Prescribed Businesses Instruction (Number 2) - Suspicion Reports (2009-11-11)

Summary

This is a 2009 instruction from the Guernsey Financial Services Commission directing prescribed businesses to urgently improve the speed and quality of internal suspicion reporting on money laundering and terrorist financing, following IMF assessment findings on Jersey and the Isle of Man. It requires each prescribed business's Board to take specific review and remedial actions by a fixed deadline.

• Review policies: Review policies, procedures and controls for staff reporting of suspicions to the MLRO and disclosures to the Financial Intelligence Service (FIS) to ensure prompt handling, reporting and disclosure.
• Review past timeliness: Review the timeliness of suspicion reports made to the MLRO and disclosures made to the FIS since 8 October 2008 to identify lessons and improve future promptness.
• Multiple disclosures list: Compile a list of each client for whom more than one disclosure has been made to the FIS, with the number of disclosures, to assess whether the client relationship should continue; document reasoning if the relationship is continued.
• Remedial action deadline: Take any necessary action to remedy identified deficiencies and comply with the client-review requirement by close of business on 26 February 2010.

The Commission states it will review the actions taken by prescribed businesses under this Instruction through on-site inspections and other means.

Key obligations

• The Board of each prescribed business must review policies, procedures and controls on staff reporting of suspicions to the MLRO and disclosures to the FIS to ensure prompt handling, reporting and disclosure.
• The Board must review the timeliness of suspicion reports and FIS disclosures made since 8 October 2008 and act on lessons learned to ensure future promptness.
• The Board must draw up a list of clients with more than one disclosure made to the FIS, including the number of disclosures, and assess whether to continue those client relationships.
• Documented comprehensive reasoning must be retained where a decision is made to continue a relationship with a client who has multiple FIS disclosures.
• Prescribed businesses must, by close of business on 26 February 2010, have taken any necessary action to remedy deficiencies identified and to comply with the client-list requirement.

Applies to

prescribed businesses

Deadlines

• 26 February 2010 (close of business): Deadline for prescribed businesses to have taken necessary action to remedy identified deficiencies and to comply with the requirement to assess client relationships with multiple FIS disclosures.