Anti-Money Laundering AML
In recent years, worldwide efforts to combat money laundering and the financing of terrorism have assumed heightened importance. Money laundering and terrorism financing are global problems that not only threaten security, but also compromise the stability, transparency, and efficiency of financial systems, thus undermining economic prosperity.
Money laundering and terrorist financing operations use sophisticated techniques, which may involve different types of financial institutions, multiple financial transactions, the use of intermediaries, such as financial advisers, accountants, shell corporations and other service providers, transfers to, through, and from different countries, and the use of different financial instruments and other kinds of value-storing assets.
The negative economic effects of money laundering and terrorist financing on economic development are difficult to quantify, yet it is clear that such activity damages the financial-sector institutions that are critical to economic growth, reduces productivity in the economy's real sector by diverting resources and encouraging crime and corruption, which slow economic growth, and can distort the economy's external sector -international trade and capital flows- to the detriment of long-term economic development.
The mitigation of money laundering risks plays an important role in assisting the Central Bank of Yemen in achieving its objectives of preserving market confidence and promoting and maintaining the efficiency, transparency and integrity of the Yemenis financial sector. Also, it aims to deter criminals from using the products, services and network of Tadhamon International Islamic Bank for laundering the proceeds of their crimes.
In this respect, Tadhamon International Islamic Bank (TIIB) has created an independent Compliance Function having a formal status within the bank to give it the appropriate standing, authority and independence. The mission of the Compliance Function is to ensure that the Bank is complying with laws, regulations, rules, internal policies and procedures, and the code of conduct applicable to its banking activities. This typically includes specific areas such as the prevention of money laundering and terrorist financing.
TIIB is committed to fighting money laundering and combating terrorism financing by adopting and maintaining policies, procedures, systems and controls.
Also, we strongly believe that stringent “Know Your Customer” (KYC) measures have particular relevance to safety and due diligence in that they help to protect the Bank’s image by reducing the likelihood of becoming a vehicle for, or a victim of, financial crime and, as a result, suffer reputation damage.
Anti-money laundering Unit ( AMLU)
AMLU is responsible for ascertaining that concerned officers are complying with the procedure guide on the implementation of legal and regulatory requirements for fighting money laundering, review periodically the effectiveness of the procedures on fighting money laundering, propose amendments, and report the results of their compliance efforts.
Branch Compliance Officer
Compliance Officers who reside in the branches have a reporting line to the branch manager but also have a reporting line through to the AMLU with regard to their compliance responsibilities. The Branch Compliance Officers are responsible for implementation of AML requirements in the branch, by verifying the completeness and accuracy of information in the context of customers’ identification, by monitoring transactions on accounts particularly cash transactions, transfers, and any other account-related operations, and by investigating and reporting any suspicious case to the Compliance Department.
Updating of Customers' Identification Information/ Due Diligence
TIIB is not only satisfied with customers' identification at the outset of the relationship, but this exercise extends over the lifetime of the relationship to ensure that its customers' identification records remain completely updated with all relevant identification elements and information throughout the business relationship. In this respect, TIIB examines and checks on a regular basis the validity and adequacy of the customer identification data and information it maintains.
In addition to minimizing the risk of a bank’s services being used for illicit activities, collecting and maintaining sufficient information on a customer’s identity allows the early detection and recognition of suspicious transactions/activities and protects the bank from possible fraud and the underlying risks on their financial robustness and reputation.
Training has long been recognized as a key element of an effective anti money laundering (AML) compliance program, therefore, we believe that well-trained and vigilant staffs remain the first line of defense in monitoring transactions and identifying suspicious activities.
Our training program aims at educating staff on the latest developments in anti-money laundering and terrorist financing including the practical methods and trends used by criminals for this purpose.