St. Helena’s New Anti-Money Laundering Handbook: A Comprehensive Guide to Risk Management in Financial Crimes

In a bid to strengthen its anti-money laundering (AML) and combatting the financing of terrorism (CFT) framework, St. Helena’s Financial Services Regulatory Authority (FSRA) has recently published a new Anti-Money Laundering Handbook. This 12-chapter guide provides businesses and regulatory bodies with a detailed understanding of the legislative framework, risk management, and compliance requirements for preventing money laundering and terrorist financing.

Chapter 1: Foundation and Overview

• Introduction The importance of maintaining a robust AML/CFT regime is emphasized.
  • Legislation framework and scope of the handbook are outlined
  • Consequences of non-compliance with regulations and codes of practice
  • FATF recommendations and promotion of a compliance culture

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

• Overview A comprehensive overview of offenses related to:
  • Money laundering
  • Terrorist financing
  • Proliferation financing

Chapter 3: Corporate Governance

• Role of the Board The role of the Board in ensuring AML/CFT compliance
• Requirements for Foreign Branches and Subsidiaries St. Helena AML regime application in foreign branches and subsidiaries
• Key Persons in St. Helena Companies Significance of local directors and role of Compliance Officer and Money Laundering Reporting Officer

Chapter 4: Risk-Based Approach

• Overview The risk-based approach firms should adopt for money laundering and terrorist financing risks assessment
• Business Risk Assessment An overall assessment of the risks faced by the business
• Client Risk Assessment Assessment of individual client’s risk

Chapter 5: Customer Due Diligence (CDD)

• Customer Identification Procedures for identification and verification of customers
• Customer Risk Assessment Evaluating the customer’s risk level

Chapter 6: Enhanced Due Diligence

• Politically Exposed Persons and Connected Persons Additional measures required for transactions involving these entities

Chapter 7: Simplified Due Diligence

• Listed Entities and Regulated Entities in Other Jurisdictions Relaxed CDD measures

Chapter 8: Third-Party Reliance

• Regulated Entities within a Satisfactory Jurisdiction CDD requirements for clients introduced by other regulated entities

Chapter 9: Monitoring Transactions and Activity

• Effective Monitoring Oversight by the FSRA or administrative bodies
  • Cash transactions
  • High-risk activities
  • Working with PEPs

Chapter 10: Reporting Suspicious Transactions

• Role of AML Regime Overview of the AML regime and reporting suspicious transactions
• Money Laundering Reporting Officer The importance of the Money Laundering Reporting Officer’s role

Chapter 11: Record Keeping

• Basic Requirements Overview of record keeping and monitoring requirements

Chapter 12: Employee Screening and Training

• Screening and Training Requirements Overview and roles of directors, boards, and Money Laundering Reporting and Compliance Officers.