USE OF CASH AGENTS IN SOLOMON ISLANDS
1. This Practice Guidance Note is applicable to commercial banks and credit institutions licensed by the Central Bank of Solomon Islands (CBSI).
2. Using cash agents provides affordable and accessible methods for using financial services throughout Solomon Islands. This benefits those living in remote regions and improves financial inclusion and the development of Solomon Islands’ financial system with wider benefits for the country’s economic development..
3. In accordance with its functions to promote a “safe, sound and efficient payment system” and to “promote financial inclusion”, CBSI is issuing this Practice Guidance Note for financial institutions using cash agents. Financial institutions are responsible for ensuring their agents’ activities comply with the intent of this Practice Guidance Note. Financial institlNons are requested to notify CBSI of any difficulties in compliance with the Practice Guidance Note so that difficulty can be discussed, understood and resolved.
Purpose of Practice Guidance Note
4. The objective of this Practice Guidance Note is to provide financial institutions with a policy framework which supports innovation in the market but represents a standardised approach to monitoring and supervising how institutions mitigate risks and safeguard customers and agents where institutions are using cash agents
Responsibilities of Financial Institution
5. Each financial institution shall be responsible for how its agents are selected, trained, managed and monitored.
6. Each financial institution is responsible for determining the suitability of its agents prior to contracting the agents and must conduct appropriate due diligence on agents and agents’ operations.
7. Training involves ensuring agents understand the services they can offer and their duties in offering these services, in particular Know Your Customer compliance. Financial institutions are responsible for ensuring their agents’ activities comply with the Solomon Islands Financial Intelligence Unit Guideline No. 1 2013: Money Laundering and Proceeds of Crime Act.
8. Managing agents involves identifying, assessing and mitigating the risks associated with agents’ activities.
9. Each financial institution is liable for all actions or omissions of its agent related to its agent services. It is expected that this liability is stated and agreed in the contractual agreement between the financial institution and its agent.
18. The effective date of this Standard is August 1, 2017.
Issued this 26th day of June, 2017