The aforementioned amendments were introduced on the basis of recommendations made by the European Commission and the European Banking Authority to enhance the FIAU’s AML/CFT supervisory and enforcement framework.
Subject persons are being encouraged to familiarise themselves with the changes. The salient amendments to the PMLFTR can be briefly summarised as follows:
- The addition of a proviso to Regulation 6(1): The amended provision lays down an obligation for suspicious transaction reports to be shared within the group, unless the reporting subject person is otherwise instructed by the FIAU or there is an impediment to do so in terms of Regulation 16 of the PMLFTR.
- The introduction of Regulation 15A which seeks to protect individuals, including employees and representatives of the subject person, who report suspicions of money laundering or terrorist financing, internally or to the FIAU, from threats or hostile action, and in particular from adverse or discriminatory employment actions. Sub-regulation (11) of Regulation 15 was deleted.
- The addition of the new paragraph (g) to sub-regulation (1) of Regulation 16 permitting disclosures to be made by individuals in the course of proceedings instituted under Regulation 15A.
- Sub-regulation (4) has been added to Regulation 16 restricting the rights of data subjects referred to in the Restriction of the Data Protection (Obligations and Rights) Regulations where such restrictions are necessary and proportionate for a subject person to adhere to its obligations under sub-regulation (1) of Regulation 16.
- Amendments to sub-regulation (4) of Regulation 21 of the PMLFTR granting the FIAU a wider discretion when it comes to enforcing AML/CFT obligations through the possibility of imposing remediation action plans instead of, or in conjunction with, the imposition of pecuniary penalties.
About the Author
The article has been authored by Dr Ursula Farrugia, Advocate at CSB Legal, who specialises in Company Law, Financial Services, Compliance & AML and Fintech.