LATIN AMERICA
defined considering their exposure to ML/FT risks as pe r their duties and/or tasks; and • the obligation that any newcomers receive training no later than 60 business days following the date of their engagement. As for the minimum contents of the training courses, the Resolution stipulates that these should include the following: a) Definition of ML/FT crimes; b) National laws and international standards on AML/CFT; c) ML/FT System policies, procedures, and controls implemented by the Reporting Party, their proper implementation for ML/FT risk management and mitigation purposes, making emphasis on specific issues such as Due Diligence; d) ML/FT risks to which the Reporting Party is exposed as per its own risk self-assessment technical report, the National ML/FT Risk Assessments, as updated, and other documents identifying any such sector-related risks as may be relevant; e) Any ML/FT trends and typologies detected by the Reporting Party as well as those informed by the UIF, the FATF, or the Financial Action Task Force for Latin America (GAFILAT); f) Any red flags and controls to detect Unusual Transactions and procedures for the detection and communication of Suspicious Transactions, with emphasis on the duty of confidentiality relating to the report; and g) Roles and responsibilities of the AML/CFT staff of the Reporting Party.
The Resolution stipulates that the Obligated Entities must implement a two-tier assessment of the AML/CFT system (article 19). On the one side, an independent external review shall be entrusted to an independent external reviewer, who shall issue a biennial report on the Obligated Entities’ AML/CFT System quality and effectiveness, and shall communicate the results electronically to the UIF within 120 calendar days from the expiration of the term established for the submission of the self-assessment. On the other hand, the Obligated Entities must perform an internal audit that must include AML/CFT System- relating areas in its annual programs. Finally, the Resolution now caters for KYC of directors, managers, employees, and own and outsourced collaborators and UBOs of the Obligated Entities (article 21). At the time of recruitment or hiring, and following the engagement between the parties, the the Obligated Entities shall verify the Public Register of Individuals and Entities Linked to Acts of Terrorism and their Financing (RePET) to determine whether the directors, managers, employees, and collaborators are included therein. Due diligence measures Adequate KYC of customers is a prerequisite to doing business with an Obligated Entity. Any failure to identify Customers as
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