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  • FC-8 FC-8 NCCT Measures and Terrorist Financing

    • FC-8.1 FC-8.1 Special Measures for Non-Cooperative Countries or Territories ('NCCTs')

      • FC-8.1.1

        Conventional bank licensees must give special attention to any dealings they may have with entities or persons domiciled in countries or territories which are:

        (a) Identified by the FATF as being 'non-cooperative'; or
        (b) Notified to conventional bank licensees from time to time by the CBB.
        October 07

      • FC-8.1.2

        Whenever transactions with such parties have no apparent economic or visible lawful purpose, their background and purpose must be re-examined and the findings documented. If suspicions remain about the transaction, these must be reported to the relevant authorities in accordance with Section FC-5.2.

        October 07

      • FC-8.1.3

        Conventional bank licensees must apply enhanced due diligence measures to business relationships and transactions with natural and legal persons, and financial institutions, from countries where such measures are called for by the FATF. The type of enhanced due diligence measures applied must be effective and proportionate to the risks.

        Added: October 2014

      • FC-8.1.4

        With regard to jurisdictions identified as NCCTs or those which in the opinion of the CBB, do not have adequate AML/CFT systems, the CBB reserves the right to:

        (a) Refuse the establishment of subsidiaries or branches or representative offices of financial institutions from such jurisdictions;
        (b) Limit business relationships or financial transactions with such jurisdictions or persons in those jurisdictions;
        (c) Prohibit financial institutions from relying on third parties located in such jurisdictions to conduct elements of the CDD process;
        (d) Require financial institutions to review and amend, or if necessary terminate, correspondent relationships with financial institutions in such jurisdictions;
        (e) Require increased supervisory examination and/or external audit requirements for branches and subsidiaries of financial institutions based in such jurisdictions; or
        (f) Require increased external audit requirements for financial groups with respect to any of their branches and subsidiaries located in such jurisdictions.
        Amended: January 2018
        Added: October 2014

    • FC-8.2 FC-8.2 Terrorist Financing

      • FC-8.2.1AA

        Conventional bank licensees must implement and comply with United Nations Security Council resolutions relating to the prevention and suppression of terrorism and terrorist financing. Conventional bank licensees must freeze, without delay, the funds or other assets of, and to ensure that no funds or other assets are made available, directly or indirectly, to or for the benefit of, any person or entity either (i) designated by, or under the authority of, the United Nations Security Council under Chapter VII of the Charter of the United Nations, including in accordance with resolution 1267(1999) and its successor resolutions as well as Resolution 2178(2014) or (ii) designated as pursuant to Resolution 1373(2001).

        Amended: October 2019
        Added: April 2017

      • FC-8.2.1

        Conventional bank licensees must comply in full with any rules or regulations issued by the CBB in connection with the provisions of the UN Security Council Anti-terrorism Resolution No. 1373 of 2001 ('UNSCR 1373'), including the rules in this Chapter.

        October 07

      • FC-8.2.2

        [This Paragraph was deleted in January 2018].

        Deleted: January 2018
        October 07

      • FC-8.2.3

        A copy of UNSCR 1373 is included in Part B of Volume 1 (Conventional Banks), under 'Supplementary Information'.

        October 07

      • FC-8.2.4

        Conventional bank licensees must report to the CBB details of:

        (a) Funds or other financial assets or economic resources held with them which may be the subject of Article 1, Paragraphs c) and d) of UNSCR 1373;
        (b) All claims, whether actual or contingent, which the conventional bank licensee has on persons and entities which may be the subject of Article 1, Paragraphs c) and d) of UNSCR 1373; and
        (c) All assets frozen or actions taken in compliance with the prohibition requirements of the relevant UNSCRs, including attempted transactions.
        Amended: January 2023
        October 07

      • FC-8.2.5

        For the purposes of Paragraph FC-8.2.4, 'funds or other financial resources' includes (but is not limited to) shares in any undertaking owned or controlled by the persons and entities referred to in Article 1, Paragraph c) and d) of UNSCR 1373, and any associated dividends received by the licensee.

        October 07

      • FC-8.2.6

        All reports or notifications under this Section must be made to the CBB's Compliance Directorate.

        October 07

      • FC-8.2.7

        See Section FC-5.3 for the Compliance Directorate's contact details.

        October 07

    • FC-8.3 FC-8.3 Designated Persons and Entities

      • FC-8.3.1

        Without prejudice to the general duty of all conventional bank licensees to exercise the utmost care when dealing with persons or entities who might come under Article 1, Paragraphs (c) and (d) of UNSCR 1373, conventional bank licensees must not deal with any persons or entities designated by the CBB as potentially linked to terrorist activity.

        Amended: October 2014
        October 07

      • FC-8.3.2

        The CBB from time to time issues to licensees lists of designated persons and entities believed linked to terrorism. Licensees are required to verify that they have no dealings with these designated persons and entities, and report back their findings to the CBB. Names designated by CBB include persons and entities designated by the United Nations, under UN Security Council Resolution 1267 ('UNSCR 1267').

        October 07

      • FC-8.3.3

        Conventional bank licensees must report to the relevant authorities, using the procedures contained in Section FC-5.2, details of any accounts or other dealings with designated persons and entities, and comply with any subsequent directions issued by the relevant authorities.

        October 07