AML/CFT Compliance Considerations for 2021 and Beyond
Compliance officers need to focus on institutional risk assessments, beneficial ownership, client and transaction monitoring, and more to ensure adherence to AML/CFT regulations. Legislative changes are also forthcoming, requiring proactive adjustments to compliance practices.
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General Supervision Issues - AML/CFT Dummy Text Ten Things for Compliance Officers to Consider: 2021 and beyond Glenford Malone Ag. Deputy Managing Director, Regulation BVI Financial Services Commission
Overview 1) Ten Things For Compliance Officers 1) Institutional Risk Assessments 2) National and Sectorial Risk Assessments 3) Beneficial Ownership 4) Client and Transaction Monitoring 5) SARs Filings 6) Sanctions Screening 7) Statistical and Prudential Returns 8) Prudential Conduct Issues 9) AML Manuals and Training 10) Provision of Information to Competent Authorities and Law Enforcement Agencies 2) Other: Legislative Changes Coming Dummy Text
Institutional Risk Assessments Institutional risk assessment is a good way to satisfy the current requirement under Section 11 of AML Code and 26 of Regulatory Code Amendment to AML Code to make it a specific requirement Amendment to Code will provide details of what it should include: i.e. relevant risk factors such as customers, products, services or transactions, delivery channels and country exposure Dummy Text Commission expects that all licensees have undertaken one and recorded it Must be regularly monitored and reviewed by licensee
National and Sectorial Risk Assessments Can you articulate the findings if asked? Are findings understood? What risks, threats and vulnerabilities were identified? Have findings of Sectorial ML/TF risk assessments been incorporated into clients and institutional risk assessments? Dummy Has staff been training in the findings of the assessments? Text Have you considered ML/TF assessments of DNFBPs and NPOs whom may be your clients?
Beneficial Ownership Understanding who it covers Ensure accurate and up to date information (be able to demonstrate how information is kept accurate and up to date) Dummy Text Direct correlation to risk assessments of clients/customers
Client and Transaction Monitoring How does one go about monitoring clients? How do TCSPs monitor legal arrangements/persons etc.? Dummy Can you carry out a proper risk assessment without the ability to monitor and receive relevant information on an ongoing basis? Text AML Code will be amended to provide further guidance
SARs Filings Are the SARs filed: Commensurate with ML, TF and PF risk as identified in National and Sectorial Risk assessments? Dummy Commensurate with institutional risk assessments and client profiles? Text Of high quality and contain information to assist FIA/RVIPF or are they simply defensive in nature?
Sanctions Screening Do you have sanctions procedures? How quickly can you search your client database when a new sanction is applied or disapplied? Dummy Do you have procedures if there is a positive hit? Text Are all staff, including directors, fully knowledgeable about the Sanctions Guidelines?
Statistics and Prudential Data Prudential returns, AML Returns, financial statements etc. Are you submitting your data on time, and is it accurate? Dummy Penalties are automatic and Commission has no ability to waive Text Important for jurisdiction to understand its risk and take measures to mitigate risk, threats and vulnerabilities
Prudential Conduct Issues Do you have client/customer agreement that is clear? Clients/Customers notified of and agrees to contents of agreement Are you treating clients/customers fairly? Dummy How do you handle complaints? Text Is there a clear complaints procedure and are all clients appropriately informed on how to engage this process?
Provision of Information to Competent Authorities and Law Enforcement Agencies A clear indication of the robustness of AML/CFT Systems Is information submitted timely? Is information accurate and up to date? Dummy Text Does a substantial number of requests lead to resignations and filing of SARs? i.e. how often do you resign or simply file a SAR solely on basis of request? Could be an indicator of robustness of your risk assessment system.
AML Manuals and Training Are Proliferation Financing risks clearly identified? Is specific training on PF risk included? Legislative requirements? Dummy Are ML, TF and PF risks individually identified: i.e. can the reader identify from the manual the differences and risk specific to each? Text
Other: Legislative Changes to Come Virtual Asset Service Provider Legislation AML Code and Regulations Dummy BVI Business Companies Act Bearer shares to be eliminated Adjustment to Struck off regime Accounting and transaction records Text
