Page 36 - Annual Report 2019

33 ANNUAL REPORT 2019 SUPERVISION AND AUTHORISATION

Monitoring and reporting Anti-Money Laundering/Combatting Supervisory approach and model
the Financing of Terrorism for risk ratings of firms
The department produced quarterly Macroprudential
Reviews. In considering macroeconomic and financial The Regulatory Authority is committed to preventing QFC The Regulatory Authority takes a risk-based approach to
stability risks, analysts conducted an assessment of the institutions from participating in activities that may constitute AML/CFT supervision, meaning that the extent of information
global energy market and its interaction with the Qatari or facilitate financial crime. Consistent with its anti-money sought, and the frequency and intensity of supervisory
economy. The assessment identified existing and emerging laundering (AML) and combatting the financing of terrorism engagement and dialogue with a firm, take into account
risks and macroeconomic factors that could affect (CFT) objectives, the Regulatory Authority monitors risks arising the nature, size, and complexity of a firm’s activities.
domestic financial stability, including potential threats from financial crime, sets the agenda for AML/CFT supervision
emanating from Qatar’s position in the energy market. of firms, and determines the implementation of the AML/CFT The risk-based AML/CFT model was further developed
In addition to covering financial sector developments law and rules. The Regulatory Authority has a dedicated team of in 2019, ensuring ongoing close alignment with
and trends, the department also introduced new highly skilled and qualified AML/CFT experts who are responsible international best practice. The model includes
sections on the elements of macroprudential oversight, for AML/CFT supervision within the QFC. In 2019, the team quantitative elements required to assess the inherent
as well as macroprudential policy in Qatar. supervised 55 authorised firms (financial institutions) and 24 AML/CFT risk posed by a firm’s structural and business
Designated Non-Financial Businesses and Professions (DNFBPs). risks. This is then balanced by a qualitative assessment
Industry statistics and financial data by the AML/CFT team of the firm’s control framework.
AML/CFT regulatory framework The combination of these quantitative and qualitative
The Macroprudential Analysis department produced analyses produces an AML/CFT risk rating for each firm.
internal quarterly fact sheets that provided a macro The Regulatory Authority’s AML/CFT framework is underpinned
view of the Regulatory Authority’s authorised firms. by Law No. 20 of 2019 on Combatting Money Laundering and Bespoke risk-based models are in place for each of
The fact sheets are based on standardised aggregated Terrorism Financing, which came into force on 12 September the Regulatory Authority’s supervised sectors: banks,
sectors’ data and reveal trends and developments 2019 and repealed Law No. 4 of 2010 on Combatting Money insurance underwriters, insurance intermediaries,
through the use of tables and graphs. Laundering and Terrorism Financing. This was supplemented investment management firms, advisory firms, and
The fact sheets included analyses and trends concerning by the associated implementing regulations and by the DNFBPs. The risk-based AML/CFT model and the
the size and structure of the sectors, business activity by detailed requirements in the revised Anti-Money Laundering risk rating of all firms will be reviewed following the
license type, geography and corporate structure. They also and Combatting Terrorist Financing Rules 2010 (AML/CFTR) finalisation of Qatar’s National Risk Assessment and
included analyses and trends of balance sheet and off- for financial institutions and DNFBPs, and the Anti-Money the Regulatory Authority’s Sectoral Risk Assessment.
balance sheet items, profitability and performance ratios, Laundering and Combatting Terrorist Financing (General
early warning ratios, and main financial institutions’ risks Insurance) Rules 2012 (AMLG) for general insurance firms,
measures (credit, liquidity, operational and market). collectively referred to as the AML/CFT Rules. The rules are
designed to be in accordance with and aligned to Financial
Action Task Force global recommendations and standards.