On-site Examination Submissions - Compliance Commission

The Compliance Commission is mandated by law, pursuant to section 32(a) & (b) of the Financial Transactions Reporting Act, 2018, to maintain a general review of its constituents financial condition and when deemed necessary, at the expense of the financial institution, conduct an on-site examination of the business affairs of the institution to ensure its compliance with the provisions of the Act.

The routine on-site examination assesses registrants compliance with the AML/CFT/CPF laws including the FTRA 2018, POCA, 2018, ATA, 2018, the ATR, 2019 (and amendments), the CC Codes and the FIU Guidelines. It is simply a process to determine the registrants’ level of risks, the measures in place to mitigate the risks and the registrants compliance with the AML/CFT/CPF requirements. The Commission determines, on a risk-sensitive basis, when a supervised financial institution should be required to undergo an on-site examination.

There are four (4) types of examinations; these are:

  1. Routine Examination is only conducted on-site and must be performed by a licensed public accountant or an accounting firm. This is by far the most important examination as it provides a periodic assessment that is designed to test both the adequacy, current measures and programs in place. The routine examination provides an in-depth assessment of the FI/DNFBP profile, policies and procedures, and tests the adequacy, effectiveness and control measures implemented to mitigate risks by the firm to satisfy to its AML/CFT/CPF obligations.
  1. Follow-up Examination is specific in scope, primarily for the sole purpose of addressing the deficiencies of the AML/CFT/CPF compliance program and systems. Follow-up examination can be conducted on-site or off-site, depending on the level and degree of the deficiencies. Such examination is specific in scope and will focus on the identified weaknesses.
  1. Random Examination is carried out on the same basis as a routine examination. The only exception is that it is conducted on a random basis with at least a two weeks prior notice given to the institution.
  1. Special Examination is conducted in “special” circumstances to determine whether there has been any infraction of the AML/CFT/CPF laws and the extent of any such violations.

Accountants or Accounting Firms approved by the Compliance Commission (the Commission) are the only agents authorized to conduct routine on-site examination on behalf of the Commission. The accountant must undergo the relevant training by the Commission as a prerequisite to obtain a Letter of Appointment.

With the exception of the routine examination, which must be conducted by a licensed public accountant, duly appointed by the Commission, all other types of on-site examinations are conducted by the Commission’s Inspection Unit.

Click Here to see list of approved accountants/accounting firms.

The on-site examination is not an audit of the business activities. It is simply a process to determine the firm’s level of risks, the measures in place to mitigate the risks & the firm’s compliance with the AML requirements.

The Commission’s examination year for the routine examination runs from the 1st January to 31st December of each year – or as specified by the commission. However, the risk rating assigned to the DNFBP by the Commission will determine the frequency and intensity of the examination cycle.

The on-site examination Report must be completed and filed with the Commission on or before the 30th June or as specified by the Commission.