On September 29, 2023, the Financial Intelligence Analysis Unit (FIAU) fined Alchemy Markets Limited (previously NSFX Limited) for Anti-Money Laundering (AML) Failures.
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Upon investigation, it was determined that the company failed on various occasions to ensure:
- Comprehensive understanding of risks at both the business and customer levels.
- The execution of necessary due diligence procedures at all times.
- Adequate monitoring of customer relationships and transactions with proper documentation.
The FIAU imposed a penalty of USD 0.44 million for multiple violations, including:
- Failure to conduct Business Risk Assessment (BRA) and Customer Risk Assessment (CRA).
- Lack of evidence demonstrating the monitoring of customer transactions by the Money Laundering Reporting Officer (MLRO).
- Failure to apply Enhanced Due Diligence (EDD) measures on customers linked to high-risk jurisdictions and internal policies and procedures.
- MLRO’s failure to fulfill legal obligations and comprehend their AML/CFT (Anti-Money Laundering/Countering the Financing of Terrorism) duties.
- Incomplete identification and verification of natural persons. Only the front side of the identity card was verified, leaving the issue date, nationality, and place of birth unconfirmed.
- Insufficient data collection to determine the purpose and intended nature of business relationships, including the Source of Wealth.
- Lack of measures in place to keep customer profiles valid and up to date.
