5‑10 Independent evaluations5‑10 Independent evaluations

5‑10 Independent evaluations

(1) For the purposes of paragraph 26F(7)(a) of the Act, this section specifies requirements in relation to the matter mentioned in paragraph 26F(4)(f) of the Act (the conduct of independent evaluations of the reporting entity’s AML/CTF program). (2) The AML/CTF policies of the reporting entity must require the following as part of the conduct of an independent evaluation: (a) evaluation of the steps taken by the reporting entity when undertaking or reviewing the reporting entity’s ML/TF risk assessment, against the requirements of the Act, the regulations and the AML/CTF Rules; (b) evaluation of the design of the reporting entity’s AML/CTF policies, against the requirements of the Act, the regulations and the AML/CTF Rules; (c) testing and evaluation of the compliance of the reporting entity with the reporting entity’s AML/CTF policies; (d) testing and evaluation of whether the reporting entity is appropriately identifying, assessing, managing and mitigating the risks of money laundering, financing of terrorism and proliferation financing that the reporting entity may reasonably face in providing its designated services; (e) production of a written report (an independent evaluation report) containing findings on the matters mentioned in paragraphs (a) to (d); (f) delivery of the independent evaluation report to the governing body of the reporting entity and to any senior manager responsible for approvals under section 26P of the Act. (3) The AML/CTF polices of the reporting entity must deal with how the reporting entity will respond to an independent evaluation report.