Is MSBs an NBFIs?

Common examples of NBFIs include, but are not limited to: Casinos and card clubs. Securities and commodities firms (e.g., brokers/dealers, investment advisers, mutual funds, hedge funds, or commodity traders). Money services businesses (MSB).

What are the 5 pillars of an anti money laundering program?

The key 5 pillars of an AML Program are internal controls, a designated BSA officer, ongoing training, independent testing, and customer due diligence (CDD) – the newest pillar.

Who are considered PEPs?

In financial regulation, a politically exposed person (PEP) is one who has been entrusted with a prominent public function. A PEP generally presents a higher risk for potential involvement in bribery and corruption by virtue of their position and the influence that they may hold.

What is CDD AML?

Customer due diligence (CDD) is the act of performing background checks and other screening on the customer to ensure that they are properly risk-assessed before being onboarded. CDD is at the heart of Anti-Money Laundering (AML) and Know Your Customer (KYC) initiatives.

Is NBFI and NBFC same?

Nonbank financial companies (NBFCs), also known as nonbank financial institutions (NBFIs) are entities that provide certain bank-like financial services but do not hold a banking license. NBFCs are not subject to the banking regulations and oversight by federal and state authorities adhered to by traditional banks.

Who is subject to Ffiec?

The FFEIC is responsible for creating uniform regulatory standards and reporting systems for all federally supervised financial institutions, as well as their holding companies and subsidiaries. In short, any institution that is regulated by one of the FFEIC member agencies is effectively subject to FFEIC rules.

What are the four pillars of KYC?

The Company has framed its KYC policy incorporating the following four key elements: (i) Customer Acceptance Policy; (ii) Customer Identification Procedures; (iii) Monitoring of Transactions/ On-going Due Diligence; and (iv) Risk Management.

What are the 3 types of PEPs?

There are different customer identification and verification procedures for medium or low-risk PEPs and high-risk PEPs, including foreign PEPs.

  • Medium or low-risk PEPs.
  • High-risk PEPs.
  • Monitoring transactions of high-risk PEPs.

What is anti-money laundering program?

The system designed to assist institutions in their fight against money laundering and terrorist financing. In many jurisdictions, government regulations require financial institutions, including banks, securities dealers and money services businesses, to establish such programs.

What is the primary anti money laundering regulation in the US?

The primary U.S. anti-money laundering regulatory statute (Title 31, U.S. Code Sections 5311- 5355) enacted in 1970 and most notably amended by the USA PATRIOT Act in 2001.

What is the definition of money laundering?

The definition of money laundering varies in each country where it is recognized as a crime. A term used in various international rules to refer to the person responsible for overseeing a firm’s anti-money laundering activities and program and for filing reports of suspicious transactions with the national FIU.

What is the International Anti-Money Laundering Organization (IMO)?

It is an international policy-making body that sets anti-money laundering standards and counter-terrorist financing measures worldwide. Its Recommendations do not have the force of law. 35 countries and two international organizations are members.