May 2019

International

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

• Held its annual Private Sector Consultative Forum on 6-7 May. It provides an opportunity for the FATF and its members to engage directly with the private sector on anti-money laundering and countering the financing of terrorism (AML/CFT) issues. Key topical issues include:
• Importance of AML/CFT in the Context of Combating Corruption
• Latest Trends/ Priorities of AML/CFT in Public and Private Sector

Regional

No major updates this month.

Australia

No major updates this month.

New Zealand

The Department of Internal Affairs (DIA)

• Published the Guidance for High Value Dealers to help them develop an understanding and meet their obligations with the AML/CFT Act from 1 August 2019.

The Financial Markets Authority (FMA)

• Issued formal warnings to 10 reporting entities under Section 80 of the Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT Act):
• Five formal warnings to reporting entities for failing to have their risk assessment and AML/CFT programme audited every two years
• Five formal warnings to reporting entities who had their risk assessment and AML/CFT programme audited, but where the audit was not done in a timely manner, occurring months after its due date
• 14 further desk-based reviews and four monitoring visits will be carried out in response to this work

Hong Kong

The Insurance Authority (AI):

• Announced to commence direct regulation over insurance intermediaries on 23 September 2019. The takeover will mark a major milestone and a reformatory change for the insurance industry as the IA will become the sole regulator of all insurance intermediaries in Hong Kong.

Canada

No major updates this month.

Singapore

The Monetary Authority of Singapore (MAS):

• Announced the establishment of the Culture and Conduct Steering Group (CCSG) to promote sound culture and raise conduct standards among banks in Singapore.

United Kingdom

The Financial Conduct Authority (FCA)

• Warns the public to be wary of investment scams carried out via bogus online trading platforms. This warning comes as cryptoassests (crypto) and forex investment scams reports more than tripled last year to over 1,800. Fraudsters promise high returns from investments in crypto and forex, with victims losing over £27 million in total in 2018/19.

United States

The Financial Crimes Enforcement Network (FinCEN)

• Published new FinCEN guidance affirms its longstanding regulatory framework for virtual currencies and a new FinCEN advisory warns of threats posed by virtual currency misuse to assist financial institutions in identifying and reporting suspicious activity related to criminal exploitation of convertible virtual currencies for money laundering, sanctions evasion, and other illicit financing purposes.
• Issued an updated advisory to alert financial institutions of continued widespread public corruption in Venezuela and the methods Venezuelan senior political figures and their associates may use to move and hide proceeds of their corruption or launder money.

South Africa

No major updates this month.