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Central Bank Issues Revised AML/CTF Guidelines for Financial Institutions

The Central Bank has issued revised guidelines on Anti-Money Laundering (AML) and Combatting of Terrorism Financing (CFT), aimed at assisting financial institutions in developing risk-based customer due diligence programs.

Implementation Requirements

All regulated entities must conduct a gap analysis against the requirements of the AML/CFT Guideline and submit an implementation plan to the Central Bank by July 13, 2018. Financial institutions will also be required to conduct their 2018 external audits using the revised AML/CFT Guideline.

Revised Guidelines

The revised guidelines provide examples of risk factors for specific sectors and risk-based application of customer due diligence measures that may be applied. The Part should be read in conjunction with Parts I and IV, according to the Central Bank.

Role of the Central Bank as Supervisory Authority

The Central Bank has been designated as the AML/CFT supervisory authority for financial institutions listed in this section. The primary responsibilities of the Central Bank include:

  • Reviewing compliance programs
  • Approving Compliance Officers
  • Issuing guidelines
  • Receiving and reviewing annual external audit reports
  • Taking regulatory action against non-compliant institutions
  • Sharing information with relevant agencies

Enforceability of the Guideline

The revised guideline is empowered by Regulations 40A and 40 of the Financial Institutions Act (FIA) and Section 10 of the FIA. The Central Bank can issue compliance directions to ensure compliance with the guideline. Failure to comply may result in regulatory action, including suspension or revocation of licenses.

General Guidance on AML/CFT Governance and Risk Management

Part II of the revised guideline provides general guidance on AML/CFT governance and risk management for financial institutions supervised by the Central Bank. The Part is applicable to all financial institutions and persons listed in Section 3 of Part I - Introduction, and may be adapted by small or specialized institutions to fit their specific size, business models, and sectors.

Key Concepts

The revised guideline also defines key concepts such as:

  • Money laundering
  • Terrorism financing

Risk Factors for Specific Sectors

The revised guideline provides examples of risk factors for specific sectors.