FCC Flash

On September 29, 2023, the Financial Intelligence Analysis Unit (FIAU) fined Alchemy Markets Limited (previously NSFX Limited) for Anti-Money Laundering (AML) Failures.

To know more, click here https://www.fcctimes.com/2023/10/12/former-formula-one-boss-bernie-ecclestone-receives-suspended-sentence-for-fraud/

Upon investigation, it was determined that the company failed on various occasions to ensure:

  1. Comprehensive understanding of risks at both the business and customer levels.
  2. The execution of necessary due diligence procedures at all times.
  3. Adequate monitoring of customer relationships and transactions with proper documentation.

The FIAU imposed a penalty of USD 0.44 million for multiple violations, including:

  • Failure to conduct Business Risk Assessment (BRA) and Customer Risk Assessment (CRA).
  • Lack of evidence demonstrating the monitoring of customer transactions by the Money Laundering Reporting Officer (MLRO).
  • Failure to apply Enhanced Due Diligence (EDD) measures on customers linked to high-risk jurisdictions and internal policies and procedures.
  • MLRO’s failure to fulfill legal obligations and comprehend their AML/CFT (Anti-Money Laundering/Countering the Financing of Terrorism) duties.
  • Incomplete identification and verification of natural persons. Only the front side of the identity card was verified, leaving the issue date, nationality, and place of birth unconfirmed.
  • Insufficient data collection to determine the purpose and intended nature of business relationships, including the Source of Wealth.
  • Lack of measures in place to keep customer profiles valid and up to date.