As the year commences with normal business operations, compliance requirements also resume. The Anti-Money Laundering Act Cap 118 and its regulations mandate that every accountable person registers with the Financial Intelligence Authority (FIA). Regulation 45 of the Anti-Money Laundering Regulations, 2015 requires accountable persons to file an annual compliance report with the FIA by 31st January.
Who is an accountable person?
According to Sect. 1 of the Act, an accountable person refers to every individual or entity listed under the Second Schedule. These include:
What are the considerations when filing this report?
A designated template provided by the FIA must be used for filling and submission. The following documents are required to be attached to the report:
- A copy of the Anti Money Laundering and Control of Financial Terrorism (AML/CFT) policy and procedures
- Copies of Anti-Money Laundering (AML) risk assessment of customers, products, methods of delivery, and geographical location of customers(if any for the previous year)
- A copy of the independent audit report of the compliance program(for the previous year)
This report must be submitted both physically at the FIA offices (in hard copy) and online via email to their compliance team (in soft copy/scanned version).
What are the repercussions for non-compliance?
Regulation 53(2)(c) of the Anti-Money Laundering Regulations, 2015 empowers FIA to apply measures and impose sanctions against accountable persons for non-compliance.
Conclusion
The consequences of non-compliance can be severe. Therefore, accountable persons are urged to ensure their Annual Compliance Reports are filed as required by the 31st January. We are always here to assist our clients throughout this process, providing guidance and support to ensure compliance with all regulatory requirements.
Author
DISCLAIMER: This article is for general information only and it reflects the position at the date of publication. It does not constitute legal advice. For any further information or advice relating to this article, please contact us.
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