Administrative Penalty $440,000.00 - MOSSACK FONSECA & CO (B.V.I.) LTD. (2016-11-11)

Summary

This is an enforcement notice published by the BVI Financial Services Commission announcing an administrative penalty of $440,000.00 imposed on Mossack Fonseca & Co (B.V.I.) Ltd. for breaches of anti-money laundering and regulatory compliance requirements. It records completed enforcement action rather than creating new rules, but it illustrates the specific AML/CFT and Regulatory Code provisions the Commission expects regulated entities to meet.

• Internal controls: Failure to establish and maintain a written and effective system of internal controls for forestalling and preventing money laundering and terrorist financing (section 11 of the AML/TF Code of Practice 2008).
• Risk assessments: Failure to carry out risk assessments in relation to each customer and one off transactions (section 12).
• Customer due diligence: Failure to undertake customer due diligence (sections 19(2), 19(4) and 19(5)) and failure to engage in enhanced customer due diligence (section 20).
• Ongoing monitoring: Failure to review and update customer due diligence in the manner required (section 21(1) and 21(2)).
• Third party introductions: Failure to ensure identification and verification was carried out with respect to written introductions by third parties (section 31).
• Record keeping: Failure to maintain due diligence and identity records (section 43(2) of the AML/TF Code).
• Compliance officer function: Failure to carry out the obligations, duties and responsibilities of the compliance officer (sections 43(2)(c), 43(3)(a), 43(3)(c) and 45(1)(a) of the Regulatory Code 2009).

The notice identifies the matter by reference BF101113/303 and serves as a public record of the penalty; it does not itself set new deadlines or ongoing compliance requirements for other firms, though it signals the Commission's enforcement priorities under the AML/TF Code and Regulatory Code.

Applies to

Trust and Corporate Services Providers, DNFBPs, AML/CFT regulated entities, Registered Agents