By Bank Negara Malaysia & the Malaysian Institute of Accountants
As key players in the battle against money laundering and terrorism financing, accountants are advised to take note of the Revision to the Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Designated Non-Financial Businesses Profession and Non-Bank Financial Institutions Policy Document as released by Bank Negara Malaysia (BNM).
Below is an infographic for easier understanding of the policy revisions.
Please click here for the revised AML/CFT and TFS for DNFBPs and NBFIs Policy Document: http://amlcft.bnm.gov.my/publication/AML_CFT_TFS_PD_for_DNFBPs_and_NBFIs.pdf
Application of Differentiated Approach for Small-sized Reporting Institutions
Small-sized reporting institutions (RIs) defined under Appendix 2 of the Policy Document are subject to some simplified or exempted AML/CFT Compliance Programme requirements, as specified under Paragraph 11.1.
Notwithstanding the above simplifications and exemption, the RIs must comply with the AML/CFT Compliance Programme requirements as and when specified by the competent authority or supervisory authority to its fullest extent.
Expansion of Fit and Proper Criteria for the Appointment of Compliance Officer (CO)
Please click here for CO infographic, Appendix 11 of AML/CFT & TFS for DNFBPs & NBFIs Policy Document: http://amlcft.bnm.gov.my/document/DNFBP/infographic/ii%20INFOGRAPHIC%20COMPLIANCE%20OFFICER’S%20ROLE%20&%20RESPONSIBILITIES.pdf
Exclusion of employee screening & training on several functions
RIs are given the flexibility to exclude several functions that do not have direct dealings with customers and/or not involved in the monitoring of client transactions, based on size, nature and complexity of operations and money laundering and terrorism financing (ML/TF) risks.
Elevate Board’s accountability on AML/CFT oversight
RI’s Board / Senior Partners to determine & ensure frequency and scope of independent audits conducted commensurate with its ML/TF risks and vulnerabilities. The appointed auditor must be separate from the compliance function. Please refer to paragraph 11.9 of the Policy Document.
Additional CDD data points for individual customers
Paragraph 14.10.1 of the revised Policy Document requires the RIs to obtain 9 mandatory CDD data points to enable more comprehensive risk profiling, of which the additional data points are
Tightened CDD for Government-linked companies (GLCs), state-owned corporations (SOCs) & registered persons (RP)
Expanded Verification Methods
Principle-based requirements for the RIs to verify customer/beneficial owner’s (BO) identity through reliable and independent documentation, electronic data or any other measures that RIs deem necessary
Enhanced CDD or ongoing due diligence for Higher Risk Services
Where nominee services (shareholdings, directorship, or partnership) are provided by gatekeepers (including accountants and company secretaries) to their clients, such clients shall be subjected to automatic enhanced CDD or enhanced ODD measures, where applicable as specified under paragraph 14C.2.1 of PD.
Please click here for CDD infographic, Appendix 11 of AML/CFT & TFS for DNFBPs & NBFIs Policy Document: http://amlcft.bnm.gov.my/document/DNFBP/infographic/iii%20INFOGRAPHIC%20CUSTOMER%20DUE%20DILIGENCE.pdf
Consolidation of TFS requirements and detailed guidance
Under the revised Policy Document, the RIs are required to screen customers and related parties against Domestic List (for TF), United Nations Security Council Resolutions Lists for TF, PF and OSR.
Please refer to AML/CFT microsite for Appendices 6B and 7B. Please click here for TFS infographic, i.e. Appendix 11 of AML/CFT & TFS for DNFBPs & NBFIs Policy Document: http://amlcft.bnm.gov.my/document/DNFBP/infographic/iii%20INFOGRAPHIC%20CUSTOMER%20DUE%20DILIGENCE.pdf
STEP 1: Download the DCR at this link: http://amlcft.bnm.gov.my/Docs/DCR_2020.xlsx
STEP 2: Complete the DCR
STEP 3: Submit your response to [email protected]
You may refer to the following links for more information on the DCR:
Newsletter on the DCR : http://amlcft.bnm.gov.my/NL/Newsletter_3_version_K.htm
What is the DCR?: https://youtu.be/CwDbwnBok4c
How to complete the DCR?: https://youtu.be/obe7vTRmNqw
BNM’s Circular on the DCR 2020 for DNFBPs and NBFIs: http://amlcft.bnm.gov.my/Docs/DCR_2020_Circular.pdf
For more information please click HERE