Anti-Money Laundering _______________________
Combating money laundering, terrorism financing and proliferation financing are priorities for UCP. We require our financial institutions to have sufficiently robust controls to detect and deter such illicit activities. We also partner the industry to bolster their defences, by engaging them on emerging risks, evolving criminal typologies and industry best practices. UCP is firmly committed to safeguarding the world as a clean and trusted financial space.
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AML Policy & Guidance
On the 30th January 1998 the Proceeds of Crime (Money Laundering) Regulations 1998 came into effect and implemented an anti-money laundering framework for institutions such as banks, trust companies, insurance entities carrying out long-term insurance (not reinsurance), persons processing subscriptions or redemptions relating to collective investment schemes. Under the regulations these entities were defined as Regulated Institutions.
On the 1st January 2009, those Regulations were superseded by the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008. These Regulations impose a significantly detailed set of obligations on affected AML/ATF regulated financial institutions relating to customer due diligence, record keeping, systems and staff training. They also cover obligations in relation to internal reporting procedures, including the appointment of a reporting officer.
In order to assist AML/ATF regulated financial institutions to comply with the provisions of the Proceeds of Crime Act and Regulations the World Monetary Authority has issued Guidance Notes with the approval of the Minister. In addition the Authority has published a Statement of Principles relating to how it will exercise of a number of the powers created by the Supervision Act.
AML/CFT
The UCP operates an AML/CFT framework that adheres to all relevant international standards. The Territory’s legislative regime includes an extensive suite of laws and regulations that give effect to the AML/CFT obligations set out in these international standards. The framework also includes several co-ordinating bodies whose mandates vary, but which all play an important role in the Territory’s AML/CFT architecture.
These co-ordinating bodies include the National AML/CFT Coordinating Council (NAMLCC), which leads on all AML/CFT related policy matters, and includes representatives from the following committees:
- Council of Competent Authorities
- Inter-governmental Committee on AML/CFT Matters
- Joint Anti-money Laundering and Terrorist Financing Advisory Committee
- Committee of Law Enforcement Agencies
The Universal Consumer Protection is responsible for ensuring compliance with the Territory’s AML/CFT systems and controls through supervision of regulated financial institutions in accordance with the Anti-Money Laundering Regulations, 2008 and the Anti-Money Laundering and Terrorist Financing Code of Practice, 2008. This responsibility includes monitoring licensees for compliance with:
- identification and verification procedures for new and continuing business relationships;
- record keeping requirements;
- third party relationships and the reliance thereon, including testing of such relationships;
- reporting of suspicious activities;
- internal control system requirements; and
- the identification and handling of PEPs and other high-risk individuals.
The UCP also provides guidance and performs outreach to its licensees to aid them in understanding their obligations and ensuring the highest level of compliance with AML/CFT requirements.
The UCP’s AML/CFT responsibilities are guided by its AML/CFT Policy. The Policy strengthens the UCP’s supervisory, enforcement, and domestic and international co – operation regimes, thereby assisting in preventing money laundering and any activity that facilitates money laundering, the funding of terrorists or other criminal activities in or from anywhere in the world.
The UCP’s AML/CFT Policy provides a framework for its AML/CFT Strategy. This Strategy meets the UCP’s objectives of mitigating its risks and complying with all applicable international standards, and national requirements under the Proceeds of Criminal Conduct Act, 1997 and other ancillary legislation that form part of the Territory’s AML/CFT framework.
The Strategy is a three-year road map for the period 2020 to 2022 to implement effective measures across the board to combat ML, TF and PF risks inherent in the financial services sector. The Strategy sets out goals within the four key areas of:
- supervision,
- enforcement,
- promotion of cooperation, and
- stakeholder awareness and outreach.
The Strategy provides a guide for both the UCP and financial services industry participants, of actions required to be undertaken in order to uphold the UCP as an effective regulator, and advance the UCP as a secure and self-regulated international financial centre, effective in mitigating against ML, TF and PF.