At the same time, the PCMLTFR does not require reporting entities that rely on an introduced business exemption for CDD to obtain details about the information used to ascertain a client’s identity (e.g., a driver’s licence number, if a driver’s licence was used to ascertain identity) or keep a record of this information. This creates a risk that the information will be lost if the relationship between the recipient and introducer is later terminated (e.g., if the introducer goes out of business). These records contain valuable information that is essential to ensuring that CDD and reporting obligations are met and may also be vital to law enforcement in the investigation of a money laundering or terrorist financing offence.
Our main results show: (1) Monetary policy has contributed significantly to the "Great Moderation" by reducing the volatility of its non-systematic component and by changing its reaction function to demand and supply shocks; (2) Structural reforms also contributed to reduce the responsiveness of GDP and inflation to demand and supply shocks; (3) During the period of high volatility, supply and policy shocks were the most important determinants of macroeconomic instability.
The existing legislative requirement for third party determination is often misunderstood by reporting entities because of conflicting understandings of the term “third party.” For the purposes of the PCMLTFR, it is intended that third parties are those who provide instructions, whereas many reporting entities have interpreted third parties as being those who carry out those instructions.
This paper represents an empirical study of the random level shift (RLS) model using the approach of Lu and Perron (2010) and Li and Perron (2013) for the volatility of daily stocks returns data for five Latin American countries.
As described later in Proposal 2.4 of this consultation paper, the Government is considering expanding the events that would require life insurance companies and life insurance agents and brokers to perform client identification and record-keeping requirements to include transactions and accounts openings in respect of investment and loan products. The proposed amendment above would follow as a result of Proposal 2.4. Proposal 1.5, if implemented, would also apply to life insurance companies under this Proposal.
In this paper, we attempt to account for the depth and persistence of unemployment during and after the crisis by considering the relationship between credit and firm hiring explicitly.
It was also found that the Rural Banks (Cajas Rurales), Small and Micro Enterprise Development Companies (Edpymes), and Finance Companies registered the highest rates of informality, both in terms of the number of customers and credit balances.
I often think that people are over-eager to defineconfiguration files. Often a programming language makes astraightforward and powerful configuration mechanism. Modern languagescan easily compile small assemblers that can be used to assembleplugins for larger systems. If compilation is a pain, then there arescripting languages that can work well also.
Politically exposed foreign persons (PEFPs) are defined in the PCMLTFA as persons who are, or have been entrusted with prominent public functions such as heads of state, senior politicians, senior government, judicial or military officials, senior executives of state-owned corporations and important political party officials. As a result of their prominent and influential positions, and their increased possible access to large financial sums, PEFPs are deemed to be at higher risk of money laundering or terrorist financing activities. The PCMLTFA requires certain reporting entities to determine whether a customer is a PEFP when they conduct designated financial transactions or open designated accounts. Reporting entities are required to implement enhanced measures in respect of their customers who are PEFPs.
In this paper, the Government is putting forward a number of proposals that may be considered for future legislative or regulatory amendments. The intention is to provide an opportunity for stakeholders to react to these proposals, including for the benefit of the Parliamentary Committee that will undertake a review of the administration and operation of the PCMLTFA in 2012, as required under the Act.
‘Politically exposed foreign person’ is currently defined in the PCMLTFA as persons holding or having held certain designated high-profile political positions, as well as the immediate family members of those persons. The proposed amendment would provide that, in circumstances in which reporting entities are required to take reasonable measures to determine if a customer is a PEFP, they would also be required to take reasonable measures to determine whether that customer is a close associate of a PEFP.
Reporting entities may be required to take reasonable measures to obtain particular information or to make a specific determination when performing due diligence. Examples of obligations based on reasonable measures include third party determination at the time of a large cash transaction and account opening, ongoing monitoring of high risk financial transactions, and identification of an individual for an suspicious transaction report. There is no legislative requirement for reporting entities to keep a record of those “reasonable measures” that they have taken, unless they obtain information or make a determination that would then trigger record keeping obligations.
The main results are: i) There is evidence of “fiscal fatigue”, namely the loss of control of the debt growth via fiscal adjustments as the debt ratio increases; ii) the debt ratio is an important determinant of the effective cost of public debt; and iii) the debt limit as traditional measured (deterministic) is between 68-97 percentage points of GDP, and between 5-89 percentage points for the stochastic case, which gives evidence of limited fiscal space for the majority of the economies analyzed.