|Compliant (C): the Recommendation is fully observed with respect to all essential criteria.|
Largely compliant (LC): there are only minor shortcomings, with a large majority of the essential criteria being fully met.
Partially compliant (PC): the country has taken some substantive action and complies with some of the essential criteria.
Non-compliant (NC): there are major shortcomings, with a large majority of the essential criteria not being met.
Not applicable (N/A): a requirement or part of a requirement does not apply, due to the structural, legal or institutional features of a country.
|FATF 40+9 Recommendations and Ratings||Key Assessor Recommendations|
|Legal System and Related Institutional Measures|
|Criminalization of Money Laundering (ML)|
Ensure that the predicate offenses for ML cover all serious offenses and not only offenses under the Drugs Act.
Comprehensively criminalize ML in keeping with the international standards, including by ensuring that in all instances the criminalization of the categories of offenses is in line with the relevant international conventions and standards and by criminalizing the ancillary offenses to ML.
Ensure ML charges may also be brought in the absence of a conviction for the predicate offense.
Show effective use of the ML provisions.
Allow for the intentional element of the offense of ML to be inferred from all objective factual circumstances.
Extend criminal liability and sanctions for ML offenses to legal persons other than companies.
|Criminalization of Terrorist Financing (TF)|
Criminalize TF autonomously in keeping with SR.II; and in doing so: ensure that the provision and collection of fund for terrorist purposes is criminalized; ensure that the use in full or in part of funds for TF purposes is criminalized; ensure that all acts in the nine anti-terrorism instruments are criminalized; ensure that the TF offense applies to terrorist acts meant to compel international organizations; criminalize financing of individual terrorists and terrorist organizations; define “finance and property” so as to include all the elements of the definition of “funds” as used in the ICSFT; ensure that it is not necessary to prove an actual use of funds or a link to a specific terrorist act; and criminalize the attempt to commit a TF offense.
Make the TF offense a predicate offense for ML.
Make sure that the TF offense applies to persons abroad who finance terrorist acts in the Maldives.
Permit the inference of the intentional element of the offense from objective factual circumstances.
For legal entities, allow for effective, proportionate and dissuasive sanctions other than deregistration, and make them applicable also to entities not registered in the Maldives.
|Confiscation, freezing, and seizing of proceeds of crime|
Ensure that confiscation can be applied to assets of every kind, whether corporeal or incorporeal, moveable or immoveable, tangible or intangible, and legal documents or instruments evidencing title to or interest in such assets, regardless of whether these assets are held or owned by the defendant or a third party.
Allow for the confiscation of property of corresponding value, and of property derived directly or indirectly from the proceeds of crime.
Allow for freezing and seizing of property subject to confiscation with respect to all predicate crimes under the standard.
Allow for the initial application to freeze or seize to be made ex parte or without prior notice.
Provide protection for the rights of bona fide third parties.
Ensure that it is possible to prevent or void any action aimed at prejudicing the ability of authorities to recover property subject to confiscation.
Make effective use of the confiscation framework.
|Freezing of funds used for TF|
Adopt and implement measures, including legislative ones, to enable competent authorities to seize and confiscate property that is the proceeds of, or used in, or intended or allocated for use in, the financing of terrorism, terrorist acts or terrorist organizations.
Enact laws and procedures to freeze terrorist funds or other assets of persons designated by the U.N. Al-Qaida and Taliban Sanction Committee in accordance with S/RES/1267 and of persons under S/RES/1373(2001) as well as to examine and give effect to, if appropriate, the actions initiated under the freezing mechanisms of other jurisdictions.
Establish effective systems for communicating actions taken under these freezing mechanisms to FIs and other persons or entities that may hold targeted funds or assets, and provide adequate guidance.
Establish effective and publicly-known procedures for considering delisting and for unfreezing funds or other assets of de-listed persons or entities, as well as for unfreezing in line with SR II and for authorizing access to funds in accordance with S/RES/1452(2002).
|The Financial Intelligence Unit (FIU) and its functions|
Establish on a sound legal basis the FIU as the centre for receipt, analysis and dissemination of STRs from all reporting entities covered by the standard.
Empower the FIU to have access, directly or indirectly and on a timely basis, to relevant financial, administrative and law enforcement information.
Enhance the overall quality and depth of analysis.
Require the FIU to provide guidance on the manner of reporting.
Ensure that the information held by the FIU is securely protected and disseminated only in accordance with the law.
Grant the FIU sufficient operational independence and autonomy by: ensuring budgetary independence and autonomy in staff selection and retention; determining the conditions for the appointment and dismissal of the FIU head; securing FIU premises; allowing the FIU management to have an independent decision making process for the receipt, analysis and dissemination of STRs.
Require the FIU to publicly release periodic reports including statistics, typologies and trends as well as information regarding its activities.
|Law enforcement, prosecution and other competent authorities|
Ensure that ML and TF offenses are investigated and prosecuted.
Provide a legislative basis for the MPS to postpone or waive the arrest of suspected persons or the seizure of money.
Enable its investigative agency to compel production of documents and records that also pertain to associates, or to have a reasonable expectation of obtaining a court order.
Effectively use the power to compel documents and take witness testimony in ML and TF investigations.
|Cross Border Declaration or disclosure|
Introduce a compulsory cross-border currency declaration system or a disclosure system in line with Special Recommendation IX.
|Preventive Measures: Financial Institutions (FIs)|
|Risk of ML or terrorist financing|
|Customer due diligence, including enhanced or reduced measures|
Bring all FIs within the scope of the AML/CFT regime.
Issue implementing regulations associated with CDD requirements under the 2010 Banking Act.
Prohibit FIs from opening or maintaining anonymous or fictitious accounts by providing for an explicit prohibition of such accounts or by laying down clear positive identification requirements for all clients.
Require in law or regulation all FIs to:
undertake CDD measures when establishing business relationships or when there are doubts about the veracity or adequacy of previously obtained customer identification data and to identify and verify their customers using reliable, independent source documents, data or information;
verify that any person acting on behalf of the customer is so authorized and identify and verify the identity of that person;
identify and verify the beneficial owner;
determine whether the customer is acting on behalf of another person and then to take reasonable steps to obtain sufficient identification data to verify the identity of that other person;
conduct ongoing due diligence on the business relationship and transactions.
Require in law or regulation or other enforceable means FIs to:
verify the legal status of legal persons or legal arrangements by obtaining details of all directors as well as understand the ownership and control structure of legal persons;
obtain information on the purpose and intended nature of the business relationship;
consider filing an STR and terminating the business relationship when a FI can no longer be satisfied that it knows the true identity of a customer;
undertake enhanced due diligence measures for higher risk categories of customers and provide guidance as to what these measures constitute;
verify the identity of the customer and beneficial owner before or during the course of establishing business relationships; and
not to open accounts, commence business relations or perform the transactions on failure to conduct CDD and consider making a suspicious transaction report. In case the FI has already commenced the business relationship, failure to conduct CDD should result in termination of the business relationship and the FI should consider making a suspicious transaction report.
FIs should be obligated to apply CDD requirements to existing customers on the basis of materiality and risk and to conduct due diligence on such existing relationships at appropriate times.
Provide comprehensive guidance to all financial institutions on the procedures required to identify the ultimate natural person who owns or controls the customer;
Put in place and implement comprehensive preventative measures in keeping with the requirements of R. 6 on PEPs with appropriate and ongoing risk management procedures for identifying (and applying enhanced CDD to) PEPs, customers who are close relatives of PEPs, and accounts of which a PEP is the ultimate beneficial owner;
Implement comprehensive preventative measures with respect to cross border correspondent banking and other similar relationships.
Implement comprehensive preventative measures on technological developments and non face-to-face transactions.
|Third parties and introduced business|
Regulate reliance on third parties to perform elements of the CDD process and introduce business to FIs in line with R.9.
|FI secrecy or confidentiality|
Ensure that the law enforcement authorities have timely and effective access to information in the course of ML/FT investigations.
|Record keeping and wire transfer rules|
Require in law or regulation all FIs to maintain all necessary records on transactions, identification data, account files and business correspondence for at least five years.
Require in law or regulation that FIs make customer and identification data available on a timely basis to domestic competent authorities.
Require FIs to include accurate originator information on funds transfers and related messages, as well as to conduct enhanced scrutiny of and monitor for suspicious fund transfers.
|Monitoring of transactions and relationships|
Require all FIs to pay special attention to all complex, unusual large transactions, or unusual patterns of transactions, that have no apparent or visible economic or lawful purpose.
Require all FIs to examine as far as possible the background and purpose of such transactions, set forth their findings in writing and to keep such findings available for competent authorities and auditors for at least five years.
Require all FIs to give special attention to business relationships and transactions with persons (including legal persons and other FIs) from or in countries which do not or insufficiently apply the FATF Recommendations.
Require all FIs that in case of such transactions having no apparent economic or visible lawful purpose, the background and purpose of such transactions should, as far as possible, be examined, and written findings should be kept.
Develop adequate legal authorities to enable Maldives to apply a range of appropriate counter-measures across all financial sectors where a country continues not to apply or insufficiently applies the FATF Recommendations.
|Suspicious transaction reports and other reporting|
Require in law or regulation all FIs to report suspicious transactions in keeping with R.13; this notably entails criminalizing ML and TF in line with R. 1 and 2 and SR.II.
Undertake comprehensive education and awareness raising with reporting parties.
Require in law or regulation all reporting parties to report attempts of suspicious transactions.
Require in law or regulation all FIs to report transactions when they suspect or have reasonable grounds to suspect that funds are linked or related to, or to be used for terrorism, terrorist acts or by terrorist organizations or those who finance terrorism; this notably entails criminalizing TF in line with SR. II. Undertake comprehensive education and awareness raising with reporting parties.
Extend safe harbor provisions and prohibition from tipping off to all FIs.
Issue STR guidelines for FIs, including guidance in identifying suspicious transactions.
|Internal controls, compliance, audit and foreign branches|
Require FIs to have adequately resourced and independent audits to test compliance with AML/CFT procedures.
Lay down provisions relating to the overall role of compliance officer in FIs (other than in the securities sector) and his access to relevant data and records so as to enable him to effectively perform his functions.
Require FIs to establish employee screening procedures when hiring new employees.
Require all FIs to provide adequate AML/CFT training to their staff.
Support effective implementation of internal controls through comprehensive AML/CFT supervision of all relevant sectors.
Extend these requirements to foreign branches and subsidiaries of FIs.
Explicitly prohibit the establishment of shell banks, or explicitly require locally incorporated banks to have physical presence (i.e. meaningful mind and management) in the Maldives, and foreign branches to be affiliated with foreign banks or financial groups that are subject to consolidated supervision.
Prohibit FIs from engaging in or maintaining correspondent relationships with foreign shell banks.
Oblige FIs to satisfy themselves that respondent FIs in a foreign country do not permit their accounts to be used by shell banks.
|Supervisory and oversight system–competent authorities and SROs Role, functions, duties and powers (including sanctions)|
Designate by law the competent authority for AML/CFT regulation and supervision of the insurance industry, finance leasing companies, MVT service operators and money changers, and grant them with adequate powers.
Introduce a wide range of effective, proportionate and dissuasive criminal and administrative sanctions for FIs, including on their directors and senior management, in sectors other than banks and securities.
Introduce more effective and dissuasive criminal and administrative sanctions, including those specifically applicable to directors and senior management, in the securities sector.
Require insurance intermediaries and MVT service operators to be licensed or registered.
Implement market entry and “fit and proper” requirements to existing banks and insurance companies, and ensure beneficial owners of all FIs are “fit and proper”.
Conduct AML/CFT supervision of banks and the securities sector.
Provide adequate guidance to all types of FIs, including information on current ML and TF trends and techniques.
|Money value transfer services|
Designate competent authorities responsible for licensing/registration and regulation/supervision of the MVT service operators.
Require in law or regulation that MVT service operators comply with AML/CFT measures, including conducting customer due diligence, keeping records, identifying and reporting suspicious and unusual transactions, and monitoring cross-border wire transfers.
Require MVT service operators to keep current lists of their agents and make them available to the designated competent authority.
Introduce sanctions for MVT service operators’ breaches of their AML/CFT obligations.
Assess the potential informal MVT system operating in the country and take measures to address the risks, if any.
|Preventive Measures: Non-Financial Businesses and Professions|
|Customer due diligence and record-keeping|
Take steps to put into place a regulatory framework for DNFBPs active in the Maldives.
Require DNFBPs active in the Maldives to comply with CDD and record keeping requirements in line with Recommendations 5, 6, 8, 9, 10 and 11.
|Suspicious transaction reporting|
Impose suspicious transaction reporting requirements on DNFBPs in line with R.16.
Ensure protection from criminal and civil liability for DNFBPs, their directors, officers and employees reporting in good faith.
Prohibit tipping off.
Require DNFBPs to establish internal controls, training and audit programs in line with R.15.
Require DNFBPs to give special attention to transactions and relationships with persons from or in countries that do not or insufficiently apply the FATF Recommendations.
|Regulation, supervision, monitoring, and sanctions|
Subject DNFBPs to AML/CFT requirements as mentioned under R. 12 and R. 16.
Designate authorities responsible for AML/CFT supervision and provide them with adequate powers and resources.
Issue AML/CFT guidance for DNFBPs to reflect specific ML and TF risks in each sector.
|Other designated non-financial businesses and professions|
Undertake a risk assessment of ML and TF in non-financial businesses and professions (other than DNFBPs) and consider applying AML/CFT preventive measures to those that are found to be at risk of being misused for ML or TF purposes.
Continue to develop effective measures to develop and use modern and secure techniques for conducting financial transactions that are less vulnerable to money laundering.
Introduce measures to reduce the reliance on cash and to encourage the development and use of modern and secure techniques for conducting financial transactions that are less vulnerable to ML and terrorist financing.
|Legal Persons and Arrangements & Nonprofit Organizations|
|Legal Persons–Access to beneficial ownership and control information|
Ensure that adequate, accurate and current information on the beneficial ownership and control of legal entities is readily accessible to relevant authorities.
|Legal Arrangements–Access to beneficial ownership and control information|
Take measures to prevent the unlawful use of legal arrangements for ML and TF purposes and ensure adequate transparency concerning the beneficial ownership and control of trusts and Awqaf.
Review existing laws and regulations with a view to identifying gaps in coverage;
Review the NPO sector for the purpose of identifying those NPOs which are at risk of abuse by terrorist financiers.
Raise awareness among regulators and NPOs of the TF risks.
Enhance domestic coordination between competent authorities; and
Ensure clear mechanisms of international cooperation to respond to international requests.
|National and International Cooperation|
|National cooperation and coordination|
Make better use of the AML/CFT Steering Committee.
|The Conventions and UN Special Resolutions|
Become party to the Palermo Convention, and fully implement the Vienna and Palermo Conventions, the ICSFT and the relevant UNSCRs.
|Mutual Legal Assistance (MLA)|
Criminalize ML and TF in line with the standard.
Establish a comprehensive framework to allow for the widest possible range of MLA in ML and/or TF investigations, prosecutions and related proceedings. In doing so, ensure that MLA can be rendered in a timely, constructive and effective manner, and that it is not subject to unreasonable, disproportionate or unduly restrictive conditions.
Ensure that, where legal professional privilege does not apply, MLA is not refused on the grounds of secrecy or confidentiality laws for FIs and DNFBPs.
Ensure that the powers of competent authorities required under R.28 are also available for use in response to requests for MLA.
Ensure that, to the greatest extent possible, MLA may be rendered in the absence of dual criminality for less intrusive and non compulsory measures.
Establish a legal framework for effective and timely responses to requests for freezing, seizing and confiscating assets in line with R.38.
Criminalize ML and TF in line with the standard and ensure that both are extraditable offenses.
Establish a legal framework to enable the extradition, without undue delay, of individuals charged with a ML offense and/or TF.
|Other Forms of Cooperation|
Introduce legal authority for the MMA to cooperate with its foreign counterparts (including outside the banking sector).
Establish the FIU on a sound legal basis and authorize it to exchange information with its foreign counterparts.
|Resources & Statistics|
Increase the MMA and the CMDA’s human resources as well as expertise in support of their supervisory function.
Increase the PGO, and the judiciary’s resources and training in AML/CFT matters.
Provide training on AML/CFT matters to all relevant authorities.
|Other relevant AML/CFT measures or issues|
Ensure that revised Penal Code is adopted and that criminal procedure rules are set out in law in order to enable the authorities to fight against ML and TF in an effective way.
|General framework–structural issues|