CAUTIONARY/ADVISORY NOTE: Use Of Unqualified, Inexperienced and Unaccredited AML/CFT Agents/Experts

While it is not the intention of the Non-Bank Financial Institutions Regulatory Authority (“NBFIRA”) to prefer, prescribe and/or impose any experts on the regulated entities, NBFIRA notes with concern, a growing number of use of AML/CFT agents/experts, most of who do not have the requisite credentials in this area. Quiet obviously, the engagement of these inexperienced consultants results in rendering of sub -standard trainings and low quality documents that NBFIRA shall not accept and the entities shall remain non –compliant.

NBFIRA is aware that, AML/CFT is a specialized and relatively new area of expertise, especially in the country. The apparent shortage  of AML/CFT expertise, coupled with the fact that regulated entities are under immense regulatory pressure to comply with the Financial Intelligence Act and FATF standards has created fertile grounds for  some people  to exploit regulated  entities  for self-gain. It is against this background that NBFIRA hereby issues this advisory note, to warn NBFIs against this possible exploitation.

To this end, NBFIs are encouraged to conduct due diligence to satisfy themselves that prospective AML/CFT consultants/experts have the requisite credentials on the knowledge, experience and expertise proffered prior to acquiring their services. In conducting due diligence, regulated entities are encouraged to conduct background checks, assess professional and academic qualifications and/or experience verifications.

NBFIs are further advised that compliance with the FI Act remains the sole obligation of the entities and the controllers thereof. The entities are encouraged to continue contacting NBFIRA, through the established and statutorily recognized channels, should they encounter any challenges in meeting their statutory AML/CFT obligations.

Sriram Gade

DEPUTY CEO: REGULATORY