Financial Crime World

Fit and Proper Criteria for Compliance Officers: Guidelines Issued by Financial Intelligence Unit

The Financial Intelligence Unit (FIU) has issued guidelines outlining the minimum fit and proper criteria that must be satisfied by Compliance Officers (COs) and Anti-Money Laundering Reporting Officers (ACOs), in line with Regulation 11(2) of the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Regulations.

Probity, Personal Integrity, and Reputation

The FIU emphasizes the importance of probity, personal integrity, and reputation in assessing the suitability of COs and ACOs. These qualities require a disciplined commitment to high ethical standards over time.

  • Factors considered in evaluating an applicant’s level of probity, integrity, and reputation:
    • Whether the person has been subject to disciplinary or criminal proceedings
    • Any contraventions of regulatory body or professional association requirements
    • Dismissal or resignation from employment due to questions about honesty and integrity
    • Association with a company or business that has been refused registration or had its license revoked
    • Failure to cooperate with regulatory authorities
    • Lack of willingness to maintain effective internal control systems and risk management practices

Competency and Capability

The FIU requires COs and ACOs to be senior officials at management level or employees with sufficient knowledge, skills, and experience to effectively fulfill their duties. This includes both professional and theoretical experience gained through previous work experience, education, and training.

  • Factors considered in assessing an applicant’s competency and capability:
    • Past satisfactory experience in the nature of business being conducted
    • Ability to understand and perform prescribed duties of the CO or ACO
    • Understanding of AML/CFT requirements and obligations of the business
    • Clear understanding of responsibilities as a CO or ACO
    • Familiarity with the affairs and activities of the business to respond to AML/CFT-related enquiries

Application and Approval Process

To apply for approval as a CO or ACO, reporting entities must submit an application to the FIU comprising the following documents:

  • Covering letter addressed to the Director of the FIU
  • Completed Application Form
  • Copies of identification documents (National Identity Card or Passport Identification Page(s)) certified true copy of original
  • Copies of professional and educational qualifications certified true copy of original
  • Résumé or curriculum vitae outlining relevant qualifications and experience
  • Police certificate or sworn affidavit as to non-criminal record for the past three years

The FIU will treat each application on a case-by-case basis, taking into account the seriousness of the matter and the explanation offered by the applicant. The guidelines aim to ensure that COs and ACOs are fit and proper individuals who can effectively fulfill their responsibilities in preventing money laundering and combating the financing of terrorism.