Findings of on-site inspections – compliance officer’s annual report on the prevention of money laundering and terrorist financing – relevant persons’ liability and administrative sanctions
The following commonly occurring weaknesses/deficiencies were identified:
- Insufficient inclusion of, and harmonization with, the Directive’s provisions in the client acceptance policy.
- Failure to execute the appropriate client categorization policy as per the client acceptance policy and the provisions of the Law and the Directive.
- Insufficient procedures for the determination and verification of a client’s identity and the performance of client due diligence on high-risk clients, particularly politically exposed persons.
- Insufficient procedures for the management and implementation of financial sanctions imposed against various persons by the United Nations and the European Commission.
- Failure to obtain all required documents for the determination of a client’s identity and the performance of client due diligence.
- Failure to certify and/or translate, as per Directive’s provisions, the documents obtained for the determination of a client’s identity and the performance of client due diligence.
- Failure to sufficiently update client records with appropriate documents and information and/or client files contained invalid documents and information.
- Failure to obtain all the relevant data/information required for the construction of a
- client’s economic profile.
- Failure to maintain a separate document for recording the data/information required for the construction of a client’s economic profile.
- Insufficient or infrequent monitoring of clients’ accounts and transactions.
- Where the Regulated Entity relied on third parties for the determination of a client’s identity and the performance of client due diligence, failure, as per the Law and Directive, of said third parties to meet the legal requirements for performing such duties.
- Failure to include all the relevant procedures to be followed by the Regulated Entity
- under the Law and Directive, in the Regulated Entity’s Manual for the prevention of Money Laundering and terrorist financing.