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  • FC-3.1 FC-3.1 Electronic Transfers

    • Outward Transfers

      • FC-3.1.1

        Islamic bank licensees must include all required originator information and required beneficiary information details with the accompanying electronic transfers of funds they make on behalf of their customers. Non-routine transfers must not be batched, if batching increases the risks of money laundering or terrorist financing. This obligation does not apply where the transfer is made by a bank acting as principal or acting on behalf of another bank as principal such as in the case of payment of spot FX transactions.

        Amended: October 2014
        October 07

      • FC-3.1.2

        [This Paragraph has been deleted in October 2014 and its contents moved to Paragraph FC-3.1.5.]

        Deleted: October 2014

      • FC-3.1.3

        [This Paragraph has been deleted in October 2014 and its contents moved to Paragraph FC-3.1.10.]

        Deleted: October 2014

    • Inward Transfers

      • FC-3.1.4

        Banks must:

        (a) Maintain records (in accordance with Chapter FC-7 of this Module) of all originator information received with an inward transfer; and
        (b) Carefully scrutinise inward transfers which do not contain originator information (i.e. full name, address and account number or a unique customer identification number). Licensees must presume that such transfers are 'suspicious transactions' and pass them to the MLRO for review for determination as to possible filing of an STR, unless (a), the originating institution is able to promptly (i.e. within two business days) advise the licensee in writing of the originator information upon the licensee's request; or (b) the originating institution and the licensee are acting on their own behalf (as principals).
        Amended: October 2014
        Amended April 2011
        October 2007

    • Cross-Border Wire Transfers

      • FC-3.1.5

        Information accompanying all wire transfers must always contain:

        (a) The name of the originator;
        (b) The originator account number or IBAN where such an account is used to process the transaction;
        (c) The originator's address, or national identity number, or customer identification number, or date and place of birth;
        (d) The name of the beneficiary; and
        (e) The beneficiary account number where such an account is used to process the transaction.
        Added: October 2014

      • FC-3.1.6

        In the absence of an account, a unique transaction reference number should be included which permits traceability of the transaction.

        Added: October 2014

      • FC-3.1.7

        Where several individual cross-border wire transfers from a single originator are bundled in a batch file for transmission to beneficiaries, they may be exempted from the requirements of Paragraph FC-3.1.5 in respect of originator information, provided that they include the originator's account number or unique transaction reference number (as described in Paragraph FC-3.1.6), and the batch file contains required and accurate originator information, and full beneficiary information, that is fully traceable within the beneficiary country.

        Added: October 2014

    • Domestic Wire Transfers

      • FC-3.1.8

        Information accompanying domestic wire transfers must also include originator information as indicated for cross-border wire transfers, unless this information can be made available to the beneficiary financial institution and the CBB by other means. In this latter case, the originating financial institution need only include the account number or a unique transaction reference number, provided that this number or identifier will permit the transaction to be traced back to the originator or the beneficiary.

        Added: October 2014

      • FC-3.1.9

        For purposes of Paragraph FC-3.1.8, the information should be made available by the originating financial institution within three business days of receiving the request either from the beneficiary financial institution or from the CBB.

        Added: October 2014

      • FC-3.1.10

        It is not necessary for the recipient institution to pass the originator information on to the beneficiary. The obligation is discharged simply by notifying the beneficiary financial institution of the originator information at the time the transfer is made.

        Added: October 2014

    • Rejecting Payment Transactions

      • FC-3.1.10A

        Licensees have the right to reject (i.e. reverse) any payment transaction where it has come to their knowledge that the relevant customer did not actually initiate the transaction instruction. The fund-transmitting licensees must file a Suspicious Transactions Report for such cases.

        Added: January 2021

    • Responsibilities of Originating, Intermediary and Beneficiary Banks

      • Originating Bank

        • FC-3.1.11

          The originating bank must ensure that wire transfers contain required and accurate originator information, and required beneficiary information.

          Amended: July 2019
          Added: October 2014

        • FC-3.1.12

          The originating bank must maintain all originator and beneficiary information collected in accordance with Paragraph FC-7.1.1.

          Added: October 2014

        • FC-3.1.13

          The originating bank must not execute the wire transfer if it does not comply with the requirements of Paragraphs FC-3.1.11 and FC-3.1.12.

          Added: October 2014

      • Intermediary Bank

        • FC-3.1.14

          For cross-border wire transfers, banks processing an intermediary element of such chains of wire transfers must ensure that all originator and beneficiary information that accompanies a wire transfer is retained with it.

          Added: October 2014

        • FC-3.1.15

          Where technical limitations prevent the required originator or beneficiary information accompanying a cross-border wire transfer from remaining with a related domestic wire transfer, a record must be kept, for at least five years, by the receiving intermediary bank of all the information received from the originating bank or another intermediary bank.

          Added: October 2014

        • FC-3.1.16

          An intermediary bank must take reasonable measures to identify cross-border wire transfers that lack required originator information or required beneficiary information. Such measures must be consistent with straight-through processing.

          Added: October 2014

        • FC-3.1.17

          An intermediary bank must have effective risk-based policies and procedures for determining:

          (a) When to execute, reject, or suspend a wire transfer lacking required originator or required beneficiary information; and
          (b) The appropriate follow-up action.
          Added: October 2014

      • Beneficiary Bank

        • FC-3.1.18

          A beneficiary bank must take reasonable measures to identify cross-border wire transfers that lack required originator or required beneficiary information. Such measures may include post-event monitoring or real-time monitoring where feasible.

          Added: October 2014

        • FC-3.1.19

          For wire transfers, a beneficiary bank must verify the identity of the beneficiary, if the identity has not been previously verified, and maintain this information in accordance with Paragraph FC-7.1.1.

          Added: October 2014

        • FC-3.1.20

          A beneficiary bank must have effective risk-based policies and procedures for determining:

          (a) When to execute, reject, or suspend a wire transfer lacking required originator or required beneficiary information; and
          (b) The appropriate follow-up action.
          Added: October 2014