13.8.1. Activity upon notification

A Relevant Person must ensure that where the Relevant Person's MLRO receives a notification under AML 13.7.3,the MLRO, without delay:

(a) enquires into and documents the circumstances in relation to which the notification made under AML 13.7.3 was made;

(b) determines whether in accordance with the AML Law a STR must be made to the FIU and documents such determination; and

(c) if required, submits a STR to the FIU and promptly notifies the AFSA of such a submission.

13.8.2. Recording reasons for not making a Suspicious Transaction Report

Where, following a notification to the MLRO under AML 13.7.3, no STR is made, a Relevant Person must record the reasons for not making a STR.

13.8.3. Independence of Money Laundering Reporting Officer decision

(a) A Relevan tPerson must ensure that whether the MLRO decides to make or not to make a STR, his/her decision is made independently and is not subject to the consent or approval of any other person.

(b) Where a Relevant Person’s MLRO has a suspicion of money laundering, and reasonably believes that performing the CDD process will tip-off the customer, he/she must not pursue the CDD process, and must submit a STR to the FIU.

Guidance on making Suspicious Transaction Reports

1. (a) In most cases, before deciding to make a report, the MLRO is likely to need access to the relevant business information. A Relevant Person must therefore take reasonable steps to give its MLRO access to such information. Relevant business information may include details of:
2. (i) the financial circumstances of a customer or beneficial owner, or any person on whose behalf the customer has been or is acting;
3. (ii) the features of the transactions, including, where appropriate, the jurisdiction in which the transaction took place; and
4. (iii) the underlying CDD information, and copies of the actual source documentation in respect of the customer.
5. (b) In addition, the MLRO may wish:
6. (i) to consider the level of identity information held on the customer, and any information on his personal circumstances that might be available to the firm; and
7. (ii) to review other transaction patterns and volumes through the account or accounts in the same name, the length of the business relationship and identification records held.
8. (c) Relevant Persons are reminded that the failure to report suspicions of money laundering may constitute a criminal offence.
9. (c-a) The AFSA may provide guidance and recommendations as it considers appropriate in assisting Relevant Persons in the detection and reporting of suspicious transactions to the FIU, in support of the FIU’s objectives under the AML Law.
10. (d) STRs should be sent to the FIU in accordance with these Rules and AML Law. In the preparation of a STR, if a Relevant Person knows or assumes that the funds which form the subject of the report do not belong to a customer but to a third party, this fact and the details of the Relevant Person’s proposed course of further action in relation to the case should be included in the report.
11. (e) If a Relevant Person has reported a suspicion to the FIU, the FIU may instruct the Relevant Person on how to continue its business relationship, including effecting any transaction with a person. If the customer in question expresses his wish to move the funds before the Relevant Person receives instruction from the FIU on how to proceed, the Relevant Person should immediately contact the FIU for further instructions.

Guidance on tipping-off

1. (a) Relevant Persons are reminded that in accordance with the AML Law, Relevant Persons or any of their employees must not tip-off any person, that is, inform any person that he/she is being scrutinised for possible involvement in suspicious activity related to money laundering, or that any other competent authority is investigating his/her possible involvement in suspicious activity relating to money laundering. In addition, the Relevant Persons must not disclose information contained in a STR or the fact that a STR may be or has been filed with the FIU or a suspicious transaction is being investigated.
2. (b) If a Relevant Person reasonably believes that conducting CDD measures will tip-off a customer or potential customer, it may choose not to pursue that process and should file a STR. Relevant Persons should ensure that their employees are aware of and sensitive to these issues when considering CDD measures.