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Obligations of the Entities Subject to the Provisions of the Law

Obligations of the Entities Subject to the Provisions of the Law:-

  1. Reporting Entities shall undertake the following:
  • Identify, assess, understand and monitor their money laundering and terrorist financing risks, while taking into account risk factors related to customers, countries and geographic areas, products, services, channels, transactions and techniques including the new ones or those subject for development. Such assessment shall be proportionate with the nature and size of the reporting entity, the requirements of supervisory authorities and the national risk level.
  • Adopt and approve policies, controls and procedures, to manage and mitigate risks, based on the results of the risk assessment indicated in paragraph (a) of this article.
  • Document and update the self-risk assessments periodically or when necessary to provide them to the competent entities upon their request.
  • Refrain from opening or maintaining anonymous accounts, or accounts with fictitious names or keeping of such and refrain from dealing with unidentified persons, whether they are natural or legal persons.
  • Conduct customer due diligence measures or simplified or enhanced measures in line with the risk assessment and verify such provided that enhanced customer due diligence measures shall be applied in cases where specific scenarios of higher risks occur, risks scenarios or whenever there is a suspicion of money laundering or terrorist financing.
  • Develop appropriate risk-management procedures to determine whether the customer or beneficial owner is a politically exposed person and take specific customer due diligence measures to that case.
  • Implement programs to combat money laundering, any associated predicate offence and terrorist financing, in line with the risk assessment.
  • Financial groups shall implement group-wide programs against money laundering and terrorism financing, including policies and procedures for the exchange of information within the group. The mother financial institution shall ensure that its foreign branches and subsidiaries apply the required Anti Money Laundering and Counter Terrorist financing measures.
  1. Reporting entities, and according to the instructions issued thereof, shall keep records of local or international transactions they undertake in addition to sufficient data to identify such transactions, for no less than five years from the date of completing such transactions, They shall also Keep all records obtained through customer due diligence procedures, account files and business correspondence, as well as results of any analysis undertaken, for no less than five years from the date of termination of the relationship or the date of the transaction, whichever is longer. The record keeping mechanism shall permit reconstruction of individual transactions so as to provide evidence of it.
  1. Reporting entities shall Periodically Update records, including customer due diligence records, documents, instruments, data, information and the results of any analysis undertaken, and provide such to competent entities upon their request.
  1. A reporting entity shall immediately notify the Unit of any transaction or activity, or any attempt of such, if it suspects, or has reasonable grounds to suspect that funds are the proceeds of money laundering, associated predicate offense or terrorist financing, regardless of the amount of the transaction and pursuant to instructions issued by the Unit.

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