AML-CFT General Guidelines 4230/2023-00076 [614] for Regulated Institutions

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LIST OF ACRONYMS AND ABBREVIATIONS.......................................................... v
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1.1. Introduction ................................................................................................1
1.2. Interpretation ..............................................................................................2
1.3. Objectives...................................................................................................3
1.4. Scope ..........................................................................................................3
1.5. Applicability...............................................................................................3
1.6. Relationship with Existing Policies ...........................................................4
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2.1. The Meaning of Money Laundering ..........................................................4
2.1.1. Money Laundering Possible Stage.............................................................4
2.2. The Meaning of Terrorist Financing..........................................................4
2.2.1. Understanding of the Terrorism Financing Processes...............................4
2.2.2. Difference between Money Laundering & Terrorism Financing ..............5
2.3. Financing of the Proliferation of Weapons of Mass Destruction ..............6
2.3.1. Assessing Proliferation Financing (PF) risk ..............................................6
2.3.2. Mitigating PF risk.......................................................................................6
2.4. Risks Associated with ML/ FT and the Need for Compliance ..................6
2.4.1. Compliance and Legal Risk .......................................................................6
2.4.2. Operational Risk or Transactional Risk .....................................................7
2.4.3. Reputational Risk .......................................................................................7
2.4.4. Credit and Concentration Risk...................................................................7
2.4.5. Liquidity Risk.............................................................................................7
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3.1. The Meaning of Risk Based Approach (RBA)..........................................7
3.2. AML/CTF Risk Assessment Process.........................................................8
3.3. Identifying Specific Risk Categories .........................................................8
3.4. Products and Services Risk ........................................................................9
3.5. Customer Risk............................................................................................9
3.6. Delivery Channel Risk .............................................................................10
3.7. Geographic Location Risk........................................................................11
3.8. Updating the Risk Assessment.................................................................11
3.9. Analysis of Specific Risk Categories.......................................................11
3.10. Group-wide ML/ TF Risk Assessment ....................................................12

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3.11. Rating and Ranking..................................................................................13
3.12. Using Assessment of Inherent Risks as the Basis for Risk Mitigants.....13
3.13. Development of the regulated institution’s AML & CTF Programs using
the Risk Assessment .............................................................................................13
3.14. Cross Border Correspondent Banking Relationships. .............................14
3.15. Electronic Funds Transfers (EFTs)..........................................................15
3.16. Use of Agents...........................................................................................16
3.17. New and Developing Technologies.........................................................17
3.18. Trade Finance...........................................................................................17
3.19. Politically Exposed Persons (PEPs).........................................................19
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4.1. AML/CTF General Compliance Programme Overview..........................20
4.2. Risk Management Practices.....................................................................21
4.3. Governance...............................................................................................21
4.4. Board of Directors....................................................................................21
4.5. Roles and Responsibilities .......................................................................22
4.6. Senior Management..................................................................................22
4.7. Roles and Responsibilities .......................................................................22
4.8. General Compliance and Management Arrangements............................23
4.9. Employee Screening Procedures..............................................................25
4.10. Employee Training and Awareness Programmes....................................25
4.11. Front-Line Employees..............................................................................25
4.12. Employees that Establish Business Relationships...................................25
4.13. Supervisors and Managers .......................................................................26
4.14. Compliance Officer..................................................................................26
4.15. Account Opening Staff.............................................................................26
4.16. International Trade Services Staff............................................................26
4.17. New Employees........................................................................................26
4.18. Refresher Training....................................................................................26
4.19. Staff Awareness........................................................................................27
4.20. Records of Training Documents ..............................................................27
4.21. Independent Audit Function.....................................................................27
4.22. General Reporting Requirements.............................................................29
4.22.1. On Weekly Basis:..................................................................................29
4.22.2. On Monthly Basis: ................................................................................29
4.22.3. On Quarterly Basis:...............................................................................29
4.22.4. On an annual basis: ...............................................................................29
4.22.5. The Central Bank reserves the right to request any information related
to AML/CFT compliance. ....................................................................................29
4.23. Policies and Procedures............................................................................30

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4.24. Policies.....................................................................................................30
4.25. Procedures................................................................................................31
CHAP 5: CUSTOMER IDENTIFICATION PROGRAM (CIP) AND CDD .................. 32
5.1. Customer Identification Programme (CIP)..............................................32
5.2. Basic Customer Due Diligence (BCDD) .................................................32
5.3. Enhanced Customer Due Diligence (ECDD)...........................................33
5.4. Simplified Customer Due Diligence (SCDD)..........................................33
5.5. Requirement to Existing Customer..........................................................34
5.6. Reliance on identification and verification already performed ...............34
5.7. Timing of verification ..............................................................................35
CHAP 6: TRANSACTION MONITORING AND RECORD KEEPING AND RETENTION
6.1. Transaction Monitoring............................................................................35
6.2. Automated Transaction Monitoring.........................................................36
6.3. Monitoring of Foreign Branches, Subsidiaries and Offices ....................38
6.4. Indicators of Suspicious Transactions......................................................38
6.5. Suspicious Transactions (STR) & Cash Transactions Reports (CTR) ....38
6.6. Record Keeping and Retention ................................................................38
CHAP 7: FINANCIAL SANCTIONS OF TERRORISTS AND TERRORISM FINANCIERS
7.1. Data Base of Terrorists and Terrorism Financier ....................................39
7.2. National List.............................................................................................39
7.3. UNSRC Consolidated List .......................................................................39
7.4. Screening and Enhanced Checking..........................................................40
CHAP 8: FINAL PROVISIONS................................................................................. 40
8.1. Compliance with these Guidelines...........................................................40
8.2. Repealing Clause......................................................................................41
8.3. Effective Dates.........................................................................................41
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