It’s February🎉 and time to tackle those action plan milestones ✨ . At the top of our list is proposing an AML Internal Audit to your Board. But what exactly does this entail?
What is the purpose of an AML Internal Audit? 🕵♀️
An AML Internal Audit (“AIA”) tests an organisation’s AML policies, procedures, and controls to assess their effectiveness. The goal is to identify any weaknesses or gaps in an organisation’s AML compliance program and to make recommendations for improvement. The results must be produced in an independent audit report.
Is an AIA mandatory for entities licensed in the BVI? ⚠
It depends. An AIA is mandatory for any “relevant persons” conducting “relevant business” as defined under the BVI AML Code. Under the BVI AML Code, “relevant business” includes, among others, the following businesses: banking, trust, insurance, company management, and investment business. Legal practitioners, public notaries, or accountants may also be caught in relevant business if they are providing certain types of services.
Therefore, any persons or entities conducting relevant business must ensure that their AML systems and controls are evaluated periodically, which we propose should be at least, annually.
Observations 🔎
Results of an AIA must be embodied in a compliance audit report to be made available to the BVI FSC or the BVI FIA in an inspection or whenever requested. We have observed that the BVI FSC is actively requesting copies of such reports when conducting both on-site inspections and off-site desk based monitoring and supervision. Typically, the following is requested:
(i) a copy of the last AIA report (“Audit Report”);
(ii) evidence of submission, review, and approval of the Audit Report by the board of directors of the licensee;
(iii) documentary evidence of any remediation or corrective action instituted following any deficiencies identified in the Audit Report.
Who can conduct your AIA? ❓
The key requirement is that the AIA function must be conducted by a person or persons that function independently and who have the ability to make objective assessments in a fair and transparent manner. We advocate for our clients to opt for external AIAs, ensuring a truly independent evaluation of their compliance frameworks.
✨ Gold Leaf’s AML Internal Audit services✨
We have a wealth of experience conducting independent AIAs on behalf of entities. Through these audits, we have helped clients identify regulatory breaches and other deficiencies that, if not identified and evaluated, could have resulted in the licensee facing serious financial penalties and other sanctions, including enforcement action and reputational damage. We also design remediation solutions!
🚀 Need assistance? Contact us at (284) 494-9559 or via email at info@goldleafbvi.com. Together, let’s make compliance a cornerstone of success!
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