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| Actions of financial institutions in case of inability to comply with customer due diligence requirements
| If it is not possible for a financial institution to comply with the CDD requirements
| | An account must not be opened
| | A business relation must not be commenced
| | Transactions must not be performed
| | The existing business relationship must be terminated
| | An STR needs to be send to the FIU
| | If there are reasonable grounds to suspect that funds are proceeds of criminal activity or are related to terrorist financing, R. 20
| | Tipping-off: it is prohibited to disclose the fact that an STR or other related information was filed with the FIU, R. 21, (b)
| | Financial institutions and their employees should be protected from any liability when they report their suspicions to the FIU, R. 21, (a)
| | There is a risk of unintentional tipping-off when performing the CDD process
| | The institution may choose not to perform further CDD process and file an STR with data available, R. 10, IN, (A)
| | If they report their suspicions in good faith, even if they do not know precisely what the underlying activity was (they do not know whether activity was criminal)
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Record-keeping requirements for financial institutions
| Must be kept for at least five years
| | Information obtained through the CDD measures
| | Account files and business correspondence
| | The results of any analysis undertaken
| | E.g. inquiries to establish the background and purpose of complex, unusual large transactions
| | E.g. copies of official identification documents
| | After the business relation is ended
| | After the date of the occasional transaction
| | The records must be sufficient to permit reconstruction of individual transactions
| | The records must be sufficient to provide evidence for prosecution of criminal activity
| | The information should be available to domestic competent authorities
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Date: 2015-01-29; view: 859
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