gibraltar financial services commission - home - national risk … · 2017. 4. 19. · the...

MONEYVAL

The Gibraltar Financial Services Commission

MONEYVAL

• Introduction to the GFSC approach to financial crime

• MONEYVAL overview by the National Coordinator Representative

• What to expect

o Assessment and Engagement

o Financial Crime Return

o Next steps


Approach to Financial Crime

• Gibraltar will be subject to an evaluation by MONEYVAL in 2018 • GFSC supervisory approach to dealing with ML/TF risks will be assessed by MONEYVAL • key role in Gibraltar’s overall approach to combating money laundering and terrorist financing

• Enhancement of our current risk based approach • Purpose of the seminar is to inform licensees of the focus of our work leading up to the MONEYVAL

evaluation and beyond


• What does it means for the GFSC ?

o Detailed action plan o Dedicated MONEYVAL team o Assessment of the ML/TF risks posed by the financial services industry

• What does it mean for regulated entities?

o Partnership with the GFSC o Will be required to submit further information and more data

MONEYVAL Evaluation – the GFSC perspective

gibraltarfinance.gi

FSC Industry Outreach Programme

GATEWAY TO THE EUROPEAN UNION gibraltarfinance.gi

The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism - MONEYVAL is a permanent monitoring body of the Council of Europe entrusted with the task of assessing compliance with the principal international standards to counter money laundering and the financing of terrorism and the effectiveness of their implementation, as well as with the task of making recommendations to national authorities in respect of necessary improvements to their systems.

Key competencies and tasks:

assess its members' compliance with all relevant

international standards in the legal, financial and law enforcement sectors through a peer review process of mutual evaluations, including assessment of effectiveness of the implemented measures in practice;

formulate recommendations on ways to improve the effectiveness of domestic regimes to combat money laundering and terrorist financing and states’ capacities to co-operate internationally in these areas;

gibraltarfinance.gi

http://www.fatf-gafi.org > PUBLICATIONS > FATF RECOMENDATIONS


The technical compliance component of the Methodology refers to the

implementation of the specific requirements of the FATF Recommendations,

including the framework of laws and enforceable means; and the existence,

powers and procedures of competent authorities.

The technical compliance component of the Methodology sets out the

specific requirements of each Recommendation as a list of criteria, which

represent those elements that should be present in order to demonstrate full

compliance with the mandatory elements of the Recommendations.


The goal of an assessment of effectiveness is to provide an appreciation of the whole of the country’s AML/CFT system and how well it works.

It requires a judgement as to whether, or to what extent defined outcomes are being achieved, i.e. whether the key objectives of an AML/CFT system, in line with the FATF Standards, are being effectively met in practice.


1. Money laundering and terrorist financing risks are understood and, where appropriate, actions

co-ordinated domestically to combat money laundering and the financing of terrorism and

proliferation.

2. International co-operation delivers appropriate information, financial intelligence, and evidence,

and facilitates action against criminals and their assets.

3. Supervisors appropriately supervise, monitor and regulate financial institutions and DNFBPs for

compliance with AML/CFT requirements commensurate with their risks.

4. Financial institutions and DNFBPs adequately apply AML/CFT preventive measures

commensurate with their risks, and report suspicious transactions

5. Legal persons and arrangements are prevented from misuse for money laundering or terrorist

financing, and information on their beneficial ownership is available to competent authorities

without impediments.


6. Financial intelligence and all other relevant information are appropriately used by competent

authorities for money laundering and terrorist financing investigations.

7. Money laundering offences and activities are investigated and offenders are prosecuted and

subject to effective, proportionate and dissuasive sanctions.

8. Proceeds and instrumentalities of crime are confiscated.

9. Terrorist financing offences and activities are investigated and persons who finance terrorism

are prosecuted and subject to effective, proportionate and dissuasive sanctions.

10. Terrorists, terrorist organisations and terrorist financiers are prevented from raising, moving

and using funds, and from abusing the NPO sector.

11. Persons and entities involved in the proliferation of weapons of mass destruction are

prevented from raising, moving and using funds, consistent with the relevant UNSCRs.

gibraltarfinance.gi

Money laundering and terrorist financing risks are understood and, where appropriate, actions co-ordinated domestically to combat money laundering and the financing of terrorism and proliferation.

Characteristics of an effective system A country properly identifies, assesses and understands its money laundering and

terrorist financing risks, and co-ordinates domestically to put in place actions to mitigate these risks. This includes the involvement of competent authorities and other relevant authorities; using a wide range of reliable information sources; using the assessment(s) of risks as a basis for developing and prioritising AML/CFT policies and activities; and communicating and implementing those policies and activities in a co-ordinated way across appropriate channels. The relevant competent authorities also co- operate, and co-ordinate policies and activities to combat the financing of proliferation. Over time, this results in substantial mitigation of money laundering and terrorist financing risks.

This outcome relates primarily to Recommendations 1, 2, 33 and 34.

gibraltarfinance.gi

Supervisors appropriately supervise, monitor and regulate financial institutions and DNFBPs for compliance with AML/CFT requirements commensurate with their risks.

Characteristics of an effective system Supervision and monitoring address and mitigate the money laundering and terrorist financing risks in the

financial and other relevant sectors by:

• preventing criminals and their associates from holding, or being the beneficial owner of, a significant or controlling interest or a management function in financial institutions or DNFBPs; and

• promptly identifying, remedying, and sanctioning, where appropriate, violations of AML/CFT requirements or failings in money laundering and terrorist financing risk management.

Supervisors provide financial institutions and DNFBPs with adequate feedback and guidance on compliance with AML/CFT requirements. Over time, supervision and monitoring improve the level of AML/CFT compliance, and discourage attempts by criminals to abuse the financial and DNFBP sectors, particularly in the sectors most exposed to money laundering and terrorist financing risks.

This outcome relates primarily to Recommendations 14, 26 to 28, 34 and 35, and also elements of Recommendations 1 and 40.

gibraltarfinance.gi

Financial institutions and DNFBPs adequately apply AML/CFT preventive measures commensurate with their risks, and report suspicious transactions

Characteristics of an effective system Financial institutions and DNFBPs understand the nature and level of their money

laundering and terrorist financing risks; develop and apply AML/CFT policies (including group-wide policies), internal controls, and programmes to adequately mitigate those risks; apply appropriate CDD measures to identify and verify their customers (including the beneficial owners) and conduct ongoing monitoring; adequately detect and report suspicious transactions; and comply with other AML/CFT requirements. This ultimately leads to a reduction in money laundering and terrorist financing activity within these entities.

This outcome relates primarily to Recommendations 9 to 23, and also elements of Recommendations 1, 6 and 29.


JANUARY 2016

Drafting of Legislation and Guidance Notes

Consultation on Legislation and Guidance Notes

Gap Analysis conducted against FATF 40 Recs & 4MLD

Appointment of NCO

NRA Action Plan identified and brought into effect

NRA Published

UBO Register brought into effect

Strategy Document and Stakeholder Consultation

Attendance at MoneyVal Plenary session by stakeholders

Proceeds of Crime Act brought into effect


JUNE 2017

4MLD Transposed

Guidance Notes Amended and Issued

NRA Revised and Published

Preparation and submission of Moneyval Questionnairesand supply of information


JUNE 2018

DECEMBER 2018

Follow-up Reviews

MoneyVal Report Published

MoneyVal Evaluation Conducted


Financial Crime Return



To ensure that we have a thorough understanding of how susceptible our licensees are to money laundering and terrorist

financing, and ensure that we allocate sufficient resources based on the perceived risk to mitigate those which sit outside our Risk

Appetite and Tolerance


Financial Crime Return – Assessment and Engagement

• Assessment of data

o 4 weeks to submit (issue week of 7 March) o GFSC analysis complete by end of May

• Supervisory engagement

o Increased level of engagement to communicate expectations o Dedicated financial crime section within GFSC website o Thematic reviews - assessment of controls o Focused on-sites o Ongoing reporting



• Available to download from GFSC website

• Submission format – Electronic (Excel) oDedicated email

• Deadline – 7 April

• Expected engagement with firms in order to obtain best data possible


Financial Crime Return – Content

• Headline information

o Types of customers to whom the firm sells and markets its products o Countries where the firm is active or customers are based o Politically Expose Persons (PEPs) – type and country o Volume of business carried out o Payment inflow and outflow data by volume and destination

• Type of interface with customers

o Face to face/non-face to face o Eligible introducers/non-eligible introducers

• Customer risk profiling

o Number of customers not risk profiled

• Suspicious Activity Reporting

o Number of internal reports submitted to MLRO o Number of SARs to GFIU o Nature of suspicious activity reported

• Outsourcing • Series of questions specific to each industry


Financial Crime Return – Content


Questions? Thank you

gibraltar financial services commission - home - national risk … · 2017. 4. 19. · the...

Documents