BSP Financial Group Limited (BSP) has acknowledged that it failed to conduct effective enhanced customer due diligence reviews and that there were compliance gaps in its Anti-Money Laundering and Counter Terrorism Financing Policy.
This is in response to a Formal Warning that was issued to BSP by the Financial Analysis and Supervision Unit (FASU) on 12th July, 2021. The formal warning was issued after an onsite review conducted on 23rd October, 2019.
FASU identified that BSP had failed to comply with the Anti-Money Laundering and Counter Terrorism Financing Act 2015 (AML/CTF Act 2015) and BSP’s own AML/CTF Policy.
In a statement, BSP said, in response to FASU’s Formal Warning, it has amended its AML/CTF Policy, conducted Training on the Criminal Code Act and delivered an ECDD Plan to FASU by the date required. An External Auditor has also been appointed under Section 10 of the AML/CTF Act for six months period. Its independent audit commenced on 15th November, 2021.
“Since FASU’s first onsite review of BSP in March, 2018, BSP has committed to and implemented various improvements to its AML/CTF Program.
“Improvements undertaken by BSP include a revision of governance structures to give Directors enhanced oversight over the Compliance and AML functions, increased AML staffing resources. There has updated risk assessments and policies, implementation of and enhancements to transaction monitoring systems, improved customer documentation and identification procedures and increased AML/CTF training for its staff.”
BSP added it has been assisted in this process by FASU and has benefitted from FASU’s oversight and guidance.
BSP said it remains committed to working with FASU to further improve and uplift its AML/CTF Program and initiatives, and to not only comply with the AML/CTF Act 2015, but to also ensure that BSP makes continuous improvements consistent with international best practices and compliance standards.
“As Papua New Guinea’s leading financial institution including in the Pacific region, BSP remains actively involved as a gatekeeper to the financial system in combatting money laundering and financing of terrorism activities.”