Revision of Anti-Money Laundering Regulations Takes Effect in the Islands

New Definitions to Enhance Compliance and Fight Financial Crimes

Effective immediately, the Anti-Money Laundering Regulations (2023 Revision) has come into force in the Islands, introducing new definitions aimed at strengthening anti-money laundering measures and combating financial crimes.

Key Changes

• The revised regulations define key terms, including:
  • “Anti-Money Laundering Compliance Officer”
  • “Appeal”
  • “Applicant for business”
  • “Banking business”
  • And others
• These definitions will help relevant financial businesses and professionals understand their obligations under the law and ensure compliance with international standards.
• Notable changes include:
  • The introduction of “beneficial owner” as a natural person who ultimately owns or controls a customer, including those with direct or indirect ownership or control of 10% or more of shares or voting rights in a legal person.
  • The definition of “close associate”, which includes any natural person known to hold ownership or control jointly with a politically exposed person or maintain a close business or personal relationship with such an individual.

New Concepts

• The revised regulations introduce new concepts, including:
  • “Designated non-financial business and profession” (DNFBP), which refers to natural or legal persons designated under Regulation 55A.
  • This definition aims to extend the reach of anti-money laundering measures beyond traditional financial institutions.

Impact on Businesses and Professionals

• According to the Financial Action Task Force (FATF) style regional body, these changes are a critical step towards enhancing the Islands’ ability to prevent and detect money laundering and terrorist financing.
• Relevant financial businesses and professionals will need to adapt their practices and procedures to ensure compliance with the new definitions.
• The Supervisory Authority has pledged to provide guidance and support to facilitate this transition.

What This Means for You

As a business or professional operating in the Islands, you should be aware of these changes and take immediate steps to update your policies, procedures, and training programs to reflect the revised definitions. If you have any questions or concerns about how these changes affect your operations, please reach out to the Supervisory Authority or consult with a qualified legal expert.

Stay Ahead of the Curve

Stay ahead of the curve and ensure compliance with the new Anti-Money Laundering Regulations in the Islands.