Download Advisory 2015 - Financial Services Commission

Financial Services Commission Advisory
Revised Guidelines on Anti-Money Laundering and
Counter-Financing of Terrorism for the Securities, Insurance and Pensions Industries
The Financial Services Commission (FSC) hereby advises all its licensees and registrants in the securities,
insurance and pensions industries of the Revised Guidelines on Anti-Money Laundering and Counterfinancing of Terrorism.
This Advisory, as well as the Guidelines are issued in accordance with Section 91(1)(g) of the Proceeds
of Crime Act (POCA).
The Risk-Based Approach
In 2013, (POCA), the Proceeds of Crime (Money laundering Preventions) Regulations (POC-MLPR) and
the Terrorism Prevention Act (TPA) were amended to require regulated businesses to adopt a risk-based
approach to combating terrorist financing and money laundering activities.
The FATF Recommendations as well as the POC-MLPR promotes the adoption of a risk-based approach,
as it encourages the regulated businesses to develop policies and procedures commensurate to money
laundering and terrorist financing risks identified in order to combat such risks. In essence, the risk-based
approach directs the focus of the greatest resources on areas of highest risks and envisions the
implementation of risk assessment and management processes.
The FSC also utilises a risk-based approach to supervising and monitoring compliance of the pension,
insurance and securities industries with the provisions of POCA and its’ Regulations. As such, the FSC
will, inter alia, periodically issue directives to licensees and registrants to supplement the Guidelines as
money laundering and terrorism financing risks evolve.
However, the onus is on licensees and registrants to review from time to time all available information on
money laundering and terrorist financing, including: published money laundering typologies and terrorist
lists; listed entity bulletins; notifications by the Supervisory Authorities; notifications and directives of the
Designated Authority and Competent Authorities, and amend anti-money laundering and anti-terrorist
financing policies accordingly.
The FSC therefore requires its’ licensees and registrants to take the necessary steps to comply with the
requirements of the Revised Guidelines.