Proposed Amendments to Regulations on Supervision of Corporate Governance of Financial Companies

Laws and Regulations Announcement Amendments Proposed to Regulations on Supervision of Corporate Governance of Financial Companies Agency: Financial Services Commission Proposed amendment: Regulations on Supervision of Corporate Governance of Financial Companies FSC Notice number: 2017-247 Announcement date: September 11, 2017 Summary: The Financial Services Commission proposed amendments to the Regulations on Supervision of Corporate Governance of Financial Companies that seek to further strengthen financial firms’ internal controls for anti-money laundering and combating the financing of terrorism (AML/CFT) by making it compulsory to incorporate key AML provisions into their internal controls standards. Key provisions:  Financial firms are to institute an internal controls system that identifies, analyzes, and assesses money￾laundering risks inherent in financial transactions by their degree of severity and manages them accordingly.  Financial firms are to set up an internal audit office independent of offices performing AML/CFT works and provide for an internal operational system for monitoring and evaluating the performance and effectiveness of the firm’s AML/CFT and implementing improvement measures.  Financial firms are to be required to take prevention measures to ensure officers and employees who perform AML/CFT duties do not engage in any ML activity themselves and provide appropriate training on an on-going basis. Public comment for the proposed amendments: The public comment period for the proposed rule changes ends on October 25, 2017.