The Security and Exchange Organization is working on a RFP (request for proposal) to launch a new comprehensive and intelligent anti money laundering mechanism that will help relevant authorities closely oversee trade in the capital market, a SEO official said.
Roholla Najafi, head of SEO anti-money laundering committee says by launching the comprehensive system, the traditional supervisory system, also known as insular supervision model, will no longer be valid.
In insular models, the supervisor needs a separate system for gathering information. “For example, it is customary for supervisors to use a distinct commercial intelligence system alongside the main supervisory system to detect wrongdoing,” he was quoted as saying by the Security and Exchange New Agency.
Noting that the proposed model is intelligent, he said the anti-money laundering mechanism draws on cognitive intelligence that makes it think like a human. “This allows processing data to prevent offence and enables the overseer to take timely action.”
Emphasizing the importance of using efficient and smart instruments in the capital market, Najafi said the new anti-money laundering system operates on an information technology platform.
Stressing the need for fighting money laundering for financial and monetary supervision bodies around the world, he recalled the attention given to the issue in Iran in recent years.
By launching the comprehensive system, the traditional supervisory system, also known as insular supervision model, will no longer be valid
“The capital market is like a lifeline of the economy,” which must be secured against money laundering via an efficient mechanism.”
An inefficient supervisory model is indeed a blessing for lawless people and offenders and does nothing to prevent misconduct. “It also hampers the process of identifying law-breakers and allows them enough time to do what they want.”
Money Laundering Risks
The SEO drafted a comprehensive document to evaluate and identify money-laundering risks in the capital market, Najafi said. “The document identifies the main money laundering risks common in capital markets and offer solutions.”
According to SENA, there are other alternative supervisory measures in place in the capital market such as systemic control over suspicious transactions (those that don’t match customers’ normal activities), developing and promoting anti-money laundering software, ranking customers based on their risk potential and publishing instructional and promotional material.
Najafi recommended market stakeholders to log into the SEO website (locally known as SAJAM) and feed information about their identity and business.
The Expediency Council, a powerful body that resolves disputes between parliament and a watchdog body, the Guardian Council, approved the amendment to the Anti- Money Laundering Law.
The bill was passed by the Majlis last September as part of the push by the government of President Hassan Rouhani to update laws in line with international norms and respond to a plan proposed by the inter-governmental Financial Action Task Force.
The Guardian Council said the bill was in contravention to the Constitution, but because lawmakers insisted on the earlier version of the bill, the issue was sent to the Expediency Council, which finally decided on the basis of what is expedient for the ruling system.
