• AMLG Chapter 6 AMLG Chapter 6 Screening and training requirements

    • AMLG Part 6.1 AMLG Part 6.1 Screening procedures

      Note for Part 6.1

      Principle 5 (see rule 1.2.5 (a)) requires a firm to have adequate screening procedures to ensure high standards when appointing or employing officers and employees.

      Derived by QFCRA RM/2019-9 (as from 1st February 2020)

      • AMLG 6.1.1 Screening procedures — particular requirements

        (1) In this rule:
        higher-impact individual, in relation to a firm, means an individual who has a role in identifying and preventing money laundering or terrorism financing under the firm's AML/CFT programme.

        Examples
        1 a senior manager of the firm
        2 the firm's MLRO or Deputy MLRO
        3 an individual whose role in the firm includes conducting any other activity with or for a customer
        (2) A firm's screening procedures for the appointment or employment of officers and employees must ensure that an individual is not appointed or employed unless:
        (a) for a higher-impact individual — the firm is satisfied that the individual has the appropriate character, knowledge, skills and abilities to act honestly, reasonably and independently; or
        (b) for any other individual — the firm is satisfied about the individual's integrity.
        (3) The procedures must, as a minimum, provide that, before appointing or employing a higher-impact individual, the firm must:
        (a) obtain references about the individual;
        (b) obtain information about the individual's employment history and qualifications;
        (c) obtain details of any regulatory action taken in relation to the individual;
        (d) obtain details of any criminal convictions of the individual; and
        (e) take reasonable steps to confirm the accuracy and completeness of information that it has obtained about the individual.
        Derived by QFCRA RM/2019-9 (as from 1st February 2020)

    • AMLG Part 6.2 AMLG Part 6.2 AML/CFT training programme

      Note for Part 6.2

      Principle 5 (see rule 1.2.5 (b)) also requires a firm to have an appropriate ongoing AML/CFT training programme for its officers and employees.

      Derived by QFCRA RM/2019-9 (as from 1st February 2020)

      • AMLG 6.2.1 Appropriate AML/CFT training programme to be delivered

        (1) A firm must identify, design, deliver and maintain an appropriate ongoing AML/CFT training programme for its officers and employees.
        (2) The programme must ensure that the firm's officers and employees are aware, and have an appropriate understanding, of:
        (a) their legal and regulatory responsibilities and obligations, particularly those under the AML/CFT Law and these rules;
        (b) their role in identifying and preventing money laundering and terrorism financing, and the liability that they, and the firm, may incur for:
        (i) involvement in money laundering or terrorism financing; and
        (ii) failure to comply with the AML/CFT Law and these rules;
        (c) how the firm is managing money laundering and terrorism financing risks, how risk management techniques are being applied by the firm, the roles of the MLRO and Deputy MLRO, and the importance of CDD and ongoing monitoring;
        (d) money laundering and terrorism financing threats, techniques, methods and trends, the vulnerabilities of the products offered by the firm, and how to recognise suspicious transactions; and
        (e) the firm's processes for making internal suspicious transaction reports, including how to make effective and efficient reports to the MLRO whenever money laundering or terrorism financing is known or suspected.
        (3) The training must enable the firm's officers and employees to seek and assess the information that is necessary for them to decide whether a transaction is suspicious.
        (4) In making a decision about what is appropriate training for its officers and employees, the firm must consider:
        (a) their differing needs, experience, skills and abilities;
        (b) their differing functions, roles and levels in the firm;
        (c) the degree of supervision over, or independence exercised by, them;
        (d) the availability of information that is needed for them to decide whether a transaction is suspicious;
        (e) the size of the firm's business and the risk of money laundering and terrorism financing;
        (f) the outcome of reviews of their training needs; and
        (g) any analysis of suspicious transaction reports showing areas where training needs to be improved.
        Examples
        1 training for new employees needs to be different to the training for employees who have been with the firm for some time and are al aware of the firm's policies, processes, systems and controls
        2 the training for employees who deal with customers face-to-face needs to be different to the training for employees who deal with customers non-face-to-face.
        (5) Subrule (4) does not limit the matters that the firm may consider.
        Derived by QFCRA RM/2019-9 (as from 1st February 2020)

      • AMLG 6.2.2 Training must be maintained and reviewed

        (1) A firm's AML/CFT training must include ongoing training to ensure that its officers and employees:
        (a) maintain their AML/CFT knowledge, skills and abilities;
        (b) are kept up to date with new AML/CFT developments, including the latest money laundering and terrorism financing techniques, methods and trends; and
        (c) are trained on changes to the firm's AML/CFT policies, procedures, systems and controls.
        (2) A firm must, at regular and appropriate intervals, carry out reviews of the AML/CFT training needs of its officers and employees and must ensure that the needs are met.
        (3) The firm's senior management must promptly:
        (a) consider the outcomes of each review; and
        (b) if a review identifies deficiencies in the firm's AML/CFT training — prepare or approve an action plan to remedy the deficiencies.
        Note It is the MLRO's responsibility to monitor the firm's AML/CFT training programme (see rule 2.3.4 (f)).
        Derived by QFCRA RM/2019-9 (as from 1st February 2020)