Financial Institutions in Svalbard and Jan Mayen Must Strengthen Anti-Money Laundering Measures
Regulatory Update Requires Enhanced AML Efforts
In response to the updated Federal Financial Institutions Examination Council’s (FFIEC) comprehensive manual, financial institutions operating in Svalbard and Jan Mayen must ensure their anti-money laundering (AML) and sanctions risk assessments are robust and accurately reflect their current risk exposures.
Key Components of an Effective Risk Assessment
To meet regulatory exams, financial institutions in Svalbard and Jan Mayen must demonstrate a clear understanding of their institution’s risk profile. This requires:
- Robust Methodology: A well-structured risk assessment methodology and process that accurately identifies and assesses inherent and residual risks.
- Effective Reporting: The ability to articulate conclusions in an effective final report.
- Current Risk Understanding: A clear and accurate understanding of the institution’s current risk level, including emerging risks.
- Strong Controls: A truthful view of control adequacy and evidence of strong controls to mitigate identified risks.
The Path Forward
Financial institutions operating in Svalbard and Jan Mayen must take a proactive, risk-based approach to anti-money laundering. This involves:
- Regular Review: Regular review and update of risk assessments to reflect changes in the institution’s risk profile.
- Control Implementation: Implementation of strong controls to mitigate identified risks.
- Continuous Monitoring: Continuous monitoring and testing of AML programs to ensure effectiveness.
Oliver Wyman Can Help
At Oliver Wyman, we have a team of experts who can help financial institutions in Svalbard and Jan Mayen strengthen their anti-money laundering measures. Our global team brings a diverse set of skill-sets that augment our distinctive understanding of regulatory expectations and industry practices.
We offer a range of services to support financial institutions in developing effective AML programs, including:
- Risk Assessment: Risk assessment and mitigation strategies.
- Control Design: Control design and implementation.
- Training and Capacity Building: Training and capacity building.
- Regulatory Compliance: Regulatory compliance and risk management.
Contact us today to learn more about how we can help your financial institution meet the evolving needs of anti-money laundering regulations.