MLRO (Money Laundering Reporting Officer)

Why it matters for PSPs and EMIs

In a payment or e-money institution, the MLRO owns the questions that matter most in an onboarding file: is this reportable, can we contact the customer, can we proceed? The AMLR also makes the role more formal — with protection against retaliation, a direct line to the management body and a duty to notify the supervisor if the officer is removed.

What the law says

• Compliance manager. AMLR Art. 11(1): a member of the management body in its management function, responsible for ensuring compliance with the AMLR.

• Compliance officer. AMLR Art. 11(2): appointed by the management body with sufficiently high hierarchical standing; responsible for AML/CFT policies, procedures and controls day to day, including targeted financial sanctions; the contact point for competent authorities; and responsible for reporting suspicious transactions to the FIU (Art. 69(6)).

• Independence and resources. AMLR Art. 11(3) to (5): adequate resources including technology; protection against retaliation; decisions not unduly influenced by commercial interests; direct reporting to the management body.

• Other duties. AMLR Art. 10(2): the compliance officer draws up the business-wide risk assessment. Art. 11(6): an annual report on internal policies and controls. Art. 11(7): where justified, the two roles may be held by the same person.

• Current guidance. EBA Guidelines EBA/GL/2022/05 on the role and responsibilities of the AML/CFT compliance officer.

• Belgium (current law). Law of 18 September 2017, Art. 9 §1 (the person responsible at the highest level) and Art. 9 §2 (the persons in charge of implementing AML policies and analysing atypical transactions — the AMLCO).