 |
 |
 |
 |
 |
 |
 |
 |
||||
 |
|
|
|
|
|
| Wolfsberg Statement on The Suppression of the Financing of Terrorism | ||
1
|
Preamble |
|
1 |
Preamble |
|
| The Wolfsberg Group of financial
institutions (the "Wolfsberg Group" (1)) is committed to
contributing to the fight against terrorism and is making the following
statement to describe the role of financial institutions in preventing
the flow of terrorist funds through the world's financial system. This fight presents new challenges. Funds used in the financing of terrorism do not necessarily derive from criminal activity, which is a requisite element of most existing money laundering offences. Successful participation in this fight by the financial sector requires global cooperation by governments with the financial institutions to an unprecedented degre. |
||
 |
||
2 |
Role of Financial Institutions in the Fight Against Terrorism |
|
| Financial institutions can
assist governments and their agencies in the fight against terrorism.
They can help this effort through prevention, detection and information
sharing. They should seek to prevent terrorist organizations from
accessing their financial services, assist governments in their efforts
to detect suspected terrorist financing and promptly respond to governmental
enquiries. |
||
|
||
3 |
Rights of the Individual |
|
| The Wolfsberg Group is committed
to participating in the fight against terrorism in a manner which
is non-discriminatory and is respectful of the rights of individuals. |
||
|
||
4 |
Know Your Customer |
|
| The Wolfsberg Group recognises
that adherence to existing "Know Your Customer" policies
and procedures is important to the fight against terrorism. Specifically
the proper identification of customers by financial institutions can
improve the efficacy of searches against lists of known or suspected
terrorists issued by competent authorities having jurisdiction over
the relevant financial institution ("applicable lists"). In addition to the continued application of existing customer identification, acceptance and due diligence procedures, the Wolfsberg Group is committed to: |
||
| • • • • |
Implementing procedures for consulting
applicable lists and taking reasonable and practicable steps to determine
whether a person involved in a prospective or existing business relationship
appears on such a list. Reporting to the relevant authorities matches from lists of known or suspected terrorists or terrorist organisations consistent with applicable laws and regulations regarding the disclosure of customer information. Exploring with governmental agencies ways of improving information exchange within and between jurisdictions. Exploring ways of improving the maintenance of customer information to facilitate the timely retrieval of such information. |
|
|
||
5 |
High Risk Sectors and Activities |
|
| The Wolfsberg Group is committed
to applying enhanced and appropriate due diligence in relation to
those of their customers engaged in sectors and activities which have
been identified by competent authorities as being widely used for
the financing of terrorism, such as underground banking businesses
or alternative remittance systems. This will include the adoption,
to the extent not already in place, of specific policies and procedures
on acceptance of business from customers engaged in such sectors or
activities, and increased monitoring of activity of customers who
meet the relevant acceptance criteria. In particular the Wolfsberg Group is committed to restricting their business relationships with remittance businesses, exchange houses, casas de cambio, bureaux de change and money transfer agents to those which are subject to appropriate regulation aimed at preventing such activities and businesses from being used as a conduit to launder the proceeds of crime and/or finance terrorism. The Wolfsberg Group recognises that many jurisdictions are currently in the process of developing and implementing regulations with regard to these businesses and that appropriate time needs to be given for these regulations to take effect. |
||
|
||
6 |
Monitoring |
|
| Recognising the difficulties
inherent in identifying financial transactions linked to the financing
of terrorism (many of which appear routine in relation to information
known at the time) the Wolfsberg Group is committed to the continued
application of existing monitoring procedures for identifying unusual
or suspicious transactions. The Wolfsberg Group recognises that while
the motive for such transactions may be unclear, monitoring and then
identifying and reporting unusual or suspicious transactions may assist
government agencies by linking seemingly unrelated activity to the
financing of terrorism. In addition, the Wolfsberg Group is committed to: |
||
| • • • • |
Exercising heightened scrutiny in respect
of customers engaged in sectors identified by competent authorities
as being widely used for the financing of terrorism. Monitoring account and transactional activity (to the extent meaningful information is available to financial institutions) against lists generated by competent authorities of known or suspected terrorists or terrorist organisations. Working with governments and agencies in order to recognise patterns and trends identified as related to the financing of terrorism. Considering the modification of existing monitoring procedures as necessary to assist in the identification of such patterns and trends. |
|
|
||
7 |
Need for Enhanced Global Co-operation |
|
| The Wolfsberg Group is committed
to co-operating with and assisting law enforcement and government
agencies in their efforts to combat the financing of terrorism. The
Wolfsberg Group has identified the following areas for discussion
with governmental agencies, with a view to enhancing the contribution
financial institutions are able to make: |
||
• |
The provision of official lists of suspected
terrorists and terrorist organisations on a globally co-ordinated
basis by the relevant competent authority in each jurisdiction. The inclusion of appropriate details and information in official lists to assist financial institutions in efficient and timely searches of their customer bases. This information should ideally include (where known) in the case of individuals: date of birth; place of birth; passport or identity card number; in the case of corporations; place of incorporation or establishment; details of principals; to the extent possible, reason for inclusion on the list; and geographic information, such as the location, date and time of the transaction. Providing prompt feedback to financial institutions on reports made following circulation of such official lists. The provision of meaningful information in relation to patterns, techniques and mechanisms used in the financing of terrorism to assist with monitoring procedures. The provision of meaningful information about corporate and other types of vehicles used to facilitate terrorist financing. The development of guidelines on appropriate levels of heightened scrutiny in relation to sectors or activities identified by competent authorities as being widely used for terrorist financing. The development by governments and clearing agencies of uniform global formats for funds transfers that require information which may assist their efforts to prevent and detect the financing of terrorism. Ensuring that national legislation: |
|
• |
Permits financial institutions to maintain
information derived from official lists within their own databases
and to share such information within their own groups. Affords financial institutions protection from civil liability for relying on such lists. Permits financial institutions to report unusual or suspicious transactions that may relate to terrorism to the relevant authorities without breaching any duty of customer confidentiality or privacy legislation. Permits the prompt exchange of information between governmental agencies of different nation states. |
|
The Wolfsberg Group supports
the FATF Special Recommendations on Terrorist Financing as measures
conducive to the suppression of the financing of terrorism. |
||
|
||
| (1) The Wolfsberg Group consists of the following leading international banks ABN Amro N.V., Banco Santander Central Hispano, S.A., Bank of Tokyo-Mitsubishi, Ltd., Barclays Bank, Citigroup, Credit Suisse Group, Deutsche Bank AG, Goldman Sachs, HSBC, J.P. Morgan Chase, Société Générale, UBS AG and became known when they, together with Transparency International and Mark Pieth, agreed to a set of global anti-money-laundering guidelines for international private banks in October 2000. Wolfsberg is the location in Switzerland where an important working session to formulate the guidelines was held. | ||
|
|
|
© 2011 by The Wolfsberg Group