11.1.1. Defined terms

In this Chapter:

1. (a)“beneficiary institution” means the Financial Institution that receives the wire transfer from the ordering institution, whether directly or through an intermediary institution, and makes the funds available to the payee;
2. (b)“cover payment” means a wire transfer that combines a payment message sent directly by the ordering institution to the beneficiary institution with the routing of the funding instruction from the ordering institution to the beneficiary institution through one or more intermediary institutions;
3. (c)“cross-border wire transfer” means a wire transfer where the ordering institution and the beneficiary institution are located in different jurisdictions and includes any chain of wire transfers in which at least one of the Financial Institutions involved is located in a different jurisdiction;
4. (d)“customer identification number” means a number that is different from the unique transaction reference number and:
5. (i)uniquely identifies the payer to the ordering institution; and
6. (ii)refers to a record held by the ordering institution that contains at least one of the following: the payer’s address, national identity number or date and place of birth;
7. (e)“domestic wire transfer” means a wire transfer where the ordering institution and beneficiary institution are located in the same jurisdiction and includes any chain of wire transfers that takes place entirely within a jurisdiction, even if the system used to transfer the payment message is located in another country;
8. (f)“intermediary institution” means the Financial Institution in a serial payment or cover payment chain that receives and transmits a wire transfer on behalf of the ordering institution and the beneficiary institution, or another intermediary institution;
9. (g)“ordering institution” means the Financial Institution that transfers the funds upon receiving the request for a wire transfer on behalf of the payer;
10. (h)“payee” means the natural or legal person or legal arrangement identified by the payer as the recipient of the requested wire transfer;
11. (i)“payer” means the account holder or originator who allows/instructs the wire transfer from that account or, if there is no account, the natural or legal person that places the wire transfer order with the ordering institution to perform the wire transfer;
12. (j)“serial payment” means a direct sequential chain of payment where the wire transfer and accompanying payment message travel together from the ordering institution to the beneficiary institution, directly or through one or more intermediary institutions;
13. (k)“straight-through processing” means payment transactions that are conducted electronically without the need for manual intervention;
14. (l)“unique transaction reference number” means a combination of letters, numbers or symbols, determined by the Financial Institution in accordance with the protocols of the payment and settlement system or messaging system used for the wire transfer, and which permits the traceability of the wire transfer; and
15. (m)“wire transfer” includes any value transfer process or arrangement.

11.2.1. Obligations in respect of wire transfer

An Authorised Person must:

1. (a) when it sends or receives funds by wire transfer on behalf of a customer ensure that the wire transfer and any related messages contain payer and payee information;
2. (b) monitor wire transfers for the purpose of detecting those wire transfers that do not contain payer and payee information and take appropriate measures to identify any money laundering risks;
3. (c) where there is a suspicion of money laundering:
4. (i) conduct CDD when carrying out transactions, including occasional transactions, that are wire transfers (cross-border wire transfers and domestic wire transfers, including serial payments, and cover payments); and
5. (ii) verify the information pertaining to its customer.

11.2.2. Financial Institutions acting on their own behalf

The requirement in AML 11.2.1 does not apply to Financial Institution-to-Financial Institution transfers and settlements, where both the payer and the payee are Financial Institutions acting on their own behalf.

11.2.3.Wire transfer requirements

1. (a) An Authorised Person must ensure that information accompanying all cross-border wire transfers less than USD 1,000 contains:
2. (i) the name of the payer:
3. (ii) the payer account number where such an account is used to process the transaction (or unique transaction reference number that allows traceability of the transaction if no account exists);
4. (iii) the name of the payee; and
5. (iv) the payee account number where such an account is used to process the transaction (or unique transaction reference number that allows traceability of the transaction if no account exists).
6. (b) For all cross-border wire transfers of USD 1,000 or more an Authorised Person must ensure that, in addition to the information required by AML 11.2.3(a), there is information containing the payer’s address or national identity number (individual identification number or passport number), or customer identification number, or date and place of birth.
7. (c) If several individual cross-border wire transfers from a single payer are bundled in a batch file for transmission to payees, then an Authorised Person that is an ordering institution must ensure that:
8. (i) the batch file contains the payer information required under (a) and (b);
9. (ii) it has verified the payer information referred to in (i); and
10. (iii) the batch file contains the payee information required under (a) for each payee and that information is fully traceable in each payee’s jurisdiction.
11. (d) For a domestic wire transfer, an Authorised Person that is an ordering institution must either:
12. (1) include in the information accompanying the wire transfer the following:
13. (i) the name of the payer;
14. (ii) the payer’s account number where such an account is used to process the transaction (or unique transaction reference number that allows traceability of the transaction if no account exists); and
15. (iii) payer’s address or national identity number (individual identification number or passport number), or customer identification number, or date and place of birth; or
16. (2) if the payer information set out in (1) can be given by other means, include the payer’s account number or unique transaction reference number if no account exists, provided that:
17. (i) either number will permit the transaction to be traced back to the payer or the payee; and
18. (ii) the ordering institution must provide the payer information set out in paragraph (1) within 3 business days of a request for the information by the beneficiary institution or the AFSA or immediately upon request of a law enforcement agency.
19. (e) An Authorised Person that is an ordering institution must maintain, in accordance with AML 14.5, a record of the payer and payee information it has collected under this Chapter.
20. (f) An Authorised Person that is an ordering institution must not perform a wire transfer if it is unable to comply with the requirements in AML 11.2.3.

Guidance on wire transfers

1. (a) [intentionally omitted]
2. (b) Concealing or removing in a wire transfer any of the information required by AML 11.2.1 would be a contravention of the requirement to ensure that the wire transfer contains payer and payee information.
3. (c) The information required under AML 11.2.3(a) for all cross-border wire transfers less than USD 1,000 need not be verified for accuracy except if the Relevant Person suspects money laundering.

11.2.4. Requirements for intermediary institution

11.2.5. Requirements for beneficiary institution

1. (a) An Authorised Person that is a beneficiary institution must take reasonable measures, including post-event monitoring or real-time monitoring where feasible, to identify cross-border wire transfers that lack the required payer or payee information.
2. (b) For a cross-border wire transfer of USD 1,000 or more, an Authorised Person that is a beneficiary institution must verify the identity of the payee, if the identity has not been previously verified, and maintain this information in accordance with AML 14.5.

11.2.6. Systems and controls concerning wire transfers

An Authorised Person that acts as an intermediary or beneficiary institution must develop, establish and maintain policies, procedures, systems and controls to determine:

1. (a) when to perform, reject or suspend a wire transfer that lacks the full payer information or required payee information; and
2. (b) when to take an appropriate follow-up action.

11.2.7. Money or value transfer service operator

1. (a) An Authorised Person that is a money or value transfer service operator must comply with all of the relevant requirements of AML 11.2 in the jurisdictions in which they operate, directly or through their agents.
2. (b) In the case of an Authorised Person that is a money or value transfer service operator that controls both the ordering and the payee side of a wire transfer, an Authorised Person must:
3. (i) take into account all the information from both the ordering and payee sides in order to determine whether a STR has to be filed; and
4. (ii) file a STR in any country affected by the suspicious wire transfer, and make relevant transaction information available to the FIU.