Authority publishes findings of PEP report

Most firms inspected have work to do

The Financial Services Authority has published its findings into a review into one of the biggest international crime threats to the Island's reputation as a well-regulated jurisdiction.

PEP's or Politically Exposed Persons are individuals who may present a higher risk in relation to money laundering, terrorist financing and proliferation financing because their position or influence may leave them more exposed to bribery or corruption.

The review tested the strength of measures and controls put in place by firms to mitigate PEP related risks and protect their business from abuse by criminals. Where material and significant contraventions were identified, the cases have been referred to the Authority's Enforcement Division.

The review found that almost all of the firms inspected have further work to do in order to meet the requirements of the Code, and to be able to demonstrate an effective compliance regime which successfully attempts to prevent money laundering and the financing of terrorism.

In some cases the necessary remedial action is relatively small in scale and can be completed quickly by the firm. In other instances, the gaps and weaknesses identified mean that significant remedial action will be required in order to correct past failings and to ensure that firms have robust policies, procedures and processes going forward. 

In a number of cases where the identified contraventions were both material and significant, the case has been, or will be, considered by the Authority’s Enforcement Division, in addition to remedial actions being undertaken.