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Supervision

The Registrar conducts AML/CFT supervision to ensure reduction and deterrence of financial crime in all financial institutions. The Registrar monitors the risk profile of all financial institutions as well as operational and compliance aspects to identify areas of elevated risk, non-compliance, and adequacy of mitigating measures.

The supervisory approach is risk based through AML/CFT on-site examinations, bi-annual AML/CFT offsite surveillance and annual ML/TF risk assessments. Further, the Registrar, in consultation with Financial Intelligence Authority (FIA), issues AML/CFT guidance notes and directives to financial institutions on the application of the Financial Crimes Act, 2017. The Registrar also disseminates United Nations Security Council Resolution (UNSCR) Sanctions Lists and requisite updates to all financial institutions. Appropriate enforcement action is taken in the event of non-compliance and other adverse developments.

AML/CFT off-site surveillance involves:

  1. Review and analysis of biannual statutory returns to assess compliance with AML/CFT requirements.
  2. Annual ML/TF risk assessments
  3. Review of FI’s approval submissions for new products or services prior to launch.

AML/CFT on-site examination of financial institution involves:

  1. assessing the level of risks inherent to financial institutions;
  2. evaluating effectiveness of risk management system and internal controls in identification, measurement, monitoring, and controlling of risks inherent to the financial institutions;
  3. determination of residual risks faced by financial institutions; and
  4. assessing the financial institutions’ compliance with financial service laws.

Types of on-site examinations include:

  1. routine examination: carried out as per examination planning cycle which may be full scope - covering all risk areas or targeted on specific areas;
  2. ad hoc: triggered by an adverse event within the institution or market; or
  3. follow up: conducted to ascertain implementation of recommendations from a routine or ad hoc examination.