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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

        Islamic 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 Islamic bank licensees from time to time by the BMA.

      • 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.

    • FC-8.2 FC-8.2 Terrorist Financing

      • FC-8.2.1

        Islamic bank licensees must comply in full with the provisions of the UN Security Council Anti-terrorism Resolution No. 1373 of 2001 ('UNSCR 1373').

      • FC-8.2.2

        Any Islamic bank licensee that wishes, intends or has been requested to do anything that might contravene, in its reasonable opinion, the provisions of UNSCR 1373 (and in particular Article 1, paragraphs c) and d) of UNSCR 1373) must seek, in writing, the prior written opinion of the BMA on the matter.

      • FC-8.2.3

        A copy of UNSCR 1373 is included in Part B of Volume 2 (Islamic Banks), under 'Supplementary Information'.

      • FC-8.2.4

        Islamic bank licensees must report to the BMA 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; and
        (b) all claims, whether actual or contingent, which the Islamic bank licensee has on persons and entities which may be the subject of Article 1, paragraphs c) and d) of UNSCR 1373.

      • 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.

      • FC-8.2.6

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

      • FC-8.2.7

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

    • FC-8.3 FC-8.3 Designated Persons and Entities

      • FC-8.3.1

        Without prejudice to the general duty of all Islamic 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, Islamic bank licensees must not deal with any persons or entities designated by the BMA as potentially linked to terrorist activity.

      • FC-8.3.2

        The BMA 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 BMA. Names designated by BMA include persons and entities designated by the United Nations, under UN Security Council Resolution 1267 ("UNSCR 1267").

      • FC-8.3.3

        Islamic 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.