Instruction of BCTL N. 05/2017 on Customer Identification, Record-Keeping and Transaction Report

INSTRUCTION OF BCTL N. 05/2017 OF 25 AUGUST
ON CUSTOMER IDENTIFICATION, RECORD-KEEPING
AND TRANSACTION REPORT 1
Banco Central de Timor-Leste has the duty to assure compliance, by the financial institutions, with the provisions of Law nº 17/2011 of 28 December, on the Legal Regime for the Prevention and Combatting Money Laundering and the Financing of Terrorism, as amended. Taking into consideration that a Bank or the banking system may be exposed to reputational, operational, legal and other risks related with money laundering activities and that the involvement of banking institutions in money laundering or the financing of terrorism is likely to seriously undermine their reputation and undermine the public’s confidence in them and in the banking system. Furthermore, considering that the effective knowledge and understanding by Banks of their customers and the business that they conduct with or through the banking institution is essential in preventing the banking system from being used for money laundering or the financing of terrorism, hence reducing the risk of the banking system becoming a vehicle for/or a victim of financial crime and suffering consequential damage, and protecting the reputation and integrity of the banking system. In view of the best international practices and in the interest of protecting the Timorese banking system, the depositors and the institutions, enhancing a sound and safe financial and banking sector. The Governing Board of Banco Central de Timor-Leste, in accordance with Article 27 paragraph 2 subparagraph c) of Law nº 17/2011 of 28 December and Article 31 paragraph 1 of Law nº 5/2011 of 15 June, hereby resolves to approve the following Instruction:
CHAPTER I
GENERAL REQUIREMENTS
SECTION I
GENERAL PROVISIONS
Article 1
Definitions
In this Instruction the terms below shall have the following meaning:
a). “Administrator” means any person who is an officer of a Bank, or other juridical person, including any member of the Governing Board or the Audit Committee and the Compliance Officer and further including any person who alone or together with one or more others has the authority to enter into commitments for the account of such juridical person; b). “AML/CFT” means anti-money laundering/combating the finance of terrorism;

1 This English version of the Instruction is provided to facilitate banks and the public to understand the content. Interpretations should be referenced to the official version which the Portuguese version.

c). “AML/CFT Law” means Law n o
. 17/2011 of 28 December on the Legal Regime for the Prevention and Combatting Money Laundering and the Financing of Terrorism, as amended; d). “Bank” means entities established under UNTAET Regulation n o . 2000/8 on Bank Licensing and Supervision including Other Deposit Taking Institution established pursuant to Public Instruction 06/2010 of 29 December, and their agents; e). “Beneficial owner” means the natural person[s] who ultimately owns or control a customer and/or the natural person on whose behalf a transaction is being conducted including those persons who exercise ultimate effective control over a legal person or arrangement; f). “Compliance Officer” means an officer who is responsible for ensuring that the Bank complies with its obligations in accordance with the present Instruction and the applicable laws and regulations; g). “Correspondent banking” means the provision of banking services by one bank to another bank (the respondent bank); h). “FATF” means the Financial Action Task Force, the inter-governmental body established in 1989, to which the Asia/Pacific Group on Money Laundering of which Timor-Leste is a member, is an associate member; i). “Financial Information Unit” or “FIU” means the institution established under
Article 4 of Law n o
. 17/2011 of 28 December as amended; j). “Legal arrangements” means express trusts or other similar legal arrangements such as fiduciary, nominee, etc; k). “Numbered accounts” means accounts in which the name of the beneficial owner is known to the Bank but is substituted by an account number or code name in some documentation; l). “Occasional transaction” means a single transaction, or a series of transactions that are, or appear to be linked to each other, where,
i. the Bank does not have a business relationship with the customer, and
ii. the total amount of money paid or received by the customer in a single
transaction or series of transactions is greater than US$ 10,000. m). “Payable through accounts” means correspondent accounts that are used directly by third parties to transact business on their own behalf; n). “Politically Exposed Person” or “PEP” means; the natural persons, resident both inside or outside of Timor-Leste, who are or have been entrusted within the previous year with prominent political or public functions, as well as their close family members and persons known to have close corporate or commercial relationships with them. For the purposes of this Instruction:
i. "Prominent political or public functions":
(1). Heads of State, heads of Government and Government members; (2). Members of Parliament; (3). Members of superior courts and other high-level judicial bodies, whose decisions are final and binding, unless in exceptional circumstances; (4). Members of board of directors and boards of auditors of central banks; (5). Heads of diplomatic missions and consulates; (6). High-ranking Military and Police officers;

(7). Members of board of directors and boards of auditors of public companies and corporations wholly owned or controlled by the State, public institutes, public foundations, public establishments under whatever legal form; (8). Members of executive boards of international organizations;
ii. "close family members":
(1). The spouse or the unmarried partner;
(2). The parents and offspring, their spouses or unmarried partners; (3). The siblings; o). “Qualifying Wire Transfers” are all wire transfers except for those that flow from a transaction carried out by a credit or debit or prepaid card for the purchase of goods or services (not including person to person transfers) so long as the card number accompanies all transfers flowing from the transaction; and bank-to-bank transfers and settlements where the both parties are acting on their own behalf; p). “Senior management” means the most senior persons in each Bank who are responsible for the management and administration of the Bank; q). “Shell bank” means a bank that has no physical presence in a country in which it is incorporated and licensed, and which is unaffiliated with a regulated financial group that is subject to effective consolidated supervision; r). “Unusual transaction” means a transaction that appears to lack economic or commercial sense, or that involves large sums of money, particularly large cash deposits not consistent with the expected activity in an account.
Article 2
Scope

This Instruction shall apply to all Banks including branches of foreign entities
licensed to operate in Timor-Leste.
This Instruction shall also be applicable to the foreign majority owned subsidiaries
and branches of a Bank to the extent that local applicable laws and regulation so permit.
Notwithstanding the provision of the previous paragraph, in the event that the local
laws and regulations prohibit compliance with these obligations, the Bank shall so advise the Central Bank.
SECTION II
PROHIBITION AND RESTRICTION
Article 3
Prohibition and restriction
Banks are prohibited from:
a). Keeping anonymous accounts or accounts in obviously fictitious names; b). Dealing with unknown customers and those who refuse to provide the details required to enable compliance with this Instruction; c). Allowing numbered accounts;

d). Entering into or continuing correspondent banking relationships with shell banks.
SECTION III
INTERNAL PROGRAMMES
Article 4
Internal policies and procedures

Every Bank shall develop internal policies and procedures to ensure compliance with
this Instruction.
The policies and procedures referred to in the previous paragraph shall include, but
not limited to, the following:
a). Customer identification and verification; b). Customer acceptance; c). On-going monitoring and control of high-risk accounts; d). Reporting of suspicious transactions; e). Record-keeping.
Banks shall incorporate into their internal policies and procedures reasonable
measures to identify and assess the risk of customers, especially in identifying the type of customers associated with a high risk of money laundering or financing of terrorism.
In determining the risk profile of a particular customer or type of customer, the Bank
shall at a minimum take into consideration the following factors:
a). the origin of the customer and location of business; b). background or profile of the customer; c). nature of the customer’s business; and d). structure of ownership for a corporate customer.
Banks are required to establish adequate screening procedures into their recruitment
policy to ensure high standards when hiring employees.
Article 5
Compliance measures
Every Bank shall appoint a Compliance Officer at Senior Management level,
approved by the Central Bank, who is able to carry out his/her responsibilities effectively and become the point of contact for the Central Bank and the Financial Information Unit with regards to AML/CFT matters.
Compliance Officers shall have direct access to Senior Management and shall have
full access to all customers’ information and data in order to ensure compliance with the provisions established in this Instruction and the applicable laws and regulations.
Banks shall obtain the Central Bank’s approval on the appointment or change in the
appointment of the Compliance Officer.
Banks shall ensure that the roles and responsibilities of the Compliance Officer are
clearly defined and documented to ensure the following:
a). the Bank’s compliance with the requirements of this Instruction and other applicable laws and regulations;

b). implementation of the anti-money laundering and combating financing of terrorism policies and programme; c). proper channels of communication are in place to effectively communicate to all levels of employees the AML/CFT policies and procedures; d). all employees are aware of the Bank’s AML/CFT measures, including policies, control mechanisms and the channels of reporting; e). the identification of money laundering and financing of terrorism risks associated with new products or services or arising from the Bank’s operational changes, including the introduction of new technology and processes; f). the AML/CFT mechanism is continuously assessed to ensure that it is effective and sufficient to address any change in money laundering and financing of terrorism trends.
Article 6
Annual compliance report

Every Bank shall prepare an annual report with regards to the implementation of this
Instruction which shall include, but not be limited to, the following:
a). A description of the bank’s systems, control objectives, controls and procedures to implement the AML/CFT regime in compliance with the AML/CFT Law and Instructions, particularly addressing the objectives and requirements in Article 4; b). The name, role and responsibilities of the Compliance Officer; c). The role and responsibilities of Internal Audit in reviewing the systems and procedures, including HR, with a summary of the audit programs relating to AML/CFT planned and achieved during the year; d). A description of the AML/CFT training programs provided for staff during the year.
The report referred to in the previous paragraph shall include an assertion signed by
the Chairman of the Board of Directors, or by the chief executive officer in case of a branch of a foreign bank, that:
a). The description of the systems and procedures in the report presents the Bank’s systems and procedures as designed and implemented throughout the year; b). The controls related to the control objectives stated in the description of the Bank’s systems and procedures were suitably designed throughout the period; c). The controls related to the control objectives identified in the report operated effectively throughout the year; d). The other information in the report fairly describes the subject matter and operated effectively throughout the year.
Each Bank shall require its external or internal auditors to form an opinion whether
the description of the system and other information in the report fairly represents the system as designed and implemented; that the controls are suitably designed to meet the objectives of the AML/CFT regime; and that the controls operated effectively during the year.
The auditor shall issue an opinion that:
a). Conveys reasonable assurance about the matters in the management assertion; b). Includes a description of the tests of controls and the results thereof; c). Draws attention to material shortcomings or weaknesses;

d). Draws attention to any limitations in the scope of the audit.
5. The report together with the assertion and auditor’s opinion shall be submitted to the
Central Bank within four months after the end of each financial year.
Article 7
Training programme

Banks shall provide regular training programmes on AML/CFT practices and
measures for its staff, in particular, those staff that are directly dealing with customers and officers in-charge of processing and accepting new customers as well as staff responsible for monitoring transactions.
Banks shall make their staff aware that they may be held personally liable for any
failure to observe the AML/CFT requirements.
Banks are required to make an allocation in their annual operating expenses budget to
support an ongoing AML/CFT staff training programme.
CHAPTER II
CUSTOMER DUE DILIGENCE
Article 8
General requirements
Banks, in conducting a customer due diligence process, shall at all times obtain a copy
of the documents and data to evidence the customer due diligence process has taken place.
Banks shall take reasonable and appropriate measures to ensure that the records of
existing customers, including customer profiles, remain up to date and relevant throughout the business relationship.
Banks shall draw the attention of the customer to the need to update the information
in his/her other accounts, if any.
The Central Bank may, from time to time, determine the circumstances under which
the obligations regarding the identification and verification of the identity of customers or the beneficial owners may be reduced or simplified.
Banks are required to identify and assess risks but shall apply a risk-based approach in
managing the risks that have been identified.
Article 9
Customer identification
Banks shall identify their customers and beneficial owners and verify their identities
by means of independent source documents, data or information when:
a). establishing business relationship with any customer; b). carrying out occasional transactions in an amount equal to or above US$10,000, whether conducted as a single transaction or several transactions that appear to be linked; c). doubts exist about the veracity or adequacy of previously obtained customer identification data; d). there is a suspicion of money laundering or financing of terrorism.
The due diligence process required in the previous paragraph shall include the
identification and verification of the effective beneficial owner(s), those with a controlling interest, and the natural persons who manage a legal person or other natural person.
Banks shall identify and verify the identity of their clients, by the following means:
a). Identification of individuals and verification of their identity shall include the full name and national identification number; b). Identification of legal persons shall include verifying information concerning the corporate name, head office address, identities of directors, proof of incorporation or similar evidence of their legal status, legal form of organization of the legal person, and the form and powers of those who manage the legal person; c). Identification of relevant legal arrangements, including persons associated with the arrangements.
Banks shall collect information regarding the purpose and intended nature of the
business relationship.
If there is doubt as to whether a customer specified in paragraph 1 above acts for
his/her own account, Banks shall verify the identity of the person or persons on whose behalf the customer is acting and verify that he/she is authorized to do so.
Notwithstanding the requirements established in the previous paragraphs, Banks may
verify the identity of a customer and any beneficial owner of the customer after establishing a business relationship with the customer if; a). this is necessary not to interrupt the normal conduct of business with regard to the customer; and b). any risk of money laundering or terrorist financing that may be caused by carrying out the verification after establishing the business relationship is effectively managed.
Banks that carry out verification after establishing a business relationship with a
customer under the previous paragraph shall complete the verification as soon as reasonably practicable after establishing the business relationship but shall not exceed 3 business days.
If a bank is unable to comply with the requirements established in paragraphs 1 to 6
above, it:
a). shall not open the account, commence a business relationship or carry out any occasional transaction with that customer; or b). if it has already established a business relationship with that customer, shall terminate the business relationship and consider making a suspicious transaction report.
Article 10
Minimum verification requirements
When Banks undertake the opening of deposit accounts, at least the following data
should be collected in the respective forms for each of the account holders and their representatives, as well as any other person entitled to operate the account:
a). In the case of a physical person:
i). Full name and signature; ii). Date and place of birth;

iii). Nationality; iv). Complete permanent address; v). Occupation and employer, if any; vi). Taxpayer number; vii). Public office held, if any; viii). Type, number, date and issuer of the identification document; ix). Income; x). Expected use of the account: amount, number, type, purpose and frequency of the transactions expected; xi). E-mail address, landline and mobile telephone numbers. b). In the case of a legal entity:
i). Corporate name; ii). Corporate purpose; iii). Address of the registered head office; iv). Taxpayer number; v). Company’s registration number; vi). Identity of the partners or shareholders who own or have voting rights in the legal person corresponding to at least 5% of the share capital; vii). Identity of the legal person’s management bodies; viii). Identity of any persons exercising effective control of the legal person; ix). Identity of the beneficial owners. c). In case of accounts held by self-employed persons, the respective form for account opening must contain the tax identification number, name, registered head office or place of business and purpose, in addition to the information referred to in subparagraph a). d). The requirements established in subparagraph b) points v. and vii. do not apply in case of entities listed on a recognised stock exchange.
2. The data referred to in the preceding paragraph shall be proved through the following
means of verification:
a). For physical persons the data specified in points i) to iii) of subparagraph a) of the preceding paragraph shall be proved by:
i). For resident persons, through the presentation of two of the following documents: national identity card, voter registration card, passport, resident permit in the territory, in case of a foreign citizen; ii). For non-resident persons, through the presentation of the passport and of the identity declaration duly certified by the Embassy or Consulate of its country of origin or residence or by a Timorese public authority. b). The full address, occupation and employer may be evidenced by any document, mean or through any diligence considered suitable and sufficient to demonstrate the information provided; c). With regard to legal entities:
i). The identification data referred to in points i) to iii) of subparagraph b) of paragraph 2 shall be demonstrated by an extract from the commercial

registry; and, in the case of non-residents, through a duly certified equivalent document; ii). The identification data referred to in points iv) and v) of subparagraph b) of paragraph 2 can be proved by the presentation of a certificate from the tax authorities, certificate of commercial registry or similar document, and, in the case of non-residents, through a duly certified equivalent document; iii). The identification data contained in points vi) and vii) of subparagraph b) of paragraph 2 can be demonstrated by simple written statement issued by the legal entity itself, containing the name or corporate name of the holders, signed, in the case of Public Limited Liability Companies, be signed by the Company’s Secretary. d). When a physical or a legal person is not resident in the national territory and has not proved all of the identification data required in paragraph 2 above, the Bank may request written confirmation of the veracity and timeliness of the information provided, to be issued by a credit institution where the person already holds a bank deposit account. e). When the confirmation referred to in the preceding subparagraph takes place, the Bank shall notify the Central Bank of the details of the credit institution that provided the information and the Central Bank may, if it deems necessary, impose further requirements.
Article 11Article 11
New technologies and non-face-to-face business relationship

Banks are required to have policies in place and take appropriate measures to manage
and mitigate risks to prevent the misuse of technological developments in money laundering or terrorist financing schemes when:
a). developing new products and new business practices, including new delivery mechanisms; and b). developing the use of new or developing technologies for both new and preexisting products.
Banks that offer non-face-to-face business services shall pay special attention to the
following when establishing and conducting business relationship:
a). establishing appropriate measures for customer verification that shall be as effective as that for face-to-face customers; b). implementing a monitoring system and reporting mechanism to identify potential money laundering and financing of terrorism activities.
The measures that the Bank may use to verify non-face-to-face customers shall
include, but not limited to:
a). requisition of additional documents to complement those which are required for face-to-face customers; b). developing independent contact with the customer; or c). verification of customer information publicly available.
The Bank shall ensure the certification of copies obtained when dealing with non-face
to face relationships.
Article 12
Enhanced due diligence
Banks shall conduct enhanced customer due diligence on customers who pose higher
risk including, but not limited to, the following:
a). High net worth individuals; b). Politically exposed persons; c). Complex legal arrangements; d). Non-resident customers; e). Intensive cash based businesses; f). Individuals and entities from locations known for their high rates of crime such as drug producing, trafficking, smuggling, etc; g). Businesses/activities identified by the FATF as of higher money laundering and financing of terrorism risk; and h). Countries or jurisdictions with inadequate AML/CFT laws and regulations as highlighted by the FATF.
Notwithstanding the requirements established in the previous paragraph, Banks may
classify a customer or transaction as high risk, when:
a). following the initial acceptance of the customer the Bank determines the pattern of account activity does not conform to the bank’s understanding of the customer; b). the customer refuses, without good reason, to provide the information requested and to cooperate with a Bank’s customer due diligence process; c). the Bank has cause to believe that the customer has been refused banking services by another Bank for reasons related to the implementation of money laundering and terrorist financing requirements.
Without prejudice to any requirement to adopt higher standards for certain
transactions or for certain classes of persons, the due diligence process established in the previous paragraphs shall include, but not be limited to, the following:
a). Obtaining more detailed information from the customer and the beneficial owner and through publicly available information take all reasonable and appropriate measures to establish the source of wealth or funds and the purpose of the transaction; and b). Obtaining approval from the Senior Management of the Bank before establishing or continuing the business relationship with the customer.
Banks shall conduct enhanced on-going due diligence on customers referred to in
paragraph 1 above throughout their business relationships with such customers.
The Central Bank may from time to time review the type of customers referred to in
the paragraph 1 above.
Article 13
Ongoing customer due diligence
Banks shall exercise ongoing due diligence with respect to the business relationship
with customers and closely examine the transactions carried out in order to ensure that they are consistent with their knowledge of the customer, his/her commercial activities and risk profile and, where required, the source of his/her funds.
Banks shall operate a system to detect unusual transactions in all their customers’
accounts and procedures to assess whether these unusual transactions give rise to suspicions that should be reported to the FIU.
Banks shall conduct regular reviews on existing records of customers, especially
when:
a). a significant transaction is about to take place; b). there is a material change in the way the account is operated; c). the customer’s documentation standards change substantially; or d). it discovers that the information held on the customer is insufficient.
In circumstances other than those mentioned in the previous paragraph, a Bank,
based on its risk assessment, may require additional information consistent with the Bank’s current customer due diligence standards from those existing customers that are considered to be of higher risk.
CHAPTER III
CORRESPONDENT RELATIONSHIPS
Article 14
General requirements
Banks are prohibited from establishing or maintaining business relationships with
banks or financial entities that are domiciled or are subsidiaries of entities based in a country or territory that does not have effective consolidated supervision.
Banks are prohibited from establishing or maintaining commercial relationships with
respondent financial institutions in a foreign country if they permit their accounts to be used by shell banks.
Banks are required to obtain approval of Senior Management before establishing a
new correspondent banking relationship.
Article 15
Correspondent banking
Banks shall take the following measures before establishing a cross-border correspondent banking relationship:
a). assess the suitability of the respondent bank by taking the following steps:
i). gather adequate information about the respondent bank to understand fully the nature of the respondent bank’s business, including the following, where applicable; (1). Know your customer policy; (2). Information about the respondent bank’s management and ownership; (3). Major business activities; (4). Its geographical presence or jurisdiction country of correspondence. ii). based on publicly available information, evaluate the respondent institution’s reputation and the nature of supervision to which it is subject; iii). assess the respondent bank’s AML/CFT systems and ascertain that they are adequate and effective, having regard to the AML/CFT measures of the country or jurisdiction in which the respondent bank operates; and iv). in the case of a payable-through account, the Bank shall ensure that the respondent institution:
(1). has verified the customer’s identity;

(2). has implemented mechanisms for ongoing monitoring with respect to its clients; and (3). is capable of providing relevant identifying information on request. b). clearly understand and document the respective AML/CFT responsibilities of each bank.
CHAPTER IV
WIRE TRANSFERS
Article 16
Obligations of Banks

Banks shall not execute, intermediate, or receive a wire transfer unless the wire
transfer complies with the provisions of this Instruction.
Ordering Banks shall include required and accurate originator information, and
required beneficiary information, on all wire transfers and related messages.
Intermediary Banks in the payment chain for processing wire transfers shall ensure
that:
a). all originator and beneficiary information remains with the wire transfer or related message throughout its processing; b). effective risk-based policies and procedures are in place for determining (i) when to execute, reject, or suspend a wire transfer lacking required originator information or required beneficiary information; and (ii) the appropriate followup action.
Beneficiary Banks shall:
a). take reasonable measures to identify cross-border wire transfers that lack required originator or required beneficiary information; b). verify the identity of the beneficiary, if the identity has not been previously identified; c). maintain records concerning the identity of the beneficiary; d). have effective risk-based policies and procedures for determining (i) when to execute, reject, or suspend a wire transfer lacking required originator information or required beneficiary information; and (ii) the appropriate follow-up action.
In the processing of wire transfers, Banks are required to take freezing action and
shall prohibit conducting transactions with designated persons and entities, as per the obligations set out in Article 36 of the AML/CFT Law, relating to the prevention and suppression of terrorism and terrorist financing.
Article 17
Requirements for Wire Transfers
All Qualifying Wire Transfers shall always contain the following:
a). the name of the originator; b). the originator account number, where such an account is used to process the transaction; c). the originator’s address, or national identity number, or customer identification number, or date and place of birth;

d). the name of the beneficiary; and e). the beneficiary account number where such an account is used to process the transaction.
2. Cross border wire transfers below [$1,000] shall apply simplified customer due
diligence measures unless there is a suspicion of money laundering or terrorist financing.
3. No Wire Transfer may be originated for a customer unless proper due diligence
process has been completed in accordance with this Instruction.
4. In the absence of an account, a unique transaction reference number shall be included
which permits traceability of the transaction.
5. The requirement established in paragraph 1 above in respect of originator
information may be waived where several individual cross-border wire transfers from a single originator are bundled in a batch file for transmission to beneficiaries, provided that the originator’s account number or unique transaction reference number is included as described in paragraph 3 above, and the batch file contains required and accurate originator information, and full beneficiary information, that is fully traceable within the beneficiary country.
CHAPTER V
RECORD KEEPING
Article 18
Record-keeping

Banks shall maintain records, in an appropriate record keeping system, that are readily
available to the Central Bank and other competent authorities determined by law, containing the following information:
a). copies of documents evidencing the identities of customers, beneficial owners or agents, customer due diligence, account files, business correspondence and documents relating to transactions for at least ten 10 years after the transaction has been completed or the business relationship with the customer has ended; b). copies of all reports sent to the FIU for the period at least five years after transmission to the FIU; c). copies of all reports and data provided to foreign FIUs and/or entities; and d). copies of the feedback provided by the FIU regarding the reports on suspicious transactions submitted for five years after the receipt of such feedback.
Notwithstanding the requirements established in the previous paragraph, records that
are subject to on-going investigations or prosecution in court shall be retained beyond the stipulated retention period until such records are no longer needed.
Banks shall ensure that the retained documents and records are able to create an audit
trail of individual transactions that are traceable by Central Bank, the FIU and law enforcement agencies as determined by law.
CHAPTER VI
REPORTING OF TRANSACTIONS
Article 19
Suspicious transaction reporting
Banks shall immediately submit a suspicious transaction report to the Financial
Information Unit, using the form in Annex 1 of this Instruction signed by the Compliance Officer, where there is reason to suspect that a transaction may involve proceeds from an unlawful activity or the customer is involved in money laundering or the financing of terrorism.
Banks shall also consider making a suspicious transaction report to the FIU when
unable to complete a transaction or attempted transactions, or customer due diligence, regardless of whether the relationship has commenced or not.
Banks shall give full cooperation to the FIU in providing such additional information
and documentation as it may request and to respond promptly to any further enquiries with regards to any suspicious transaction report.
Banks shall establish a reporting system for the submission of suspicious transaction
reports to the Financial Information Unit including a mechanism for submitting reports from its branches.
Bank shall ensure that the suspicious transaction reporting mechanism is operated in
a secured environment to maintain confidentiality and preservation of secrecy.
Banks shall undertake reasonable measures to ensure that all their employees involved
in conducting or facilitating customer transactions are aware of the reporting procedures required in this Article.
In submitting a suspicious transaction report, utmost care must be undertaken to
ensure that such reports are treated with the highest level of confidentiality and no person shall disclose the fact that a suspicious transaction report or related information has been or is being filed to the FIU and/or the Central Bank.
Banks shall immediately submit a suspicious transaction report to the FIU when it
suspects or has reason to suspect that a transaction or series of transactions is being conducted in a manner to avoid the cash transaction reporting requirements of this Instruction, under Article 20.
Article 20
Cash transaction report
Banks shall report to the FIU, in a format to be determined by the Central Bank, any
cash transaction in an amount equal to or above US$ 10,000, whether conducted as a single transaction or several transactions that appear to be linked.
Cash transactions shall include but not limited to checks, traveler’s cheques,
money/postal orders, bank drafts or other monetary instruments in any currencies.
Banks shall ensure that they have systems in place in order to comply with the
requirements established in this Article.
Notwithstanding the requirements established in the previous paragraphs, Banks are
not required to report the following transactions:
a). Transactions on behalf of Banks; b). Transactions with the Central Bank.
Article 21
Other reports
Banks shall report to the Central Bank the names of customers whose applications
for opening an account with the Bank have been refused.
Banks shall immediately report to the Central Bank any law enforcement inquiry
relevant to money laundering or terrorist financing being conducted in the Bank or a company under its control.
Banks shall immediately report to the Central Bank any transaction declined by the
Bank pursuant to this Instruction.
CHAPTER VII
TRANSITIONAL AND FINAL PROVISIONS
SECTION I
TRANSITIONAL PROVISION
Article 22
Transitional provisions
The implementation of the requirements established in CHAPTER VIArticle 20 of
this Instruction shall be effective from 1 January 2018.
SECTION II
FINAL PROVISIONS
Article 23
Final provisions
Banks which at the time the present Instruction enters into force allow confidential numbered accounts or anonymous accounts to exist in their bank shall, within 30 calendar days, cease the operation of those accounts.
Article 24
Repeal
The following are repealed and superseded by this Instruction:
a). Public Instruction no. 02/2004 on the Prevention of Money Laundering, Customer Identification and Record-Keeping; b). Chapter VI of Public Instruction no. 06/2010 on the Licensing and Supervision of Other Deposit Taking Institutions (ODTIs); c). Section 1, Section 2 number 1 paragraph f) and Section 2 number 2 paragraph e) of Instruction no. 03/2003 on the Opening and Maintenance of Deposit Accounts.
Article 25
Compliance measures
Banks, any of their administrators, and their staff, shall be subject to the
administrative sanctions established in Articles 31 and 32 of the AML/CFT Law if the Central Bank determines that the provisions of this Instruction have been violated.
The administrative sanctions set out in the previous paragraph shall not restrict the
general powers of the Central Bank to issue written warnings, suspend or dismiss

administrators, revoke the license of a Bank, or exercise any other powers conferred by legislation.
Article 26
Entry into force and Publication

This Instruction shall enter into force from the date of its publication.
In accordance with Article 66 paragraph 1 of the Organic Law of the Central Bank,
this Instruction shall be published in the Official Gazette.
Adopted in 28 th of March 2017
Governor,
Abraão de Vasconselos

REPORTING ENTITY REFERENCE NUMBER

SUSPICIOUS TRANSACTION REPORT
The obligation to file a Suspicious Transaction Report is required under article 23 of Law 17/2011 dated 28 December, amended by Law no. 5/2013/III of 14 August, on the Legal Regime to Prevent and Combat Money Laundering and the Financing of Terrorism. Please send the completed form to the following address:
UNIDADE DE INFORMAÇÃO FINANCEIRA
Att. Executive Director
Banco Central de Timor-Leste
Avenida Xavier do Amaral No. 9
Dili, Timor-Leste
The completed Form can be sent also to UIF Fax: +670 3311172 Fields marked with an asterisk (*) are mandatory and must be completed by Reporting Officer prior to submission of the STR to UIF. The ones that are also marked “if applicable” must be completed if they are applicable to you or the transaction being reported. For all other fields, you have to make reasonable efforts to obtain relevant information.
PART A: INFORMATION ON CUSTOMER
a) Account holder

Name (*)
ID No/Passport No/Business Reg. No. (*) New
Old
Gender (*)
Country *)
Nationality
Business/Employment (*) 7. Occupation *)
Other Occupation (*)
Name of Employer (*)
Address (*)
c) Person conducting transaction
Name (*)
ID No/Passport No/Business Reg. No. (*) Old
New
Gender (*)
Country (*)
Nationality (*)
Other Occupation (*)
Name of Employer (*)
Address (*)
PART B: TRANSACTION DETAILS
Customer Identification Number (*)
Male Female Male Female
Account Number () 21. Account Type ()
Date Account Opened () 23. Account Status ()
Balance (*)
Branch (*) 26. Town
a) Introducer/Guarantor
Name (*)
Type of Identification (*) Choose an item. Please specify if others
ID No/Passport No/Business Reg. No. (*) New
Old
Gender (*)
Country *)
Nationality (*)
b) Transaction
Frequency () 34. Date of Transaction () Click to enter a date.
Total Amount in (*)
USD
Amount of Foreign Currency Involved () 37. Type of Currency ()
Type of Transactions (*) Choose an item.
Purpose of Transaction
PART C: DESCRIPTION OF SUSPICIOUS TRANSACTION
Grounds for suspicion [Please mark (√) where relevant]
(Please specify)
Give details of the nature and the circumstances surrounding it (*)
List of attachment (if any)
Date of Reporting (*) Click here to enter a date.
dd/mm/yyyy
PART D: FOR THE UNIDADE DE INFORMAÇÃO FINANCEIRA USE ONLY
Receiving Officer 45. Date Received Click to enter a date.
dd/mm/yyyy
Attention: Article 25 of Law 17/2011, amended by Law no. 5/2013/III, strictly prohibits you to disclose or otherwise provide information you have submitted or is being submitted to the UIF and information regarding the investigation for the crime of money laundering and the financing of terrorism. It is a serious offence for the non-compliance with this obligation pursuant to the requirements established in Articles 31 and 32 of the said Law. Male Female Single Multiple Reactivated Dorman Account Regular / Unusual Offshore / Activity Large / Unusual Cash Deposit / Withdrawal Large / Unusual Inward / Outward Remittance Activity Inconsistent with Customer Profile Others. ___________________________

Instruction of BCTL N. 05/2017 on Customer Identification, Record-Keeping and Transaction Report

Lineage: In force