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IMPORTANT update from FIAU

Date:   21-04-2017



Dear Chamber members

At a recent FIAU joint committee meeting held on the 20 April, 2017 the FIAU informed us that they will 'in the coming weeks' be issuing a questionnaire to:

- trustees

- CSP's

- credit institutions

with circa 200 questions on the various subject persons' ("SP") operations, that will focus particularly on risk assessment.  

This is of course relevant to those Chamber members who run trustee and CSP companies. 

We've been warned that there is a lot of information being requested and that it will need some time to complete. For this reason it would be advisable for SPs to start assembling a team to prepare for completion of the questionnaire. The FIAU also warned that recipients should absolutely not push the questionnaire to the side in view of the August deadline for completion because it will require to be planned for from now due to the volume of information being requested. 

Response to the questionnaire - which will be on an XL template provided by the FIAU - is expected before the end of August, 2017. 

We've been told by the FIAU that:

1. The questionnaire is needed vis-a-vis the upcoming Moneyval evaluation in order to show that the FIAU is adopting an RBA to its supervisory function;

2. Originally the FIAU's advisors came up with some 300+ questions and this version was actually a watered-down compromise;

3. This questionnaire will form the basis of future Annual Compliance Return's (which will, as a result, go up from the current 40 questions to 200+) - therefore SP's should take note that going forward the ACR will be more voluminous and complex to complete;

4. The FIAU expects that subject persons reorganise their systems so that they are able to easily retrieve the information being requested in the questionnaire - they recognise that some organisations will have this information handy while others will need to go to lengths to retrieve it. They expect subject persons going forward to modify their systems accordingly. 

The FIAU warned that if there are SPs who cannot answer certain questions it means that the SP is not looking at the right aspects of risk within its enterprise and this will be taken very seriously by the FIAU. 

The FIAU plans to utilise the response to the questionnaire to generate a risk scoring for the interviewee - if there are risky elements within a SP's activities (e.g. clients in certain offshore countries) the questionnaire is designed to also have mitigating factors so that even though there are risky elements the fact that suitable controls or risk management processes are in place can mitigate that risk. 

The FIAU also warned that the completion of the questionnaire is also critical because Moneyval will select certain SPs to inspect directly and therefore being able to show that an enterprise risk assessment was conducted will be taken positively by Moneyval. 

Kind regards


Dr Anthony Cremona

The Chamber of Advocates, Superior Courts, The Law Courts, Republic Street, Valletta VLT2000 MALTA
Telephone: +356 21248601
Fax: +356 21223904
E-mail: info@avukati.org
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