UN sanctions: New regulations for financial institutions

The Central Bank's Financial Intelligence Unit has updated its Customer Due Diligence Rules for financial institutions making it mandatory that they comply with United Nations Security Council Resolutions on targeted financial sanctions against countries such as North Korea and Iran.

The sanctions are in relation to terrorism, terrorist financing, proliferation of weapons of mass destruction and its financing or in terms of regulation made by the Government under the United Nations Act to give effect to United Nations Security Council Resolutions.

The financial institutions will be required to comply with the rules in processing wire transfers, take freezing action and comply with prohibitions on conducting transactions with designated persons or entities, anyone who acts on their behalf or under their direction or for the benefit of such persons.

The financial institutions are required to verify whether any prospective customer or beneficiary appears on any list of designated persons or entities issued under any regulation made in terms of the United Nations Act, No. 45 of 1968 before undertaking any transaction.