The Authority’s regulatory objectives include “the reduction of financial crime”. The gathering and analysis of annual AML/CFT statistical data from all regulated entities and designated businesses (for this purpose “firms”) helps the Authority to achieve this objective.
The data informs the Authority’s understanding of the inherent risks that firms, and sectors, may pose, and supports the Authority’s AML/CFT supervisory work utilising a risk based approach. Some information provided also relates to a firm’s control environment. The information that must be reported is dependent on the type of activity a firm undertakes. Key areas of focus include:-
- The jurisdictional risk profile of the customer base and ultimate beneficial owners;
- The extent of non-face to face and introduced business undertaken by firms;
- Identification and reporting of suspicious activity for both money laundering and terrorist financing;
- Monitoring and screening processes adopted, including for sanctions;
- How firms categorise customer risk;
- The level of politically exposed persons in the system, and how these are identified;
- The compliance and internal audit mechanisms;
- Outsourcing of AML/CFT processes;
- The payment methods accepted by firms in relation to incoming and outgoing transfers; and
- The types of client or product / services provided.
The data also underpins the Island’s understanding of the wider financial crime environment and forms a key part of the National Risk Assessment process, alongside quarterly financial flow data that the Authority receives from the Island’s banking sector.
This page sets out further information on the AML/CFT profile of different sectors, in the form of annual sector reports, and will continue to be updated. Please click the headings below for more information.