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AFSA has introduced amendments to the AIFC Anti-Money Laundering and Counter-Terrorist Financing rules for improved adherence to the Recommendations of the FATF.
According to the AIFC website, AFSA (Astana Financial Services Authority) is making amendments to the Rules that cover the regulatory and supervisory controls. For Designated Non-Financial Businesses and Professions (DNFBPs), the regulatory and supervisory controls of the AFSA are more clearly stated.
AFSA is responsible for keeping check of compliance procedures of the associated AIFC Participants that collectively deal with the requirements related to Anti-Money Laundering, Counter-Terrorist Financing, and the proliferation of weapons of mass destruction.
It fulfills these responsibilities through reviews, inspections, and various other regulatory measures. In case of failure to adhere to AML/CFT Rules, AFSA has warned of imposing disciplinary sanctions in addition to penalties.
As per AFSA’s risk-based approach, the proposed amendments will considerably increase the responsibilities of the professionals involved. The associated individuals will have to manage and mitigate nationwide financial crime risks that are identified in published reports and guidelines provided by the financial intelligence unit.
These guidelines enlist requirements for FATF mutual evaluations and follow-up reports as well as the implementation of enhanced measures to identify greater risks. Moreover, the amendments also propose to require reports from companies that identify, manage and mitigate risks during Customer Due Diligence (CDD). The need to conduct CDD is specifically highlighted in the case of occasional transactions or those exceeding or equal to $15,000.
In high-risk cases where business relationships and transactions are associated with individuals from countries with geographical risk factors, the rules require companies to conduct Enhanced Due Diligence. Lastly, the obligation to identify customers and collect information about beneficial owners (BOs) is also stressed upon.