The Money Laundering Reporting Officer (MLRO) is charged with leading the compliance department to help to manage compliance risk. The latter has the duty to help the senior management of the firm to ensure that the company is complying with the rules and principles set out by the regulator(s) as well as ensuring that employees are complying with the internal policies and procedures set out by the firm to meet regulatory requirements.
Regulation 26(1) of The Financial Intelligence Anti Money Laundering Regulations 2018 (FIAML 2018) spells out that a Reporting Person must appoint a Money Laundering Reporting Officer (MLRO) to whom all internal report of suspicious transactions must be made. In the event that a reporting person is a member of a relevant profession or occupation and due to the nature and size of its business or activity is unable to appoint a Money Laundering Reporting Officer he shall establish, maintain and operate reporting and disclosure procedures in accordance with the law and as prescribed by the regulator(s).
Regulation 26(4) of the same Regulation goes on to say that the MLRO should have sufficiently senior status, experience and authority.
While there is no mention as to which specific qualification is required, the Financial Services Commission’s Competency Standards issued under Section 7 (1) (a) of the Financial Services Act 2007 stipulate the below Technical Competencies which is applicable to all MLROs appointed by licensees as from 1st January 2015:
- The MLRO and the Alternate MLRO is expected to have an advanced knowledge of the industry/sector in which the licensee operates, be conversant with the anti-money laundering framework in Mauritius and be familiar with the licensee’s products and services, including their legitimate uses and their laundering vulnerabilities.
The above-mentioned competencies shall be demonstrated by holding a relevant qualification from a recognized institution and the proposed MLRO shall hold relevant experience of at least 5 years in the industry.
It is to be noted that in order to maintain competency, the Financial Services Commission’s Competency Standards make it a must that an MLRO should have a minimum of 10 hours of structured Continuous Professional Development (CPD) per year. Structured CPD is an activity designed to achieve a specific learning outcome and is capable of being independently verified.
When it comes to skills, broadly speaking, the head of compliance is expected to:
- Have an appropriate level of knowledge on the legal and regulatory requirements affecting the firm;
- Be able to apply his knowledge to practical solutions and be pragmatic in making recommendations so as to cater for both the regulatory requirements and the needs of the business;
- Be able to communicate at all levels, including the regulators, and be able to explain the impact and implications of regulation on the business both in writing and in person;
- Be able to analyze information and investigate solutions to ensure that appropriate procedures are formulated;
- Be able to deal with staff at all levels and influence policy and decision making at the highest level and ensure that it reflects compliance requirements;
- Manage a team of compliance – based projects; and
- Be able to establish good working relationships with the senior management, risk management department and the regulator.
How can we assist?
Temple Consulting Ltd (TCL) specializes in the provision of Compliance Support Services to firms licensed by the Financial Services Commission or the Bank of Mauritius, and other companies with specific requirements under anti-money laundering legislations. We will be privileged to assist you in the appointment of the MLRO of your firm so that the regulator’s criteria are met smoothly.
If you do not have an MLRO due to the nature or size of your business, TCL is at your disposition to assist you with your regulatory requirements.
In addition, we can help you to maintain competency as an MLRO. Our Sister Company, Temple Professionals Ltd, the training limb of the Temple Group offers a wide range of compliance related courses which are accredited with the Mauritius Qualifications Authority. Hence you can earn your CPD points/hours and maintain your competency standards.
For more information, please contact us on:
Tel: +230 210 3588
Email: templeconsulting@templegroup.mu and templepro@templegroup.mu
Sources:
- org. 2021. [online] Available at: http://www.fiumauritius.org/English/AML%20CFT%20Framework/Documents/2019/Financial%20Intelligence%20and%20Anti-Money%20Laundering%20Regulations%20N o%20%20108%20of%202018%20updated%20June%202019.pdf
- org. 2021. [online] Available at: <https://www.fscmauritius.org/media/1163/amendments-to-the-competency-standards-with-respect-to-designated-officer-for-cis-managers.pdf>
- Eiger Regulatory Partners. 2021. Personality traits of an effective Money Laundering Reporting Officer. [online] Available at: https://eiger-rp.com/the-dna-of-an-effective-mlro/
Recent Comments