Publication of Revised 'Implementing Procedures'
The Financial Intelligence Analysis Unit (FIAU) has published a revised version of the Implementing Procedures Part I, a set of guidelines designed to instruct ‘subject persons’ on how to implement effective policies, controls, processes, and procedures aimed at lowering risks of money laundering through to the undertaking of certain activities.
Money laundering is the process by which the illegal nature of criminal proceeds is concealed or disguised in order to give a legitimate appearance to these illegal proceeds. Generally, money launderers seek to operate in and around the financial system with the purpose of laundering illicit funds.
Classes of persons termed ‘subject persons’ are obliged to ensure that their anti-money laundering policies, controls, processes, and procedures are appropriately designed and implemented, and are effectively operated to reduce the risk of them being used in connection with money laundering. Subject-persons include auditors, accountants, tax advisors, real estate agents, notaries, company service providers, nominee companies, casino licensees, gaming licensees, credit and financial institutions, insurance businesses, investment services providers, and any other service provider operating in a regulated market.
Noticeably, the FIAU has included operators operating under the Virtual Financial Assets Act in the list of subject persons, namely VFA Agents, issuers of VFAs (and the issue itself), and VFA Service Providers.
In a statement, the FIAU said that the salient amendments to the Implementing Procedures Part I include a more thorough explanation of how subject-persons are to adopt a ‘risk-based approach’ in assessing customer risk and changes relating to how subject-persons are to conduct effective on-going monitoring of customer due diligence. In relation to outsourcing, the FIAU has clarified which anti-money laundering obligations may be outsourced and the conditions under which such outsourcing arrangements can take place, and has included guidance aimed at aiding subject persons in their interpretation of what constitutes a ‘non-reputable jurisdiction’.
The revised Implementing Procedures Part I may be found in this link.
