Regulation (NAP) - Reporting of Suspicious Transactions

Central Bank of S. T. P.	P A R ; PERMANENT APPLICATION REGULATION	CODE ; SB 09
PROPOSER(S)	EFFECTIVE DATE	ISSUANCE DATE	DOC NO.	PAGE
PSBS	04/05/2015	13/04/2015	11/2015	1/12

Subject: Reporting of Suspicious Transactions.

Within the framework of the policy for preventing and combating money laundering and terrorist financing, Law No. 15/2008 of September 27, 2010 was revised, culminating in the approval of Law No. 08/2013 of October 15, 2013.

In accordance with its Article 26 and in conjunction with the provisions of Decree No. 60/2009, the Financial Information Unit (FIU) was established as the national central agency of São Tomé and Príncipe, responsible for receiving, requesting, analyzing, and disseminating information on suspicious transactions that may generate proceeds of criminal origin and/or involve funds destined for terrorist financing.

Considering that, under Article 21 of Law No. 08/2013, financial institutions must report to the FIU transactions on which there are well-founded suspicions of an underlying money laundering and terrorist financing crime.

Taking into account that Law No. 8/92 of August 3 grants the Central Bank responsibility for regulating, operating, and supervising the Financial System;

Taking into account the provision of the Permanent Application Standard regarding Identification and Classification of Bank Clients, which obliges financial institutions to know and monitor their clients;

Given the need for financial institutions, when and if they become aware of any situation that may involve suspicion of a criminal offense in this matter, to report such information to the Financial Information Unit.

Reviewed ____________________ Revocation Data:

*

Central Bank of S. T. P.	P A R ; PERMANENT APPLICATION REGULATION	CODE ; SB 09
PROPOSER(S)	EFFECTIVE DATE	ISSUANCE DATE	DOC NO.	PAGE
PSBS	04/05/2015	13/04/2015	11/2015	2/12

In these terms, the Central Bank, using the competence conferred upon it by letters d) and f) of Article 8.º of its Organic Law, combined with letter g) of Article 25.º of Law 08/2013, the Law for the Prevention and Combating of Money Laundering and Terrorist Financing, determines the following:

Article 1.
Scope of Application

This standard applies to all financial institutions supervised by the Central Bank.

Article 2.
General Principles of Action

To fulfill the duties implicit in the domain of suspicious transaction reporting, financial institutions must:

1. Strictly observe all procedures established in this standard and other preventive legislation on money laundering and terrorist financing;
2. Comply with banking rules regarding duties of professional conduct, confidentiality, and secrecy;
3. Carry out the necessary diligence to obtain information about the client, the object, the transaction, and the nature of the business relationship, and define associated risk profiles;
4. Maintain continuous monitoring of the business relationship and carefully examine transactions carried out during this relationship, verifying their conformity with previously obtained information and the institution's knowledge of the client, considering among other factors significant changes in account movement patterns and consistency between transactions and the client's profile;

Reviewed ____________________ Revocation Data:

*

Central Bank of S. T. P.	P A R ; PERMANENT APPLICATION REGULATION	CODE ; SB 09
PROPOSER(S)	EFFECTIVE DATE	ISSUANCE DATE	DOC NO.	PAGE
PSBS	04/05/2015	13/04/2015	11/2015	3/12

5. Establish periodic verification mechanisms for the currency and accuracy of information regarding their clients, based on risk-weighted criteria (client/business relationship characteristics and financial product);

Article 3.
Identificatory Procedures

1. To fulfill the identification obligations provided in Law No. 08/2013 and the Permanent Application Standard Regarding Identification and Classification of Clients, financial institutions must - regarding their clients, their respective representatives, and other interveners in transactions - adopt the following procedures:

   a) Whenever business relationships begin, whether in person or remotely, entities are obliged to fulfill all identification requirements and supporting documents. b) Whenever in person or remotely, occasional transactions are to be carried out whose amount individually or collectively exceeds Dbs. 245,000,000.00 (Two hundred and forty-five million dobras), entities must require supporting documents proving the transaction. c) Whenever an operation is to be carried out, in person or remotely regardless of its amount, nature, and involved entities, but where there is some type of connection between the operation and a vulnerable country or territory, or where the concrete characteristics of the transaction – complexity, atypicality, values involved, frequency, economic situation of interveners, or payment means used – may indicate the practice of money laundering and terrorist financing crimes, financial institutions must require supplementary information before carrying out the operations.

Reviewed ____________________ Revocation Data:

*

Central Bank of S. T. P.	P A R ; PERMANENT APPLICATION REGULATION	CODE ; SB 09
PROPOSER(S)	EFFECTIVE DATE	ISSUANCE DATE	DOC NO.	PAGE
PSBS	04/05/2015	13/04/2015	11/2015	4/12

Article 4.
Document Retention

For the purposes of document retention, financial entities must observe internationally accepted accounting procedures.

Article 5.
Duty of Examination.

1. In accordance with paragraph 8 of Article 10.º of Law 08/2013, financial entities must:

   a) Analyze with special care any transactions that – considering, inter alia, their nature, complexity, atypicality within the client's normal activity, values involved, frequency, economic situation of interveners, or payment means used – prove susceptible to being related to money laundering and terrorist financing crimes. b) Obtain written information on the origin and destination of funds, transaction justification, and identity of respective beneficiaries regarding transactions provided for in the preceding letter and whose amount, individually or aggregated, is equal to or greater than Dbs. 245,000,000.00 (Two hundred and forty-five million dobras).

2. The suspicion evidenced by a specific transaction does not presuppose the existence of any type of confirmatory documentation for the suspicions; it must arise from the assessment of the concrete circumstances of the transaction, based on the evaluation made by a "person of good standing" in analyzing an identical situation.

Article 6.
Duty of Abstention

The abstention from executing transactions provided for in paragraph 4 of Article 10.º and paragraph 2 of Article 15.º of Law 13/2013 must be subject to a reasoned opinion and formal approval by the competent management bodies of financial entities.

Reviewed ____________________ Revocation Data:

*

Central Bank of S. T. P.	P A R ; PERMANENT APPLICATION REGULATION	CODE ; SB 09
PROPOSER(S)	EFFECTIVE DATE	ISSUANCE DATE	DOC NO.	PAGE
PSBS	04/05/2015	13/04/2015	11/2015	5/12

Article 7.
Rules for Reporting Suspicious Transactions

1. The reporting of information or suspicious transactions to the FIU (Financial Information Unit) must relate to current facts and be carried out immediately, allowing for effective investigation.

2. Communications to the FIU must, at a minimum, include information on:

   a) The identification, as complete as possible, of persons involved in the transaction (account-holding clients, ordering parties or international transfer beneficiaries, effective beneficiaries of the operation), as well as their respective activity; b) The characteristics of the transaction (total and partial amounts, covered time period, justification presented, currency used, suspicion indicators, payment means and instruments used).

3. The communication referred to in the preceding paragraphs must be made according to the attached model.

4. Whenever the heads of the financial institution deem it irrelevant to communicate to the competent authorities, this decision must be subject to a reasoned opinion, kept on file by the financial institution for a minimum period of five years.

Article 8.
Duty of Secrecy

The duties arising from judicial secrecy, as well as banking and professional confidentiality, apply to all employees and institutions that have access to information collected under the terms regulated in this standard.

Reviewed ____________________ Revocation Data:

*

Central Bank of S. T. P.	P A R ; PERMANENT APPLICATION REGULATION	CODE ; SB 09
PROPOSER(S)	EFFECTIVE DATE	ISSUANCE DATE	DOC NO.	PAGE
PSBS	04/05/2015	13/04/2015	11/2015	6/12

Article 9.
Internal Control Mechanism

1. Financial institutions must have internal control mechanisms that ensure the duties to which they are subject in the domain of money laundering and terrorist financing prevention are equally observed in their agencies, branches, and subsidiaries abroad, including those established in foreign or international financial centers ("off-shore" centers).

2. Without prejudice to the provisions of the NAP on Identification and Classification of Clients, financial institutions must develop money laundering and terrorist financing prevention programs that, at a minimum, comprise adequate policies, procedures, and internal control processes, including:

   a) Devices that ensure transaction monitoring, namely computerized systems, which allow the detection and control of transactions involving higher risk; b) Procedures that safeguard the increased risk of money laundering and terrorist financing resulting from the use of technologies favoring anonymity; c) Adequate procedures in employee hiring, to ensure that it is carried out according to demanding ethical criteria; d) Regular employee and collaborator training programs in matters related to prevention of money laundering; e) And other internal control mechanisms established by the Central Bank of São Tomé and Príncipe.

Article 10.
Infringements and Sanctions

Financial institutions that violate the provisions of this NAP are punished in accordance with the provisions in the NAP on Supervisory Action and Application of Penalties.

Reviewed ____________________ Revocation Data:

*

Central Bank of S. T. P.	P A R ; PERMANENT APPLICATION REGULATION	CODE ; SB 09
PROPOSER(S)	EFFECTIVE DATE	ISSUANCE DATE	DOC NO.	PAGE
PSBS	04/05/2015	13/04/2015	11/2015	7/12

Article 11.
Omitted Cases

Doubts or omissions in the application of this standard must be forwarded to DSBS and interpreted in accordance with the Law for the Prevention and Combating of Money Laundering and Terrorist Financing.

Article 12.
Final Provisions

1. Business relationships already established by the effective date of this standard must be promoted to update informational documents regarding their clients, in conformity with the identification and verification procedures provided in this standard.
2. Institutions must inform the Central Bank – Banking and Insurance Supervision Directorate, in writing, the name of the person responsible for managing the aforementioned NAP, within thirty days from its issuance date.

Article 13.
Revocation

NAP 20/2011, Standard on Reporting of Suspicious Transactions is hereby revoked.

Article 14.
Entry into Force

This standard enters into force under legal terms.

Central Bank of São Tomé and Príncipe, in São Tomé, April 13, 2015.

Reviewed ____________________ Revocation Data:

*

Central Bank of S. T. P.	P A R ; PERMANENT APPLICATION REGULATION	CODE ; SB 09
PROPOSER(S)	EFFECTIVE DATE	ISSUANCE DATE	DOC NO.	PAGE
PSBS	04/05/2015	13/04/2015	11/2015	8/12

ANNEX
Reporting of Suspicious Transactions
Financial Institutions

Reporting Entity:
Date:	Ref.	Communication ----------------

Individual Intervener
Name:	Birth Date:
ID Doc. ------ No.	Tax ID (NIF):
Address:
Phone:	Nationality:
Profession:	Workplace	Employer Entity
Type of Intervener: ---------

Collective Intervener
Name:
Tax ID (NIF):	Activity:
Address:	Phone:
Type of Intervener: ------
Representative:

Account Identification
No.	Type: ------	Current Balance
Branch:	Opening Date:

Transaction Description
Transaction: --------
Date/Period:	Amount:	Currency:
Type of Transaction: ----------------	Origin – Destination (Country)
Issuing Bank	Account No.
Beneficiary Bank	Account No.

Reason for Suspicion

List of attached documents

Observations

The Communicant

Reviewed ____________________ Revocation Data:

*

Central Bank of S. T. P.	P A R ; PERMANENT APPLICATION REGULATION	CODE ; SB 09
PROPOSER(S)	EFFECTIVE DATE	ISSUANCE DATE	DOC NO.	PAGE
PSBS	04/05/2015	13/04/2015	11/2015	9/12

Suspicious Transaction Communications
Financial Institutions

INSTRUCTIONS FOR COMPLETION

Reporting Entity: -Designation of the entity making the communication

Date: -Date of communication

Ref. -Internal reference of the communicator Communication -Fields open (-new; -amendment)

Individual Intervenors

Name: -Indication of the intervener. As many documents as participants are filled.

Birth Date: -Indication of the birth date

ID Doc.: -Filling according to the list that opens with selection of this field (I.D., -Passport, -Other)

No.: -Number of the previously indicated identification document

Tax ID (NIF): -Fiscal identification of the individual intervener

Address: -Indicate the address or addresses of the intervener

Phone: -Indicate the phone number(s) of the intervener, including mobile phones

Nationality: -Indicate nationality according to the previously indicated identification document.

Reviewed ____________________ Revocation Data:

*

Central Bank of S. T. P.	P A R ; PERMANENT APPLICATION REGULATION	CODE ; SB 09
PROPOSER(S)	EFFECTIVE DATE	ISSUANCE DATE	DOC NO.	PAGE
PSBS	04/05/2015	13/04/2015	11/2015	10/12

Profession: -Indicate the declared or known profession, or both, of the intervener

Workplace: -Indicate the client's professional address

Employer Entity: -Indicate the entity where the client works, if applicable.

Type of Intervener: -Fill according to the list that opens with selection of this field (-holder, -co-holder, -authorized, -attorney-in-fact, -beneficiary)

Collective Intervener

Name: -Designation of the collective intervener. As many as collective interveners are filled.

Tax ID (NIF): -Fiscal Identification Number of the Legal Entity.

Activity: -As indicated by the intervener.

Address: -Indicate the address or addresses of the collective intervener

Phone: -Indicate the phone number(s) of the collective intervener, including mobile phones

Type of Intervener: -Filling according to the list that opens with selection of this field (-holder, -co-holder, -authorized, -attorney-in-fact, -beneficiary)

Representative: -Identification of who presents themselves before the institution on behalf of the collective intervener

Account Identification

No.: -Number of the account(s) in question,

Type: -Filling according to the list that opens with selection of this field (-singular order, -joint order, -concurrent order, -term, -company, -other)

Branch: -Identification of the location where facts occur, counter, agency, etc.

Reviewed ____________________ Revocation Data:

*

Central Bank of S. T. P.	P A R ; PERMANENT APPLICATION REGULATION	CODE ; SB 09
PROPOSER(S)	EFFECTIVE DATE	ISSUANCE DATE	DOC NO.	PAGE
PSBS	04/05/2015	13/04/2015	11/2015	11/12

Opening Date: -Indication of the account opening date

Current Balance: -Indicate the account balance on the communication date

Transaction Description

Transaction: -Filling according to the list that opens with selection of this field (-credit, -debit, with foreign entity).

Date/Period: Transaction date
Amount: -Always indicate in dobras. In case of transactions in another currency, state the countervalue.

Currency: -Indicate the transaction currency

Type of Transaction: -Filling according to the list that opens with selection of this field: Cash deposit; Purchase of goods for cash; Bank transfer: Transfer abroad; Transfer from abroad; Electronic transfers; Foreign exchange transactions; Note exchange: ATM deposit; Night safe deposit; Early redemption of investment; Traveler's check; Accounts held by a large number of persons; Early loan amortization: Letters of credit; Account unrelated to holder's activity; "Off-shore" operations; Cash transport; Other;

Origin – Destination (Country):-If applicable, indicate the country of origin and destination of the transaction.

Issuing Bank: -Indicate the bank ordering the transaction

Account No.: -Identification of the account at the issuing bank

Beneficiary Bank: -Indicate the final bank of the transaction

Account No.: -Identification of the beneficiary account

Reason for Suspicion: -Indication of the reason leading to communication, namely considering regulations of supervisory entities and internal procedures.

Reviewed ____________________ Revocation Data:

*

Central Bank of S. T. P.	P A R ; PERMANENT APPLICATION REGULATION	CODE ; SB 09
PROPOSER(S)	EFFECTIVE DATE	ISSUANCE DATE	DOC NO.	PAGE
PSBS	04/05/2015	13/04/2015	11/2015	12/12

List of attached documents

Brief description of documents attached to the communication, namely copies of identification documents and signature cards, copies of contracts, powers of attorney, etc.

Observations

Indicate all information deemed relevant for better understanding of the transaction, including any additional elements not expressed in previous fields

Reviewed ____________________ Revocation Data: