Page 35 - Annual Report 2021 EN
P. 35
/ 35 T ABLE OF C ONTENT S
Authorisation Macroprudential Analysis AML/CFT Supervision
The Authorisation department is responsible for In 2021, under QFCRA’s risk-based supervision AML/CFT regulatory framework Supervisory approach and
assessing and approving applications from firms framework, the Macroprudential Analysis department
model for risk ratings of firms
and individuals seeking authorisation from QFCRA provided insights on macroeconomic and financial QFCRA’s AML/CFT framework is underpinned by Law
to conduct regulated activities in or from the QFC. stability to microprudential supervisory staff, No. 20 of 2019 on Combatting Money Laundering and During 2021, the AML/CFT team supervised 90 firms
senior management, and the Board of Directors. Terrorism Financing, and the Implementing Regulations consisting of 61 Financial Institutions (FIs) and 29
The department also acts as the interface between Macroprudential surveillance operates alongside of decision (41) of 2019, noting during 2021, the Council Designated Non-Financial Business and Professions
applicants and the Companies Registration Office microprudential (entity level) surveillance to assist of Ministers’ Decision No. (14) of 2021 was adopted, (DNFBPs). AML/CFT supervision is risk-based: the
of the QFC Authority regarding their registration or supervisors in their efforts to prevent or mitigate the and further technical amends were implemented. frequency and intensity of supervisory engagement
incorporation in the QFC. effects of risks identified. with a firm consider the nature, size, and complexity of
These changes and amendments were supplemented the firm’s activities and customers. The approach also
During 2021, Authorisation met with a broad range Macroprudential surveillance assisted QFCRA in by revised Anti-Money Laundering and Combatting considers a firm’s risk profile determined by previous
of prospective applicants to discuss their proposals identifying and assessing important changes in the Terrorist Financing Rules 2019 (AML/CFTR) for risk assessments and the firm’s environment.
and subsequently review their submitted regulatory financial sector (i.e. banking, insurance, and investment financial institutions and DNFBPs, and the Anti-Money
business plans. When a plan is deemed viable and management), as well as macroeconomic factors Laundering and Combatting Terrorist Financing (General Supervisors have a good understanding of the relevant
approved to proceed, Authorisation includes the affecting these markets; delivering value-added Insurance) Rules 2019 (AMLG) for general insurance risk factors for each financial sector and sub-sector, such
proposed supervisor as an active participant in the quantitative and qualitative information for forward- firms, collectively referred to as the AML/CFT Rules. as banks, investment firms, or insurance companies.
assessment to ensure all issues are understood and looking monitoring; and detecting macro-financial This includes understanding how each sector/sub-sector
managed appropriately once the firm is authorised issues that may affect QFCRA’s authorised firms. The rules are designed to follow and align with is organised both within the QFC and the State of Qatar,
and subsequently transferred to Supervision. Details the Financial Action Task Force (FATF) global and the risks associated with shared features such as
of authorised firms are set out in Annex 1. recommendations and standards. the type of products and services offered, the delivery
channels used, and the type of customers they serve.
During the year, three Representative Offices were
authorised. The number of individuals approved by All firms are risk-rated on a five-point scale of high,
QFCRA to perform controlled functions at authorised medium-high, medium, medium-low, and low. Higher-
firms at year-end was 411, a net increase of 33 over risk firms are supervised more closely than lower-risk
the year. firms. The AML/CFT risk-based supervision model
considers quantitative elements to assess the inherent
AML/CFT risk posed by a firm’s operations (structural
and business risks) and is complemented by a
qualitative assessment (by the AML/CFT team) of the
firm’s control framework to produce an AML/CFT
risk rating for each firm. Most of the quantitative data
and information are obtained from the annual AML/CFT
returns submitted by all firms. This is supplemented
by desk-based and onsite reviews.
