Fintelekt Advisory Services and the Financial Intelligence Centre (FIC) Zambia organized a joint webinar on the Effective Implementation of Targeted Financial Sanctions in Zambia.
The webinar formed part of the Financial Intelligence Centre’s outreach programme specifically designed to enable competent authorities and reporting entities i.e. Financial Institutions (FIs) and Designated Non-Financial Businesses and Professions (DNFPBs) to better understand their Anti Money Laundering/ Countering the Financing of Terrorism and Proliferation (AML/CTPF) obligations around the Implementation of Targeted Financial Sanctions (TFS).
- SHIRISH PATHAK, Managing Director, Fintelekt Advisory Services
- DIPHAT TEMBO, Director – Compliance and Prevention Department, Financial Intelligence Centre, Zambia
- NICHOLAS TURNER, Of Counsel, Steptoe & Johnson LLP
- BRENT ESTRELLA, Group Head & Chief Compliance Officer, Rizal Commercial Banking Corporation
KEY TAKEAWAYS FROM THE WEBINAR
Guidelines: Guidelines around Targeted Financial Sanctions (TFS) have been issued by the National Anti Terrorism Centre (NATC), in conjunction with the Financial Intelligence Centre (FIC) Zambia. The guidelines apply to all reporting entities in Zambia.
Requirements: The guidelines call for Financial Institutions (FIs) and Designated Non Financial Businesses and Professions (DNFBPs) to have adequate policies and procedures, systems and controls in place, identify the existing accounts, transactions, funds or other assets of designated persons and entities; immediately freeze any identified funds or other assets held or controlled by designated persons and entities and prevent them from conducting transactions with, in or through them.
Screening: FIs and DNFBPs should put in place a robust sanctions screening programme that takes into consideration various elements such as local and international regulations, availability and quality of data, screening systems and procedures, internal controls and staff training towards the comprehensive execution of TFS requirements.
Risk-Based Approach: A risk-based approach to screening is recommended for all FIs and DNFBPs, based on a comprehensive assessment of risks related to money laundering, terrorism financing and proliferation of weapons of mass destruction. Higher risk customers should be identified, and maximum resource allocation should be made to deal with the highest areas of risk in terms of TFS.
Best Practices: The implementation of TFS is a requirement across the world. Hence there are valuable lessons to be learnt from the experiences of other countries in terms of steps taken by their regulators, challenges faced by reporting entities and co-operation required from industry stakeholders.
To read the entire summary of the webinar, please click below: