Capital Markets moves to cap money laundering

The Capital Markets Authority (CMA) has introduced new regulations as it heightens the fight against money laundering in the capital markets.

The regulations contained in a Special Gazette Notice are expected to enhance internal controls for market intermediaries in an effort of deterring criminals from using the stock market to launder money.

The regulations come amid concern from the regulator, that the market could be used as a platform to promote illegal profits to be channeled into the economy.

Among the requirements, market intermediaries such as stockbrokers and investment banks will be expected to establish policies for detection and prevention of money laundering.

Intermediaries must also report all cash transactions above ten thousand dollars or its equivalent in any currency to the financial reporting center.

The CMA has placed greater burden on investors, who will now be required to verify identification documents before opening accounts as well as clearly detailing the source of funds and the reason behind the investment.