SENEGAL Law and Practice Contributed by: Franck Olivier Allessie, SCP Houda & Associés
• the monitoring of suspicious transactions; • the appointment of internal managers respon - sible for the application of anti-money laun - dering programmes; • the continuous training of personnel; • the implementation of an internal control system for the effective application and effec - tiveness of the measures adopted to control risks; and • the implementation of measures relating to the detection of unusual or suspicious trans - actions and compliance with the obligation to report suspicions to the National Financial Intelligence Processing Unit. In addition to the obligations listed above, banks have an obligation of vigilance with respect to their customers. Indeed, the law obliges banks to have up-to-date knowledge of all their cus - tomers, including their income and assets, and to monitor their operations. In this respect, Arti - cle 18 of the AML/CFT Law provides the follow - ing: “Before entering into a business relationship with a customer or assisting them in the prepara - tion or execution of a transaction, the persons mentioned in Articles 5 and 6 of this Law shall identify the customer and, where applicable, the beneficial owner of the business relationship by appropriate means and shall verify these identi - fication elements on presentation of any reliable written document.” Article 19 of the AML/CFT Law provides the following: “Before entering into a business relationship with a customer, the per - sons referred to in Articles 5 and 6 of this Law shall collect and analyse the items of informa - tion, from among those included in the list drawn up for this purpose by the supervisory author - ity, that are necessary for the knowledge of their customer as well as the purpose and nature of the business relationship, in order to assess the risk of money laundering and terrorist financing.”
In addition, financial institutions, when enter - ing into a business relationship or conducting transactions with or on behalf of foreign politi - cally exposed persons (PEPs), are required to take specific measures to: • implement adequate and appropriate risk- based procedures to determine whether the customer or a beneficial owner of the cus - tomer is a PEP; • obtain authorisation from the appropriate level of management before entering into a business relationship with the customer; • take any appropriate risk-based measures to establish the origin of the assets and the source of the funds involved in the business relationship or transaction; and • ensure enhanced ongoing monitoring of the business relationship. Lastly, financial institutions are required to iden - tify and assess the risk of money laundering or terrorist financing, which may result from: • the development of new products and busi - ness practices, including new distribution methods; and • the use of new or emerging technologies, related to new or existing products (Article 37 of the AML/CFT Law). Failure to comply with these procedures exposes the institution to the administrative, disciplinary and criminal sanctions provided for in Articles 112 et seq of the AML/CFT Law. 6. Depositor Protection 6.1 Deposit Guarantee Scheme (DGS) The Deposit Guarantee Scheme (DGS) in the WAEMU, including Senegal, is governed by the
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