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Anti - Money laundering

Anti - Money laundering. Presented by the Inspired Learning Regulatory Academy. Anti Money laundering. Source: Section 2 General Code of Conduct.

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Anti - Money laundering

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  1. Anti - Money laundering Presented by the Inspired Learning Regulatory Academy

  2. Anti Money laundering Source: Section 2 General Code of Conduct Anti money laundering (AML) is a term mainly used in the financial and legal industries to describe the legal controls that require financial institutions and other regulated entities to prevent or report money laundering activities. Anti-money laundering guidelines came into prominence globally after the September 11, 2001 attacks and the subsequent enactment of the USA PATRIOT Act AML does not deal with the crime itself but the illegal proceeds of the crime Outcome 50

  3. Anti-Money laundering Introduces obligation to report terrorist related activities Introduces control measures to assist in detection and investigation of money laundering activities Deals with organised crime, money laundering and criminal gang activities Outcome 50

  4. Financial Intelligence Centre Identification of the proceeds of unlawful activities and the combating of money-laundering activities Make information collected by FIC available to Investigating authorities To exchange information with similar bodies in other countries Outcome 50

  5. Financial Intelligence Centre FIC Overall Architecture International Links Accountable Institutions Investigative Authorities e.g.. Trusts Sharing SAPS Supervisory Bodies (FSB) Coordination FIC Bank NDPP Compliance Data storage Analysis Reports Reports Reports Insurance SARS Awareness & training Casino Investigations ML Advisory Council

  6. Know your client documents FSP Natural Person Stokvels Company Minors Partnerships Acting on another’s authority Trusts & Foreign entities Close Corporation Outcome 50

  7. FICA Record Keeping • Keep 5 years after last TX • Confirm in writing every 2 years Copies of all transactions • Update within 3 days of change notice • All changes must have proof Outcome 50

  8. 50. FICA Reporting Source: Sections 22,23,24,38 of FICA • Suspicious or unusual transaction • Reported by internet or method developed by FIC • STR’s (suspicious transaction report) are guaranteed protection against prosecution • Reported within 5 days of detection

  9. Accountable Institutions Source: FICA • An attorney A board of executors or a trust company … • An estate agent • A financial instrument trader… • A management company registered in terms of the Unit Trusts Control Act… • A person who carries on the "business of a bank”… • A mutual bank • A person who carries on a "long-term insurance business" … • A gambling business (license)… • A person … business of dealing in foreign exchange… • A person who carries on the business of lending money against the security of securities. Outcome 50

  10. Accountable Institutions Source: FICA • A person who carries on the business of rendering investment advice or investment broking services… • A public accountant … • A person who issues, sells or redeems travelers' cheques, money • The Postbank… • A member of a stock exchange… • The Ithala Development Finance Corporation … • A person who has been approved … by the Registrar of Stock Exchanges • A person who has been approved … by the Registrar of Financial Markets • A person who carries on the business of a money remitter. Outcome 50

  11. 51. FSP’s FICA responsibilities Identify and verify clients Outsource record keeping to 3rd parties Electronic copies Adequate staff training Steps taken to safeguard funds and that funds dealt with ito mandate Distinguished from FSP funds Adopt measures designed to promote compliance by accountable institution Keep records of business relationships and transactions Systems and procedures for FAIS/FICA compliance Client identification ID and report suspicious transaction Risk rating of client Reporting duties and obligations to give and allow access to information Outcome 51

  12. Internal rules Source: Section 42 of FICA The purpose of internal rules is to regulate compliance with money- laundering legislation by the FSP, Representatives, Agents, Staff and Key Individuals To arrange responsibilities of each person in business and put in place systems and procedures Rules must be formulated for: Identification and verification of clients Identifying and reporting suspicious transactions Keeping records Outcome 51

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