Combined Sectoral Risk Ratings (2020-03-13)

Summary

This is a CIMA notice dated 13 March 2020 that publishes the results of a 2019 sectoral money laundering/terrorist financing (ML/TF) risk assessment covering the financial sectors CIMA supervises. CIMA surveyed its licensees and registrants (including previously defined 'Excluded Persons' under the Securities Investment Business Law, referred to as SIBL EPs) to gather data on inherent risk indicators across five FATF-recommended risk areas.

• Risk areas assessed: Nature/size/complexity of business, transactions/products/services, delivery channels, customer types, and geographic risk.
• Sectors rated: Category A and B banks, money services businesses, trust service providers, corporate service providers, insurance, mutual fund administrators, securities licensees, and SIBL EPs.
• Rating scale: Each sector is assigned ratings of Low, Medium-Low, Medium-High or High on each factor and an overall rating.

The document is informational rather than prescriptive: it explains CIMA's rationale for the ratings and states that these assessments will inform CIMA's risk-based supervisory approach, directing greater supervisory resources and scrutiny toward higher-risk sectors and entities. It does not itself create new compliance procedures, filing requirements, or deadlines for regulated entities, but firms should be aware that their sector's assigned risk rating may affect the intensity of CIMA's AML/CFT supervision and examination focus going forward.

Because this is a risk-rating memorandum rather than a rule, regulation, or statement of guidance, it does not impose direct continuing obligations on licensees beyond existing AML/CFT regulatory requirements; entities are expected to continue adhering to existing regulation and CIMA's supervisory/enforcement framework to mitigate the identified sectoral risks.

Applies to

Banks (Category A and Category B), Money Services Businesses, Trust Service Providers, Corporate Service Providers, Insurance companies, Mutual Fund Administrators, Securities Licensees, SIBL Excluded Persons (SIBL EPs)