New AML/CTF Rulebook 2010 in the Qatar Financial Centre ('QFC')

Consultation on a new Anti-Money Laundering and Combating Terrorist Financing ("AML/CTF") Rulebook closed on 17th January 2010 and the issue of a new single AML/CTF Rulebook by the Qatar Financial Services Regulatory Authority ("QFCRA") is imminent. The new Rulebook will apply to all financial institutions and DNFBPs¹ conducting business in or from the QFC. This article outlines the reasons for producing a new rulebook and summarises the key proposed changes.

Background

Money laundering, including the potential misuse of financial institutions to finance terrorist activity, is a problem of major concern for governments, regulators and financial institutions around the world. The Financial Action Task Force ("FATF"), an inter-governmental organisation established in 1989, was set up to develop and promote national and international policies globally to combat the threat of money laundering and, since 2001, the threat posed by terrorist financing. Over the past 21 years, FATF has developed 40 Recommendations which comprise the basic framework for anti-money laundering efforts in member states. FATF has also created nine Special Recommendations on terrorist financing. Together these comprise the 40 + 9 Recommendations which have been implemented in the national laws of over 100 jurisdictions². However, FATF has no role in tracking the movements of international money launderers or in bringing criminal prosecutions. This is left to the regulators and investigating authorities in each national jurisdiction.

Reasons for a new QFC AML/CTF Rulebook

The existing QFCRA AML\CTF framework is embedded among AML regulations and three separate rulebooks: the Anti-Money Laundering (AMLR), Individuals (INDI) and General (GENE). The revised rulebook will be self-contained ie all AML/CTF requirements for authorised and relevant licensed firms are contained in one rulebook rather than spread across a number of rulebooks and regulations. The stated objectives of this more "user friendly" approach are twofold:

To facilitate optimum compliance with FATF Recommendations and To assist and support effective implementation of the Rules by QFC firms. Also, the re-structured Rulebook represents a fresh approach to the current rules of the QFCRA. In particular, there is a distinct departure from the current AMLR which contains significant supplementary guidance notes and appendices.

Summary of key changes

There are five key changes which have been introduced based on...