By Annapaola Llanas,
Instituto Tecnológico Autónomo de México
On May 12, 2015, the guidelines for those who want to be certified in the prevention of operations with resources of illicit origin and financing of terrorism were published in the Federal Official Gazette. The aim of this new certification is to demonstrate that in the country there are those who have the appropriate expertise in the area of “Prevention of Money Laundering and Financing of Terrorism.”
This seeks to contribute to a better and greater compliance in the preventive regime of money laundering and terrorist financing, in addition to generating greater confidence in professional skills.
Who can be certified? According to the publication, public accountants who work in the area of auditing as well as other professionals who are dedicated to the field can be certified. Their services can be provided to entities and persons subject to the supervision of the National Banking and Securities Commission (CNBV for its acronym in Spanish) to verify compliance in the aforementioned area.
The formal requirements, which in the judgment of the competent authorities who will distinguish those who will be the future experts in the field and differentiate them from other professionals are, to the letter, the following:
Have at least a level of studies equivalent to a BA degree;
Have at least one year of experience in the field of prevention, detection and reporting of acts. If participants do not have a degree or professional credentials, they must demonstrate that they have at least four years of experience in the field;
Not having been convicted of property offenses, or disabled to perform a job, position or commission in the public service, the Mexican financial system or in any other country, and
Not having a history of suspension, cancelation or revocation of a registry to serve as an independent external auditor, or having a certification previously revoked by the Commission.
The objective of the requirements is to establish a control mechanism to provide confidence and that will contribute to promoting the stability of the financial system. In addition, to comply with the foregoing, a committee of experts determined the knowledge that participants must have in the field of Prevention of Money Laundering and Financing of Terrorism to receive certification. Therefore, the CNBV entrusted the National Evaluation Center for Higher Education (CENEVAL, for its acronym in Spanish)1 to prepare an exam of valid and reliable knowledge, and with the characteristics of an equitable and ethical evaluation.
The characteristics that the authorities requested for the certification exam are the following:
The exam lasts four hours with 118 multiple-choice questions. Each question has four response options with one correct answer. To pass the exam, one must pass the three areas in which the exam is divided:
The first area refers to basic knowledge of Prevention of Money Laundering and Financing of Terrorism. This section assesses the knowledge of the concepts of money laundering, types and applicable penalties in accordance with the Mexican framework; knowledge of the integration, purpose and functions of the main forums and international and inter-governmental agencies in the field; knowledge of the content of the international conventions as well as the functions of the principal Mexican authorities.
The second area comprises the technical expertise of Prevention of Money Laundering and Financing of Terrorism in accordance with the Mexican legal regime. One must be aware of the laws relating to the Mexican financial system, the general provisions applicable to obligated parties, and the Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin.
The last section includes knowledge of the methodology to conduct the audit, reports and the methodology for monitoring the CNBV, knowledge of the Basel Committee, the risk management model of the Wolfsberg Group, and the risk-based approach for the banking sector according to the International Financial Action Task Force on Money Laundering (FATF).
Once the exam is passed, the certification is valid for five years. When it expires, it can be renewed. To renew it, the certified professional must have completed at least 50 hours of training to demonstrate compliance with continuing professional education. If the applicant does not pass the certification exam, he/she will have up to two opportunities in the same calendar year to pass the exam.
A year after the publication of the call for certification of Prevention of Money Laundering and Financing of Terrorism, only three certification exams have been conducted. In these three exams, 1,961 application sites were opened, according to data from the calls for certification in the field of Prevention of Money Laundering and Financing of Terrorism published in the Federal Official Gazette. For the fourth exam, which will take place in July 2016, there are 1,710 places.
According to a report in El Financiero, only 170 of the 503 who took the exam passed in the first evaluation. This represents a passing rate of 34%, which is an unsatisfactory result. Iván Alemán Loza, former vice president of Supervision of Preventive Processes of the CNBV, said that if someone fails the exam twice, “the financial institution will be notified of that fact and, therefore, the person may not be a valid interlocutor of the CNBV, and it will be the decision of the institution what it will do with that person.” 2
As can be seen in the list published by the CNBV, only 195 persons obtained the certification in the field of Prevention of Money Laundering and Financing of Terrorism in the first stage (June 1 to September 23 of 2015) and have given their consent for their personal data to be published. Of this figure, the area of compliance represents 37%, auditors 33%, lawyers 6%, inspectors of the CNBV 8% and the rest consists of consultants or advisors and others, according to the information provided by the certificates.
The certification is designed to ensure that people have the expertise in the prevention of operations with resources of illicit origin and financing of terrorism, in accordance with the highest international standards in the area, which will undoubtedly generate confidence in the future. The issue has acquired great importance, so it is an opportunity that public accountants must not miss.
1 It is a non-profit civil association that since 1994 designs and implements assessment of knowledge, skills and competencies of different levels of formal and informal education, and analyzes and disseminates the results of the exams.
Diario Oficial de la Federación (Federal Official Gazette) 1. Agreement which disclosed the schedule to start the certification process of independent external auditors, compliance officers and other professionals in the prevention of operations with illicit proceeds and terrorist financing. [Online] <http://www.dof.gob.mx/nota_detalle.php?codigo=5385412&fecha=13/03/2015> [Consulted: April 18, 2016].
Diario Oficial de la Federación (Federal Official Gazette) 2. General provisions for certification of independent external auditors, compliance offers and other professionals in the prevention of operations with illicit proceeds and terrorist financing. [Online] <http://www.dof.gob.mx/nota_detalle.php?codigo=5362353&fecha=02/10/2014> [Consulted: April 18, 2016].
Comisión Nacional Bancaria de Valores (National Banking and Securities Commission), Centro Nacional de Evaluación para la Educación Superior (National Center for the Evaluation of Higher Education, “Guía para el participante: Proceso de certificación de auditores externos independientes, oficiales de cumplimiento y demás profesionales en materia de prevención de operaciones con recursos de procedencia ilícita y financiamiento al terrorismo”. [Online] <http://www.cnbv.gob.mx/PrevencionDeLavadoDeDinero/Documents/Guia-CENEVAL-20150612.pdf> [Consulted: April 18, 2016].
Secretaría de Hacienda y Crédito Público (Secretariat of Finance and Public Credit), Portal of Prevention of Money Laundering, [Online] <https://sppld.sat.gob.mx/pld/index.html> [Consulted: April 18, 2016].
Certification in the Prevention of Operations with Resources of Illicit Origin and Financing of Terrorism
Instituto Tecnológico Autónomo de México
On May 12, 2015, the guidelines for those who want to be certified in the prevention of operations with resources of illicit origin and financing of terrorism were published in the Federal Official Gazette. The aim of this new certification is to demonstrate that in the country there are those who have the appropriate expertise in the area of “Prevention of Money Laundering and Financing of Terrorism.”
This seeks to contribute to a better and greater compliance in the preventive regime of money laundering and terrorist financing, in addition to generating greater confidence in professional skills.
Who can be certified? According to the publication, public accountants who work in the area of auditing as well as other professionals who are dedicated to the field can be certified. Their services can be provided to entities and persons subject to the supervision of the National Banking and Securities Commission (CNBV for its acronym in Spanish) to verify compliance in the aforementioned area.
The formal requirements, which in the judgment of the competent authorities who will distinguish those who will be the future experts in the field and differentiate them from other professionals are, to the letter, the following:
Have at least a level of studies equivalent to a BA degree;
Have at least one year of experience in the field of prevention, detection and reporting of acts. If participants do not have a degree or professional credentials, they must demonstrate that they have at least four years of experience in the field;
Not having been convicted of property offenses, or disabled to perform a job, position or commission in the public service, the Mexican financial system or in any other country, and
Not having a history of suspension, cancelation or revocation of a registry to serve as an independent external auditor, or having a certification previously revoked by the Commission.
The objective of the requirements is to establish a control mechanism to provide confidence and that will contribute to promoting the stability of the financial system. In addition, to comply with the foregoing, a committee of experts determined the knowledge that participants must have in the field of Prevention of Money Laundering and Financing of Terrorism to receive certification. Therefore, the CNBV entrusted the National Evaluation Center for Higher Education (CENEVAL, for its acronym in Spanish)1 to prepare an exam of valid and reliable knowledge, and with the characteristics of an equitable and ethical evaluation.
The characteristics that the authorities requested for the certification exam are the following:
The exam lasts four hours with 118 multiple-choice questions. Each question has four response options with one correct answer. To pass the exam, one must pass the three areas in which the exam is divided:
The first area refers to basic knowledge of Prevention of Money Laundering and Financing of Terrorism. This section assesses the knowledge of the concepts of money laundering, types and applicable penalties in accordance with the Mexican framework; knowledge of the integration, purpose and functions of the main forums and international and inter-governmental agencies in the field; knowledge of the content of the international conventions as well as the functions of the principal Mexican authorities.
The second area comprises the technical expertise of Prevention of Money Laundering and Financing of Terrorism in accordance with the Mexican legal regime. One must be aware of the laws relating to the Mexican financial system, the general provisions applicable to obligated parties, and the Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin.
The last section includes knowledge of the methodology to conduct the audit, reports and the methodology for monitoring the CNBV, knowledge of the Basel Committee, the risk management model of the Wolfsberg Group, and the risk-based approach for the banking sector according to the International Financial Action Task Force on Money Laundering (FATF).
Once the exam is passed, the certification is valid for five years. When it expires, it can be renewed. To renew it, the certified professional must have completed at least 50 hours of training to demonstrate compliance with continuing professional education. If the applicant does not pass the certification exam, he/she will have up to two opportunities in the same calendar year to pass the exam.
A year after the publication of the call for certification of Prevention of Money Laundering and Financing of Terrorism, only three certification exams have been conducted. In these three exams, 1,961 application sites were opened, according to data from the calls for certification in the field of Prevention of Money Laundering and Financing of Terrorism published in the Federal Official Gazette. For the fourth exam, which will take place in July 2016, there are 1,710 places.
According to a report in El Financiero, only 170 of the 503 who took the exam passed in the first evaluation. This represents a passing rate of 34%, which is an unsatisfactory result. Iván Alemán Loza, former vice president of Supervision of Preventive Processes of the CNBV, said that if someone fails the exam twice, “the financial institution will be notified of that fact and, therefore, the person may not be a valid interlocutor of the CNBV, and it will be the decision of the institution what it will do with that person.” 2
As can be seen in the list published by the CNBV, only 195 persons obtained the certification in the field of Prevention of Money Laundering and Financing of Terrorism in the first stage (June 1 to September 23 of 2015) and have given their consent for their personal data to be published. Of this figure, the area of compliance represents 37%, auditors 33%, lawyers 6%, inspectors of the CNBV 8% and the rest consists of consultants or advisors and others, according to the information provided by the certificates.
The certification is designed to ensure that people have the expertise in the prevention of operations with resources of illicit origin and financing of terrorism, in accordance with the highest international standards in the area, which will undoubtedly generate confidence in the future. The issue has acquired great importance, so it is an opportunity that public accountants must not miss.
1 It is a non-profit civil association that since 1994 designs and implements assessment of knowledge, skills and competencies of different levels of formal and informal education, and analyzes and disseminates the results of the exams.
2 http://capitalmexico.com.mx/index.php/principal-detalle/90992-esconde-cnbv-a-reprobados-en-certificacion-antilavado
Electronic references:
Diario Oficial de la Federación (Federal Official Gazette) 1. Agreement which disclosed the schedule to start the certification process of independent external auditors, compliance officers and other professionals in the prevention of operations with illicit proceeds and terrorist financing. [Online] <http://www.dof.gob.mx/nota_detalle.php?codigo=5385412&fecha=13/03/2015> [Consulted: April 18, 2016].
Diario Oficial de la Federación (Federal Official Gazette) 2. General provisions for certification of independent external auditors, compliance offers and other professionals in the prevention of operations with illicit proceeds and terrorist financing. [Online] <http://www.dof.gob.mx/nota_detalle.php?codigo=5362353&fecha=02/10/2014> [Consulted: April 18, 2016].
Diario Oficial de la Federación (Federal Official Gazette) 3. Call for certification in prevention of operations with illicit proceeds and terrorist financing. [Online] <http://www.dof.gob.mx/nota_detalle.php?codigo=5392673&fecha=19/05/2015> <http://www.dof.gob.mx/nota_detalle.php?codigo=5404206&fecha=18/08/2015> <http://www.dof.gob.mx/nota_detalle.php?codigo=5435551&fecha=01/04/2016> [Consulted: April 18, 2016].
Comisión Nacional Bancaria de Valores (National Banking and Securities Commission), “Certificación en materia de prevención de lavado de dinero y financiamiento al terrorismo”. [Online] <http://www.cnbv.gob.mx/PrevencionDeLavadoDeDinero/Documents/CertPLDFT-ListaCertificados.pdf> [Consulted: April 18, 2016].
Comisión Nacional Bancaria de Valores (National Banking and Securities Commission), Centro Nacional de Evaluación para la Educación Superior (National Center for the Evaluation of Higher Education, “Guía para el participante: Proceso de certificación de auditores externos independientes, oficiales de cumplimiento y demás profesionales en materia de prevención de operaciones con recursos de procedencia ilícita y financiamiento al terrorismo”. [Online] <http://www.cnbv.gob.mx/PrevencionDeLavadoDeDinero/Documents/Guia-CENEVAL-20150612.pdf> [Consulted: April 18, 2016].
Leyva, Jeanette, “Instituciones financieras reprueban examen para prevenir lavado de dinero” [Online] <http://www.elfinanciero.com.mx/economia/instituciones-financieras-reprueban-examen-para-prevenir-lavado-de-dinero.html> [Consulted: April 18, 2016].
Mendoza P., Israel, “Esconde CNBV a reprobados en certificación antilavado” [Online] <http://capitalmexico.com.mx/index.php/principal-detalle/90992-esconde-cnbv-a-reprobados-en-certificacion-antilavado> [Consulted: April 18, 2016].
Secretaría de Hacienda y Crédito Público (Secretariat of Finance and Public Credit), Portal of Prevention of Money Laundering, [Online] <https://sppld.sat.gob.mx/pld/index.html> [Consulted: April 18, 2016].