The Financial Intelligence Centre (FIC) engaged consultations and issued a Draft Public Compliance Communication 121A (Draft PCC 121A) on how to navigate the complexities of beneficial ownership under Section 21B of the FIC Act.

Key Highlights of Draft PCC 121A:

• Guidance on Beneficial Ownership: The draft provides a detailed explanation of beneficial ownership, focusing on its identification within legal entities such as companies, trusts, partnerships, and non-profit organisations.

• Application of Section 21B: It elaborates on the practical aspects of applying this section of the FIC Act, particularly concerning money laundering, terrorist financing, and proliferation financing risks.

• Regulatory Background: This initiative is part of the General Laws (Anti-Money Laundering & Combating Terrorism Financing) Amendment Act of 2022, which requires detailed understanding and compliance regarding the ownership and control structures of accountable institutions’ clients.

Participation and Next Steps:

• Consultation Process: The FIC encourages feedback on this draft to refine and finalize the guidelines. Accountants and related professionals can access the draft and submit their comments via the FIC’s dedicated page.

• Review of Public Input: Reflecting on the initial feedback received from the first draft in December 2023, the FIC is incorporating these insights to better address the compliance challenges faced by institutions.

Resources and Further Reading:

• Draft PCC 121A Document

• Summary of Initial Comments

• Summary of comments on first draft

This ongoing consultation presents a critical opportunity for accountants to ensure that their practices are aligned with the latest compliance requirements and to voice any concerns or suggestions they might have regarding the regulatory framework. Engage now to help shape the final version of these crucial compliance communications.