Enforcement Measures

The Compliance Monitoring Committee

The Compliance Monitoring Committee (CMC) is an internal organ set up by the FIAU to assist in carrying out its enforcement powers, by considering potential breaches of AML/CFT obligations and determining the most appropriate administrative measures to address identified breaches. The members of the CMC are the FIAU Director, FIAU Deputy Director and senior representatives of the Supervision and Enforcement Section and the Legal Affairs Section, whereas the FIAU Director is the Chairman of the CMC (or the Deputy Director, in his absence).

Potential breaches of AML/CFT obligations presented at CMC may be the result of the following:

1.       A compliance review carried out by Supervision which leads to the identification of potential breaches of AML/CFT obligations as stipulated in the PMLFTR or the FIAU’s Implementing Procedures;

2.       The subject person failed to submit information demanded by the FIAU within the stipulated timeframe as required in terms of Regulation 15(8) of the PMLFTR; or

3.       The subject person failed to submit periodical reports as requested by the FIAU in terms of Regulation 19 of the PMLFTR.

Prior to the CMC evaluating and deciding upon potential breaches of AML/CFT obligations, subject persons are granted the opportunity to submit their representations within a stipulated time frame following notification of the potential breach. It is on the basis of the representations as well as on the extent to which a breach is considered to be serious, systematic and repetitive that the CMC will decide the administrative measures to be applied if it is concluded that a breach was committed by the subject person.

Administrative Measures

Identified breaches of AML/CFT obligations may result in the CMC enforcing administrative measures on the subject person concerned, and in some cases the CMC may also decide to impose two or more measures simultaneously. Administrative measures that can be applied include:

Administrative penalty

A pecuniary fine is applied as a result of the AML/CFT obligation contravened by the subject person. It is imperative to note that, in case a pecuniary fine exceeding €5,000 is imposed, subject persons are granted a 20-days deadline from notification of the administrative penalty to file an appeal with the Court of Appeal (Inferior Jurisdiction) in terms of Article 13A of the PMLA. Furthermore, in terms of Article 13C of the PMLA and FIAU’s policies and procedures on the ‘Publication of AML/CFT Penalties’, administrative penalties exceeding €50,000 are subject to publication within five working days from the date of notification of the administrative penalty to the subject person.

Remediation or follow-up directive

The imposition of this measure binds the subject person to develop and implement a corrective action plan within a specified deadline to remediate the AML/CFT breaches identified by the FIAU as part of a supervisory review or by the subject person as part of its own assessment. Such a measure will usually result in a follow-up examination or a supervisory meeting by the Enforcement Team to assess the effectiveness of the corrective action plan in remediating the AML/CFT shortcomings.

Notification or recommendation to other supervisory authorities or bodies

In cases where the subject person who breached AML/CFT obligations falls within the remit of other authorities responsible for the authorisation, licensing, registration or regulation of that subject person, the CMC requests that any breaches identified and any administrative measures taken are notified to the other supervisory authorities. In addition, the CMC may also recommend that these authorities take any necessary action in line with its legal framework. 

Termination of particular business relationships

The FIAU has the power to request subject persons to terminate a business relationship that exposes the subject person to an extreme level of ML/FT risk that cannot be mitigated by the subject person in any other manner.

Written reprimand 

A written reprimand may be imposed for minor contraventions of AML/CFT obligations and is intended to communicate to the subject person that, although a breach is not particularly concerning, it is nonetheless not acceptable and should not be repeated. Written reprimands are taken into consideration by the FIAU when assessing any future cases of non-compliance.

Other measures

The AML/CFT findings presented to the CMC, as well as the circumstances relevant to the case, may lead to the CMC deciding to impose other measures. These may include, but not limited to, a directive for the subject person to carry out an internal audit and to provide a copy of the audit report to the FIAU, or a directive to keep the FIAU informed within strict time frames on any action or activity being undertaken by the subject person.

 

Administrative Penalties

2020

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The FIAU is empowered to take enforcement action in relation to subject persons who contravene their AML/CFT obligations emanating from the Prevention of Money Laundering and Funding of Terrorism Regulations (PMLFTR) or the FIAU Implementing Procedures issued thereunder, as well as in relation to subject persons who fail to comply with any lawful requirement, order or directive issued by the FIAU under the Prevention of Money Laundering Act (PMLA) or the PMLFTR. In exercising its enforcement powers the FIAU may either impose administrative penalties (which involve pecuniary fines) or take other administrative measures (such as, but not limited to, requiring subject persons to remediate identified contraventions). 

Article 13C of the PMLA requires the FIAU to publish all administrative penalties which exceed €50,000 together with any administrative measures that may have been imposed in conjunction with such administrative penalties. The same article also requires the FIAU to publish in an anonymous manner those administrative penalties that do not exceed €50,000 in value, as well as any other administrative measures taken in respect of identified breaches of AML/CFT obligations. In terms of Article 13C of the PMLA, as amended by Act I of 2020, the FIAU is required to publish information on administrative penalties imposed, even where these are subject to an appeal in Court, with the FIAU being required to provide updates on the appeal proceedings as is foreseen in the Board of Governors' policies and procedures governing the publication of sanctions.

Enforcement actions undertaken by the FIAU are to be published on the FIAU website. The current publication procedures are governed by Article 13C of the PMLA, which was last amended by Act I of 2020 on the 7 February 2020, and by the Board of Governors' policies and procedures governing the publication of sanctions, with the revised version reflecting the latest changes brought about by Act I of 2020 being accessible through the following link 

2019

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The FIAU may sanction subject persons for any contravention of the Prevention of Money Laundering and Funding of Terrorism Regulations (PMLFTR) as well as any failure to comply with any lawful requirement, order or directive issued by the FIAU under the PMLFTR or the Prevention of Money Laundering Act (PMLA). When imposing a sanction according to law, the FIAU may either impose an administrative penalty or issue a reprimand in writing.

Article 13C of the PMLA provides for administrative penalties in excess of €10,000, imposed with respect of one or more contraventions of the PMLA and/or the PMLFTR, and which have become final and due, to be published in accordance with policies and procedures established by the Board of Governors of the FIAU. This article was introduced in the PMLA by virtue of Act XXVIII which came into force on 1 December 2017, and replaced Article 13A which had previously regulated the publication of administrative penalties. 

2018

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The FIAU may sanction subject persons for any contravention of the Prevention of Money Laundering and Funding of Terrorism Regulations (PMLFTR) as well as any failure to comply with any lawful requirement, order or directive issued by the FIAU under the PMLFTR or the Prevention of Money Laundering Act (PMLA). When imposing a sanction according to law, the FIAU may either impose an administrative penalty or issue a reprimand in writing.

Article 13C of the PMLA provides for administrative penalties in excess of €10,000, imposed with respect of one or more contraventions of the PMLA and/or the PMLFTR, and which have become final and due, to be published in accordance with policies and procedures established by the Board of Governors of the FIAU. This article was introduced in the PMLA by virtue of Act XXVIII which came into force on 1 December 2017, and replaced Article 13A which had previously regulated the publication of administrative penalties.  

2017

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The FIAU may sanction subject persons for any contravention of the Prevention of Money Laundering and Funding of Terrorism Regulations (PMLFTR) as well as any failure to comply with any lawful requirement, order or directive issued by the FIAU under the PMLFTR or the Prevention of Money Laundering Act (PMLA). When imposing a sanction according to law, the FIAU may either impose an administrative penalty or issue a reprimand in writing.

Article 13C of the PMLA provides for administrative penalties in excess of €10,000, imposed with respect of one or more contraventions of the PMLA and/or the PMLFTR, and which have become final and due, to be published in accordance with policies and procedures established by the Board of Governors of the FIAU. This article was introduced in the PMLA by virtue of Act XXVIII which came into force on 1 December 2017, and replaced Article 13A which had previously regulated the publication of administrative penalties.

2016

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The FIAU may sanction subject persons for any contravention of the Prevention of Money Laundering and Funding of Terrorism Regulations (PMLFTR) as well as any failure to comply with any lawful requirement, order or directive issued by the FIAU under the PMLFTR or the Prevention of Money Laundering Act (PMLA). When imposing a sanction according to law, the FIAU may either impose an administrative penalty or issue a reprimand in writing.

Article 13C of the PMLA provides for administrative penalties in excess of €10,000, imposed with respect of one or more contraventions of the PMLA and/or the PMLFTR, and which have become final and due, to be published in accordance with policies and procedures established by the Board of Governors of the FIAU. This article was introduced in the PMLA by virtue of Act XXVIII which came into force on 1 December 2017, and replaced Article 13A which had previously regulated the publication of administrative penalties.

 

2015

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The FIAU may sanction subject persons for any contravention of the Prevention of Money Laundering and Funding of Terrorism Regulations (PMLFTR) as well as any failure to comply with any lawful requirement, order or directive issued by the FIAU under the PMLFTR or the Prevention of Money Laundering Act (PMLA). When imposing a sanction according to law, the FIAU may either impose an administrative penalty or issue a reprimand in writing.

Article 13C of the PMLA provides for administrative penalties in excess of €10,000, imposed with respect of one or more contraventions of the PMLA and/or the PMLFTR, and which have become final and due, to be published in accordance with policies and procedures established by the Board of Governors of the FIAU. This article was introduced in the PMLA by virtue of Act XXVIII which came into force on 1 December 2017, and replaced Article 13A which had previously regulated the publication of administrative penalties. 

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