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From the multitude of financial stability issues that transpired during 2015, the Regulatory Authority identified the following key global and regional developments to be the most important in terms of their potential to influence the financial stability outlook:
1. The ongoing weakness and divergence in global growth prospects;
2. An economic slowdown in China;
3. The decline in oil prices;
4. US monetary policy and uncertainty;
5. The rapid growth in the shadow banking sector globally;
6. Global concerns regarding large scale cyberattacks;
7. Developments in Iran;
8. An economic slowdown in the region;
9. Regional geopolitical risks;
10. Moderatinglocalgrowthand related adjustments.
Non-Resident MLRO Reporting (Form Q23) – thematic review
This thematic review was designed to assess the level of compliance by firms (financial institutions and DNFBPs)
with meeting their AML/CFT obligations with an MLRO who is not ordinarily resident in Qatar, in conjunction with reviewing the form Q23 Annual Non-Resident MLRO Report. In this regard, all form Q23 reports were reviewed and a number of firms were selected for on-site visits to assess whether they were meeting their non-residency obligations as per the AML/CFT Rules.
Most firms’ non-residency arrangements satisfied the requirements of the Regulatory Authority. Overall, the quality of the reports ranged from good to, in some instances, insufficient. Insufficient reports warranted feedback letters
to seek clarification and additional information to ascertain if such firms should continue to be allowed to operate under the current non- residency arrangement.
Form Q19 DNFBP AML/CFT Annual Questionnaire – thematic review
This thematic review was designed to assist the Regulatory Authority in its supervision and monitoring
of DNFBPs. The purpose of this review was for the Regulatory Authority to remain informed about DNFBPs’ businesses and AML/CFT framework.
All DNFBPs were required
to submit their annual questionnaire (Form Q19) detailing information about their business, products and services offered to their customer base and their AML/CFT programme and framework. The Regulatory Authority was then able to assess any potential ML/TF risks posed to the Qatar Financial Centre and the State of Qatar.
Macro-Prudential Analysis
In addition to risk-based supervision at the micro- prudential, or individual firm level, in 2015 the Regulatory Authority enhanced its macro- prudential framework and oversight capabilities in line with international best practice.
In considering risks and trends from a macro-prudential perspective, the Regulatory Authority was in a strong position to apply both qualitative
and quantitative tools to
assist internal and external stakeholders. The goal was to identify relevant intelligence on emerging and potentially systemic risk considerations as rapidly and comprehensively as possible. The Regulatory Authority identified potential areas of supervisory concern and weakness by monitoring developments and practices across the global, regional and domestic financial industries.
The Macro-Prudential Review
In pursuit of these objectives, the Regulatory Authority’s Macro- Prudential team evaluated and reported on emerging trends and risks in the international context, as well as examining the GCC region, Qatar and the Qatar Financial Centre’s areas of financial activity. Key findings from across the global, regional and domestic financial system including within the Qatar Financial Centre, are covered
in a comprehensive financial stability report, The Macro- Prudential Review. The report
is prepared semi-annually for internal use as of the six-month periods ended 31 March and
30 September. The Regulatory Authority has produced eight reports thus far. Key findings from the reports have been integrated in risk-based reviews of individual financial institutions at the micro- supervision level.
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