The supervisory toolkit contains a blend of various onsite and offsite supervisory activities:
- Onsite activities may involve inspections at financial institutions to assess actual implementation of AML/CFT requirements by reviewing and testing processes, systems and customer files, interviewing staff, and assessing operations and controls.
- Offsite activities may involve analysis of reports, data submissions, and other relevant information to assess ongoing compliance.
The onsite and offsite activities can consist of:
- Full-scope inspections. Comprehensive end in-depth review of the institution’s operations, systems, policies, and procedures related to AML/CFT.
- Targeted inspections. Focus on on specific ML/TF/PF risks or control weaknesses.
- Thematic inspections. Risk mitigation across multiple institutions on specific risk areas, emerging trends, or areas of supervisory concern.
- Periodic compliance meetings. Useful for lower risk financial institutions to ensure that they are covered by supervisory activities.
- Outreach and capacity building initiatives. To understand obligations and implement effective AML/CFT measures.
- Enforcement and sanctions. The toolkit should also have a range of enforcement measures and sanctions against institutions that fail to comply with AML/CFT requirements.
