Moderns Limited (“the Firm”) is authorised by the Gibraltar Financial Services Commission (“GFSC”) to act as a Bureau de Change. The GFSC has taken sanctioning action against the firm for contraventions of the Proceeds of Crime Act 2015 (“POCA) in the following areas:
- Section 11 – Application of Customer Due Diligence
- Section 25A – Risk Assessment
In August 2022, the GFSC Anti-Money Laundering and Counter Financing of Terrorism Supervision Team (“AML/CFT team”)”, conducted an onsite visit at the firm, during which the AML/CFT Supervision team reviewed a sample of client files.
The review of the sample client files established that the firm did not hold source of wealth information to a level of ‘plausible verifiability’ and was unable to demonstrate compliance with Section 11 of POCA.
In addition, the review also established that the firm was not able to provide documentary evidence and the rationale for the risk assessments completed within the client files reviewed and was unable to demonstrate compliance with Section 25A of POCA.
A Decision Notice has been issued by the GFSC imposing a financial penalty in the sum of £19,800 on Moderns Limited under the Supervisory Bodies (Powers ETC) Regulations 2017. The Firm has agreed to the sanctioning action. The Firm has since remediated and improved its systems and controls and continues to hold its GFSC authorisation as a Bureau de Change. No further action is to be taken in relation to this matter.
Sean Byrne, Director of Regulatory Investigations stated “This is an example of a firm working collaboratively with the GFSC to ensure its systems and controls are effective. The firm has acknowledged the regulatory failings, made changes, and is moving forward positively”.