Taking into account that a bank or the banking system may be exposed to reputational, operational, legal and other risks related with money laundering activities. The involvement of banking institutions in money laundering is likely to seriously undermine their reputation and undermine the public’s confidence in them and in the banking system.
In order to reduce the risk of the banking system becoming a vehicle for/or a victim of financial crime and suffering consequential damage, and to protect the reputation and integrity of the banking system, the Banking and Payments Authority (BPA) of Timor-Leste passed Public Instruction N. 02-2004.
The instruction covers the following topics:
1. Know Your Customer (KYC) Policy and Procedures
2. Customer Acceptance Policy
3. Customer Identification
4. Politically Exposed Persons
5. Updating Customers’ Particulars
6. Transfer of Money
7. Retention of Identification Documents
8. On-Going Monitoring of Accounts and Transactions
9. High-Risk Customer Accounts
11. Reporting of Suspicious Transactions
12. Infractions, Penalties and Remedial Measures