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Part One. Article 7 65“Option 2 5“1. Each State Party shall institute the necessary regulations for banking andnon-banking financial institutions within its jurisdiction to prevent and detect moneylaundering.Such regimes shall include the following minimum requirements:“(a) The granting of licences or authorization to conduct financial activities;“(b) The lifting of bank secrecy in cases involving measures for the preventionand investigation of the crime of money-laundering, in accordance with the preceptslaid down in the domestic legislation of each State Party;“(c) The institution of advisory and supervisory mechanisms for financial institutionsfor the purpose of verifying compliance with programmes, standards, proceduresand internal controls established for such institutions; and“(d) Requiring such institutions to report suspicious or unusual transactions.“2. States Parties shall examine their domestic regimes relating to the establishmentof business organizations and shall consider whether additional measures arerequired to prevent the use of such entities to facilitate money-laundering activities.“3. States Parties shall consider implementing feasible measures to detect andmonitor the movement of cash and appropriate negotiable instruments across theirborders, subject to safeguards to ensure proper use of information and without impedingin any way the freedom of legitimate capital movements. The measures mayinclude a requirement that individuals and businesses report cross-border transfers ofsubstantial quantities of cash and appropriate negotiable instruments.“4. States Parties shall enhance their ability to exchange information collectedpursuant to this article. This shall, where possible, include measures to enhance domesticand international exchange of information between law enforcement and regulatoryauthorities. To this end, States Parties shall consider the establishment of financial intelligenceunits to serve as national centres for the collection, analysis and disseminationof information regarding potential money-laundering and other financial crimes.“5. In establishing regimes to combat money-laundering, States Parties shouldconsider, in particular, the 40 recommendations of the Financial Action Task Forceon Money Laundering, as well as other relevant anti-money-laundering initiativesendorsed by the Organization of American States, the European Union, the Councilof Europe and the Caribbean Financial Action Task Force.“6. States Parties shall endeavour to develop and promote global, regional, subregionaland bilateral cooperation among judicial, law enforcement and financial regulatoryauthorities in order to combat money-laundering.”Third session: 28 April-3 May 1999Notes by the Secretariat1. Delegations based their comments on the text of article 4 bis of the revised draftconvention contained in document A/AC.254/4/Rev.2, which was the same as that containedin document A/AC.254/4/Rev.1.5Option 2 was based on a proposal submitted by Mexico at the first session of the Ad Hoc Committee (seeA/AC.254/L.7). In that proposal, Mexico also suggested including references to some of the recommendations of relevantexpert groups, including the Financial Action Task Force on Money Laundering.