The Financial Markets Authority (FMA) has issued formal warnings to five reporting entities under section 80 of the Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT Act) 2009.

Entities are required by law to have their risk assessment and AML/CFT programme audited by an independent auditor every two years.

For this year’s review the FMA selected 64 entities to inspect their audit report files and the details of any action, or planned activity, resulting from their last audit report. As a result of this review:

• Five formal warnings were issued to reporting entities for failing to have their risk assessment and AML/CFT programme audited within the last two years.
• The FMA has also issued compliance letters to five reporting entities requesting follow up action by the entity or further information.
• A further six monitoring visits will be carried out in response to this work.

“Our monitoring in this space shows the vast majority of entities we supervise meet their legal requirements to tackle money laundering and the financing of terrorism. It is only fair to take action against those who don’t,” says Liam Mason, FMA’s Director of Regulation.

The names of the five entities have not been published. The FMA says they are either small businesses or individuals and to reveal their identities would be disproportionate.

In February last year, the FMA warned 12 reporting entities under the AML/CFT laws after requesting information from 77 reporting entities.

AML/CFT and associated regulations came into full effect on 30 June 2013. Its purpose is to deter and detect money laundering and terrorist financing.

It will be extended to lawyers and some other professions in July 2018.