Financial Crime World

FSRC’s AML/CTF/CPF Supervision: An Annual Review

The Financial Services Regulatory Commission (FSRC) has published its annual review of the Anti-Money Laundering, Combating the Financing of Terrorism, and Countering Proliferation Financing (AML/CFT/CPF) supervision framework. The review highlights the commission’s efforts to ensure that financial institutions are adequately prepared to combat money laundering, terrorist financing, and proliferation financing.

Compliance and Enforcement

The FSRC has taken swift action to address emerging risks and ensure compliance with AML/CFT/CPF regulations. This includes:

  • Enhanced monitoring
  • Issuance of penalties
  • Warning letters
  • Cease-and-desist orders to deter non-compliant behavior

Understanding the Regulated Entity

The FSRC’s risk-based supervisory framework relies on a thorough understanding of each regulated entity. To achieve this, the commission assesses the risks associated with each institution, including:

  • Business activities
  • Transactions
  • Exposure to high-risk jurisdictions

Group-Level Risk Assessment

The FSRC also considers the ML/TF/PF risks faced by regulated entities that are part of a group. This involves a holistic view of the risks associated with the group’s:

  • Domestic and foreign operations
  • Business activities of its branches and subsidiaries in other jurisdictions

Information Exchange

To ensure effective supervision, the FSRC cooperates with other stakeholders, including:

  • Prudential supervisors
  • Financial intelligence units
  • Tax authorities
  • Law enforcement agencies
  • AML/CFT/CPF supervisors from other jurisdictions

This cooperation enables the commission to gather comprehensive information about regulated entities and identify potential risks.

Sectoral Risk Assessment

The FSR C conducts a sectoral risk assessment every two years to identify emerging risks in specific sectors, such as:

  • Banking
  • Insurance

This helps the commission to develop targeted supervision strategies and monitor the effectiveness of AML/CFT/CPF controls in each sector.

Conclusion

In its annual review, the FSRC reaffirms its commitment to ensuring that financial institutions are equipped to combat money laundering, terrorist financing, and proliferation financing. The commission will continue to monitor emerging risks and refine its supervisory approach to ensure the integrity of the financial system.