The FIAU has published a revised version of the Implementing Procedures Part I for consultation.

The Financial Intelligence Analysis Unit has published a revised version of the Implementing Procedures Part 1 for consultation highlighting some key matters that are important to understand for the industries that are dealing with Prevention of Money Laundering Act (PMLA) and the Prevention of Money Laundering and Funding of Terrorism Regulations (PMLFTR).

“The salient amendments are listed here-under:

1. The Risk Based Approach
   The revised Implementing Procedures Part I aim to reflect the now more significant Risk Based
   Approach which subject persons are required to adopt and implement vis-à-vis their AML/CFT
   obligations. The revised Chapter 3 of the Implementing Procedures Part I should provide subject
   persons with a better understanding of what the Risk Based Approach entails, and provides
   detailed guidance on the carrying out of business risk assessments and customer risk assessments
   which are the basis for the application of a Risk Based Approach to AML/CFT obligations.
2. Customer Due Diligence (CDD)
   The revised Chapter 4 of the Implementing Procedures Part I now deals with CDD obligations. This
   section was revamped so as to provide subject persons with a better understanding of their CDD
   obligations as required by the PMLFTR. The revised Implementing Procedures Part I, now more
   than even before, emphasises on the importance of conducting appropriate and effective ongoing
   monitoring, being one of the corner stones of CDD obligations. The proposed Chapter 4 not
   only aims to provide subject persons with appropriate and sufficient guidance in this regard, but
   also on other areas which directly impinge on their CDD obligations including when subject
   persons are faced with high-risk scenarios such as when dealing with high-risk clients,
   jurisdictions, products and services and interface risk.
   Through amendments to the Implementing Procedures Part I in January 2017, the FIAU
   recognised the usability of technological alternatives for carrying out CDD obligations, particularly
   for the identification and verification of customers. The revised Implementing Procedures Part I
   now offer more flexibility on the use of such technological alternatives to fulfil AML/CFT
   obligations, reflecting the traction that such alternatives have gained.3. Outsourcing
   The revised Implementing Procedures Part I now has a dedicated Chapter 6 specifically dealing
   with outsourcing. The aim of this Chapter is to provide subject persons with a clear understanding
   of what AML/CFT obligations may be outsourced, which AML/CFT obligations shall not be
   outsourced as well as how should such outsourcing arrangements take place including the
   procedures, way and manner in which this can be carried out.

   The members of the Joint Committee for the Prevention of Money Laundering and Funding of
   Terrorism which represent the various subject persons, and all supervisory and other competent
   authorities, are invited to provide their feedback through written submissions on the proposed
   amendments to the Implementing Procedures Part I by not later than Monday 31st December
   2018.
   Written submissions are to be addressed to the Legal and International Relations Section of the
   FIAU via electronic mail on legal@fiumalta.org.”

 

References;

http://www.fiumalta.org/library/PDF/misc/2018.10.30%20-%20Consultation%20Document%20-%20Revised%20Version%20of%20the%20FIAU%20Implementing%20Procedures%20Part%20I.pdf