AML/CFT Implementing Procedures

The FIAU issued a revised version of the AML/CFT Implementing Procedures, part 1

As of 19 July 2019, subject persons are required to amend their anti-money laundering and counter financing of terrorism policies and procedures to reflect the changes made to the latest version of the Implementing Procedures (Part 1). The revised version of the Implementing Procedures aims to provide further guidance to all subject persons in meeting their anti-money laundering and counter financing of terrorism (AML/CFT) commitments.

Overview of the amendments

The risk-based approach – chapter 3 of the procedures emphasizes that the risk-based approach is now mandatory with the aim to effectively mitigate the risk of money laundering and funding of terrorism. As a result, this chapter enables subject persons to understand the rationale behind the approach as well as the implementation of same.

Customer due diligence – the basic concept of customer due diligence is still outlined in chapter 4. Nonetheless, in this revised version, the FIAU are providing additional guidance to assist subject persons in implementing effective customer due diligence measures, especially in relation to high-risk situations. Furthermore, the revised procedures enhance the possibility for subject persons to use technological alternatives to undertake various customer due diligence obligations.

Sanctions – chapter 4 of the Implementing procedures further delves in the obligations that subject persons need to implement in terms of sanctions which include sanctions screening, freezing of assets and the reporting obligations originating from the National Interest (Enabling Powers) Act. Furthermore, this section provides an explanation regarding the coordination between national competent authorities to monitor the execution and safeguard compliance of targeted financial sanctions.

Non reputable and high-risk jurisdictions – chapter 8 outlines the concept of non-reputable and high-risk jurisdictions. This chapter assists subject persons in understanding the high risk and non-reputable classifications of a country.

Outsourcing – chapter 6 was included in the Implementing Procedures to clarify the rules linked to outsourcing of the AML/CFT obligations. This chapter outlines which AML/CFT obligations may be outsourced, the responsibilities of both subject persons and outsourced service providers along with conditions under which any outsourcing provisions can occur.