New Anti-Money Laundering Handbook Unveiled for St. Helena: Key Regulations for Financial Crime Reporting

The St. Helena Financial Services Regulatory Authority (FSRA) has issued a new Anti-Money Laundering (AML) Handbook, elucidating comprehensive guidelines to prevent money laundering, terrorist financing, and proliferation offenses in the jurisdiction. This article provides an overview of the crucial aspects of the new AML Handbook, organized into twelve informative chapters.

Table of Contents

1. Introduction and Legislative Framework
2. Money Laundering, Terrorist Financing, and Proliferation Offences
3. Corporate Governance
4. Risk-Based Approach
5. Customer Due Diligence (CDD)
6. Enhanced Due Diligence
7. Simplified Due Diligence
8. Third-Party Reliance
9. Monitoring Transactions and Activity
10. Reporting Suspicious Transactions
11. Record Keeping
12. Employee Screening and Training

1. Introduction and Legislative Framework

The AML Handbook introduction highlights St. Helena’s commitment to combatting financial crime. This chapter also presents the legislative framework, consisting of the Financial Services (Jersey) Law 1998, which applies to St. Helena.

2. Money Laundering, Terrorist Financing, and Proliferation Offenses

This chapter details the nature and consequences of different types of criminal financial offenses, forming a basis for understanding subsequent provisions in the Handbook.

3. Corporate Governance

Boarding responsibilities, regulatory requirements for foreign branches and subsidiaries, and the significance of key persons like local directors, compliance officers, and money laundering reporting officers are discussed.

4. Risk-Based Approach

Assessing money laundering and terrorist financing risks is vital for financial institutions. This section outlines the process of conducting risk assessments, leading to the identification, assessment, and management of potential threats.

5. Customer Due Diligence (CDD)

CDD is a necessary process for client onboarding and ensuring adherence to AML regulations. This chapter discusses requirements for identifying and verifying the identities of natural persons and legal entities.

6. Enhanced Due Diligence

Politically exposed persons (PEPs) and transactions involving “connected persons” require additional measures for safeguarding against financial crime. This chapter explores additional steps to protect against such risks.

7. Simplified Due Diligence

Some clients may be exempted from stringent due-diligence measures, such as those who are listed entities or regulated in other strong AML jurisdictions.

8. Third-Party Reliance

When dealing with customers introduced by other regulated entities within a satisfactory jurisdiction, take appropriate due diligence measures to protect against potential financial risks.

9. Monitoring Transactions and Activity

Effectively monitoring transactions and activities is crucial in preventing financial crimes. Measures include cash transactions, high-risk activities, dealing with PEPs, and customer-screening requirements.

10. Reporting Suspicious Transactions

This chapter discusses the Suspicious Activity Reporting (SAR) regime that requires individuals administering entities to report any suspicious transactions to the designated Money Laundering Reporting Officer. Red flags and reporting requirements are also addressed.

11. Record Keeping

Maintaining accurate records and monitoring for compliance purposes is essential. This chapter ensures accuracy, transparency, and accuracy in all financial transactions.

12. Employee Screening and Training

Appropriate employee screening and regular training help to ensure that everyone involved in administering St. Helena entities engaged in financial services transactions adheres to AML regulations.