Explain the below questions?

 

 

Please assist by answering why is this control below outdated or need to be replaced for an organization?

 

FAIS Act, 2001, section 7(1)

 

Existing control for an organization:

 

FSP follow the process as documented in the Group Compliance, Regulatory Services: FAIS Manual for independent and juristic representatives that we do business with. Before receiving any financial services related business from any third party/entity, an FSP /business unit (within Standard Bank group) together with their Business Compliance Officer, have a process in place to confirm the following: - that the third party /entity has already obtained their license; - conditions and restrictions of the third party/entity's license; or - that the financial service that was received was in accordance with the conditions and restrictions - that the financial service was rendered by the representatives of the third party/entity. Controls in respect of providing financial services: Before providing any financial services related business, all FSPs /business unit (within SB group) together with their BCO, have a process in place to confirm the following: o that all FSPs within the SB group have a licence with at least two KI's representing each subcategory; o that the financial service that was rendered is in accordance with the conditions and restrictions of their licence; i.e. all products provided are in line with the sub-categories of the license; o that the financial service was rendered by the representatives of the FSP in accordance with the mandate approved by the FSP relating to the subcategories and advice/intermediary service. o It is clearly indicated whether there are any restrictions imposed by the mandate, i.e. supervision. Documents in place: 1. FAIS Manual and Procedure for applying for a license, as and when required. 2. Due diligence checklist. 3. NABPPS process.

Please assist by explaining why will this control mentioned below will mitigate the (FAIS Act, 2001, Section (7)(1)) risks and how this control will work in practice/organization?

 

Suggested Control:

Although without holding a proper license to do so: Making certain that the organization has the appropriate authorization is one of the measures that may be put in place to help reduce the danger of doing business without a license that is in good standing. To ensure that they are in accordance with the rules imposed by the Financial Services Conduct Authority (FSCA), institution should conduct a thorough examination of those regulations. In addition to this, they should check the status of their licenses on a regular basis to verify that they are current. Unfair competition in the marketplace: Having clear policies and procedures in place that govern the behaviour of the institution's representatives and the services they provide is an additional control that can be put in place to mitigate the risk of engaging in unfair business practices. This control can be put in place to mitigate the risk of engaging in unfair business practices. To guarantee that the organization follows the FAIS Act, the institution's policies and procedures need to contain measures that prohibit engaging in unethical business activities. In addition, the organization need to conduct frequent reviews of the policies and processes to guarantee that they are kept up to date.

Why the above control should be implemented by this date below?

Latest by the end of 2 months

Why the stakeholder identified are responsible for overseeing control and how their input will make the control (above) more effective in practice?

-Regulatory Services Manager

-1st Line Business Compliance Officer

-All KI's and Managers

Please assist by answering why is this control outdated or need to be replaced for an organisation?

Financial Intelligence Centre Act, 2001, Section 43:

Existing control in an organisation:

There is training provided by Learning & Development and system training that is completed on a yearly basis and records of training are kept.

2. Please assist by explaining why will this control mentioned below will mitigate the (FIC Act, 2001, Section (43) risks and how this control will work in practice?

Suggested Control:

Recognizing and Informing Authorities of Any Suspicious Transactions: The institution needs to ensure that their staff members receive training on how to recognize and report suspicious transactions. This may be accomplished by putting in place suitable rules and processes, as well as holding regular training and awareness seminars for staff members. In addition to this, the accountable institution ought to give some thought to the formation of a specific team that would be responsible for delivering the training and awareness sessions, as well as ensuring that workers are familiar with the provisions of the Act and the Risk Management and Compliance Program. Having an Awareness of the Dangers Presented by Terrorist Financing and Money Laundering: They need to think about establishing a specialized team to deliver the training and awareness sessions, as well as to make certain that employees are aware of the dangers associated with money laundering and terrorist financing. Processes and Controls Inside the Organization: They should make it a priority to provide adequate training to their staff on the internal procedures and controls of the institution. This may be accomplished by putting in place suitable rules and processes, as well as holding regular training and awareness seminars for staff members. The institution ought to also give some thought to the concept of establishing a separate team that would be responsible for delivering the training and awareness sessions, as well as ensuring that employees are familiar with the organization's internal controls and procedures. Recording and Keeping Employee Training Documents and Information: They should make it a priority to document and keep records of employee training. This can be accomplished by putting in place suitable policies and procedures, as well as conducting routine monitoring and audits of employee training records. The institution ought to also give thought to the possibility of forming a separate group that would be responsible for carrying out the monitoring and audits and ensuring that all training records are accurate and up to date.

Why the above control should be implemented by this date below?

Latest by the end of Quarter 1

Why the stakeholder identified are responsible for overseeing control and how their input will make the control (suggested above n.o 2) be more effective in practice?

Learning & Development Team. People & Culture Manager's and Programme Developers.

Lastly,

Please help by recalling controls you might have been involved with developing in the past, or others that you have interacted with that have been implemented in your organisation you've worked for. Also, to extend to the understanding think of a few concrete examples of controls that attempted to alter human behaviour and try to evaluate their efficacy. Additionally, try to identify an example of each control type, namely policies, processes, and systems.

• The question I would like you to help with explanation is: What kinds of human behaviour resulted in the creation of those controls?
• please can you kindly and shortly assist by identifying any control-based nudges you have used in that organisation?