Under Guernsey Financial Services Commission's (GFSC)
revised Handbook on Countering Financial Crime and Terrorist
Financing (the Handbook), which took effect on 31 March 2019, firms
were required to take account of the conclusions of Guernsey's
(yet to be published) National Risk Assessment (NRA) in undertaking
their business risk assessments (BRAs) and reviewing their AML/CFT
policies, procedures and controls.
Transitional provisions included in the revised regime allowed
firms four months from the date of the NRA's publication
– which was previously expected in October – to review
their BRAs, and three months thereafter to approve revisions to
their policies, procedures and controls.
In light of delays to the publication of the NRA, which is now
expected around the end of this year, the GFSC has announced its
intention to amend the transitional provisions to allow firms to
proceed with their reviews of their BRAs and policies, procedures
and controls without at this stage taking account of the NRA. Firms
will then need to consider the findings of the NRA when their BRAs
and policies, procedures and controls next fall due for
review.
The GFSC also noted that Guernsey's Policy and Resources
Committee will shortly issue additional guidance on terrorist
financing risk, which must now be assessed separately from money
laundering risk. Walkers senior counsel Stephen Ozanne said that
the additional guidance on terrorist financing risk would be
welcomed by regulated businesses as they work to update their risk
assessments and related procedures.
Under the GFSC's proposals:
- Firms will have until the end of February 2020 to revise and obtain Board approval of their business risk assessments
- They will then have until the end of May 2020 to update and obtain Board approval of their policies, procedures and controls
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