Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p64
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 178197–181105

of a designated service by the reporting entity.

     9.3.3 The employee due diligence program must include appropriate risk‑based systems and controls for each reporting entity to determine whether to, and in what manner to, re‑screen an employee where the employee is transferred or promoted and may be in a position to facilitate the commission of a money laundering or financing of terrorism offence in connection with the provision of a designated service by the reporting entity.

     9.3.4 The employee due diligence program must establish and maintain a system for each reporting entity to manage any employee who fails, without reasonable excuse, to comply with any system, control or procedure established in accordance with Part A or Part B.
          Part 9.4 Oversight by boards and senior management

     9.4.1 Except where paragraph 9.4.2 applies, the Part A program must be approved by the governing board and senior management of each reporting entity in the designated business group. Part A must also be subject to the ongoing oversight of each reporting entity's board and senior management. Where the reporting entity does not have a board, Part A must be approved and overseen by its chief executive officer or equivalent.

     9.4.2 Where each member of a designated business group is related to the other members, the Part A program may be approved by and subject to the ongoing oversight of the governing board and senior management of the main holding company of the group.
          Part 9.5 AML/CTF Compliance Officer

     9.5.1 Part A program must provide for the designated business group to designate a person as the 'AML/CTF Compliance Officer' at the management level. The AML/CTF Compliance Officer may have other duties.
          Part 9.6 Independent review

     9.6.1 Part A must be subject to regular independent review.

     9.6.2 The frequency of the review should take into account the nature, size and complexity of each reporting entity's business, and the type and level of ML/TF risk it might face.

     9.6.3 While the review may be carried out by either an internal or external party, the person appointed to conduct the review must not have been involved in undertaking any of the functions or measures being reviewed, including:

         (1) the design, implementation, or maintenance of Part A of the joint AML/CTF program; or

         (2) the development of any of the reporting entities' risk assessments or related internal controls.

     9.6.4 The designated business group must be able to demonstrate the independence of the reviewer.

     9.6.5 The purpose of the review should be to:

         (1) assess the effectiveness of the Part A program having regard to the ML/TF risk of each reporting entity in the designated business group;

         (2) assess whether the Part A program complies with these Rules;

         (3)