The Financial Intelligence Analysis Unit (FIAU) has issued a revised version of the Implementing Procedures Part I (IPs Part I), introducing amendments to beneficial ownership and employee screening requirements applicable to subject persons.
Beneficial Ownership
The FIAU has removed an exception that previously allowed a legal person acting as a settlor, protector or trustee in a trust or similar legal arrangement to be regarded as the beneficial owner in certain circumstances. Subject persons are now required to identify the natural person or persons who ultimately qualify as the beneficial owners in all cases.
Employee Screening and Record-Keeping
The revised IPs replace the mandatory requirement to obtain and retain employees’ police conduct certificates with a risk-based screening approach. Subject persons must assess, both at recruitment and on an ongoing basis, whether employees are of good repute, honesty and integrity, while determining the most appropriate screening measures based on risk.
Police conduct certificates are therefore no longer mandatory in all cases. However, subject persons must retain written records documenting the screening measures performed, how the assessment was conducted, who carried it out, and the conclusions reached.
The FIAU has also updated the related record-keeping provisions to reflect the new screening framework and align the requirements more closely with data protection principles.
The revised Implementing Procedures Part I is available on the FIAU website here.