The Role
Article 13 of the Prevention of Money Laundering Act (the PMLA) (Cap. 373) and Regulation 21 of the Prevention of Money Laundering and Funding of Terrorism Regulations (the PMLFTR) empower the FIAU to impose administrative penalties and other measures in respect of any breach or failure to comply with any rules, regulations or directives.
The Enforcement Section ensures implementation of the administrative measures imposed by the FIAU’s Compliance Monitoring Committee (CMC) on AML/CFT breaches committed by subject persons, including following up on subject persons to ensure the required remedial action has been attained. This latter point is in fulfilment of the FIAU’s function in terms of Regulation 16(1)(c) of the PMLA.
Enforcement actions include engagement with subject persons through a fair process, and taking the necessary administrative measures, as required, to ensure compliance. In line with international standards, the FIAU seeks to ensure that measures taken are proportionate, effective and dissuasive.
The Enforcement Section is responsible for acting:
- Following 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.
- In case of failure to submit or the late submission of the Risk Evaluation Questionnaire (REQ) and/or the SP Profile on CASPAR in line with Regulation 19 of the PMLFTR.
- In case of failure to reply or late reply to a request for information made by the FIAU in line with Regulation 15(8) of the PMLFTR.
- Following potential breaches identified by the Central Bank Account Register (CBAR) team in terms of the CBAR Regulations.
