Regulatory Alerts2015-05-06
Circular CN-FIU/2015/7: Complying to Section 27 of Regulation for Prevention of Money Laundering and Terrorism Financing for Banks
The Financial Intelligence Unit of the Maldives Monetary Authority issued this circular to clarify the implementation timeline for customer due diligence on existing customers under Section 27 of the anti-money laundering regulation. The regulator emphasized that its primary concern is the establishment of an ongoing compliance process rather than strict adherence to the initial three-month deadline. Banks and compliance officers are urged to adopt a flexible and practical approach to avoid unduly burdening customers and negatively impacting the financial sector.
بسم الله الرحمن الرحيم
MALDIVES MONETARY AUTHORITY MALDIVES
މޯލްޑިވްސް މަނިޓަރީ އޮތޯރިޓީ ދިވެހިރާއްޖެ
Circular No: CN-FIU/2015/7 May 6, 2015
To: ALL BANKS
COMPLYING TO SECTION 27 OF REGULATION FOR PREVENTION OF MONEY LAUNDERING AND TERRORISM FINANCING FOR BANKS
MMA has received complaints regarding the procedures allegedly being used to implement Section 27 of Regulation for Prevention of Money Laundering and Terrorism Financing for Banks. This section provides:
Each Bank shall, within 3 (three) months following the commencement of this Regulation, perform customer due diligence measures stipulated in this Regulation for existing customers when this Regulation comes into effect.
The implementation of the above quoted provision was discussed in the monthly meeting of Compliance Officers held on Monday, 27 April 2015.
FIU, in the presence of all the Compliance Officers, have responded stating that FIU is more concerned in verifying that the banks have an on-going process to update as per the above quoted, rather than the actual deadline. No further comments or concerns have been raised about this matter on or after the said meeting.
FIU, have been repeatedly assuring the banks, that the nature of our compliance process will be flexible, adaptable and will take into consideration the reality of the country’s socio-economic life.
Therefore, we urge the banks and specifically the Compliance Officers to take a flexible and practical approach in this respect such that customers are not unduly burdened resulting in negative impacts to the respective bank and to the financial sector of the country.
Thank you for your continuing cooperation.
Yours sincerely,
[Signature]
Ibrahim Athif Shakoor Head of FIU Financial Intelligence Unit
Email: mail@mma.gov.mv | Website: www.mma.gov.mv | Telex: 77144 MMA OPR MF | SWIFT: MMAUMVMV Majeedhee Building, Boduthakurufaanu Magu, Male' 20182 Phone: (960) 330 8679, (960) 330 8682, (960) 331 4940, (960) 331 2343 | Fax: (960) 332 3862