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Financial Intelligence Unit Upholds Stricter Compliance Measures

The Financial Intelligence Unit (FSU) has emphasized its commitment to ensuring compliance with anti-money laundering and terrorist financing regulations, issuing a new directive aimed at strengthening internal controls and risk assessments among financial institutions and professionals.

Enhanced Internal Controls and Risk Assessments

According to the directive, all entities regulated by the FSU must establish and maintain written internal control systems that detect and prevent money laundering and terrorist financing activities. These systems must be tailored to the entity’s specific circumstances and risks, and include measures such as:

• Regular reviews of risk assessment policies
• Employee training programs
• Senior management involvement in compliance initiatives

Proportionate Inspection Actions

The FSU has also emphasized the importance of proportionate inspection actions, with a focus on high-risk entities and professionals. The unit will perform regular inspections to ensure that entities are complying with anti-money laundering regulations and will provide reports outlining weaknesses identified and recommending necessary remedial action.

Consequences of Non-Compliance

Failure to comply with recommended remedial action within a specified period will constitute an offence punishable under the relevant legislation.

Staff Training for Inspections

In addition, the FSU has issued guidelines for training its staff on conducting on-site and off-site inspections of entities and professionals. The training is designed to enable inspecting staff to make objective assessments of anti-money laundering and terrorist financing systems and controls, taking into account factors such as:

• Internal procedures
• Employee training programs
• Senior management involvement

Significance of the Directive

The FSU’s directive comes amidst growing concerns over money laundering and terrorist financing activities in the region. The unit’s efforts to strengthen compliance measures are seen as a significant step towards enhancing financial integrity and combating financial crimes.

Key Takeaways:

• All entities regulated by the FSU must establish and maintain written internal control systems that detect and prevent money laundering and terrorist financing activities.
• Internal control systems must be tailored to the entity’s specific circumstances and risks, and include measures such as regular reviews of risk assessment policies, employee training programs, and senior management involvement in compliance initiatives.
• The FSU will perform regular inspections to ensure compliance with anti-money laundering regulations and provide reports outlining weaknesses identified and recommending necessary remedial action.
• Failure to comply with recommended remedial action within a specified period will constitute an offence punishable under the relevant legislation.

Source: Financial Intelligence Unit