Financial Crime World

Title: Saint Helena’s New Anti-Money Laundering Handbook: Strengthening Financial Crimes Defenses

In an endeavor to fortify its financial crimes defenses, the financial regulatory authority in Saint Helena has launched a new Anti-Money Laundering (AML) Handbook. This comprehensive guide provides a detailed framework for combating financial criminal activities and adhering to international best practices.

Chapter 1: Preliminaries and Introduction

  1. Introduction
    • The importance of a robust regulatory system
  2. Legislative Framework
    • Domestic laws and regulations
  3. Scope and Status of the Handbook
    • Applicable regulations
  4. Consequences of non-compliance
    • Penalties and sanctions
  5. FATF Recommendations
    • International guidelines
  6. Building a Compliance Culture
    • Encouraging a culture of adherence
  7. Risk Based Approach
    • Implementing effective risk management strategies
  8. Assessing Compliance with a Risk Based Approach
    • Periodic evaluations and continual improvement

Chapter 2: Overview of Money Laundering, Terrorist Financing, and Proliferation Offenses

  1. Explanation of key financial crimes
    • Definition and examples

This section covers various types of financial crimes, their implications, and the role financial institutions play in these offenses.

Chapter 3: Corporate Governance

  1. Board Responsibility for Compliance
    • Oversight and accountability
  2. Foreign Branches and Subsidiaries
    • Regulatory compliance as multi-jurisdictional entities
  3. Key Persons in St Helena Companies
    • Responsibilities and obligations
    • Positions and titles

Corporate governance is crucial for maintaining a strong AML regime. This chapter covers the roles and responsibilities of key person positions within St Helena companies that engage in financial services businesses.

Chapter 4: Risk Based Approach

  1. Assessing Business and Client Risks
    • Assessing risks based on the nature of the business and clients

A detailed explanation of the risk-based approach and how financial services entities in Saint Helena should evaluate the risk of involvement in money laundering or terrorist financing.

Chapter 5: Customer Due Diligence (CDD)

  1. Process for onboarding clients and obtaining relevant information

Guidelines for ensuring clients are appropriately screened and their identities are verified to prevent financial crimes.

Chapter 6: Enhanced Due Diligence

  1. Additional measures for dealing with politically exposed persons and ‘connected persons’

Specialized procedures for evaluating higher-risk clients and individuals, such as politically exposed persons and those with connections to known financial crimes.

Chapter 7: Simplified Due Diligence

  1. Relaxed due diligence measures for managing lower-risk clients

Outlines circumstances where more relaxed CDD measures can be employed, such as when dealing with listed entities or regulated clients from other jurisdictions.

Chapter 8: Third Party Reliance

  1. Customer Due Diligence requirements when a customer is introduced by a regulated entity

Information on the CDD requirements when a regulated entity vouches for a client in a satisfactory jurisdiction.

Chapter 9: Monitoring Transactions and Activity

  1. Procedures for monitoring transactions and dealing with suspicious customers

Detailed guidelines for monitoring transactions, identifying and addressing high-risk transactions, and employing customer screening software to mitigate financial crimes.

Chapter 10: Reporting Suspicious Transactions

  1. Requirements for reporting suspicious transactions

An overview of the Suspicious Activity Report (SAR) regime and the responsibilities of financial services entities to report any suspicious transactions to the Money Laundering Reporting Officer.

Chapter 11: Record Keeping

  1. The importance of maintaining detailed records

The significance of maintaining detailed records for the identification and investigation of financial criminal activities.

Chapter 12: Employee Screening and Training

  1. Ensuring those involved in financial services transactions are appropriately vetted

Procedures for screening and training employees involved in financial services entities in Saint Helena, ensuring they are knowledgeable about AML/CFT requirements and best practices.