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Amended AML/CFT Guidance Notes

26 Oct 18

We have recently revised and amended our AML/CFT Guidance Notes. These Guidance Notes set out the requirements in respect of systems of controls that firms need to have in place in order to prevent the misuse of the financial services sector for money laundering or terrorist financing.

The updated version can be found on the GFSC’s Financial Crime webpage. As a result, the Compliance Report has also been updated to reflect the changes. The revised version can be found in the GFSC’s website.

In order to identify these and for ease of reference, the changes made are as follows:

• Chapter III – Reference is now made to the updated National Risk Assessment published in September 2018;
• Section 5.5 – Guidance is provided on the Independent Audit Function and Requirements;
• Section 6.2.1.1.2 – The requirements with respect to PEPs, family members of PEPs and close associates of PEPs have been clarified.  Family members and close associates of PEPs are not considered PEPs, nonetheless, equivalent measures need to be applied;
• Section 6.2.2.6 – Additional requirements are now applicable following the publication of the Wire Transfer Regulations EU (2015/847), in particular, Requirements 31, 31A, 32A, 33, 34A-D, 36 and 36A;
• Section 6.2.2.7 – This section is now more prescriptive as to when Reduced Due Diligence measures cannot be applied;
• Requirement 44 – Further guidance has been added for instances when certified documents are accepted by firms;
• Requirement 60A – Specific requirements are now listed when verifying a customer’s identity if they are a legal person or legal arrangement; and
• Requirement 86 – The measures which firms should take in ascertaining whether the trustees of the trust hold basic information on other regulated agents of, and service providers to, the trust are detailed here.