Financial Crime World

Financial Regulatory Body Issues Guidelines on Anti-Money Laundering, Terrorism Financing, and Proliferation Financing

The Financial Services Commission (FSC) has issued guidelines to ensure compliance with anti-money laundering (AML), terrorism financing (TF), and proliferation financing (PF) legislation by financial institutions, prescribed holding companies, and designated non-financial businesses and professions (DNFIs).

Scope of the Guidelines

The guidelines are directed at all entities regulated by the FSC, including:

  • Financial institutions
  • Prescribed holding companies
  • Designated non-financial businesses and professions (DNFIs)

These guidelines are informed by applicable legislation, the Financial Action Task Force (FATF) 40 Recommendations, related best practice papers, and other international requirements.

Competent Authority

The FSC was designated as a Competent Authority under various pieces of legislation, including:

  • Proceeds of Crime Act (POCA)
  • Terrorist Property (TPA)
  • United Nations Security Council Resolution Implementation Act (UNSCRIA)

As such, it is responsible for overseeing and supervising regulated businesses in their responsibilities under these Acts.

Requirements

The guidelines require regulated entities to take effective measures to prevent money laundering, terrorism financing, and proliferation financing. Specifically:

  • Regulated entities must:
    • Take measures to prevent money laundering, terrorism financing, and proliferation financing
    • Monitor compliance with AML/ CFT/CPF requirements
    • Establish internal controls that meet or exceed the minimum standards set out in the guidelines

Consequences of Non-Compliance

Failure to adhere to the guidelines could result in an entity being deemed unfit to conduct business under relevant sector legislation, engaging in unsafe and unsound practices, or non-compliance with applicable legislation. A conviction for an offence under any of the applicable legislation can also constitute grounds for suspension, cancellation, or revocation of registration, license, or permit.

Best Practices

The guidelines represent best practices and the minimum acceptable standard for compliance with AML/ CFT/CPF legislation. Regulated entities are encouraged to adopt internal controls that meet or exceed these standards.

Supervision by FSC

The FSC’s role in supervising regulated businesses is crucial in preventing money laundering, terrorism financing, and proliferation financing. The agency has the power to:

  • Inspect and verify information
  • Issue directions
  • Examine documents
  • Share information with other authorities

Accessing the Guidelines

A copy of the guidelines can be obtained from the FSC website or by contacting the agency directly.

By following these guidelines, regulated entities can ensure compliance with AML/ CFT/CPF legislation and prevent money laundering, terrorism financing, and proliferation financing.