What does the Compliance Officer have to do?
Section 56(2) of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act) requires that a reporting entity must designate an employee as a Compliance Officer to administer and maintain its AML/CFT programme.
The AML/CFT Act does not exclude a Compliance Officer from performing other functions outside of the role of Compliance Officer.
The AML/CFT Act does not exclude a Compliance Officer from performing other functions outside of the role of Compliance Officer.
Who can be a Compliance Officer?
The Compliance Officer must be an employee of the reporting entity and report to a senior manager. Alternatively, the Compliance Officer may be a senior manager themselves.
Only where a reporting entity has no employees can an external person be appointed as a Compliance Officer. For example you may appoint an external person as a Compliance Officer if you are a sole practitioner (i.e. self-employed), if you have no employees, and if you are not able to be the Compliance Officer yourself.
Only where a reporting entity has no employees can an external person be appointed as a Compliance Officer. For example you may appoint an external person as a Compliance Officer if you are a sole practitioner (i.e. self-employed), if you have no employees, and if you are not able to be the Compliance Officer yourself.
Can a partner of a reporting entity that is a partnership be the Compliance Officer?
Yes. Section 56(5) of the AML/CFT Act allows a partner in a partnership (including law firms or accounting practice partnerships) to be the Compliance Officer for the partnership. The partner acting as the Compliance Officer must report to another partner on AML/CFT matters.