6 Jun 2013

Registration of Non-Regulated Financial Businesses

TCI’s anti-money laundering (AML) regulations were extended in 2010 to certain classes of non-regulated financial business (NRFBs). The categories concerned include:-

  • A person who by way of business provides accountancy or audit services.
  • A person who by way of business acts as a real estate agent.
  • An independent legal professional.

A high-value dealer (someone trading in goods, precious metals or precious stones when he receives in respect of any transaction a payment in cash of $15,000 (with respect to precious metals or stones) or $50,000 (any other goods)).
TCI’s Financial Services Commission (FSC) has now announced that NRFBs are required to register with it by June 28, 2013 and that from now on, they will be taking active steps to ensure compliance by NRFBs with the AML regulations.

Aside from the initial registration requirement, NRFBs will be required to comply with the AML regulations including:-

  • Appointment of a compliance officer, money laundering reporting officer, and money laundering compliance officer.
  • Preparation of an AML manual.
  • On-going education of staff in relation to AML issues.
  • Carrying out the required know-your-client due diligence procedures on clients.
  • Complying with the record-keeping requirements of the AML regulations.

The compliance regime is onerous and time-consuming and, for those not used to it, will require a fair amount of patience on the part of each NRFB and of its clients or customers. Misick & Stanbrook and its group affiliates have had a full-time compliance officer since 2009 (a year before the introduction of the regulations) and are well-versed in the compliance regime and its practical application. NRFBs who are concerned about their obligations ought to contact their Misick & Stanbrook adviser.

Article by Owen Foley

“The information provided in this article does not constitute legal advice and is not intended by the authors or Misick & Stanbrook to do so.

Before relying on any information or opinion in any article appearing on the Misick & Stanbrook website, you ought first to obtain advice on your particular circumstances from your Misick & Stanbrook professional.”