Anti-money Laundering measures

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					Annexure A QUESTIONNAIRE ON - ANTI-MONEY-LAUNDERING MEASURES Contents This checklist covers: A B C D E Internal controls, policies and procedures. Identification procedures. Record keeping. Recognition of suspicious transactions and reporting procedures. Education and training of relevant employees.

Guidance on completion Answers to specific points in the checklist will generally need to be supported by appropriate evidence if called for.

Yes No Comments A 1. Internal controls, policies and procedures Has the bank set up clear policies, procedures and controls to deter money laundering? In particular there should be: Written procedures covering the prevention of money laundering. Designated officer(s) responsible for developing, maintaining and promulgating anti-money-laundering procedures. Clear reporting lines for dealing with any suspected money-laundering activities. Has the bank designated an officer as the central point of contact for communicating with law-enforcement agencies regarding any suspected money laundering (“a moneylaundering control officer”)? Do the bank’s written procedures cover the following requirements: To be aware of the potential risk of money laundering? To report all suspicious transactions internally?

(a) (b)



3. (a) (b)


Yes No Comments (c) (d) To investigate all reported suspicious transactions? To report all transactions ultimately considered suspicious to the Financial Intelligence Centre? Has the bank provided the moneylaundering control officer with the necessary access to systems and records to fulfil the responsibilities outlined in 2 and 3? Has the bank made arrangements to verify, on a regular basis, compliance with policies, procedures, and controls relating to money-laundering activities (for example, as part of internal audit inspection visits)?



B 6.

Identification procedures In June 2003, know-your-customer requirements will have to be implemented. What is the current status of the identification procedures followed by the bank? 7. Does the bank seek satisfactory evidence of the identity of a prospective customer at the time of opening an account or entering into a business relationship? 8. Does the bank not proceed with the business if satisfactory evidence of identity is not obtained as soon as is reasonably practicable? 9. Do the banks’ procedures recognise the possibility of linked one-off transactions? 10. When a prospective customer who is effecting a one-off transaction is introduced by another financial institution, does the bank: (a) Obtain, from the introducer, the name of the customer and a written assurance that evidence of identity has been taken and recorded? (b) Alternatively, verify the identity of the customer?


Yes No Comments Verification procedures – General 11. Does the bank interview prospective customers personally whenever possible? 12. Does the bank obtain the best identification documents possible, that is, those that are most difficult to obtain illicitly? 13. Is there separate verification of the current permanent address of the prospective customer? 14. Is the evidence of identity required issued by reputable sources? 15. Are file copies of the supporting evidence retained? 16. Are reference numbers of identity documents and other relevant details recorded? 17. In respect of joint accounts, when the surnames and/or addresses of the account holders differ, does the bank verify the name and address of all account holders? Account opening for personal customers 18. Does the bank obtain the following information from prospective RSA customers: (a) True name and/or names used? (b) Correct permanent RSA address including postal code? (c) Date of birth? 19. Does the bank verify surname or names by reference to a document obtained from a reputable source that ideally bears a photograph (whenever possible, a current valid full passport or national identity card should be requested and the number should be registered)? 20. Does the bank verify the current permanent address? Note: some of the best means of verifying addresses are the following: - Checking the voters roll. - Making a credit-reference agency search. 3

Yes No Comments - Requesting sight of a recent bank statement or utility bill. - Checking a local telephone directory. 21. When a personal customer is introduced by a respected customer personally known to the manager or by a trusted member of staff, are address verification procedures still carried out? 22. Only in exceptional cases should an account be opened when the customer is unable to provide satisfactory documentary proof of identity (for example a child). Are such cases authorised at an appropriately senior level and are the circumstances recorded? Opening account for students and young people 23. When opening accounts for students or other young people, does the bank follow normal identification procedures as far as possible? 24. When such procedures are not relevant or do not provide satisfactory evidence of identity, does the bank obtain verification via the home address of the parent(s) or by enquiries of the relevant college or university? Trust accounts 25. When it is known or suspected that an account is being opened, or a transaction is being undertaken, on behalf of a third party, without that fact being disclosed, does the bank take measures to obtain information on the identity of the person on whose behalf the customer is acting? 26. When the bank has no current relationship with a proposed trustee, does the bank verify the identity of the trustee in the same way as for personal customers?


Yes No Comments Confirmation of identity by other banking institutions 27. When the bank is approached by another institution for the purpose of verifying identity, does the bank respond to such requests positively and without undue delay? Account opening procedures for nonRSA-resident personal customers 28. For prospective customers who are not normally resident in the RSA, but who wish to open RSA-based bank accounts, does the bank, as far as possible, follow verification procedures similar to those for RSA resident customers? 29. For prospective non-RSA resident customers, does the bank verify identity by reference to passports or national identity cards? 30. For prospective non-RSA resident customers who wish to open accounts by post, does the bank seek verification of identity from a reputable credit or financial institution in the prospective customer’s country of residence? 31. Do the verification details requested in step 30 include the true name or names used, the current permanent address and verification of signature? Unincorporated businesses, clubs and societies 32. For partnerships, other unincorporated businesses, clubs and societies, does the bank verify the identity of at least two partners/signatories (unless there is to be only one signatory) in line with the requirements for personal customers? Account opening for corporate customers 33. Does the bank obtain the following documents:


Yes No Comments The original or certified copy of the Certificate of Incorporation or the Certificate to Trade? (b) Resolution of the board of directors to open an account and confer authority on those who will operate it? (c) A search of the file at the Registrar of Companies? 34. Does the bank obtain evidence that any individual representing the company has the necessary authority to do so and is this evidence retained? 35. When the customer is an RSA private company whose directors are not known to the bank, has the bank verified the identity of at least one director and all persons authorised to operate the account in line with the requirements for personal customers? Non-RSA-registered companies 36. Does the bank seek to identify the directors and shareholders of the company?. 37. Have the steps in 36 above been extended as far as is practicable to identify those who ultimately own and control the company? 38. Does the bank obtain evidence that the individual representing the company has the necessary authority to do so and is this evidence retained? 39. Does the bank obtain comparable documents to those required for RSA corporate customers as far as is practicable, in particular copies of any documents lodged at the Registrar of Companies? 40. If the company is already in existence when the account in this country is opened, does the bank confirm the signatures on the mandate with the company’s current overseas bankers and confirm that they can verify the identity of each signatory? (a)


Yes No Comments C Record keeping 41. In June 2003, it will become a statutory requirement for banks to retain records of customer identification and transactions, for use as evidence in any investigation into money laundering. What is the current status of record keeping of the bank in this regard? Documents verifying evidence of identity 42. When evidence of a customer’s identity is required do the records: (a) Indicate the nature of the evidence of identity obtained? (b) Comprise either a copy of the evidence or provide such information as would enable a copy of it to be obtained or sufficient to enable details of identity to be reobtained? 43. Are records retained as evidence of identity kept for a period of at least five years after the relationship with the customer has ended? Transaction records 44. Does the bank retain records of transactions undertaken on behalf of customers consisting of the original documents for a period of at least five years following the date on which the relevant transaction or series of transactions was completed? 45. In relation to step 48 above, does the bank retain records containing evidence of the following: (a) The beneficial owner of the account? (b) The volume of funds flowing through the account? (c) For selected transactions: (i) The origin of the funds? (ii) The form in which the funds were offered or withdrawn? (iii) The identity of the person undertaking the transaction? (iv) The destination of the funds? (v) The form of instruction and authority? 7

Yes No Comments 46. When it is not practicable to retain copies of all materials, do the bank’s procedures ensure that it is able to retrieve relevant information to the extent that it is available without undue delay? 47. Do the bank’s procedures ensure that, when records relate to on-going investigations, they are retained until it is confirmed by the relevant lawenforcement agency that the case has been closed? 48. When original vouchers are used for account entry and are not returned to the customer or the customer’s agent, does the bank keep such original documents for at least one year to assist forensic analysis? Authentication of computerised records 49. When retention is by way of computerised records, is the bank in a position to obtain a certification confirming the computer’s reliability? Wire-transfer transactions 50. When sending SWIFT messages, are the fields for the ordering and beneficiary customers completed with their respective names and addresses? 51. Does the bank encourage all its ordering customers to include this information for all credit transfers made by electronic means, both domestically and internationally regardless of the payment or message system used? If the answer is no, see step 52 below. 52. In cases when this information is not contained in the message, does the bank keep full records of the ordering customer and address?


Yes No Comments D Recognition and reporting suspicious transactions of

Reporting of suspicious transactions 53. Do the bank’s procedures ensure that there is a general awareness among relevant staff (cashiers, account officers) of the types of transaction that may indicate money laundering? 54. Do the bank’s procedures ensure that identification of any suspicious transactions prompt further investigation? 55. Has the bank taken steps to ensure that: (a) Each relevant employee knows to which person suspicions should be reported? (b) There is a clear reporting chain through which those suspicions will be passed without delay to the moneylaundering reporting officer? Role of the money laundering control officer 56. Is the person appointed as moneylaundering control officer considered to be sufficiently senior to command the necessary authority? 57. Has the money-laundering control officer established contact with the relevant authorities and is the moneylaundering control officer familiar with reporting procedures? 58. Do the bank’s procedures ensure that any suspicions reported to the moneylaundering control officer are properly investigated?


Yes No Comments E Education and training

General 59. Has the bank taken appropriate measures to make employees aware of: (a) Policies and procedures put in place to prevent money laundering, including those for identification, record keeping and internal reporting? (b) The legal requirements and, in particular, employees own responsibilities? 60. Has the bank provided relevant employees with training in the recognition and handling of suspicious transactions? Education and training programmes 61. Do the bank’s education and training programmes take account of the recommended practice below? (a) New employees All new employees should be provided with a general appreciation of the background to money laundering, the legal requirements and the need to report any suspicious transactions to the money-laundering control officer. (b) Cashier/foreign-exchange operators/advisory staff Training should be provided on factors that may give rise to suspicions and on the procedures to be adopted when a transaction is deemed to be suspicious. (c) Account opening/new customer staff As in (b) above. The staff should also be trained in identity-verification procedures. (d) Administration/operations supervisors and managers A higher level of instruction covering all aspects of money laundering procedures and legislation should be provided.


Yes No Comments (e) Money-laundering control officers Training should be provided on all aspects of the legislation, regulations and internal policies. Moneylaundering control officers also require training in investigation and validation procedures and on reporting and communication arrangements with the Financial Intelligence Centre. 62. Does the bank provide refresher training at appropriate intervals?


We, the undersigned, hereby declare that the information contained in this document is to the best of our knowledge and belief correct.

Signed at ………………….., this …………………. day of ………………... 20….





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