Frequently Asked Questions

Management Team

To ensure proper implementation of anti-money laundering policies and procedures, financial institutions should have effective controls covering appointment of a Compliance Officer (CO) and a Money Laundering Reporting Officer (MLRO).
Q1: What is a Compliance Officer (CO)?
A1: The principal function of the compliance officer is to act as the focal point within an financial institution for the oversight of all activities relating to the prevention and detection of money laundering/terrorist financing and providing support and guidance to the senior management to ensure that money laundering/terrorist financing risks are adequately managed.
Q2: What is a Money Laundering Reporting Officer (MLRO)?
A2: Financial institutions should appoint a money laundering reporting officer who is the central reference point for suspicious transaction reporting. Financial institutions should also ensure that the money laundering reporting officer is of sufficient status within the organisation, and has adequate resources, to enable him to perform his functions. The money laundering reporting officer should play an active role in the identification and reporting of suspicious transactions.
Q3: If an MSO operates as a corporation with its ultimate owner being a company director, can that director serve as Compliance Officer and Money Laundering Reporting Officer?
A3: Compliance Officer (CO) and Money Laundering Reporting Officer (MLRO) should be independent of all operational and business functions. Therefore, our Association suggests CO and MLRO to be performed by different individuals subject to constraint of size of the financial institution.
Please note: (1) Please proceed to our Forum of more discussions in relation to Management Team; (2) The above information is for reference only.