In 2019, the Jersey Financial Services Commission undertook a themed examination of licence holders focussing on the role of the Money Laundering Reporting Officer (the "MLRO").
The report, which can be found here, details the expectations of an MLRO and also highlights areas where the expected standards or regulatory obligations were not being achieved. It is of note that of the entities examined under the review, 96% resulted in adverse findings. There were 66 findings in the regulated sector and 46 findings in the designated business sector.
Given the similarity of Jersey's AML/CFT framework to that of the Isle of Man, MLROs should review the detail of the report for indicators as to how their own policies and procedures might be enhanced. Some particularly relevant parts of the report would:
- Documentation of enquiries and decisions by the MLRO;
- Timeliness of reporting both internal and external;
- Oversight of the MLRO function by Board/Management;
- Acknowledgement of internal SARS by the MLRO;
- Appropriate policies and procedures together with apportionment and awareness of responsibilities;
- Maintenance of an appropriate SAR register;
- The barriers to reporting; and
- Independence of the MLRO role.
Licence holders should ensure that their approach to the prevention of money laundering and terrorist financing is not just a theoretical approach. It needs to be an appropriate, practical application of the legislation and their own internal policies and procedures which is driven from Board and Senior Management level and the MLRO.
Originally published 29 July, 2020
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