Review of the regulatory environment relative to Money Transfer ...

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Know your customer rulesDutch regulation defined the Act on Customer Identification for Financial Services (Wetidentificatie bij financiële dienstverlening 1993).The most important provision of this Act is related with the obligation for financialinstitutions to check the identity of new customers, either natural persons or legal entities.Under this Act, financial institutions are defined as: banks, investment institutions, securitiesbrokers, investment managers, life insurance companies and life insurance agents, casinos,credit card companies and currency exchange offices and money transmitters.Furthermore, other professions, companies or institutions that are “particularly suitable formoney laundering purposes” can easily and quickly be brought under the scope of this Act:professional service providers like lawyers, real estate agents,The mandatory identification includes the obligation to register details relating to the identityof the customer. At least the following have to be registered:• the name and the address of the customer;• the nature, the number and the date and place of issue of the document used forthe identification;• the nature of the transaction;• specific information about the value of the goods deposited, a description of theaccount opened.Once the identity check is made, the financial institutions have to record the information andkeep it for at least five years after the transaction or after the end of the relationship with thecustomer. Before recording all this information, the financial institution has to check (ask)whether the customer acts as a principal or for a third party. In the latter case, the institutionhas to check and register both the identity of the appearing customer and of the third party.Despite existing exclusions of the mandatory customer identification, the identity check isalways requested in case of an “unusual transaction”, in which case a second anti-moneylaundering act is applied: the Act on the Disclosure of Unusual Transactions.Following the standard international regulation (see FAFT regulation) on “Customer DueDiligence for banks (CDD) and in line with the international trend of moving to a more riskbased control system, the DNB has introduced the Customer Due Diligence regulation in theNetherlands recently. According to this rule banks have to identify risky customers (forexample by making customers profiles).2.4 OECS countries money laundering regulationFAFT complianceParticular OECS countries in the years 2000 (2000 to 2004) have been listed on the FAFT’sNon Cooperative Country or Territory (NCCT list): Dominica, St Kitts and Nevis, St Vincent andthe Grenadines and Grenada.FAFT was particularly concerned by specific issues and asked for action to be taken on:• Lack of customer identification procedures and retention of records• Lack of requirement to report suspicious transactionsRegulatory framework: Implementation of Mobile Money Transfer services - June 2009 -30
• Weak regulation and supervision of offshore entities• Permission given by law to non-residents to own and operate an offshore bankwithout any requirement of identificationActions were taken by concerned governments such as promulgation of Money Laundering(Prevention) Act and the setting of Money Laundering Supervisory Authority (MLSA) andaccordingly the concerned OECS countries have been removed from the NCCT list.Mutual evaluation Reports on FAFT regulation was performed in 2008 on two OECS countries:St Lucia and Antigua and Barbuda and on Barbados (Non OECS country).Evaluation reports insisted that the level of FAFT compliancy was still to be improved, forinstance as regards the Customer Due Diligence (CDD).They also pointed out that there was no legislative requirement for financial institutions,including money remitters to include accurate and meaningful originator information onfunds transfers and related messages.Regulatory framework: Implementation of Mobile Money Transfer services - June 2009 -31
Page 1: Review of the regulatory environmen
Page 4 and 5: Table of contentsExecutive summary
Page 6 and 7: Executive summary (regulatory)The p
Page 8 and 9: • Suspicious transactions must be
Page 10 and 11: • A line of conclusions regarding
Page 12 and 13: B) FAFT RecommendationsFAFT has iss
Page 14 and 15: D) FAFT recommendations applied on
Page 16 and 17: ecommendation that countries put in
Page 18 and 19: Remittance providers are subject to
Page 20 and 21: the regime, and expanding also the
Page 22 and 23: Customer due diligence procedures s
Page 24 and 25: 3 MLD risk based approachCDD proced
Page 26 and 27: suppress the financing of terrorism
Page 28 and 29: EU Wire Transfers Regulation was co
Page 32 and 33: FAFT Mutual evaluation Report (Abst
Page 34 and 35: B) Payment Services included in PSD
Page 36 and 37: However the European Commission has
Page 38 and 39: Preliminary Information Information
Page 40 and 41: SinglePaymentTransactionInformation
Page 42 and 43: An application shall besubmitted wi
Page 44 and 45: G) The European passportThe passpor
Page 46 and 47: 3.1.2 Electronic Money DirectiveA)
Page 48 and 49: This definition is more neutral fro
Page 50 and 51: The UK Government pointed out on di
Page 52 and 53: to refuse a licence to those who fa
Page 54 and 55: Opening of a bank account in the UK
Page 56 and 57: Operating without the required lice
Page 58 and 59: Going further, the Regulation intro
Page 60 and 61: Evolution in relation with PSDThe C
Page 62 and 63: Saint Lucia 1 April 2007St Vincent
Page 64 and 65: 4. ConclusionsFrom a regulation sta
Page 66 and 67: discussions within EU governments,
Page 68 and 69: Debit card: a card enabling the hol
Page 70 and 71: Main regulatory references FAFT for
Page 72: Regulatory framework: Implementatio

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