AML Defense Mechanism for Jewellers in Bahrain
AML Defense Mechanism for Jewellers
The Ministry of Industry, Commerce and Tourism has issued a guide, “AML Defence mechanism for Jewellers, Bahrain”, to help them understand their responsibilities for Prevention of Money Laundering/Terrorism Financing and enlighten them about numerous threats.
An individual is considered carrying out Money Laundering if he is involved in Directing, channelizing, possessing the proceeds of the crime, and concealing the source of Income.
We provide the following compliance services to our esteemed clients :
- The stages of Money Laundering/Terrorism Financing.
- Definition of money
- Instances of Money Laundering
- Identifying a potential money-launderer
- Examples of Common signs’
- Assessment of Risk
- Filling of Suspicious Transaction
- Appointment of a Compliance officer
- Training of the Staff AML/ CFT policies and procedures
- Customer Due Diligence/Enhanced Due -Diligence
Spotting a potential money-launderer
- Non-disclosure of residential address, sources of fund, etc
- Account holder in various Banks located in the same jurisdiction.
- Secretive in nature, nervous, over-explanation for a transaction, reluctant to meet in person, over-friendly
- Accompanied/watched by others
- Asking several questions about internal policies/procedures and documentation
- Asking for prompt completion of the transaction, hinting to give a bribe, etc
Indicators of Money laundering can be broadly classified as below:
Reporting mechanism
The customer directly/indirectly tries to avoid the documentation and reporting. He has a thorough knowledge of the Money laundering Law and justifies the transaction, etc
Identity Documents
The individual provides forged/false documents. He is unable to produce the originals, share the telephone number. A corporate is reluctant to share Memorandum and Articles, Commercial registration certificate and other Identity documents, etc
Cash Transactions
There is an unusual increase in cash transactions from the customers. The Banknotes are oddly packed, dirty/musty, are a combination of different denominations, etc.
Economic purpose
The transaction is very complicated and is not economically feasible. The transaction is not related to the customer’s normal business activities, etc
Transactions involving other Countries
The customer has no link to Bahrain, and the transaction is crossing many international borders. The customers are associated with High-Risk countries, etc.
Risk-Assessment Key Points
The Risk-Assessment should be done on the following key-points
- Products/services
- Delivery channels
- Geographic location
- New technologies
- Transaction risk, etc.
The guide issued also discusses how a Company can file suspicions transaction report (STR), implementation of the “PROTECT” self-defence toolkit for the Jewellers, Customer Due Diligence (CDD), Enhanced due -Diligence (EDD)
AML Defense Mechanism for Jewellers
The Ministry of Industry, Commerce and Tourism has issued a guide, “AML Defence mechanism for Jewellers, Bahrain”, to help them understand their responsibilities for Prevention of Money Laundering/Terrorism Financing and enlighten them about numerous threats.
An individual is considered carrying out Money Laundering if he is involved in Directing, channelizing, possessing the proceeds of the crime, and concealing the source of Income.
We provide the following compliance services to our esteemed clients :
- The stages of Money Laundering/Terrorism Financing.
- Definition of money
- Instances of Money Laundering
- Identifying a potential money-launderer
- Examples of Common signs’
- Assessment of Risk
- Filling of Suspicious Transaction
- Appointment of a Compliance officer
- Training of the Staff AML/ CFT policies and procedures
- Customer Due Diligence/Enhanced Due -Diligence
Spotting a potential money-launderer
- Non-disclosure of residential address, sources of fund, etc
- Account holder in various Banks located in the same jurisdiction.
- Secretive in nature, nervous, over-explanation for a transaction, reluctant to meet in person, over-friendly
- Accompanied/watched by others
- Asking several questions about internal policies/procedures and documentation
- Asking for prompt completion of the transaction, hinting to give a bribe, etc
Indicators of Money laundering can be broadly classified as below:
Reporting mechanism
The customer directly/indirectly tries to avoid the documentation and reporting. He has a thorough knowledge of the Money laundering Law and justifies the transaction, etc
Identity Documents
The individual provides forged/false documents. He is unable to produce the originals, share the telephone number. A corporate is reluctant to share Memorandum and Articles, Commercial registration certificate and other Identity documents, etc
Cash Transactions
There is an unusual increase in cash transactions from the customers. The Banknotes are oddly packed, dirty/musty, are a combination of different denominations, etc.
Economic purpose
The transaction is very complicated and is not economically feasible. The transaction is not related to the customer’s normal business activities, etc
Transactions involving other Countries
The customer has no link to Bahrain, and the transaction is crossing many international borders. The customers are associated with High-Risk countries, etc.
Risk-Assessment Key Points
The Risk-Assessment should be done on the following key-points
- Products/services
- Delivery channels
- Geographic location
- New technologies
- Transaction risk, etc.
The guide issued also discusses how a Company can file suspicions transaction report (STR), implementation of the “PROTECT” self-defence toolkit for the Jewellers, Customer Due Diligence (CDD), Enhanced due -Diligence (EDD)
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About the Author
Pathik Shah
FCA, CAMS, CISA, CS, DISA (ICAI), FAFP (ICAI)
Pathik is a Chartered Accountant with more than 26 years of experience in governance, risk, and compliance. He helps companies with end-to-end AML compliance services, from conducting Enterprise- Wide Risk Assessments to implementing the robust AML Compliance framework. He has played a pivotal role as a functional expert in developing and implementing RegTech solutions for streamlined compliance.