Financial Compliance Unit

The effective protective shielding of the financial system against transactions involving the proceeds of crime, requires a close partnership between the Supervisory Authority and the Financial Institutions to protect the system by implementing and maintaining comprehensive AML/CFT policies and procedures that will deter and detect money laundering and terrorism financing activities. To this end, the newly established Financial Compliance Unit is charged with the responsibility to ensure that all financial institutions comply with the Law and other relevant Regulations, Guidelines and Directives on AML/CFT by conducting onsite and offsite examinations. These examinations are to evaluate the effectiveness of the financial institutions’ AML/CFT programs and provide remedial feedback and assistance. The FCU is also required to monitor these institutions to ensure they submit the mandatory AML/CFT reports for evaluation in a timely manner and provide assistance to the FIU with AML/CFT workshops and training.

Annual AML/CFT Review, Audit Reports & Terrorist Property Reports

Regulation 15 of the Money Laundering (Prevention) Regulations requires all financial institutions (as listed in the first schedule of the Money Laundering (Prevention) Act) to conduct an annual assessment of their AML/CFT policies and procedures and also to submit Terrorist Property reports on a quarterly basis. Institutions catalogued in Schedule 2 of the Money Laundering (Prevention) Regulations, have to submit an additional annual Audit Review Report. These institutions include:

  1. Banking and Financial Business
  2. International (Offshore) Banking Business
  3. Insurance Companies
  4. Internet gambling Companies
  5. Sports betting Companies
  6. Casinos
  7. Money Service Businesses

The annual audit reports also serve as a gauge of the effectiveness of the institution’s implementation of the AML/CFT requirements.
The FCU’s responsibilities include:

  • Conducting on-site and offsite examinations to evaluate an institution’s money laundering prevention program and offer remedial feedback and assistance.
  • Careful monitoring to ensure that all institutions submit the required reports in a timely manner
  • Providing assistance in AML/CFT training workshops