After a compliance inspection, the Financial Intelligence Analysis Unit (FIAU) reviews the findings, determining the necessity of regulatory action based on the severity and frequency of violations. Often, this involves imposing an administrative penalty accompanied by a Follow-up Directive.

A Follow-up Directive mandates the subject entity to rectify deficiencies identified during the inspection and provide regular progress updates. The FIAU expects a detailed action plan, specifying resolution strategies, responsible parties, and deadlines for each task. The FIAU reviews these plans critically, expecting prompt and adequate responses, typically involving a review or meeting approximately every six weeks, thereby increasing the pressure on the subject entity to comply efficiently, often necessitating support from compliance experts.

 

Transparency and commitment are crucial for entities under Follow-up Directives. Noncompliance can lead to escalated actions, including additional penalties or the revocation of licenses or warrants.

Effectively managed, Follow-up Directives can significantly reinforce an entity's internal AML protocols, offering enhanced protection against criminal activities and future regulatory scrutiny.

Key components of a Follow-up Directive include :

     An official notification to the Board of Directors or a sole practitioner, detailing the required actions within a specific timeframe.

     Initial discussions with the FIAU to outline the subsequent stages of the Directive.

     Submission of a comprehensive action plan by the subject entity.

Timely resolution of all identified deficiencies, with the option to engage external specialists for efficiency and effectiveness.

 

Ongoing communication with the FIAU, including presenting completed tasks to the Board for evaluation before submitting to the FIAU's monitoring team. Regular, typically bi-monthly, meetings with the FIAU to review progress and receive feedback, with the frequency potentially increasing for severe cases.

 

A formal closure of the Follow-up Directive by the FIAU once satisfied with the improvements made.

 

Subject entities might also need to provide self-declarations, with future inspections potentially re-evaluating these declarations. Any false statements can lead to severe consequences, including penalties.

 

For assistance with managing Follow-up Directives, our experienced team is well-equipped to guide you through the process, leveraging our expertise in handling similar cases.

 

CONTACT: 
CONTACT: 
John Caruana 
Anton Dalli
Compliance Director
Partner
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CONTACT:
John Caruana
Compliance Director
Group 26 (3)
CONTACT:
Anton Dalli
Partner
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