Financial Crime World

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Financial Institutions Urged to Ensure Compliance Officers Receive Timely Training

In an effort to strengthen anti-money laundering (AML) measures, financial institutions have been advised by the Financial Intelligence Agency (FIA) to provide their Compliance Officers with regular training on AML laws and regulations.

The Compliance Officer’s Role

The Compliance Officer plays a critical role in AML efforts, responsible for identifying suspicious transactions and reporting them to the relevant authorities. To effectively perform this role, the officer must be knowledgeable about AML laws, including the Proceeds of Crime Act and the Anti-Terrorism Act, and have access to all relevant information within the organization.

Appointment of Compliance Officer

Financial institutions are required to appoint a Compliance Officer who is separate from day-to-day business activities. The officer should report directly to the Board of Directors, ensuring the integrity of their work and protecting them from potential victimization.

Responsibilities of the Compliance Officer

The Compliance Officer’s responsibilities include:

  • Establishing policies, programs, procedures, and controls to prevent or detect money laundering
  • Organizing training sessions for staff on AML-related issues
  • Developing a system to evaluate the personal employment and financial history of employees
  • Analyzing transactions and verifying whether they require reporting
  • Reviewing internally reported unusual transaction reports
  • Preparing external reports of unusual transactions to the FIA

Compliance Monitoring

The Compliance Officer is responsible for monitoring the institution’s AML system on an ongoing basis, identifying deficiencies or findings that are noteworthy. These should be communicated in writing to senior management at least monthly.

By ensuring that their Compliance Officers receive timely training and support, financial institutions can enhance their AML efforts and reduce the risk of non-compliance.