Anti-Money Laundering AML
The negative economic effects of money laundering and terrorist financing on economic development are difficult to quantify
The Bank follows anti-money laundering regulations in order to reduce the effects of this phenomenon on banks and the national and international economy.
Money laundering and the financing of terrorism affect economic development and cannot be measured quantitatively. However, it is clear that such activity harms the financial sector institutions that are vital to economic growth and reduces productivity in the real economy sector.
In recent years, international efforts to combat money laundering and financing of terrorism have been united, gaining increasing importance in addressing global problems that threaten not only security but also the stability, transparency, and efficiency of financial systems, and, therefore, undermine economic prosperity.
Hence, the efforts of the Tadhamon Bank in the field of combating money laundering coincided with the international and local efforts to reduce effects of this phenomenon on banks and the national and international economy alike.
In accordance with the Bank’s internal procedures and the requirements of the Central Bank of Yemen and foreign banks, a mechanism for action in the field of combating money laundering and financing of terrorism has been developed. This mechanism was activated by establishing an independent work unit that performs its functions in accordance with the regulations and procedures governing this. It also plays an active role in reducing the Bank’s being used as a means of conducting money laundering activities prohibited by domestic and international legislation.
The role of the Anti-Money Laundering Unit has been enhanced within the positive atmosphere established by the Bank's senior management. The internal regulations in the field of combating money laundering have been approved and circulated to the branches. Also, a training plan was approved to train the Unit employees, as well as a training program for employees at branches in the field of combating money laundering. Currently, the client data are being updated by the branches in order to reclassify them according to internationally recognized risk ratings.
Of the most important tasks and priorities of the Anti-Money Laundering Unit in the Bank are the following:
- Cooperating with the internal departments in updating and developing procedures and standards for detecting suspicious cases.
- Following up the decisions/instructions issued by the relevant internal and international governmental authorities and ensure compliance of the branches and concerned departments with the anti-money laundering regulations.
- Monitoring foreign outward/inward transfers; and taking necessary actions in coordination with the relevant departments and branches.
- Developing an automated system that serves anti-money laundering measures and helps classify clients as to risk degrees.
- Preparing an AML Questionnaire for "Know Your Customer" and communicating it to the foreign banks that the bank deals with.
- Responding to inquiries from correspondent banks concerning:
- AML / CTF Internal Policies.
- Client Due Diligence.
- Know Your Customer.
- Risk Assessment.
- Transaction Monitoring.
- Coordinating with the SWIFT department regarding outward/inward transfers held in the OFAC system, verifying them and reporting suspicious transactions.
- Ensuring that international departments follow proper procedures on conducting transactions with banks, financial institutions, and companies in other countries, in accordance with local and foreign regulations for combating money laundering and terrorist financing.
- Coordinating with the financial institution's management regarding the opening of accounts for foreign banks at the Bank and vice versa, in such a way as to ensure that no accounts will be opened until referring to the Money Laundering Unit to complete the verification procedures of these banks according to the principle of “Know Your Client"
- Coordinating with the remittance department in responding to foreign banks' inquiries about correspondence and data related to remittances before preparing responses thereto.
- Coordinating with the internal audit and control department to take the necessary measures to remedy deficiencies in the implementation of the controls and regulations of the by-laws to combat money laundering in the Bank branches in the governorates.