Reporting Under FATCA/ CRS and implication of non-compliance
Foreign Account Tax Compliance Act (FATCA) is a US Law that requires foreign financial institutions to identify and report on the assets held by US account holders through enhanced due diligence reviews and report them periodically to the U.S. The report is in line with local FATCA regulations, based on citizenship. The purpose of FATCA…
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Risk-based approach of Correspondent Banks
Correspondent banking refers to a banking relationship between two banks, where one bank (the “correspondent bank”) provides banking services to another bank (the “respondent bank”), allowing the respondent banks to access services in foreign markets. Correspondent Banking relationships are essential in facilitating the cross-border payment system and vital to international trade and investments. A risk-based…
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What are FATF-identified Jurisdictions?
The Financial Action Task Force (FATF) is an international policy-making and standard-setting body dedicated to tackling money laundering, terrorist, and proliferation financing. It is a global money laundering and terrorist financing watchdog that sets international standards that aim to prevent these illegal activities and the harm they cause to society. The FATF constantly identifies and…
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What is enhanced due diligence (EDD)?
Enhanced due diligence (EDD) is a set of additional measures that financial institutions have to implement to check and monitor high-risk customers and unusual transactions for potential money laundering and terrorist financing (ML/TF) activities. Enhanced due diligence (EDD) is an in-depth KYC process that can help to identify high-risk customers including politically exposed persons (PEPs).…
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AML: Obligations under International Agreements
Money laundering is the process wherein criminals attempt to conceal their booty and make an attempt to cover them as a legitimate source of income. The bill on money laundering described it as an offence (i) when a crime has been committed. (ii)There are proceeds or gains from the crime. (iii) There is a transaction…
What is Customer Due Diligence (CDD) under AML risk management in Banks?
In the realm of risk management and compliance, Customer Due Diligence (CDD) is a pivotal player. The Customer Due Diligence meaning, often abbreviated as CDD, is a process that financial institutions, businesses, and other organisations use to gather information about their customers and clients to identify and mitigate risks such as money laundering, financing terrorism,…
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