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  • 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 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

      Islamic 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