The revised Policy Document on Anti-Money Laundering, Countering Financing of Terrorism, Countering Proliferation Financing and Targeted Financial Sanctions for Designated Non-Financial Businesses and Professions & Non-Bank Financial Institutions (AML/CFT/CPF and TFS for DNFBPs and NBFIs) was issued on 5 February 2024 by Bank Negara Malaysia (BNM) and came into effect on 6 February 2024.
On 29 March 2024, MIA in collaboration with BNM conducted a webinar on the key changes within the Revised AML/CFT/CPF and TFS for DNFBPs & NBFIs Policy Document as it relates to accountancy services.
The session was divided into 2 sections and presented by:
- Cik Masya Zafira binti Supaat on the revised AML/CFT/CPF and TFS Policy Document for DNFBPs and NBFIs; and
- Cik Nur Afiqah Rahma binti Nosruddin on Data and Compliance Report (DCR) 2024
The changes in the policy document were made to align with the changes in Financial Action Task Force (FATF) standards and to further provide clarity on the policy implementation. The detailed changes as presented by BNM are as follows:
Changes to FATF standards necessitate update to the Policy Document
Abbreviation: RI – Reporting Institutions
Where does the key change reside within the AML/CFT/CPF Ecosystem?
Abbreviation: OSR – Other Sanctions Regime
Expansion in institutional risk assessment (IRA) coverage
Simplified guide on key AML/CFT/CPF requirements to elevate RIs understand and compliance
Abbreviations: EDD – Enhanced Due Diligence, ODD – On-going Due Diligence
¹ MOHA: Ministry of Home Affairs http://www.moha.gov.my/index.php/en/maklumat-perkhidmatan/membanteras-pembiayaan-keganasan2/senarai-kementerian-dalam-negeri
² UNSCR: United Nations Security Council Resolutions (Terrorism) https://www.un.org/sc/suborg/en/sanctions/1267/aq_sanctions_list , https://www.un.org/sc/suborg/en/sanctions/1988/materials
³ UNSCR: United Nations Security Council Resolutions (Proliferation of Weapons of Mass Destruction) https://www.un.org/sc/suborg/en/sanctions/1718/materials , https://www.un.org/en/sc/2231/list.shtml
⁴ UNSCR: United Nations Security Council Resolutions (Other UN-Sanctions Regimes) htttps://www.un.org
⁵ From the date of termination of the business relationship
⁶ Utmost care must be undertaken to ensure that STRs are treated with the highest level of confidentiality
Why apply Risk Based Approach (RBA)?
How customer risk profiling supports institutional risk assessment?
How to perform risk assessment?
How to perform risk assessment?
Next, how to establish risk management measures?
Can IRA be based on selected factors and what is the appropriate frequency?
Sample as Guidance to RIs: Appendix 8 on IRA Template
Where does the key changes reside within the AML/CFT/CPF Ecosystem?
Introduction of group-wide programme
Changes for clarity of expectations to elevate understanding and compliance are not exhaustive, RIs must refer to the Policy Document for all changes
Additional information: Data and Compliance Report 2024
BNM also highlighted that there will be a mandatory requirement to submit the Data and Compliance Report 2024 (DCR 2024) which will be issued in October 2024 with a submission window of three months.
The overall information request remains largely unchanged,covering a two-year period i.e. 2022 and 2023. The DCR comprises several sub-sections: business information and structure, risk assessment, compliance programme and DNFBP group. In line with the issuance of DCR 2024, targeted DCR Clinics will be conducted to assist accountancy practitioners in submitting the DCR.
The session concluded with insightful responses to questions by participants and key takeaways for implementation.
