Azərbaycan Respublikası Mərkəzi Bankı Banklara Nəzarət Departamenti
Yüklə 4,9 Kb. Pdf görüntüsü
|
|
screened in different situations (e.g. when customers are passed from agents or other companies in the group). - There is appropriate escalation of actual target matches and breaches of sanctions. Notifications are timely. - The financial institution believes payments to sanctioned individuals and entities are permitted when the sums are small. Without a license from the Asset Freezing Unit, this could be a criminal offense. - No internal audit resource is allocated to monitoring sanctions compliance. - Some business units in a large organization think they are exempt. Examples of GOOD Practice 2 Senior management should be sufficiently aware of the financial institution‘s obligations regarding financial sanctions to enable them to discharge their functions effectively. Self-assessment questions: • Has your financial institution clearly allocated responsibility for adherence to the sanctions regime? To whom? • How does the financial institution monitor performance? (For example, statistical or narrative reports on matches or breaches.) Examples of POOR practice Supervision Department - AML/CFT Training Sanctions and Asset Freezing - Risk Assessment - A financial institution with international operations, or that deals in currencies other than sterling, understands the requirements of relevant local financial sanctions regimes. - A small financial institution is aware of the sanctions regime and where it is most vulnerable, even if risk assessment is only informal. - There is no process for updating the risk assessment. - The financial institution assumes financial sanctions only apply to money transfers and so has not assessed its risks. Examples of GOOD Practice 2 A financial institution should consider which areas of its business are most likely to provide services or resources to individuals or entities on the Consolidated List. Self-assessment questions: • Does your financial institution have a clear view on where within the financial institution breaches are most likely to occur? (This may cover different business lines, sales channels, customer types, geographical locations, etc.) • How is the risk assessment kept up to date, particularly after the financial institution enters a new jurisdiction or introduces a new product? Examples of POOR practice Supervision Department - AML/CFT Training Sanctions and Asset Freezing - List Screening - The financial institution has considered what mixture of manual and automated screening is most appropriate. - There are quality control checks over manual screening. - Where a financial institution uses automated systems these can make ‘fuzzy matches’ (e.g. able to identify similar or variant spellings of names, name reversal, digit rotation, character manipulation, etc.). - The financial institution screens customers‘ directors and known beneficial owners on a risk- sensitive basis. - Where the financial institution maintains an account for a listed individual, the status of this account is clearly flagged to staff. - A financial institution only places faith in other financial institutions’ screening (such as outsourcers or intermediaries) after taking steps to satisfy themselves this is appropriate. - The financial institution assumes that an intermediary has screened a customer, but does not check this. - Where a financial institution uses automated systems, it does not understand how to calibrate them and does not check whether the number of hits is unexpectedly high or low. - An insurance company only screens when claims are made on a policy. - Screening of customer databases is a one-off exercise. - Updating from the Consolidated List is haphazard. Some business units use out-of-date lists. - The financial institution has no means of monitoring payment instructions. Examples of GOOD Practice 2 A financial institution should have effective, up-to-date screening systems appropriate to the nature, size and risk of its business. Although screening itself is not a legal requirement, screening new customers and payments against the Consolidated List, and screening existing customers when new names are added to the list, helps to ensure that financial institutions will not breach the sanctions regime. (Some financial institutions may knowingly continue to retain customers who are listed under sanctions: this is permitted if the Asset Freezing Unit has granted a license.) Self-assessment questions: • When are customers screened against lists, whether the Consolidated List, internal watch lists maintained by the financial institution, or lists from commercial providers? (Screening should take place at the time of customer take-on. Good reasons are needed to justify the risk posed by retrospective screening, such as the existence of general licenses.) • If a customer was referred to the financial institution, how does the financial institution ensure the person is not listed? (Does the financial institution screen the customer against the list itself, or does it seek assurances from the referring party?) • How does the financial institution become aware of changes to the Consolidated List? (Are there manual or automated systems? Are customer lists rescreened after each update is issued?) Examples of POOR practice Supervision Department - AML/CFT Training Sanctions and Asset Freezing - Matches and Escalation - Sufficient resources are available to identify ‗false positives‘. - After a breach, as well as meeting its formal obligation to notify the Asset Freezing Unit, the financial institution considers whether it should report the breach to the regulator. - The financial institution does not report a breach of the financial sanctions regime to the Asset Freezing Unit: this could be a criminal offense. - An account is not frozen when a match with the Consolidated List is identified. If, as a consequence, funds held, owned or controlled by a designated person are dealt with or made available to the designated person, this could be a criminal offense. - A lack of resources prevents a financial institution from adequately analyzing matches. - No audit trail of decisions where potential target matches are judged to be false positives. Examples of GOOD Practice 2 When a customer‘s name matches a person on the Consolidated List it will often be a ‗false positive‘ (e.g. a customer has the same or similar name but is not the same person). Financial Institutions should have procedures for identifying where name matches are real and for freezing assets where this is appropriate. Self-assessment questions: • What steps does your financial institution take to identify whether a name match is real? (For example, does the financial institution look at a range of identifier information such as name, date of birth, address or other customer data?) • Is there a clear procedure if there is a breach? (This might cover, for example, alerting senior management, the Treasury and the FSA, and giving consideration to a Suspicious Activity Report.) Examples of POOR practice Supervision Department - AML/CFT Training Sanctions and Asset Freezing - Weapons and Proliferation - A bank has identified if its customers export goods to high-risk jurisdictions, and subjects transactions to enhanced scrutiny by identifying, for example, whether goods may be subject to export restrictions, or end-users may be of concern. - Where doubt exists, the bank asks the customer to demonstrate that appropriate assurances have been gained from relevant government authorities. - The financial institution has considered how to respond if the government takes action under the Counter Terrorism Act 2008 against one of its customers. - The financial institution assumes customers selling goods to countries of concern will have checked the exports are legitimate, and does not ask for evidence of this from customers. - An insurer has not identified whether EU Regulation 961/2010 affects its relationship with its customers. - A financial institution knows that its customers deal with individuals and entities from high-risk jurisdictions but does not communicate with those customers about relevant regulations in place and how they affect them. Examples of GOOD Practice 2 Alongside financial sanctions, the government imposes controls on certain types of trade in order to achieve foreign policy objectives. The export of goods and services for use in nuclear, radiological, chemical or biological weapons programs is subject to strict controls. Financial Institutions‘ systems and controls should address the proliferation risks they face. Self-assessment questions: • Does your financial institution finance trade with high-risk countries? If so, is enhanced due diligence carried out on counter parties and goods? Where doubt remains, is evidence sought from exporters that the trade is legitimate? • Does your financial institution have customers from high-risk countries, or with a history of dealing with individuals and entities from such places? If so, has the financial institution reviewed how the sanctions situation could affect such counter parties, and discussed with them how they may be affected by relevant regulations? • What other business takes place with high-risk jurisdictions, and what measures are in place to contain the risks of transactions being related to proliferation? Examples of POOR practice Supervision Department - AML/CFT Training Sanctions and Asset Freezing - Case Study Examples of GOOD Practice 2 In August 2010, we fined Royal Bank of Scotland (RBS) £5.6m for deficiencies in its systems and controls to prevent breaches of financial sanctions. • RBS failed adequately to screen its customers – and the payments they made and received – against the sanctions list, thereby running the risk that it could have facilitated payments to or from sanctioned people and organizations. • The bank did not, for example, screen cross-border payments made by its customers in sterling or euros. • It also failed to ensure its ‗fuzzy matching‘ software remained effective, and, in many cases, did not screen the names of directors and beneficial owners of customer companies. Examples of POOR practice Supervision Department - AML/CFT Training Definitions GlosSTRy 2 A Account Monitoring Order In the United Kingdom and several other countries, an order from a government authority requiring a financial institution to provide transaction information on a suspect account for a specified time period. Affidavit A written statement given under oath before an officer of the court, notary public, or other authorized person. It is commonly used as the factual basis for an application for a search, arrest or seizure warrant. Alternative Remittance System (ARS) Underground banking or informal value transfer systems. Often associated with ethnic groups from the Middle East, Africa or Asia, and commonly involves the transfer of values among countries outside of the formal banking system. The remittance entity can be an ordinary shop selling goods that has an arrangement with a correspondent business in another country. There is usually no physical movement of currency and a lack of formality with regard to verification and record- keeping. The money transfer takes place by coded information that is passed through chits, couriers, letters or faxes, followed by telephone confinancial institutionations. Almost any document that carries an identifiable number can be used by the receiver to pick up the values in the other country. The systems are referred to by different names depending upon the country: Hawala (an Arabic word meaning ―change‖ or ―transform‖), Hundi (a Hindi word meaning ―collect‖), Chiti banking (referring to the way the system operates), Chop Shop banking (China), and Poey Kuan (Thailand). Anti-Money Laundering International Database (AMLID) A compendium of analyses of anti-money laundering laws and regulations, including two general classes of money laundering control measures domestic laws and international cooperation—as well as information on national contacts and authorities. A secure, multilingual database, AMLID is an important reference tool for law enforcement officers involved in cross-jurisdictional work. Anti-Money Laundering International Database (AMLID) A compendium of analyses of anti-money laundering laws and regulations, including two general classes of money laundering control measures—domestic laws and international cooperation as well as information on national contacts and authorities. A secure, multilingual database, AMLID is an important reference tool for law enforcement officers involved in cross- jurisdictional work. Supervision Department - AML/CFT Training Definitions GlosSTRy 2 At a minimum, the anti-money laundering program should include: 1. Written internal policies, procedures and controls; 2. A designated AML compliance officer; 3. On-going employee training; and 4. Independent review to test the program. Arrest Warrant A court order directing a law enforcement officer to seize and detain a particular person and require them to provide an answer to a complaint or otherwise appear in court. Asia/Pacific Group on Money Laundering (APG) A Financial Action Task Force (FATF)-style regional body consisting of jurisdictions in the Asia/Pacific Region. Asset Manager A person appointed through a written contract by a company or trust to direct the entity‘s investment program. The program can be a fully discretionary account, or the contract can impose limitations on it. Fees to the asset manager can be based on performance achieved, trading commissions or a percentage of the valuation of the estate under his or her management. High fees and a close relationship with the owners or beneficiaries can expose the asset manager to potential conflicts between a duty to report unusual or suspicious activity and the fiduciary duty to the client. Asset Protection A process that includes reorganizing how assets are held so as to make them less vulnerable should a claim be made against a person. Asset protection is also a term used by tax planners for measures taken to protect assets from taxation in other jurisdictions. Asset Protection Trusts (APTs) A special form of irrevocable trust usually created (i.e., settled) offshore for the principal purposes of preserving and protecting part of one‘s wealth from creditors. Title to the asset is transferred to a person named the trustee. APTs are generally used for asset protection and are usually tax neutral. Their ultimate function is to provide for the beneficiaries. Some proponents advertise APTs as allowing foreign trustees to ignore U.S. court orders and to simply transfer the trust to another jurisdiction in response to legal action threatening the trust‘s assets (so-called ―flying trusts‖). Supervision Department - AML/CFT Training Definitions GlosSTRy 2 Automated Clearing House (ACH) An electronic banking network that processes large volumes of both credit and debit transactions that originate in batches. ACH credit transfers include direct deposit payroll payments and payments to contractors and vendors. ACH debit transfers include consumer payments on insurance premiums, mortgage loans and other kinds of expenses. The system is used for bulk orders made days in advance—for example, a large corporation‘s entire payroll. Both governments and commercial sectors can use the ACH system. The ACH system was designed to transfer a high volume of low-dollar domestic transactions, which pose lower money laundering risks. Nevertheless, the ability to send high-dollar and international transactions through the ACH may expose financial institutions to higher money laundering risks. Financial Institutions without a robust AML monitoring system may be exposed to additional risk, particularly when accounts are opened over the Internet without face-to-face contact. B Bank Draft Vulnerable to money laundering because it represents a reputable international monetary instrument drawn on a reputable institution, and is often made payable, in cash, upon presentation and at the issuing institution‘s account in another country. Bank for International Settlements (BIS) An international organization that serves as a bank for central banks and which fosters international monetary and financial cooperation with the purpose of attaining stability in the world economy. It hosts the Secretariat of the Basel Committee on Banking Supervision. The Committee has formulated broad supervisory standards and guidelines on Know Your Customer issues. Bank Secrecy Refers to laws and regulations in countries that prohibit banks from disclosing information about an account—or even revealing its existence—without the consent of the account holder. Impedes the flow of information across national borders among financial institutions and their supervisors. Recommendation 4 of FATF‘s 40 Recommendations of 2003 states that countries should ensure that secrecy laws do not inhibit the implementation of the FATF Recommendations. Supervision Department - AML/CFT Training Definitions GlosSTRy 2 Bank Secrecy Act (AML) The primary U.S. anti-money laundering regulatory statute (Title 31, U.S. Code Sections 5311-5355) enacted in 1970 and most notably amended by the USA Patriot Act in 2001. Among other measures, it imposes money laundering controls on financial institutions and many other businesses, including the requirement to report and to keep records of various financial transactions. Bank Secrecy Act (AML) Compliance Program A program that U.S.-based financial institutions—as defined by the Bank Secrecy Act—are required to establish and implement in order to control money laundering and related financial crimes. The program‘s components include at a minimum: the development of internal policies, procedures and controls; the designation of a compliance officer; ongoing employee training; and an independent audit function to test the program. Bare Trust Also known as a dry, formal, naked, passive, or simple trust, in which the trustees have no duties other than to convey the trust property to beneficiaries when called upon to do so. Bare trusts are vulnerable to money laundering because the final beneficiary is unknown. Basel CDD Paper A guidance paper on Customer Due Diligence (CDD) for banks issued by the Basel Committee on Banking Supervision (BCBS) in October 2001. The paper includes sound Know Your Customer policies and procedures that, according to the Committee, are critical to protecting the safety and soundness of banks and the integrity of banking systems. In February 2003, the Basel Committee on Banking Supervision issued ―General Guide to Account Opening and Customer Identification.‖ Basel Committee on Banking Supervision (Basel Committee) The Basel Committee was established by the G-10‘s central bank of governors in 1974 to promote sound supervisory standards worldwide. Its secretariat is appointed by the Bank for International Settlements in Basel, Switzerland. It has issued, among others, papers on customer due diligence for banks, consolidated KYC risk management, transparency in payment messages, due diligence and transparency regarding cover payment messages related to cross-border wire transfers, and sharing of financial records among jurisdictions in connection with the fight against terrorist financing. Yüklə 4,9 Kb. Dostları ilə paylaş:
|