Times Of Swaziland: AMENDMENTS TO AML BILL STRICT ON ‘WIRE TRANSFERS’

AMENDMENTS TO AML BILL STRICT ON ‘WIRE TRANSFERS’
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Sabelo Majola on 05/08/2024 07:45:00


MBABANE – Financial institutions undertaking a wire transfer equal to, or
above, a prescribed threshold are now expected to conduct various exercises on
the originator, beneficiary.
This is contained in the amendment of the Money Laundering and Financing of
Terrorism (Prevention) Act No. 6 of 2011. The new Bill is cited as the Money
Laundering and Combating of Financing of Terrorism and Proliferation Financing
(Miscellaneous Amendments) Act, 2024. Section 7 of the Principal Act was
replaced with a new section, which states that a financial institution
undertaking a wire transfer equal to, or above, a prescribed threshold shall
identify and verify the identity of the originator, obtain and maintain
information on the identity of the beneficiary, obtain and maintain the account
number of the originator and beneficiary, or in the absence of an account
number, a unique reference number.
The financial institutions are also expected to obtain and maintain the
originator’s address or, in the absence of an address, the national identity
number or date and place of birth. Notwithstanding the requirements of
subsection (1), a financial institution shall not be required to verify the
identity of a customer with which that financial service provider has an
existing business relationship and where the financial institution is satisfied
that it already knows and has verified the true identity of the customer,”
read the amendments.  Section 7 of the Principal Act, which has been deleted and
replaced by the new section in the Amendment Bill, only depicted that if
satisfactory evidence of the identity of a customer is not produced to, or
obtained by, an accountable institution in accordance with Section 6, the
accountable institution shall report the attempted transaction to the Eswatini
Financial Intelligence Unit (EFIU) and shall not proceed any further with the
transaction unless directed to do so by the EFIU.
Transfers
Subsection (4) of the amendment Bill stipulates that where several individual
cross-border wire transfers from a single originator are bundled in a batch file
for transmission to beneficiaries, the batch file should contain required and
accurate originator information, and full beneficiary information, that is fully
traceable within the beneficiary country and the financial institution shall
include the originator’s account number or unique transaction reference
number. Subsection (11) reveals that a beneficiary financial institution shall
develop and implement risk-based policies and procedures for determining when to
execute, reject or suspend a wire transfer lacking the required originator or
required beneficiary information and the appropriate follow-up action.