QCB Guidelines
Qatar Central Bank
Guidelines on AML process
The “Qatar Central Bank Guidelines on AML Process” outlines various provisions and requirements related to Anti-Money Laundering (AML) and Combating Terrorism Financing (CFT) for financial institutions in Qatar. Here’s a summary of the key points:
General Provisions:
- Financial institutions licensed by the Qatar Central Bank (QCB) must adhere to the relevant laws, including the AML/CFT Law and the provided Instructions.
- Breach of these Instructions may lead to sanctions outlined in the AML Law and QCB Law
AML/CFT Programs:
- Financial institutions must establish and regularly update AML/CFT programs.
- These programs should be proportionate to the ML/TF risks and the complexity of the institution’s business.
- Programs must include policies, procedures, systems, controls, compliance arrangements, access to customer data, screening procedures for employees, ongoing training, audit functions, and independent review.
AML/CFT Policies:
- Policies must cover identification and reporting of suspicious transactions, enhanced CDD for high-risk products, conditions for customer use before identity verification, measures for Politically Exposed Persons (PEPs), risk assessment for outsourced functions, and more.
- All employees must comply with AML/CFT laws and guidelines when making Suspicious Transaction Reports
(STRs).
Customer Risk Assessment:
- Financial institutions must conduct regular risk assessments considering customer types, products, services, technologies, and jurisdictions.
- Policies, procedures, and controls should be developed to manage identified risks, and ongoing monitoring
must be performed.
Customer Due Diligence (CDD):
- CDD involves identifying customers, verifying their identity using reliable sources, understanding their purpose and nature of the business relationship, and identifying beneficial owners.
- Enhanced CDD is required for non-face-to-face business, politically exposed persons, correspondent banking, non-profit organizations, and other high-risk cases.
Ongoing Monitoring:
- Financial institutions must continuously monitor transactions and review customer records to ensure
consistency with their risk profile. - Unusual transactions should be scrutinized, and any suspicions of ML/TF must be reported to the Money
Laundering Reporting Officer (MLRO). - Ongoing monitoring should also consider complex and high-value transactions, as well as interface or delivery channel risks
Enhanced CDD and Ongoing Monitoring:
- Enhanced CDD and ongoing monitoring are mandatory in specific cases, such as non-resident customers, politically exposed persons, and certain high-risk transactions.
- These measures include obtaining additional information, updating customer identification, seeking senior management approval, implementing additional controls, and conducting transactions through regulated
banks.
Why it’s important to comply with the new regulations:
It is important for businesses to comply with the new regulations set out by QCB for several reasons:
LEGAL COMPLIANCE
By complying with the regulations, businesses will ensure they are operating within the legal framework set out by QCB and avoid any potential legal penalties or consequences.
PROTECTION AGAINST FINANCIAL CRIMES
The use of digital ID systems for CDD helps reduce the risk of financial crimes such as money laundering and terrorism financing. Compliance with these regulations helps businesses to avoid being implicated in such activities.
ENHANCING CUSTOMER TRUST
The use of digital ID systems for CDD helps to improve the accuracy and efficiency of identity verification processes.
This enhances the customer experience and builds trust with customers, who are more likely to use a business that
is seen as compliant and secure.
How can Eltizam Solutions help?
At Eltizam Solutions, we are fully equipped to help businesses stay up-to-date with the latest regulations and ensure they are meeting all compliance requirements. Our platform provides a secure and convenient solution for businesses to perform digital ID verification for their customers, in compliance with CB regulations. Our user-friendly interface makes it easy for businesses to verify identities in real-time, without the need for manual input or paper-based documentation.
By using our platform, your business can be assured that you are meeting your QCB obligations, while also improving your customer experience. Our platform is fully compliant with the latest regulations and standards, ensuring your business can stay ahead of the curve when it comes to compliance in Qatar.