Money laundering report highlights concerns, sets out AML Supervision focus.

Published by: Asia Pacific AML |

A report released by another AML Supervisor, this time from New Zealand, is highlighting to the industry that AML risk assessments needs to be better managed and kept up-to-date.

On 1 April 2019, the FMA released an industry feedback report with findings that the industry it supervises for anti-money laundering, was still not getting it right in basic areas. This includes developing and maintaining a business risk assessment, along with managing adequate and effective systems for client profiling and transaction monitoring.

The FMA’s actions have followed other AML supervisors including from the United States, United Kingdom, Singapore and Australia.

So why such a fuss around an AML/CFT risk assessment?

AML supervisors enforcing principles based legislation requires the businesses to carry out a business risk assessment as the first step in managing risks and developing effective controls. The purpose is to ensure vulnerabilities are correctly identified. If vulnerabilities / exposures are not identified, then the programme will in turn share those weaknesses, leaving the business at risk of a civil or criminal breach.

Failing to have an adequate and effective business risk assessment can be millions of dollars in a penalty. A 2018 New Zealand court case placed the starting point of a civil fine for failing to undertake an adequate risk assessment as $2 Million. The Department of Internal Affairs confirmed to the court it believed there should be a $2 million fine for failure in regards to risk assessment alone.

Businesses should take these warnings by AML Supervisors seriously.

Learn how to be AML Smart.

Click link below to join a “free webinar“.

AML360 is inviting CEOs and AML Compliance Officers in the Asia Pacific Region to a complimentary webinar. Learn how to develop and maintain a business risk assessment and How to manage ongoing compliance. The theme is ‘Work Smarter, Not Harder’. The webinar is suitable for all jurisdictions in the Asia Pacific region. Presentation Language: English.