|40 Recommendations for AML|
|General framework of the Recommendations (FATF 1–3)||Ratify the Vienna Convention and ensure that domestic legislation is in place for its implementation.|
|Provisional measures and confiscation (FATF 7)||Make criminal forfeiture mandatory for any serious offense where proceeds are detected.|
|Customer identification and record-keeping rules (FATF 10–13)||The conflict between the FTRR and the FTRA should be resolved as a matter of priority by eliminating any provision in the Regulations that diminishes the scope of the identification requirements set forth by the FTRA. Similar conflicts between the requirements of the FTRA and certain provisions in the area of company and trust law (ICA and ITA) area should also be reviewed and corrected as necessary (see examples in the report - paragraph 88)|
The FSC should undertake an initial process to determine whether banks have adequate record-keeping systems and procedures to provide assurance that compliance will be maintained.
|Increased diligence of financial institutions (FATF 14–19)||The FIU and FSC should open up further dialog with financial institutions to determine the level of understanding of suspicious activity concepts to identify potential gaps or bottlenecks in the process. Initiatives toward this end should also focus on clarifying what constitutes the tipping off of a customer.|
|Measures to cope with countries with insufficient AML measures (FATF 20–21)||The FIU and/or the FSC should issue the draft guidance notes that address enhanced scrutiny for countries that do not have adequate AML/CFT regimes.|
|Implementation & role of regulatory and other administrative authorities (FATF 26–29)||The government should introduce statutory fit-and-proper tests for directors, managers, and significant shareholders at the time of licensing/change in ownership of all regulated financial institutions similar to those contained in the banking law. In addition, the fit-and-proper test should be made an ongoing requirement.|
As part of the FSC’s overall development, it would be helpful to set forth a strategic plan specifically addressing AML/CFT issues to be included among the other supervisory initiatives it must undertake. This would include performing a risk assessment of regulated institutions to aid in the allocation/prioritization of examination resources, as well as key steps needed to develop appropriate supervisory guidance and procedures. This exercise could be conducted in cooperation with the FIU to enable the sharing of information, techniques, and resources.
The level of resources in the FSC’s Supervisory Division should be assessed once the rationalization of licensing has been completed to ensure it has adequate human and other resources to carry out its supervisory and compliance role.
The FIU’s Compliance Officer Position should be filled to ensure that all areas of risk related to the operation of licensed institutions are adequately covered.
|Administrative Cooperation—Exchange of information relating to suspicious transactions (FATF 32)||The basis and extent of cooperation of the FSC with other domestic authorities should be expanded in the FSC Act.|
|Other forms of cooperation—Basis and means of cooperation in confiscation, mutual assistance, and extradition (FATF 33–35)||Ratify the Vienna Convention and ensure that domestic legislation is in place for its implementation.|
|8 Special recommendations on terrorist financing|
|I. Ratification and implementation of UN Instruments||Ratify the ICSFT and ensure that domestic legislation is in place for its implementation|
Implement the UN SCRs on FT.
|II. Criminalizing the financing of terrorism and associated money laundering||Criminalize FT as a matter of priority and include it among “serious offenses” so that it is a predicate offense for ML.|
|III. Freezing and confiscating terrorist assets||Adopt as matter of priority legislation that provides for the freezing of terrorist funds and enables the effective implementation of UN SCRs on FT.|
|IV. Reporting suspicious transactions related to terrorism||Ensure, if necessary by issuing regulation, that the CIG regularly circulate UN and other terrorist watch-lists to financial institutions and keeps them abreast of new developments.|
|V. International Cooperation||Ratify the ICSFT and ensure that domestic legislation is in place for its implementation.|
Implement the UN SCRs on FT.