Financial Crime World

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FSC Designated Competent Authority for Anti-Money Laundering and Combating Financing of Terrorism

Overview

The Financial Services Commission (FSC) has been designated as a Competent Authority under various pieces of legislation to combat money laundering, terrorist financing, and proliferation financing.

Initial Designation

On November 12, 2007, the FSC was initially designated Competent Authority under the Proceeds of Crime Act (POCA), specifically with respect to the insurance and securities sectors. The designation has been expanded to include other sectors, including the Trust Companies Supervision (TCSP) sector.

Responsibilities

Under its designation, the FSC is responsible for:

  • Overseeing and supervising regulated businesses in their responsibilities under POCA, POC-MLPR, and UNSCRIA
  • Issuing guidelines to businesses on effective measures to prevent money laundering, terrorism financing, and proliferation financing
  • Monitoring compliance with these guidelines

Competent Authority Powers

The FSC has a range of powers, including:

  • Conducting inspections
  • Issuing directions
  • Examining information
  • Sharing information with other authorities
  • Requiring regulated businesses to register with it and make reports on specific matters

Consequences of Non-Compliance

Failure to adhere to the guidelines could result in serious consequences, including:

  • An entity being deemed unfit to conduct business
  • An institution engaging in unsafe and unsound practices
  • A court holding that a regulated business has not complied with applicable legislation

Purpose of Designation

The designation of the FSC as Competent Authority is aimed at preventing money laundering, terrorist financing, and proliferation financing, which can have serious consequences for the integrity of the financial system.

Guidelines for Regulated Businesses

The guidelines issued by the FSC represent best practices and the minimum acceptable standard for compliance with anti-money laundering, combating financing of terrorism, and proliferation financing legislation. Regulated businesses are expected to adopt internal controls that meet or exceed these standards.

Conviction for Offences

A conviction for an offence under any of the applicable legislation can constitute grounds upon which registration, license, or other form of permit may be suspended, cancelled, or revoked by the Competent Authority.

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