Given the recent developments in Afghanistan, the UK’s Financial Conduct Authority (FCA) has advised firms to be aware of the probable impact of these events on financial activity patterns during their risk assessments of certain customers and transactions.
The authority has advised that firms should set up controls and devise policies to counter any new risks related to developments in Afghanistan. Firms must also comply with their legal obligations under various money laundering regulations, particularly, those related to risk assessments, customer due diligence, enhanced due diligence and transaction monitoring. Also, even though Afghanistan is not currently a high-risk jurisdiction as per the FCA regulations, firms must conduct risk-sensitive enhanced due diligence when ML/TF risk is high.
The FCA also wants to ensure that firms continue to meet their AML/CFT and reporting requirements. Firms must adequately monitor any transactions to Afghanistan to prevent any possible misuse of their facilities for ML/TF. Finally, firms should keep checking all customers and transactions against the UK Sanctions List and the specific list created for Afghanistan.
Source: Financial Conduct Authority, UK