The role of the Supervision Section, stems from Article 16(1)(c) of the PMLA. It revolves around monitoring AML/CFT compliance by subject persons who carry out relevant financial business or relevant activity in terms of Regulation 2 of the PMLFTR. The fulfilment of this role is based on two main pillars:

  1. Identification and assessment of ML/FT risks posed by subject persons; and
  2. Supervision of adherence to AML/CFT obligations by subject persons

To perform these functions, the Supervision Section is split into teams, as outlined below.

Risk Team                            

This team is responsible for co-ordinating the risk assessment process of subject persons to create an ML/FT risk profile for each subject person. The results of the risk assessment process then guides in implementing a risk-based approach to supervision, meaning that more frequent and intense supervision is applied to those sectors and subject persons which poses the highest ML/FT risks.

To achieve this, the Risk team is responsible for formulating and applying the FIAU’s risk assessment methodology. This is achieved through the collection and understanding of risk data arising from various data sources, including information from subject persons themselves, from the prudential regulator and from the FIAU’s analytical function. which is in turn analysed and assessed to build subject persons’ risk profiles.

Supervision Teams

To ensure adequate supervisory coverage of all the sub-sectors in which subject persons operate, the Supervision team is split into three distinct teams:

  1. Credit and Financial Institutions Supervision
  2. Investments, VFAs and Gaming Supervision
  3. DNFBPs Supervision

Each team is mainly involved in conducting supervisory action to assess the subject person’s compliance with AML/CFT obligations.  The latter stem from the PMLA, the PMLFTR and the FIAU’s Implementing Procedures. Supervisory action can be carried out through multiple methods, including on-site compliance examinations, off-site examinations and supervisory meetings. 

The results of the risk assessment conducted by the Risk team are the foundation on which the Supervision team’s supervisory plan which details the method, frequency and intensity of supervision is based.

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