The current AML/CFT State Ordinance and regulations emphasize the Risk-Based Approach (RBA). This methodology is designed to provide a more effective, efficient, and cost-saving alternative to the normative approach. By adopting the RBA, service providers can allocate resources strategically, focusing more on high-risk clients and enhancing overall compliance.
Under this approach, service providers are given flexibility in implementing measures based on the assessed risks of specific client types, relationships, products, or transactions.
Requirements for Service Providers
According to AML/CFT State Ordinance, every service provider is required to:
1. Develop and Approve a Risk Policy Plan:
- This policy must evaluate the risks associated with clients, products, services, transactions, or delivery channels.
- It should include an analysis of geographical risk factors.
2. Conduct a Business Risk Assessment (BRA):
- The BRA involves analyzing internal and external factors, including the organization’s structure, service offerings, and client demographics.
3. Document Risk Management in a Policies, Procedures and Measures Manual (Compliance Manual):
- The manual should outline strategies for risk management, e.g., procedures for client identification and verification, and internal and external reporting of unusual transactions.
- It must also detail the roles and responsibilities of the Money Laundering Compliance Officer (MLCO) and potentially the Money Laundering Reporting Officer (MLRO).
Our Expertise
Compliance & Forensic Services Caribbean specializes in supporting organizations with the implementation and enhancement of their Risk-Based Approach compliance programs.
Services Offered:
- Development or updating of the Business Risk Assessment tailored to your organization.
- Creation or revision of an AML Strategy aligned with current regulations.
- Preparation of a customized Compliance Manual, including AML/CFT procedures and forms.
- Collaboration with service providers to ensure compliance with applicable laws and regulations.
