity, and report suspicious activities while maintaining detailed transaction records. Although threshold transaction reports are not required for merchant-conducted transactions, banks must implement internal controls to ensure system security and adhere to the Prevention of Money Laundering and Terrorism Financing Act.

Maldives

Maldives Monetary Authority

بسم الله الرحمن الرحيم

MALDIVES MONETARY AUTHORITY MALDIVES

مَلْدِيفْ مُونِتَرِي أُوتُورِتِي مَلْدِيفْ

Circular No: CN-FIU/2017/7

March 16, 2017

TO: 1- ALL BANKS ISSUING CREDIT CARDS AND CHARGE CARDS 2- ALL BANKS PROVIDING MERCHANT ACQUIRING SERVICES

AML/CFT COMPLIANCE OBLIGATIONS

This Circular is issued to all on-shore and off-shore banks licensed and/or regulated by Maldives Monetary Authority that conducts the following activities:

1- issue credit and charge cards to its customers; and 2- process debit and credit card payments in the Maldives on behalf of merchants by underwriting, provision and maintenance of Point of Sale relationships (also known as acquiring).

As per the applicable provisions of Law No. 10/2014 (Prevention of Money Laundering and Terrorism Financing Act) all on-shore and off-shore banks licensed and/or regulated by Maldives Monetary Authority that conducts any of the above activities are required to comply with and adhere to the applicable provisions of the law and the regulations, or instructions issued thereunder.

In addition, all banks providing acquiring services to merchants must properly identify and verify merchants and monitor merchant transactions to ensure the transactions falls within the expected merchant activities.

Banks must report suspicious transactions to this Unit where there are reasonable ground to suspect that any transaction, including attempted transactions indicate money laundering, terrorism financing or activities related to proceeds of crime.

Banks are not required to report threshold transaction reports of the transactions that are conducted through merchants. However, banks must ensure the records of individual transactions are kept as this Unit may require other form of reporting from time to time.

Banks are further advised to establish internal control measures to ensure safety and security of systems and records.

Should you need any assistance and information in relation to AML/CFT compliance, please do not hesitate to contact this Unit.

Yours sincerely,

[Signature]

Abdulla Ashraf Head of FIU Financial Intelligence Unit