7.1. General requirements for aml/cft programs of financial institutions and groups of financial institutions
AML/CFT program of a financial institution (R. 18, IN)
The risk of ML and TF should be considered when developing the program
The size of business should be taken in account
Should include
Policies
Controls
Including appropriate compliance management arrangements
Procedures
(a) The development of internal
Adequate screening procedures of prospective employees
Appointment of a compliance officer at the managerial level
To ensure high standards of employees
(b) An ongoing employee training program
(c) An independent audit function
To test the system
There has to be an effective implementation of the program
For a financial group
The AML/CFT program should be applicable to all branches and majority-owned subsidiaries
There should be adequate safeguards on the confidentiality and use of information exchanged
Intra-group sharing of information (on customers, accounts and transactions) is required for the purposes of cdd and ml/tf risk management
7.2. Methodology approach to customer due diligence
Establishment of business relations
Of previously obtained customer identification data
Above the threshold of USD/EUR 15,000
Information accompanying wire transfers (r. 16, in)
Veracity
Adequacy
Suspicion of money laundering or terrorist financing
Carrying out occasional transactions
Doubts about
When CDD is being undertaken: original numbering is (i), (ii), (iii) and (iv)
Customer due diligence (CDD), R. 10
What CDD includes: original numbering is (a), (b), (c) and (d)
Documents
Identifying the customer
Using reliable and independent
Data
Verifying the customer’s identity
Information
Source
Identifying the beneficial owner
For legal persons and arrangements
To verify the identity of the beneficial owner
Taking reasonable measures
To understand ownership and control structure
Understanding
Purpose
Of business relationship
Intended nature
Obtain information
Business profile
Conducting ongoing CDD
Business relation
Risk profile
Transactions being conducted are consistent with
The source of funds (where necessary)
Scrutiny of transactions
7.3. Additional features of the customer due diligence
It must be ensured that documents, data and information collected are kept up-to-date
Reviews of existing records
Existing customers as of the date the CDD requirements are brought into force
At appropriate times – ongoing CDD
Should apply to all new customers
Should be determined using an RBA
Should apply to existing customers on the basis of materiality and risk
The extend of the CDD measures
Customer due diligence (CDD) features, R. 10
Before
During
Conducing transactions for occasional customers