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Qualifications and Core Competencies of Controlled Functions

Role Core Competencies How can competence be demonstrated?
Director Directors should have:
(a) Experience to demonstrate sound business decision-making; and
(b) A good understanding of the industry and its regulatory environment.
This person should be experienced in the industry. Competence could be demonstrated by:
(a) Holding a relevant professional qualification; or
(b) A minimum length of service (at least 5 years at director or senior management level) in the financial industry.
Chief Executive or General Manager These roles require:
(a) A clear understanding of the role and responsibilities associated with this position;
(b) A good understanding of the licensee's business, the broader industry and its regulatory environment; and
(c) The relevant experience and qualifications associated with any executive responsibilities.
This person should be experienced in the industry. Competence could be demonstrated by:
(a) Holding a relevant professional qualification; or
(b) A minimum length of service (at least 5 years at a relatively senior position) in the financial industry.
Head of Function This role requires:
(a) A clear understanding of the role and responsibilities associated with the relevant function;
(b) A good understanding of the licensee's business, the broader industry and its regulatory environment; and
(c) The relevant experience and qualifications to fulfill their responsibilities.
A senior manager responsible for a specialist function should demonstrate the competencies required for that role.
(a) The person must have area specific experience/qualifications as required for head of function. These include accounting qualifications for financial managers, Bachelors degree in banking or finance, MBA, etc. and/or
(b) The head of function should have at least 5 years of experience in the industry and will typically hold, or be working towards, a relevant professional qualification as appropriate to the controlled function.
Compliance Officer A Compliance Officer should:
(a) Have the ability and experience to take responsibility for implementing and maintaining compliance policies;
(b) Have the appropriate level of experience to demonstrate independence from other functions within the licensee; and
(c) Have a thorough understanding of the industry and the applicable regulatory framework.
The level of required competence varies based on the scope, magnitude and complexity of the licensee.
The person should have a minimum of 2 years of relevant experience in a compliance function of a financial institution.

Additional relevant certifications may include:
(a) Diploma in International Compliance offered by the International Compliance Association; and/or
(b) Other relevant professional qualification.
Money
Laundering
Reporting
Officer
(MLRO)
The MLRO should:
(a) Understand the business and how the Anti Money Laundering framework applies thereto; and
(b) Have the appropriate level of experience to demonstrate independence from staff of the licensee dealing directly with customers.
An MLRO will typically hold a relevant professional qualification and / or a qualification related to the financial activities. These may include:
(a) Certified Anti-Money Laundering Specialist Examination (ACAMS);
(b) Other relevant MLRO programs; and/or
(c) Diploma in International Compliance offered by the International Compliance Association.
Additionally, he must have undergone training in anti money laundering, in a recognized institute. The initial training must be for a period of 35 hours or more.

MLROs should have thorough knowledge of the financial institutions industry and be familiar with relevant international standards and applicable domestic regulatory requirements.
October 2010