The MFSA has published a document entitled “Supervision: Risks Identified, Weaknesses and Expected Controls – A Cross-Sectoral Analysis”. The document identifies the key risks that authorised entities operating in the financial services sector might pose to their clients and the market in general and highlights the common weaknesses which the MFSA has identified in the course of its supervisory work. The document includes a section on “Cross-Sectoral Risks, Weaknesses and Expected Controls” which focuses heavily on the areas of AML and financial crime in general. Broad weaknesses are identified with respect to quality of risk assessments, transaction controls, due diligence, name screening, data infrastructure, management information and outsourcing governance.
The document can be read here.
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Shoulder Compliance helps firms safeguard their business and reputation against financial crime risk. We can assist you in identifying whether your firm is exposed to the risks and weaknesses identified by MFSA, and can help you deliver comprehensive organisational change that will enable you to do business in a robust and sustainable manner.