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Key Issues for Consideration during Mutual Assessments
As discussed in chapter 4, retail outlets should not necessarily be legally subject to licensing and regulation. But if a country decides otherwise, it is advisable for assessors to consider the following questions: • • • •
What criteria are used to license the retail outlets? Must they meet a fit and proper test? Are retail outlets subject to any oversight from a supervisory authority? How effective is the supervision of the retail outlet’s compliance with AML/CFT obligations?
The AP is normally held accountable for AML/CFT compliance in regard to the m-money program (see chapter 4). As a consequence, the AP is responsible for ensuring that its retail outlets comply with any obligations that they may have to ensure the integrity of the system. As explained earlier, the AP is the party who procures the retail outlets, trains them, monitors them, and drafts the terms and conditions of the contract with them. As a consequence, it is advisable for assessors to determine whether and how the AML/CFT supervisor considers the following matters: • Does the AP perform due diligence procedures on retail outlets prior to recruitment? • Does the AP take sufficient steps to ensure that retail outlets do not compromise any simplified AML/CFT control measures applicable to low-value and low-risk accounts? For example: ° Are retail outlets subject to the AP’s ongoing monitoring and scrutiny? ° Does the AP perform any on-site visits? ° How does the AP determine the sites to visit? ° How often are those sites visited? 10 ° Does the AP use mystery shoppers? As part of their assessments of the AML/CFT framework of m-money, evaluators should also consider matters such as the following:11 • Do retail outlets have AML/CFT obligations? • Are these obligations clearly stated in a regulation, or are they set out in a contractual arrangement? • What is the exact scope of retail outlets’ AML/CFT duties?