Financial institutions annual audit plans should include the implementation of AMLandCFT regulatory compliance
2017-12-29
Instructions: Date: December 29, 2017
Reference No.: 1060159085
Subject: For the sake of urging financial institutions to ensure compliance with anti-money laundering and combating the financing of terrorism (AML/CFT) rules and regulations, please ask the member institutions to include the implementation of AML/CFT regulatory compliance in their annual audit plans.
1.Pursuant to the Regulations Governing Internal Audit and Internal Control System of Anti-Money Laundering and Countering Terrorism Financing of each financial industry, the internal control system of a financial institution for AML/CFT shall include standard operational procedures for monitoring compliance with AML/CFT regulations and for the implementation of AML/CFT program, which shall also be included in self-inspection and internal audit system.
2.It is found in recent financial examinations that some financial institutions have a considerable number of deficiencies in their AML/CFT operations. In order to step up AML/CFT related operations, the internal audit unit of financial institutions should, when developing their annual audit plan, include the standard operating procedures for monitoring compliance with AML/CFT regulations and for the implementation of AML/CFT program in the enhanced audit items, and dutifully follow up on remedial actions taken for deficiencies found in financial examinations conducted by the FSC. With regard to the implementation of actions just specified, the FSC will include them as financial examination focuses and will conduct targeted examinations if necessary.
Visitor:
110
Update:
2023-04-21