April 2019

International

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

Published a report to G20 finance ministers and central bank governors which provides an update on FATF’s efforts to fight money laundering and the financing of terrorism and proliferation. It also sets out ongoing work to strengthen FATF’s institutional basis, governance and capacity.
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.

Regional

No major updates this month.

Australia

The Australian Transaction Reports and Analysis Centre (AUSTRAC) issued an amendment in Anti‑Money Laundering and Counter‑Terrorism Financing Rules Instrument 2007 (No. 1):

Removal of the need to collect CDD for trustee companies license to provide custodial services
Removal of the need to undertake CDD on beneficial owners of custodians and ECDD on custodians
Amendment to chapter 38 to remove the need to distribute charitable proceeds within 1 year

We have updated our CDD Standards template in the platform (section 5.1) to reflect the amendment. We recommend you roll forward your program and amend your documents to include this.

New Zealand

The Department of Internal Affairs (DIA) shared the FATF guidance on the regulation of virtual assets and a reminder of AML/CFT responsibilities for Virtual Asset Service Providers (VASPs ):

Reporting suspicious activities and certain transactions;
Verifying the identity of customers in some circumstances;
Assessing and mitigating money laundering and terrorism financing risks.

Types of VASPs include Virtual Asset Exchanges, Virtual Asset Wallet Providers, Virtual Asset Broking and Initial Coin Offering (ICO) Providers.

The Financial Markets Authority (FMA):

Published AML/CFT 2018 Annual Monitoring Report which summarises FMA’s monitoring activities from 1 July 2016 to 30 June 2018, to help reporting entities better understand FMA’s expectations, and what they can do to improve their systems and processes to comply with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 and its supporting regulations.
Specifically the FMA raised common findings in relation to AML/CFT Programmes and Risk Assessments. The FMA recommends that both are updated at least annually or as the business changes. The FMA observed other areas where programmes and risk assessments are often deficient. Our AML Accelerate programme and risk assessment templates cover all the areas raised and are in line with their expectations.

Hong Kong

The Hong Kong Customs and Excise Department confiscates crime proceeds of car dealer convicted of cross-boundary money laundering. The custom successfully made its application to the District Court for a confiscation order granted under the Organized and Serious Crimes Ordinance (OSCO) to confiscate crime proceeds of about $14 million from a local car dealer convicted of money laundering, including real properties, vehicles and other realisable properties.

Singapore

The Monetary Authority of Singapore (MAS):

Issued an update to E-Payments user protection guidelines. Under the Guidelines, financial institutions, such as banks, are expected to provide notifications to their customers for all e-payment transactions.
Announced concurrent adoption of equivalence decision for certain derivatives trading venues in the EU and Singapore with European Commission.
Issued prohibition orders (POs) against two former bank employees and a former insurance agent for fraudulent and dishonest conduct.

United Kingdom

The Financial Conduct Authority (FCA) fined Standard Chartered Bank (Standard Chartered) £102.2 million for Anti-Money Laundering (AML) breaches in two higher risk areas of its business. This is the second largest financial penalty for AML controls failings ever imposed by the FCA.

Canada

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced that it has signed a Memorandum of Understanding with the Real Estate Council of British Columbia aimed at combatting money laundering in the real estate sector in British Columbia.

United States

The Financial Crimes Enforcement Network (FinCEN) assessed a civil money penalty against Eric Powers for willfully violating the Bank Secrecy Act’s (BSA) registration, program, and reporting requirements. This is its first enforcement action against a peer-to-peer virtual currency exchanger and the first instance in which it has penalised an exchanger of virtual currency for violations of Anti-Money Laundering laws.

South Africa