Once a Suspicious Transaction or other suspicious information related to a Customer or Business Relationship has been reported to the FIU, there are two immediate consequences:

Further guidance on both of these topics is provided below.

FIU Instructions

After receiving an STR from an FI, the FIU may or may not revert to the reporting institution with specific instructions, requests for additional information, feedback or further guidance related to the STR or to the business relationship in general. In such cases, these communications will generally be directed to the designated AML/CFT compliance officer of the FI.

Confidentiality of FIU’s Instructions

The responsibility for coordinating the FI’s prompt compliance with the FIU’s instructions or requests lies with the designated AML/CFT compliance officer. It should be noted that, depending on the nature of the case, the FIU may require the compliance officer to maintain certain information related to its instructions or requests privileged and/or confidential within the FI’s organisation. In other words, in some cases, the compliance officer could be restricted from divulging information about a transaction or business relationship to anyone other than certain members of senior management or the board of directors of the FI. Regardless of the circumstances surrounding the FIU’s instructions or requests, including whether or not the compliance officer is permitted to provide explanations to the staff of the FI, the FI is obliged at all times to follow the compliance officer’s instructions in regard to any follow-up actions required in relation to an STR.

Timing of FIU’s Instructions

Whether or not the FIU issues instructions or requests for additional information to a reporting institution, or how quickly this may occur after the STR is initially reported, both depend on numerous factors. These may include the prioritisation of the incoming STR among all of the STRs received by the FIU, the results of the ensuing analysis, or the possible need for information to be exchanged with other Competent Authorities or international FIUs, as well as the timing and the results of such exchanges.

When an STR involves an anticipated, pending, or already in-progress transaction, FIs should use their best efforts to delay the execution or completion of the transaction, in order to allow for a reasonable amount of time in which to receive feedback, instructions, or additional information requests from the FIU. In taking such measures, FIs should take the necessary steps to avoid “tipping off” or arousing the customer’s suspicion that the transaction is being investigated or reported. Examples of some of the measures FIs may consider taking, either singly or in combination, in order to delay the execution or completion of transactions include but are not limited to:

During the time interval during which an anticipated, pending, or in-progress STR that has already been reported to the FIU is being delayed by the FI, any additional suspicions that may arise should also be immediately reported to the FIU as a follow-up to the original STR. Examples of such additional suspicions may include, but are not limited to:

If a reasonable amount of time has not yet elapsed before the receipt of feedback, instructions, or requests for additional information from the FIU in regard to an STR, and it becomes impossible for the FI to delay the execution or completion of the reported transaction any longer without arousing the customer’s suspicion that the transaction is being investigated or reported, then the FI should request specific instructions or permission from the FIU in regard to executing or rejecting the transaction.

No Instructions, Feedback or Additional Information Requests from the FIU

Due to the factors previously mentioned, FIs may not receive instructions, additional information requests, or other feedback from the FIU in regard to STRs that have been filed; or the receipt of such communications may be delayed beyond what they consider to be a reasonable time period. In such instances, FIs should determine the appropriate handling of the STR and of the business relationship in general, taking into consideration all of the risk factors involved.

In particular, FIs are reminded that, unless they are specifically instructed by the FIU to do so, they are under no obligation to carry out transactions they suspect, or have reasonable grounds to suspect, of being related to a Crime. Furthermore, unless they are specifically instructed by the FIU to maintain the business relationship (for example, so that the Competent Authorities may monitor the customer’s activity), FIs should take appropriate steps in order to decide whether or not to maintain the business relationship. These steps may include, but are not limited to:

FIs should be aware that filing an STR does not automatically mean that the relationship with the customer needs to be terminated. However, when deciding to terminate a business relationship for which an STR has been filed and no feedback has been received from the FIU after a reasonable time period, FIs should formally advise the FIU of their intention to do so unless there is an official objection.

Reasonable Time Period for Receiving Feedback from the FIU

FIs should note that there are no pre-established processing times, and no statute of limitations, in regard to the time interval during which the FIU may provide feedback, including instructions or requests for additional information in response to an STR. Furthermore, the time period that may be considered reasonable in relation to such feedback depends on numerous factors, including but not limited to the:

The time period considered to be reasonable could thus vary widely from one case to another.

As a general guideline, the reasonable time periods for feedback from the FIU concerning transaction types that are less complex, more routine, and have faster average processing times (such as account-to-account or wire transfers, the exchange of currencies, or over-the-counter purchases of precious metals or stones, for example) would normally be expected to be shorter than those for more complex, less routine transaction types (such as, for example, purchases of real estate or other complex assets, trade finance transactions, or various forms of loan or credit agreements). FIs that require further assistance in determining reasonable time periods should consult with the FIU or the relevant Supervisory Authorities.

High-Risk Classification of Reported Business Relationships

When a transaction or other information about a business relationship is reported to the FIU as suspicious, it means that, by definition, the customer or business relationship to which it pertains should be classified as high risk (in case the business relationship has not yet been classified as such). In situations in which no feedback or instructions have been received from the FIU, FIs that determine to maintain the business relationship should, commensurate with the nature and size of their businesses:

In such cases, beyond the EDD measures described in previous sections (see Sections 6.4, Enhanced Due Diligence (EDD) Measures and 6.3.5, Ongoing Monitoring of the Business Relationship), FIs should also implement additional control measures such as, but not limited to:

FIs should also document the specific EDD, ongoing monitoring, and additional control measures to be taken. In this regard, FIs should obtain senior management approval for the plan, including its specific conditions, duration and any requirements for its removal, as well as the roles and responsibilities for its implementation, monitoring and reporting, commensurate with the nature and degree of the ML/FT risks associated with the business relationship.