The Financial Markets Authority (FMA) has issued a formal warning to MSL Capital Markets Limited – FSP225586 (MSL) under section 80 of the Anti-Money Laundering and Countering Financing of Terrorism Act (the Act).
Under section 59(2) of the Act, the FMA required MSL to perform an audit of its Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) risk assessment and AML/CFT programme by 31 October 2014 and to provide the FMA with a copy of the audit by 28 November 2014. MSL failed to perform its audit and provide a copy of the audit report to the FMA.
The Act requires a reporting entity to ensure its risk assessment and AML/CFT programme are audited every two years or at any other time at the request of the relevant AML/CFT supervisor.
Independent audits are an essential component of complying with the Act and help ensure that reporting entities have, and will continue to have, robust systems and processes in place to detect and deter money laundering and the financing of terrorism.
The FMA expects every reporting entity that it supervises to have an audit completed every two years or when it is requested. A copy of the audit report must also be provided when specifically requested, as required under section 59(7) of the Act.
The FMA notes that the firm has now taken action to undertake the audit and has committed to providing the FMA with a copy of the audit report.