• AML/CFTR Division 2.3.B AML/CFTR Division 2.3.B Roles of MLRO and Deputy MLRO

    • AML/CFTR 2.3.3 General responsibilities of MLRO

      The MLRO for a firm is responsible for:

      (a) overseeing the implementation of the firm's AML/CFT policies, procedures, systems and controls in relation to this jurisdiction, including the operation of the firm's risk-based approach;
      (b) ensuring that appropriate policies, procedures, systems and controls are developed, established and maintained across the firm to monitor the firm's day-to-day operations:
      (i) for compliance with the AML/CFT Law, these rules, and the firm's AML/CFT policies, procedures, systems and controls; and
      (ii) to assess, and regularly review, the effectiveness of the policies, procedures, systems and controls in preventing money laundering and terrorism financing;
      (c) being the firm's key person in implementing the firm's AML/CFT strategies in relation to this jurisdiction;
      (d) supporting and coordinating senior management focus on managing the firm's money laundering and terrorism financing risks in individual business areas;
      (e) helping to ensure that the firm's wider responsibility for preventing money laundering and terrorism financing is addressed centrally; and
      (f) promoting a firm-wide view to be taken of the need for AML/CFT monitoring and accountability.
      Derived by QFCRA RM/2019-8 (as from 1st February 2020)

    • AML/CFTR 2.3.4 Particular responsibilities of MLRO

      (1) The MLRO for a firm is responsible for:
      (a) receiving, investigating and assessing internal suspicious transaction reports for the firm;
      (b) making suspicious transaction reports to the FIU and telling the Regulator about them;
      (c) acting as central point of contact between the firm, and the FIU, the Regulator and other State authorities, in relation to AML and CFT issues;
      (d) responding promptly to any request for information by the FIU, the Regulator and other State authorities in relation to AML and CFT issues;
      (e) receiving and acting on government, regulatory and international findings about AML and CFT issues;
      (f) monitoring the appropriateness and effectiveness of the firm's AML/CFT training programme;
      (g) reporting to the firm's senior management on AML and CFT issues;
      (h) keeping the Deputy MLRO informed of significant AML/CFT developments (whether internal or external); and
      (i) exercising any other functions given to the MLRO, whether under the AML/CFT Law, these rules or otherwise.
      (2) If the Regulator issues guidance, the MLRO must bring it to the attention of the firm's senior management. The firm must make and keep a record of:
      (a) whether the senior management took the guidance into account;
      (b) any action that the senior management took as a result; and
      (c) the reasons for taking or not taking action.
      Derived by QFCRA RM/2019-8 (as from 1st February 2020)

    • AML/CFTR 2.3.5 Role of Deputy MLRO

      (1) The Deputy MLRO for a firm acts as the firm's MLRO during absences of the MLRO and whenever there is a vacancy in the MLRO's position.
      (2) When the Deputy MLRO acts as MLRO, these rules apply in relation to the Deputy MLRO as if the Deputy MLRO were the MLRO.
      (3) However, to remove any doubt, rule 2.3.2 (2) (Eligibility to be MLRO or Deputy MLRO) does not apply in relation to the Deputy MLRO of a QFC insurer (other than a QFC captive insurer) that is a company incorporated under the Companies Regulations 2005 or a QFC bank when the Deputy MLRO acts as MLRO.
      Derived by QFCRA RM/2019-8 (as from 1st February 2020)

    • AML/CFTR 2.3.6 How MLRO must carry out role

      The MLRO for a firm must act honestly, reasonably and independently, particularly in:

      (a) receiving, investigating and assessing internal suspicious transaction reports; and
      (b) deciding whether to make, and making, suspicious transaction reports to the FIU.
      Derived by QFCRA RM/2019-8 (as from 1st February 2020)