Two-thirds of entities are non-compliant DIA report shows

Two-thirds of entities are non-compliant DIA report shows

10 MAY 2021

Two-thirds of the AML/CFT assessments carried out by the Department of Internal Affairs identified reporting entities as being non-compliant and requiring some form of remediation, the Department’s latest AML/CFT Regulatory Findings Report has revealed.

Two-thirds of entities are non-compliant DIA report shows

Its desk-based reviews and onsite inspections for the year ended 30 June 2020, identified the following areas for improvement:

  • consistent implementation of AML/CFT programmes;
  • use of customised documentation (not generic templates);
  • registration with the Financial Intelligence Unit’s goAML web portal;
  • improved understanding of money laundering risks; and
  • identification and verification of, and sources of, wealth/funds

While the DIA continues to assess technical compliance of reporting entities under the Act, the observations included in the new report are skewed towards assessing the effectiveness of AML/CFT measures.

While the findings in the report relate to DIA supervised reporting entities, the messages apply to every reporting entity. They provide a useful checklist for measuring how well a business is currently tracking with meeting its own obligations.

Given the wide scope of the report, we will provide a more substantive explanation on the key sections of the report in our upcoming newsletters. However, Strategi has developed online modules to help reporting entities better meet their obligations under the AML/CFT Act.  Stay connected to the Strategi Institute online education portal, Radar, to find out more.