• AML/CFTR Division 5.1.C AML/CFTR Division 5.1.C External reporting

    • AML/CFTR 5.1.6 External reporting policies etc

      (1) A firm must have clear and effective policies, procedures, systems and controls for reporting to the FIU all known or suspected instances of money laundering or terrorism financing.
      (2) The policies, procedures, systems and controls must enable the firm:
      (a) to comply with the AML/CFT Law and these rules in relation to the prompt making of suspicious transaction reports to the FIU; and
      (b) to cooperate effectively with the FIU and law enforcement agencies in relation to suspicious transaction reports made to the FIU.
      Derived by QFCRA RM/2019-8 (as from 1st February 2020)

    • AML/CFTR 5.1.7 Obligation of firm to report to FIU etc

      (1) This rule applies to a firm if the firm knows or suspects, or has reasonable grounds to know or suspect, that funds are:
      (a) the proceeds of crime;
      (b) related to terrorism financing; or
      (c) linked or related to, or are to be used for, terrorism, terrorist acts or by terrorist organisations.
      (2) The firm must promptly make a suspicious transaction report to the FIU and must ensure that any proposed transaction mentioned in the report does not proceed without consulting with the FIU.
      (3) The report must be made on the firm's behalf by:
      (a) the MLRO; or
      (b) if the report cannot be made by the MLRO (or Deputy MLRO) for any reason — by a person who is employed (as described in rule 2.3.2 (1) (a)) at the management level by the firm, or by a legal person in the same group, and who has sufficient seniority, knowledge, experience and authority to investigate and assess internal suspicious transaction reports.
      Note Under rule 2.3.5 the Deputy MLRO acts as the MLRO during absences of the MLRO and whenever there is a vacancy in the MLRO's position.
      (4) The firm must make the report:
      (a) whether or not an internal suspicious transaction report has been made under Division 5.1.B (Internal reporting) in relation to the funds;
      (b) irrespective of the amount of any transaction relating to the funds;
      (c) whether or not any transaction relating to the funds involves tax matters; and
      (d) even though:
      (i) no transaction has been, or will be, conducted by the firm in relation to the funds;
      (ii) for an applicant for business — no business relationship has been, or will be, entered into by the firm with the applicant;
      (iii) for a customer — the firm has terminated any relationship with the customer; and
      (iv) any attempted money laundering or terrorism financing activity in relation to the funds has failed for any other reason.
      (5) The report must be made in the form (if any) approved by the FIU, and in accordance with the unit's instructions. The report must include a statement about:
      (a) the facts or circumstances on which the firm's knowledge or suspicion is based or the grounds for the firm's knowledge or suspicion; and
      (b) if the firm knows or suspects that the funds belong to a third person — the facts or circumstances on which that knowledge or suspicion is based or the grounds for the firm's knowledge or suspicion.
      Note A firm that fails to make a report under this rule:
      (a) may commit an offence against the AML/CFT Law; and
      (b) may also be dealt with under the Financial Services Regulations, Part 9 (Disciplinary and enforcement powers).
      (6) If a firm makes a report to the FIU under this rule about a proposed transaction, it must immediately tell the Regulator that it has made a report to the FIU under this rule.
      Derived by QFCRA RM/2019-8 (as from 1st February 2020)

    • AML/CFTR 5.1.8 Obligation not to destroy records relating to customer under investigation etc

      (1) This rule applies if:
      (a) a firm makes a suspicious transaction report to the FIU in relation to an applicant for business or a customer; or
      (b) the firm knows that an applicant for business or customer is under investigation by a law enforcement agency in relation to money laundering or terrorism financing.
      (2) The firm must not destroy any records relating to the applicant for business or customer without consulting with the FIU.
      Derived by QFCRA RM/2019-8 (as from 1st February 2020)

    • AML/CFTR 5.1.9 Firm may restrict or terminate business relationship

      (1) This Division does not prevent a firm from restricting or terminating, for normal commercial reasons, its business relationship with a customer after the firm makes a suspicious transaction report about the customer to the FIU.
      (2) The firm must ensure that restricting or terminating the business relationship does not inadvertently result in tipping-off the customer.
      (3) If the firm restricts or terminates a business relationship with a customer, it must immediately tell the Regulator about the restriction or termination.
      Derived by QFCRA RM/2019-8 (as from 1st February 2020)