Terms & Conditions

Money Laundering -An Overview

Money laundering is the process by which criminals attempt to conceal the true origin and ownership of the proceeds of their unlawful acts to avoid being prosecuted, convicted, and having their cash confiscated. Money laundering is divided into three stages

  • Placement refers to the process of introducing criminally obtained funds into the financial system. 
  • Layering- Using layers of sophisticated financial transactions to separate the proceeds of illicit activities from their sources
  • integration: This is the ultimate stage when the 'laundered' money is reintroduced into the normal economy

Money laundering is a constantly developing and never-ending battle. Money laundering not only has a negative impact on the public, but it also has a negative impact on the financial services business. It is certainly in the banking industry's best interests

Terrorist Financing

The handling of funds to finance or aid terrorist activity is referred to as terrorism funding. It could include cash obtained from both legitimate and illicit sources, Such as personal gifts, revenues from enterprises, and philanthropic organizations, as well as the drug trade, and weapons smuggling. fraud, kidnapping, and extortion.

This is one of the most serious challenges that all financial institutions throughout the world are facing. Sender wants to avoid being used to fund terrorist activities thus, it will always be on the lookout for suspicious transactions to report

Know Your Customer and/or Know Your Customer Counter Party" (KYC/KYCC) Policy

KYC and KYCC are effective anti-money laundering and anti-terrorist financing defenses. Prior to performing a transaction, the Systems are designed to capture all essential information about the consumer and the recipient. The system's rules ensure that obtaining customer and beneficiary information is required for executing a transaction.

This is an important preventive strategy for effectively screening questionable activity in a proactive manner while remaining compliant with regulatory obligations. He makes certain that the following critical information and documentation are available to assist effective KYC and KYCC:

He will not proceed with a transaction for a Customer who fails to submit appropriate KYC information or who appears hesitant/unwilling to disclose information as required to establish adherence to KYC requirements and will fag the case as a High-Risk customer. These incidents are flagged for reporting to the regulator via the Suspicious Transaction Report (STR), as well as heightened surveillance.