Page last modified on Sep 25, 2008
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The CMDA has conducted an Anti Money laundering Awareness Presentation with the assistance of Cecilia Marian from Asia Pacific Group on Money Laundering.
The program was designed to share international and standards on an Anti Money laundering practices with the CMDA and licensed market intermediaries, which include the Maldives Stock Exchange, Brokers and Dealers.The program featured issues such as intensive customer identification, monitoring for suspicious activity, examining securities market participants for Anti Money laundering compliance, best practices for coordination between regulators and law enforcement authorities. It also covered, tracing and restraining proceeds of fraud and appropriate penalties for AML violations in other markets.
The CMDA has two key interests in anti-money laundering efforts. First, the CMDA is responsible for ensuring that industry participants comply with anti-money laundering obligations through the enforcement activities. The licensing conditions for market intermediaries prohibit them to undertake anti money laundering activities. The Securities (General) Regulation which governs the investigatory powers of the CMDA facilitates and gives powers to the CMDA to conduct investigations of market intermediaries and also assist in investigations undertaken by foreign securities market regulators or other relevant authorities.
Securities fraud is one of the predicate offences related to money laundering. As the Maldives capital market develops, there will be an increased law enforcement focus on those who facilitate illegal proceeds and use the securities market to perpetrate fraud or commit other offences using the securities market as a means to launder the proceeds of crime.
CMDA has applied to become a member of IOSCO. Through this relationship CMDA would join regulators and law enforcement authorities around the world to recognize and report suspicious activity, and access and share quality financial intelligence on a real time basis.
CMDA is seeking donor agencies that can assist CMDA to develop AML supervision policies and procedures for licensed intermediaries; and capacity building. At the very nascent stage of market development, CMDA is trying to lay the foundation to combat money laundering through the stock market. It is never too early to start.
