Connect with us

Hi, what are you looking for?

Currency exchangers probed
Currency exchangers probed
UNDER SPOTLIGHT: Bureaux de Changes

Business

Currency exchangers probed

Bureaux de Changes violate Anti-Money Laundering requirements

The 2020 Banking Supervision Report has highlighted that some Bureaux de Changes in Botswana are not fully compliant with the Anti-Money Laundering/ Combating the Financing of Terrorism (AML/CFT) requirements.

During the year, the central bank conducted AML/CFT on-site examination at three bureaux de changes and were all not found to be fully compliant with the requirements.

It was found that their risk mitigation measures were not commensurate with the high risk of Money Laundering and Terrorist Financing (ML/TF) to which bureau de changes were exposed to.

For all the three bureaux de changes, it was observed that the ML/TF risk was high, while the risk mitigation measures were weak.

As a result, the bureaux de changes were fined and directed to regularize all compliance deficiencies.

The on-site examinations exposed some of the most common violations of the Financial Intelligence Act (FIA) of 2019 by these bureau de changes.

Advertisement. Scroll to continue reading.

One of the provisions of the Act which was violated was corporate governance as it was observed that these bureau de change AML/CFT policies were not approved by management and did not have compliance officers.

They also commonly violated the provision of customer identification as they did not conduct due diligence on high-risk customers and did not record the source of funds for customers.

Three bureau de changes are said to have conducted large-cash transactions but did not record some of the know-your-customer information.

Further, the bureau de changes are said to have mostly violated the monitoring and reporting of suspicious transactions provision of the FIA Act.

This is because there was no formal process for monitoring customer transactions against their profiles.

These three bureaux de changes that were examined, were found not conversant with the preparation and submission of suspicious transaction reports and did not, contrary to requirement, report suspicious transactions to the FIA within five working days.

Advertisement. Scroll to continue reading.

The supervision reports highlighted that the bureau de changes also commonly violated the provision of record-keeping as they did not have documented procedures and processes to adequately address the preparation and filing of large cash transactions.

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like

News

In an urgent application filed by Member of Parliament (MP) for Lobatse, Thapelo Matsheka’s, wife, Veronica Matsheka at the Lobatse high Court yesterday, the...

News

Help us find Dr. Rowland A purported Neuro Surgeon Specialist, Dr. Thabo Rowland, is a wanted man. At least 25 people are looking for...

News

WATCH: In case you missed yesterday’s High Court judgement when Justice Gaolapelwe Ketlogetswe ruled against the detention of Lobatse Member of Parliament (MP) Thapelo...

News

WATCH: The Court of Appeal has set aside nine strokes of the cane that were to be administered on petty criminal, Temogo Radidiba (white...

Politics

Former Minister of Defence and Botswana Democratic (BDP) Deputy Secretary General, Shaw Kgathi, has thrown his name in the hat for the Secretary General...

News

Passenger relives horror A3 crash that killed 16. “Piercing screams of dying people and those in pain were the only sounds one could hear...

Business

WATCH: A research by the Faculty of Engineering at University of Botswana has produced a blended biodiesel that is said to be much cheaper...

Latest News

Supermarket launches grocery coupon scheme Payless Supermarket has launched a grocery coupon scheme which will allow customers to buy food commodities on credit and...

News

Father strangles son then commits suicide A Tutume family have been ripped apart by a suspected murder-suicide which left a little boy dead and...

News

Kopong ‘hitman’ locked up for a decade An alleged hitman who was hired to kill a teacher in Kopong has been locked up for...

Politics

BDP MP reports councillor for threat to kill Botswana Democratic Party (BDP) Letlhakeng Sub-District Council Chairperson also Councillor for Mantshwabisi, Meshack Tshenyego, has appeared...

News

Cricket lovers were a happy lot on Tuesday following Zimbabwe’s victory. It was actually breaking news and I immediately thought of my charming Sub...

Sports

Makwala’s national team retirement leaves sour taste Having provided the nation with countless golden moments in the last 15 years, one of the country’s...

Advertisement