Banks asked to exercise due diligence with respect to NGOs, charities

Monday, 3 June 2019 01:10 - - {{hitsCtrl.values.hits}}

CBSL Financial Intelligence Unit (FIU) sends circular to all licenced banks
Directs enhanced due diligence with respect to NGOs, not-for-profit organisations and charities
Orders monitoring and reporting of direct foreign funds/remittances into their accounts
Must also report on unregistered NGOs and others

All licenced banks have been told to exercise due diligence with respect to non-governmental organisations (NGO)s, not-for-profit organisations or charities by the Central Bank’s (CBSL) Financial Intelligence Unit (FIU), and to monitor and report among others on organisations that receive direct foreign funds/remittances into their accounts.

The banks have been instructed to also monitor and report any NGO not registered with the National Secretariat for NGOs and those not registered with any other institution, including the District Secretariat or the Divisional Secretariat, etc.

The directive from the CBSL FIU sent to all CEOs/General Managers of all licenced banks stated that under Rule 51 of the Financial Institutions (Customer Due Diligence) Rules, No. 1 of 2016, “every Financial Institution shall conduct enhanced COD measures when entering into a relationship with a NGO or a Not-for Profit Organisation and Charity to ensure that their accounts are used for legitimate purposes and the transactions are commensurate with the declared objectives and purposes.”

The Circular issued by the FIU said that the National Secretariat for NGOs has informed that according to a Circular issued by the President’s Secretary on 6 February 1999, all international and national-level foreign-funded voluntary social services organisations/non-governmental organisations (NGOs) are required to re-register with the NGOs.

Time to get down to business: CB Chief