March 2019

International

The global AML/CTF standard-setter, the Financial Action Task Force (FATF):

• Updated the FATF Methodology for assessing compliance with the FATF Recommendations and the effectiveness of AML/CFT systems which sets out the evaluation process.
• Published the Private Sector Business Bulletin which provides a brief update on outcomes from the February 2019 plenary meeting that are relevant for the private sector.
• Updated the consolidated processes and procedures for Mutual Evaluations which includes a set of core elements that apply to all anti-money laundering and counter-terrorist financing assessments.
• Organised the experts’ meeting with FATF-Style Regional Body MONEYVAL. The meeting was hosted by the Israeli government in Tel Aviv, Israel on 25-26 March 2019.
• Updated the overview of the ratings on both effectiveness and technical compliance for all countries assessed against the 2012 FATF Recommendations and using the 2013 Assessment Methodology.
• The Member States of the United Nations Security Council adopted a new resolution, committing to further work with the FATF to prevent, detect and disrupt the financing of terrorism.

We reviewed FATF draft risk-based approach guidance for legal professionals, accountants and trust and company service providers, and the AML Accelerate risk methodology is in line with their consultation paper.

Regional

No major updates this month.

Australia

The Australian Transaction Reports and Analysis Centre (AUSTRAC), provided several updates:

• Reminded digital currency exchange providers to be aware of their obligations following amendments to Commonwealth legislation in April last year, which included expanding the scope of the Act to include regulation of digital currency exchange providers.These changes are all included in the AML Accelerate Program Manual.
  • registering with AUSTRAC
  • verifying customer identity
  • reporting suspicious matters and over-threshold cash transactions; and
  • complying with record-keeping requirements. 

• Media Release: A 27-year-old Bulleen man has been arrested during the second phase of an Australian Federal Police (AFP) investigation into an organised crime syndicate. Following the arrests, AUSTRAC suspended the registrations of two digital currency exchange businesses the man is associated with.

We hope you all have submitted the Compliance Report 2018 which was due 31 March 2019.

New Zealand

If you are a high value dealer (HVD) in New Zealand and are covered by the Anti-Money Laundering Act (AML/CFT Act) you will have compliance obligations from 1 August 2019. DIA published a factsheet which provides information on when HVDs are covered by the AML/CFT Act and includes a high-level overview of their compliance obligations includes:

• Conduct standard customer due diligence (CDD);
• Submit prescribed transaction reports (PTRs) to the NZ Police Financial Intelligence Unit (FIU);
• Keep records of identity and verification documents, suspicious activity reports (if they are submitted to the FIU), and any audits; and
• Audit the AML/CFT compliance obligations when requested by the Department.

The AML Accelerate Program Manual for HVD’s includes these activities.

Hong Kong

No major updates this month.

Singapore

The Monetary Authority of Singapore (MAS) published its inaugural Enforcement Report which outlines MAS’ enforcement priorities and provides greater accountability and transparency into the actions taken against breaches of MAS’ rules and regulations. Financial institutions’ compliance with Anti-Money Laundering/Combatting the Financing of Terrorism requirements is listed as one of five focus areas.

United Kingdom

No major updates this month.

Canada

Recidivist Neil Andrew McDonald of Calgary was convicted and sentenced to two years in jail and 18 months of probation in addition to being ordered to pay restitution in the amount of $418,835 for fraud and money laundering.

United States

FinCEN issued an advisory on the FATF-identified Jurisdictions with Anti-Money Laundering and Combatting the Financing of Terrorism Deficiencies.

South Africa

The Financial Intelligence Centre (FIC), provided several updates:

• Updated its guidance on suspicious and unusual transaction reporting, which relates to section 29 of the Financial Intelligence Centre Act (2001), which covers:
• Inclusion of section which relates to the financial sanctions reporting obligation
• Indicators of suspicious and unusual activity relating to potential matches of client names on the targeted financial sanctions consolidated list pursuant

The AML Accelerate Program Manual contains a section on suspicious and unusual transaction reporting and we will ensure this reflects the updated guidance.

• Updated existing guidance relating to section 28A of the Financial Intelligence Centre Act (2001) on terrorist property reporting (TPR), which advises accountable institutions on meeting their reporting obligations.  

The AML Accelerate Program Manual contains a section on reporting and we will ensure this reflects the updated guidance.

• Issued Directive 5/2019 on the use of an automated transaction monitoring system for the detection and submission of regulatory reports to the FIC in terms of section 29 of the Financial Intelligence Centre Act (2001).

The AML Accelerate Program Manual contains a section on transaction monitoring and we will ensure this reflects the updated guidance.