• FC-3 FC-3 Money Transfers and Alternative Remittances

    • FC-3.1 FC-3.1 Electronic Transfers

      • Outward Transfers

        • FC-3.1.1

          Licensees must include all required originator 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 licensee acting as principal or acting on behalf of another licensee as principal such as in the case of payment of spot FX transactions.

          October 2010

        • FC-3.1.2

          For the purposes of this Chapter, "Originator Information" means:

          (a) The name of the payer;
          (b) The address of the payer; and
          (c) The unique customer or transaction or account number of the payer.
          Amended: April 2012
          October 2010

        • FC-3.1.3

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

          October 2010

      • Inward Transfers

        • FC-3.1.4

          Licensees must:

          (a) Maintain records (in accordance with Chapter FC-7 of this Module) of all originator information received with an inward transfer (see Section FC-1.10 for simplified arrangements for transfers below US$1,000); 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 – see Paragraph FC-1.9.1 for simplified arrangements). 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 sending 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 sending institution and the licensee are acting on their own behalf (as principals); or (c), the inward transfer is below US$1,000 or equivalent in other currencies.
          Amended: April 2012
          October 2010

      • Rejecting Payment Transactions

        • FC-3.1.5

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

          Added: January 2021

      • Originating Financial Institution

        • FC-3.1.6

          Licensees acting as originating financial institution must ensure that wire transfers contain required and accurate originator information, and the required beneficiary information.

          Added: January 2022

        • FC-3.1.7

          Licensees acting as originating financial institution must maintain all originator and beneficiary information collected in accordance with Paragraph FC-7.1.1.

          Added: January 2022

        • FC-3.1.8

          Licensees acting as originating financial institution must not execute the wire transfer if it does not comply with the requirements of Paragraphs FC-3.1.6 and FC-3.1.7.

          Added: January 2022

      • Intermediary Financial Institution/Bank

        • FC-3.1.9

          For cross-border wire transfers, licensees 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: January 2022

        • FC-3.1.10

          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 licensees of all the information received from the originating financial institution or another intermediary financial institution/bank.

          Added: January 2022

        • FC-3.1.11

          Licensees acting as an intermediary financial institution 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: January 2022

        • FC-3.1.12

          Licensees acting as an intermediary financial institution 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: January 2022

      • Beneficiary Financial Institution

        • FC-3.1.13

          A licensee acting as beneficiary financial institution 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 realtime monitoring where feasible.

          Added: January 2022

        • FC-3.1.14

          For wire transfers, a licensee acting as a beneficiary financial institution 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: January 2022

        • FC-3.1.15

          A licensee acting as a beneficiary financial institution 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: January 2022

    • FC-3.2 FC-3.2 Remittances on Behalf of other Money Transferors

      • FC-3.2.1

        Whenever a licensee uses the services of Authorised Money Transferors to effect the transfer of funds for a customer to a person or organisation in another country, that licensee must, in respect of the amount so transferred, maintain records of:

        (a) The identity of its customer(s) in accordance with Chapters FC-1 and FC-7 of this Module; and
        (b) The exact amount transferred for each such customer (particularly where a single transfer is effected for more than one customer).
        Amended: April 2012
        October 2010

      • FC-3.2.2

        Licensees must be able to produce this information for inspection immediately upon request by the CBB.

        October 2010

      • FC-3.2.3

        Licensees must not transfer funds for customers to a person or organisation in another country by any means other than through an Authorised Money Transferor. Where a licensee is found to be in contravention of this rule, the CBB will not hesitate to impose sanctions upon that licensee (and in serious cases may revoke the license).

        October 2010