AML Update Back |
 The SDIA AML Working Group met on 26 June 2008. A lengthy Agenda of issues was dealt with.
Arising from that meeting, the Group reconvened on 22 July 2008 to conduct a brainstorming session to map out the range of AML and Counter Terrorist Financing ‘red flags’ that are particular to stock broking business. The objective of this exercise is to identify the types of checks that might need to be performed by a Stockbroker’s Transaction Monitoring System (TMS).
This is an excellent example of SDIA members coming together to share knowledge and experience to develop a solution to an issue which is being faced by all stockbroking entities.
Under the second tranche of changes to the AML/CTF legislation, due to come into force in December 2008, all reporting entities will be required to have in place appropriate risk based systems for ongoing customer due diligence. This will include having a Transaction Monitoring System designed to monitor customer transactions to identify instances of possible money laundering or counter-terrorist financing.
It is intended that the work of the AML Group will assist members in critically evaluating TMS systems that are currently being marketed by commercial vendors and/or to develop their own internal system based on the information already captured by their business.
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