Here are some key points that the FMA highlights in its most recent sector risk assessment:
“In our monitoring, we will look to see if you considered the SRA content, and then factored it into your risk assessment, as required by section 58(2)(g) of the Act”
“Many believe the offence of ML requires cash to be put into the financial system. However, depending on the stage of the process (placement, layering or integration) the proceeds of crime are often already in electronic form. Examples of this would be market manipulation, tax evasion and fraud.”
“The sectors we supervise are most likely used in the layering and integration stages of ML.”
“The sectors we supervise are generally expected to be the target of more sophisticated money launderers. These criminals are often familiar with capital markets and their products, involved in elaborate fraud or could be employees of financial institutions. Even though the criminal offending is more elaborate in these cases, the illegally-obtained funds still require layering to appear legitimate.”