Changes to the FIAU Implementing Procedures – Part I

On the 18th October 2021, the Financial Intelligence Analysis Unit (“FIAU”) issued a revised version of the Implementing Procedures: Part I (“IPs”) which are accessible from the FIAU website.

Adverse Media

Section 3.5.1(a) of the IPs was amended to provide additional guidance on the relevance, reliability, and timing of adverse media, as well as the evaluation of information on simplified due diligence.

Beneficial Ownership

Sections and of the IPs were amended to provide additional guidance on determining the beneficial owner in certain scenarios, such as when:

  • Shares of a corporate client are held in a trust;
  • The client is a state-owned enterprise (on the basis of the European Banking Authority guidelines); and
  • One or more of the beneficial owners are a corporate entity.

The Agent

Section 4.3.3 of the IPs was amended to provide further clarifications on the identification and verification obligations when dealing with agents. It is clarified that:

  • an identification and verification of the agent itself must be carried out when it is a corporate entity;
  • when a Company Service Provider (“CSP”) is an agent of a client, the identification and verification for such agent’s partners and directors is only triggered with regard to the legal representatives of the CSP and to those who exercise such powers within the context of an occasional transaction or a business relationship; and
  • there are certain verification requirements with regards to clients engaging in financial business and when empowering signatories to sign on its behalf.

Transaction Monitoring

Section of the IPs was amended to further explain that where a transaction is carried out by a subject person on a client’s behalf within his own discretion, that subject person is not expected to monitor the transactions carried out by himself.

Fund Administrators servicing Collective Investment Schemes

Section of the IPs was amended to guide subject persons on adhering to the record-keeping obligations when there are changes in the fund administrator servicing a collective investment scheme and when the carrying out of AML/CFT and MLRO obligations are outsourced.

Ongoing Monitoring

Section 4.8.1 of the IPs was amended to provide guidance on the:

  • Necessary checks in the context of low-risk business relationships; and
  • The application of simplified due diligence where the client is a collective investment scheme or a nominee/omnibus securities account.


With the amendments made to Sections 5.1 and 5.2 of the IPs, both executive and non-executive directors can be appointed as MLROs. Moreover, further guidance was provided with regards to the following:

  • The aspects to be considered when appointing an MLRO located abroad;
  • The assessments to be made when the MLRO has additional functions and duties, mainly affecting its impartiality and time commitment as MLRO; and
  • Any situation that can present a conflict of interest.

Jurisdictional Risk Assessment

Section 8.1.2 of the IPs explains which jurisdictions are to be assessed. This varies, depending on the nature of the relevant activity or business of the subject person. With the amendments to this section, further guidance is provided mainly in respect to the criteria which must be adhered to for assessments carried out by third parties.

We invite you to contact us should you require further information on the above.