CHAPTER 8

INTERNAL CONTROL AND PROCEDURES

Section 8.1. Regulated Intermediaries are required to establish and implement internal control procedures aimed at preventing and impeding money laundering. Such procedures shall, among others things, ensure that such intermediaries and their employees are aware of the provisions of the law, its implementing rules and regulations, as well as all reportorial and compliance control and procedures that shall be established by the Council the Supervising Authority and each Regulated Intermediary.

Section. 8.2. Regulated Intermediaries shall file with the Commission for review a statement of policies and procedures for dealing with money laundering reflecting the requirements under the Act and this Operating Manual.

Section 8.3. Policies and procedures should cover:

• Communications of firm policies relating to money laundering, including timely disclosure of information and internal audits to ensure compliance with policies, procedures and controls relating to money laundering;

• Account opening and customer identification, including requirements for proper identification;

• Maintenance of records;

• Compliance with the requirement of the Act and these Rules;

• Cooperation with the Commission and other relevant Authorities;

Section 8.4. Regulated Intermediaries shall establish written internal reporting procedures which shall:

(a)  Enable all its directors, officers, employees, all key staff to know to whom they should report any knowledge or suspicion of money laundering activity;

(b)  Ensure that there is a clear reporting chain under which suspicions of money laundering activity will be passed to the appropriate person(s)/unit, duly identified and designated as the Reporting Officer(s)/Unit.

(c)  Require the Reporting Officer(s)/Unit to consider any report in the light of all relevant information available to the Officer(s)/Unit for the purpose of determining whether or not it gives rise to a knowledge or suspicion of money laundering;

(d)  Ensure that the Reporting Officer(s)/Unit has/have reasonable access to any other information which may be of assistance to the Officer(s)/Unit and which is available to the relevant person; and

(e)  Require that the information contained in a report is disclosed promptly to the Council where the Reporting Officer(s)/Unit know/s, suspect/s or is/are made aware of any suspicious transactions.

(f)   Maintain a register of all reports made to the Council, as well as all reports made by its own staff relative to suspicious transactions, whether or not such were reported to the Council.  Said register shall contain details of the date on which the report is made, the person who makes the report and information sufficient to identify the relevant papers.

Chapter 7     Chapter 9