AML/CFTR 2.1.3 Matters to be covered by policies etc

(1) A firm's AML/CFT policies, procedures, systems and controls must, as a minimum, cover:
(a) CDD and ongoing monitoring;
(b) record making and retention;
(c) the detection of suspicious transactions;
(d) the internal and external reporting obligations;
(e) the communication of the policies, procedures, systems and controls to the firm's officers and employees; and
(f) anything else required under the AML/CFT Law or these rules.
(2) Without limiting subrule (1), the firm's AML/CFT policies, procedures, systems and controls must:
(a) provide for the identification and scrutiny of:
(i) complex or unusual large transactions, and unusual patterns of transactions, that have no apparent economic or visible lawful purpose; and
(ii) any other transactions that the firm considers particularly likely by their nature to be related to money laundering or terrorism financing;
(b) require the taking of enhanced CDD to prevent the use for money laundering or terrorism financing of products and transactions that might favour anonymity;
(c) provide appropriate measures to reduce the risks associated with establishing business relationships with PEPs;
(d) before any function or activity is outsourced by the firm, require an assessment to be made and documented of the money laundering and terrorism financing risks associated with the outsourcing;
(e) require the risks associated with the outsourcing of a function or activity by the firm to be monitored on an ongoing basis;
(f) require everyone in the firm to comply with the requirements of the AML/CFT Law and these rules in relation to the making of suspicious transaction reports;
(g) set out the conditions that must be satisfied to permit a customer to use the business relationship even before the customer's identity (or the identity of the beneficial owner of the customer) is verified;

Note For the situations when verification of identity may be delayed, see rules 4.3.5 and 4.5.1 (2).
(h) ensure that there are appropriate systems and measures to enable the firm to implement any targeted financial sanction that may be required under Law No. (27) of 2019 on Combating Terrorism, and for complying with any other requirements of that law; and

Note Targeted financial sanction is defined in the Glossary.
(i) be designed to ensure that the firm can otherwise comply, and does comply, with the AML/CFT Law and these rules.
Derived by QFCRA RM/2019-8 (as from 1st February 2020)