Enforcement Process

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.

 

2021

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Act III of 2015 provided for the publication of administrative penalties imposed by the FIAU. Over the years the relevant provisions within the Prevention of Money Laundering Act governing publication have undergone numerous amendments, with publication being subject to different thresholds and conditions over the years. As of 7 February 2020, the FIAU is to publish any administrative penalty and/or measure it imposes, including any appeal therefrom, independently of the amount involved.

In line with the FIAU’s Publication Policies and Procedures, any notice published on the FIAU’s website is removed following the lapse of five years from its date of publication. Where an appeal was filed, the five years are considered to start running from the date on which the Appeal Decision Notice is published. Due to the said time limit and the differing publication requirements that may have been applicable at the time, the notices on the website do not necessarily represent all the administrative penalties and/or administrative measures taken by the FIAU over the years.

2020

Read More

Act III of 2015 provided for the publication of administrative penalties imposed by the FIAU. Over the years the relevant provisions within the Prevention of Money Laundering Act governing publication have undergone numerous amendments, with publication being subject to different thresholds and conditions over the years. As of 7 February 2020, the FIAU is to publish any administrative penalty and/or measure it imposes, including any appeal therefrom, independently of the amount involved.

In line with the FIAU’s Publication Policies and Procedures, any notice published on the FIAU’s website is removed following the lapse of five years from its date of publication. Where an appeal was filed, the five years are considered to start running from the date on which the Appeal Decision Notice is published. Due to the said time limit and the differing publication requirements that may have been applicable at the time, the notices on the website do not necessarily represent all the administrative penalties and/or administrative measures taken by the FIAU over the years.

2019

Read More

Act III of 2015 provided for the publication of administrative penalties imposed by the FIAU. Over the years the relevant provisions within the Prevention of Money Laundering Act governing publication have undergone numerous amendments, with publication being subject to different thresholds and conditions over the years. As of 7 February 2020, the FIAU is to publish any administrative penalty and/or measure it imposes, including any appeal therefrom, independently of the amount involved.

In line with the FIAU’s Publication Policies and Procedures, any notice published on the FIAU’s website is removed following the lapse of five years from its date of publication. Where an appeal was filed, the five years are considered to start running from the date on which the Appeal Decision Notice is published. Due to the said time limit and the differing publication requirements that may have been applicable at the time, the notices on the website do not necessarily represent all the administrative penalties and/or administrative measures taken by the FIAU over the years.

2018

Read More

Act III of 2015 provided for the publication of administrative penalties imposed by the FIAU. Over the years the relevant provisions within the Prevention of Money Laundering Act governing publication have undergone numerous amendments, with publication being subject to different thresholds and conditions over the years. As of 7 February 2020, the FIAU is to publish any administrative penalty and/or measure it imposes, including any appeal therefrom, independently of the amount involved.

In line with the FIAU’s Publication Policies and Procedures, any notice published on the FIAU’s website is removed following the lapse of five years from its date of publication. Where an appeal was filed, the five years are considered to start running from the date on which the Appeal Decision Notice is published. Due to the said time limit and the differing publication requirements that may have been applicable at the time, the notices on the website do not necessarily represent all the administrative penalties and/or administrative measures taken by the FIAU over the years.

2017

Read More

Act III of 2015 provided for the publication of administrative penalties imposed by the FIAU. Over the years the relevant provisions within the Prevention of Money Laundering Act governing publication have undergone numerous amendments, with publication being subject to different thresholds and conditions over the years. As of 7 February 2020, the FIAU is to publish any administrative penalty and/or measure it imposes, including any appeal therefrom, independently of the amount involved.

In line with the FIAU’s Publication Policies and Procedures, any notice published on the FIAU’s website is removed following the lapse of five years from its date of publication. Where an appeal was filed, the five years are considered to start running from the date on which the Appeal Decision Notice is published. Due to the said time limit and the differing publication requirements that may have been applicable at the time, the notices on the website do not necessarily represent all the administrative penalties and/or administrative measures taken by the FIAU over the years.

2016

Read More

Act III of 2015 provided for the publication of administrative penalties imposed by the FIAU. Over the years the relevant provisions within the Prevention of Money Laundering Act governing publication have undergone numerous amendments, with publication being subject to different thresholds and conditions over the years. As of 7 February 2020, the FIAU is to publish any administrative penalty and/or measure it imposes, including any appeal therefrom, independently of the amount involved.

In line with the FIAU’s Publication Policies and Procedures, any notice published on the FIAU’s website is removed following the lapse of five years from its date of publication. Where an appeal was filed, the five years are considered to start running from the date on which the Appeal Decision Notice is published. Due to the said time limit and the differing publication requirements that may have been applicable at the time, the notices on the website do not necessarily represent all the administrative penalties and/or administrative measures taken by the FIAU over the years.

2015

Read More

Act III of 2015 provided for the publication of administrative penalties imposed by the FIAU. Over the years the relevant provisions within the Prevention of Money Laundering Act governing publication have undergone numerous amendments, with publication being subject to different thresholds and conditions over the years. As of 7 February 2020, the FIAU is to publish any administrative penalty and/or measure it imposes, including any appeal therefrom, independently of the amount involved.

In line with the FIAU’s Publication Policies and Procedures, any notice published on the FIAU’s website is removed following the lapse of five years from its date of publication. Where an appeal was filed, the five years are considered to start running from the date on which the Appeal Decision Notice is published. Due to the said time limit and the differing publication requirements that may have been applicable at the time, the notices on the website do not necessarily represent all the administrative penalties and/or administrative measures taken by the FIAU over the years.

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