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Fiji’s Financial Intelligence Unit says it has stepped up its fight against money laundering activities with the issue of a new guideline to help local financial institutions to identify customers who conduct financial transactions in Fiji.
The guideline puts in place comprehensive requirements on financial institutions “to adequately identify and verify their customers when they establish a business relationship, open bank account or conduct financial transactions, FIU said in a statement released this week.
“These requirements are put in place to safeguard our financial system from misuse by money launderers and other criminals,” said FIU director Razim.
“Financial institutions may now use the new guideline and apply the customer identification measures on a risk based approach. This is to ensure that the customer identification procedures are not stringently applied across the board for all types of customers.
“Thus certain low risk customers may be subjected to less stringent procedures for identification by a financial institution whereas those customers that pose greater risk to money laundering and fraudulent activities will be subject to enhanced level of scrutiny,” he added.
Buksh said low risk customers such as rural dwellers, farmers, micro-finance industry, students and senior citizens will now be able to seek financial services with less difficulty with only certain minimum ID documents.
The guideline will enable financial institutions to meet the requirements of the FTR Act without hindering access to financial services by the ordinary citizens and is also expected to facilitate personal savings and will encourage participation in micro-finance activities in Fiji, Buksh added.
The guideline will be used by financial institutions that are covered under the Financial Transactions Reporting (FTR) Act.
