New Draft Directive 3A on International Fund Transfer Reporting (IFTR)

19 Mar

The Financial Intelligence Centre (FIC) has released Draft Directive 3A and public compliance communication (PCC) 50A which updates reporting requirements for accountable institutions involved in international transactions. This directive aims to enhance compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations by ensuring that institutions correctly report international fund transfers.

What is an International Fund Transfer Report (IFTR)?

An International Fund Transfer Report (IFTR) is a mandatory report that financial institutions must submit whenever they process an international transfer of funds. These reports help authorities monitor cross-border financial activity to detect money laundering, terrorism financing, and other financial crimes.

📌 Who Must Submit an IFTR?

Banks and financial institutions processing international transactions.
Money remittance services and foreign exchange dealers.
Businesses involved in international payments and transfers.

📌 When is an IFTR Required?

For both incoming and outgoing international fund transfers.
The report must be submitted to the FIC within the required timeframe.

Key Changes in Draft Directive 3A

Mandatory Notification for Reporting Failures
If an institution fails to submit an IFTR or submits a defective IFTR, they must immediately notify the FIC and take corrective action.
Increased Focus on Proliferation Financing Risks
The directive aligns with global financial crime regulations, ensuring institutions remain compliant with anti-proliferation financing measures.
Guidance on Remediation Measures
If a reporting failure occurs, institutions must correct and mitigate errors to avoid penalties or further compliance breaches.

What Affected Businesses Should Do

Ensure that all international transactions are reported correctly and within the required time.
Implement stronger compliance checks to prevent errors in IFTR submissions.
If an IFTR is missed or incorrect, notify the FIC immediately and follow remediation steps.

Public Consultation Open Until 21 March 2025

The FIC is inviting public comments on Draft Directive 3A before finalizing the changes. Accountants, businesses, and financial institutions should review the directive and submit feedback.

Read more in the Consultation Note of the FIC.