On 4th January 2019, FIAU Malta issued a new AML Risk Evaluation Questionnaire (REQ). You can download the document, Guidance for completion of the Anti Money Laundering and Countering the Financing of Terrorism Risk Evaluation Questionnaire, from the FIAU website. As a subject person, you will be soon obliged to complete and submit it. FIAU still need to issue a deadline and provide more information on how to submit the questionnaire. In the meantime, here is some information about the new requirements.
A replacement for the annual compliance return
This news means that FIAU have now replaced the annual AML compliance return with a Risk Evaluation Questionnaire (REQ). The main departure from the previous return is that there is a specific REQ for each different subject person. In fact, there are 15 different REQs that address different categories of subject persons. If you carry out multiple activities, the FIAU expects you to reply to sector specific questions accordingly, covering all the sectors which you operate in.
The return covers both qualitative and quantitative questions. Perhaps one of the most significant qualitative question is the common request for all subject persons to attach a copy of the Business Risk Assessment. This document is now compulsory in terms of Regulation 5 of the Prevention of Money Laundering and Funding of Terrorism Regulations. You are obliged to maintain this document and to update it regularly. The Consultation Document, recently published by the FIAU amending the Implementing Procedures (Chapter 3), provides guidance on how such a document should be developed.
The quantitative questions require the subject person to provide a wide range of information. Some questions ask you for a breakdown of your client base by jurisdiction. Others ask about a breakdown of your PEP list by nationality. The current version of InScope already covers the answers needed to many of these questions. As always, we are committed to maintain the software updated to meet the regulatory requirements. In fact, we are currently working to upgrade the product to help simplify completing the Risk Evaluation Questionnaire (REQ).
Truly with InScope it’s just another day!