Journal

Posted November 11, 2020

Posted By Meghann Cannon

FAQs: Can you outsource any of your admin obligations under AML/CTF?

Answered by Rosie Jervis.

Short answer – yes you can, but you need an agency relationship in place and a contract that clearly details the roles and responsibilities of each party.

You should also proactively monitor and test the outsourcing provider’s AML/CTF systems and controls, as liability under the AML/CTF Act lies with you.

The Agreement

Needs to detail the ‘administrative services’ the outsourced provider has agreed to provide.  

Needs to state the relationship is an ‘agency’ relationship for 

for the purposes of outsourcing administrative tasks under AML/CTF.  

This is because you, as the reporting entity, remain accountable for compliance with AML/CTF legislation. 

In order for the outsourced provider to undertake KYC and other Customer Due Diligence (CDD) tasks on your behalf, it must do so pursuant to an agency relationship that reflects the fact that you are responsible for/liable for compliance with AML/CTF requirements even if certain tasks are carried out by the outsourced provider.  

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