A Formal Warning was issued to the BSP Financial Group Limited (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.
BSP acknowledges that it failed to conduct effective enhanced customer due diligence reviews and that there were compliance gaps in its AML/CTF Program.
In response to FASU’s Formal Warning, BSP 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 an initial 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; 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 has been assisted in this process by FASU, and has benefitted from FASU’s oversight and guidance. BSP remains committed to working with FASU to further improve and uplift its AML/CTF Program and initiatives, and to not only fully 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.
This announcement was authorized for release by Robin Fleming, Group Chief Executive Officer of BSP Financial Group Limited.