Videos to raise awareness of proliferation financing risks

A series of videos is being published online to help raise awareness of the requirements and risks associated with proliferation financing (PF).

The recordings will cover a range of key topics to enhance understanding of PF and assist firms in meeting their obligations in relation to the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Code 2019.

The proliferation of weapons of mass destruction is identified by the Financial Action Task Force (FATF) as an emerging threat in terms of financial crime. To maintain our reputation as a well-regulated international business centre, it is important for the Island to be alert to PF risk and remain compliant with FATF Global Standards.

The videos are part of a PF outreach programme being coordinated by a number of government agencies, including the Financial Services Authority, Gambling Supervision Commission, Financial Intelligence Unit, Cabinet Office, and Treasury’s Customs and Immigration Division.

Bitesize clips will be uploaded in the weeks ahead, culminating in the publication of the Island’s PF risk assessment in the first quarter of 2025. Topics will include an explanation of PF, an overview of the relevant sanctions regimes, PF red flags and typologies for the financial and non-financial sectors, and information about how to report suspicions.

The production of the videos builds on the engagement taking place across government to counter financial crime by boosting awareness of PF and sharing examples of good practice and areas for improvement within the Island’s business sector.

A PF factsheet was issued earlier this year, while the Authority has also published a report capturing the findings and observations from a PF questionnaire issued to supervised firms. The results highlight the procedures and controls put in place by Island firms to support the effective prevention of the proliferation of weapons of mass destruction.

As well as informing the Island’s National Risk Assessment, the report identified the need for further education in respect of PF. The videos, the first of which are available to view via the webinars section of the Authority’s website, form part of a wider outreach plan.

Ashley Whyte, Head of AML/CFT Supervision at the Authority, said: ‘The financial services industry has a vital role to play in countering PF, and businesses must be aware of the risks of their services being used to provide funding for proliferation activity. It is important for firms to know their customers and understand their customers’ activities, as well as any parties linked to them, which will help in identifying any red flags. We hope the videos will strengthen knowledge and understanding, and would encourage firms to share the clips with relevant colleagues in their organisations.’

Note:

The Financial Action Task Force defines Proliferation Financing as: “The act of providing funds or financial services which are used, in whole or in part, for the manufacture, acquisition, possession, development, export, trans-shipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical or biological weapons and their means of delivery and related materials (including both technologies and dual-use goods used for non-legitimate purposes), in contravention of national laws or, where applicable, international obligations.”