to their independent ability to set standards through peer pressure, they are also given some degree of legal recognition under UNCAC. The following excerpt from the UNCAC summarizes and explains the various Legislative Guide mandated and recommended actions that, pursuant to Article 14, State Parties are to follow: Beginning of Excerpt _____________________________________ Summary of Main Requirements 138. Article 14 contains two mandatory requirements: To establish a comprehensive domestic regulatory and supervisory regime to deter (a) (para. 1 (a)); To ensure that agencies involved in combating money-laundering have the ability to cooperate (b) and exchange information at the national and international levels (para. 1 (b)). 139. In addition, pursuant to article 14 States must consider: Establishing an FIU (para. 1 (a) (b)); Implementing measures to monitor cash movements across their borders (para. 2); (b) Implementing measures to require financial institutions to collect information on originators (c) of electronic fund transfers, maintain information on the entire payment chain and scrutinize fund transfers with incomplete information on the originator (para. 3); Developing and promoting global, regional and bilateral cooperation among relevant agencies (d) to combat money-laundering (para. 5). Mandatory requirements: obligation to take legislative or other measures (a) Regulatory and supervisory regime 140. Article 14, paragraph 1 requires that States parties establish a regulatory and supervisory regime (a), within their competence in order to prevent and detect money-laundering activities. This regime must be comprehensive, but the precise nature and particular elements of the regime are left to States, provided that they require, at a minimum, banks and non-bank financial institutions to ensure: Effective customer identification; (a) Accurate record-keeping; (b) A mechanism for the reporting of suspicious transactions. (c) 141. The requirements extend to banks, non-bank financial institutions (e.g. insurance companies and securities firms) and, where appropriate, other bodies that are especially susceptible to money-laundering (art. 14, para. 1 The interpretative notes add that other bodies may be understood to include (a)). intermediaries, which in some jurisdictions may include stockbrokering firms, other securities dealers,
to their independent ability to set standards through peer pressure, they are also given some degree of legal recognition under UNCAC. The following excerpt from the UNCAC Legislative Guide summarizes and explains the various mandated and recommended actions that, pursuant to Article 14, State Parties are to follow: Beginning of Excerpt _____________________________________ Summary of Main Requirements 138. Article 14 contains two mandatory requirements: (a) To establish a comprehensive domestic regulatory and supervisory regime to deter (para. 1 (a)); (b) To ensure that agencies involved in combating money-laundering have the ability to cooperate and exchange information at the national and international levels (para. 1 (b)). 139. In addition, pursuant to article 14 States must consider: (a) Establishing an FIU (para. 1 (b)); (b) Implementing measures to monitor cash movements across their borders (para. 2); (c) Implementing measures to require financial institutions to collect information on originators of electronic fund transfers, maintain information on the entire payment chain and scrutinize fund transfers with incomplete information on the originator (para. 3); (d) Developing and promoting global, regional and bilateral cooperation among relevant agencies to combat money-laundering (para. 5). Mandatory requirements: obligation to take legislative or other measures (a) Regulatory and supervisory regime 140. Article 14, paragraph 1 (a), requires that States parties establish a regulatory and supervisory regime within their competence in order to prevent and detect money-laundering activities. This regime must be comprehensive, but the precise nature and particular elements of the regime are left to States, provided that they require, at a minimum, banks and non-bank financial institutions to ensure: (a) Effective customer identification; (b) Accurate record-keeping; (c) A mechanism for the reporting of suspicious transactions. 141. The requirements extend to banks, non-bank financial institutions (e.g. insurance companies and securities firms) and, where appropriate, other bodies that are especially susceptible to money-laundering (art. 14, para. 1 (a)). The interpretative notes add that other bodies may be understood to include intermediaries, which in some jurisdictions may include stockbrokering firms, other securities dealers,
Chapter-4-2017-1.docx