Regulatory Alerts2012-12-30
Added · Updated
BFIU Circular No. 06: Instructions for Capital Market Intermediaries under the Money Laundering Prevention Act 2012 and Anti Terrorism Act 2009
Capital Market Intermediaries, including stock dealers, brokers, portfolio managers, merchant banks, securities custodians, and asset managers, must establish an Anti Money Laundering and Combating Financing of Terrorism Compliance Unit at their head office and implement comprehensive risk management procedures. These entities are required to enforce strict Know Your Client protocols, including identifying beneficial owners with 20% or more shares, conducting Enhanced Due Diligence for Politically Exposed Persons, and collecting complete identification information for existing accounts opened before September 30, 2010. Intermediaries must submit Suspicious Transaction Reports immediately upon detection, file half-yearly summaries by the 15th of the following month, and retain all client identification and transaction records for at least five years after account closure. Additionally, each intermediary must formulate and submit its own guidance notes, approved by its Board of Directors, within three months of the circular's issuance.