The Second EU Directive has extended the provisions of the first directive, beyond the financial sector to a broader group of businesses that includes: Expanding the scope of money laundering predicate offences by including tax crimes. The revised FATF recommendations have now fully integrated the counter-terrorist measures along with money laundering controls. Banks, insurers, export creditors and other financial institutions are increasingly demanding that customers provide detailed due diligence information. Banks may appoint a senior management officer to be designated as Principal Officer. Banks should examine the control structure of the entity, determine the source of funds and identify the natural persons who have a controlling interest and who comprise the management.

KYC Registry document centre. Fostering better communication among FIUs through technology and helping to develop FIUs worldwide These FIUs meet regularly to find co-operate , especially in the areas of information exchange, training and the sharing of expertise. Third is the creation of creation of education and eradication programs that aim to prevent the criminal activities, especially drug trafficking at regional and global level. EDD processes should use a tiered approach dependent upon the risk. It is also responsible for implementing appropriate measures globally. It also helps to fight money laundering by collaborating with other international bodies.

Know your customer

Spread the anti-money laundering message to all continents and regions of the globe. He will maintain close liaison ln enforcement agencies, banks and any other institution which are involved in the fight against money laundering and combating financing of terrorism. Related procedures also enable banks to better understand their customers and their financial dealings. When local applicable laws and regulations prohibit implementation of these guidelines, the same should be brought to the notice of Reserve Bank.

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Keep up to date with the latest events, news and media coverage from Fenergo. Customers that are likely to pose a higher esssy average risk to the bank may be categorized as medium or high risk depending on customer’s background, nature and location of activity, country of origin, sources of funds and his client profile etc.


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The compliance in this regard may be put up before the Audit Committee of the Board on quarterly intervals. While the revised guidelines will apply to all new customers, banks should apply the same to the existing customers on the basis of materiality and risk.

essay on kyc aml

It is a FATF-style regional body. Banks were advised to follow certain customer identification procedure for opening of accounts and monitoring transactions of a suspicious nature for the purpose of reporting it to appropriate authority. Banks should ensure that its branches continue to maintain proper record of all cash transactions deposits and withdrawals of Rs.

Essay UK – http: FATF in its first report issued in provided that money laundering should be criminalized. Customer has been defined as an individual or entity having account or financial dealings or one on whose behalf account is maintained. These standards have become the international benchmark for framing Anti Money Laundering and combating financing of terrorism policies by the regulatory authorities. The above guidelines shall also apply to the branches and majority owned subsidiaries located abroad, especially, in countries which do not or insufficiently apply the FATF Recommendations, to the extent local laws permit.

Retrieved 25 Oct The Convention has been a very significant step against terrorism, by attacking its financing on a broad front and ensuring that logistical cells cannot find financial safe havens anywhere in Europe.

The norms provided sssay these conventions guide the nations in such a way that all the nations act in a unified manner to tackle this problem. Archived copy as title CS1 errors: Sorry, but copying text is forbidden on this website! If you are the original author of this content and no longer wish to have it published on our website then please click on the link below to request removal:.


Very high account turnover inconsistent with the size of the balance maintained may indicate that funds are being ‘washed’ through the account. The list changes from time to time. It is also desirable that agents are also subjected to KYC measures.

Better operational tools and a wider range of techniques and powers, both for the financial intelligence units, and for law enforcement to investigate and prosecute money laundering and terrorist financing. It has been signed by countries and ratified by 82 countries. We have developed the manual recent persuasive essay that firms compliance the level expected of them and have an extensive start to their compliance program.

FATF has made sure that actual work is done on ground rather than just doing lip-service.

Essay: International initiatives to fight money laundering – Essay UK Free Essay Database

Efforts till then were mainly focused on regulation of the movement and supply of drugs for legitimate and scientific purposes. It calls upon the nations to declare those acts which lead to money laundering as a crime in their domestic laws.

General Guide to Account Opening and Customer Identification This document emphasizes on lyc guidelines to be followed by banks and financial institutions for account opening and customer identification procedures. How to cite this page Choose cite format: Another thing that needs to alm taken into consideration is a timeframe for the transition to happen for example the departments can be split in half so ob some can still work with the older essay and hardware while others are transitioning just in case there were issues that arise.