Investment Advisors, Dealers, Brokers and Mutual Trust Schemes

The Financial Transactions Reporting Act applies to persons and entities engaged:

1. in issuing securities and the provision of financial services related to such issues and including a broker, a dealer, an investment adviser and a mutual trust scheme and an investment company, a unit trust, a money broker and a broker or dealer of any other financial services;
2. in investing, administering, managing or keeping safe custody of fund or money on behalf of other persons;
3. in trading in money market instruments ( eg bills, cheques, derivatives etc.); foreign exchange; financial futures and options; exchange, interest rate and index instruments; commodity futures trading; and transferable securities;
4. as a trustee administrator or investment manager of a superannuation fund other than a closed ended fund;
5. as a trustee or manager of a unit trust; and
6. as a trust provider ( i.e. setting up trusts, providing a registered office for a trust; acting as or arranging for another person to act as a trustee.);

1. Identify and verify your clients;
2. Monitor your clients transactions;
3. Maintain proper clients records;
4. Report transactions to the Financial Intelligence Unit;
5. Implement appropriate internal controls and systems to protect your business from being used for money laundering and terrorist financing purposes.

Client Identification and Verification

You must undertake specific procedures to identify your clients. You must also ensure that client engagement files or accounts are opened and maintained in the true name of the client.
For further guidelines refer to:

• Guideline 4 : Customer Identification & Verification
• Guideline 7 : Politically Exposed Persons
• Policy Advisory 2/2007- Customer Due Diligence of Customers Who Have Insufficient or No Official Identification Documents
• Policy Advisory 1/2010 - Identification and Verification of a Customer's Signature
• Policy Advisory 2/2010 - Use of Referee Letter to Verify a Customer's Identity

Policy Advisory 1/2019 – Establishing Source of Funds

Monitor your Clients' Transactions

You must scrutinize or monitor your client's transactions to ensure that the transactions being conducted are consistent with your knowledge of the client and his or her background.

For further guidelines refer to: 

• Guideline 1: Suspicious Transaction Reporting
• Guideline 6: Dealing with Higher Risk Countries

Maintain Proper Clients' Records

You must establish and maintain records of your clients’ identity, transactions and records of all reports of transactions made to the FIU. Any enquiries made to your firm by the FIU and other law enforcement agency must also be recorded.
For further guidelines refer to Policy Advisory 7/2007- Record Keeping

Report Transactions to the Financial Intelligence Unit

You must report the following types of transactions to the FIU:

1. All suspicious transactions including attempted transactions; and
2. All cash transactions of $5,000 and above. 

• Guideline 1: Suspicious Transaction Reporting
• Guideline 2: Reporting a Suspicious Transaction by Paper
• Guideline 3: Reporting of Cash Transactions ($5,000 and above)

Reporting of Terrorist Property

If you have in your possession or your control any property which is owned or is controlled by a terrorist or terrorist group or if you have information on a transaction or proposed transaction relating to a terrorist property, you must report this information to the FIU.

For further guidelines refer to:

• Guideline 1: Suspicious Transaction Reporting
• Guideline 2: Reporting a Suspicious Transaction by Paper

Internal Controls and Systems

Other measures that your firm must implement are:

• Develop and implement internal policies and procedures to comply with the FTR Act.
• Appoint a "Compliance Officer" to be responsible for ensuring compliance with the FTR Act and Regulations.
• Regularly review your compliance with your internal anti money laundering and terrorist financing policies and procedures.
• Implement adequate recruitment procedures to screen potential employees.
• Have regular training for staff on anti-money laundering and terrorist financing issues and legislative requirements.