International
The global AML/CTF standard-setter, the Financial Action Task Force (FATF):
- Published June 2019 public statement which identifies jurisdictions with strategic deficiencies in AML/CFT measures. The FATF remains concerned by the Democratic People's Republic of Korea’s failure to address the significant deficiencies in its AML/CFT regime and the serious threats they pose to the integrity of the international financial system. The FATF also decided to continue the suspension of counter-measures, with the exception of the FATF calling upon members and urging all jurisdictions to require increased supervisory examination for branches and subsidiaries of financial institutions based in Iran.
- Updated jurisdictions that have strategic AML/CFT deficiencies for which they have developed an action plan with the FATF. Panama has been added to the list since it made a high-level political commitment to work with the FATF and GAFILAT to strengthen the effectiveness of its AML/CFT regime. Serbia is no longer subject to the FATF’s monitoring process under its ongoing global AML/CFT compliance process as it has strengthened the effectiveness of its AML/CFT regime and addressed related technical deficiencies to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in February 2018. We will incorporate this into our country risk rating update.
- Adopted and issued an Interpretive Note to Recommendation 15 on New Technologies (INR. 15) that further clarifies the FATF’s previous amendments to the international Standards relating to virtual assets. The FATF also issued guidance for a risk-based approach to Virtual Assets and Virtual Asset Service Providers that helps countries and virtual asset service providers understand their anti-money laundering and counter-terrorist financing obligations, and effectively implement the FATF’s requirements as they apply to this sector.
- Published guidance for risk-based approach for Trust and Company Service Providers, the Accounting Profession and Legal Professionals, which provides support both to the private sector and public authorities, by focusing on ML/TF risks and associated mitigation measures. The AML Accelerate risk methodology is in line with FATF guidance.
- Released a statement conveying its deep concerns about Brazil’s continued failure to remedy the serious deficiencies identified in its third mutual evaluation report adopted in June 2010, especially those related to terrorism and terrorist financing.
Regional
No major updates this month.
Australia
The Australian Transaction Reports and Analysis Centre (AUSTRAC):
- Reviewed and changed the existing process to authorise an individual to be an ‘external auditor’ for the purposes of the AML/CTF Act. In future, authorisation is to be undertaken by AUSTRAC on an as needs basis and only when AUSTRAC requires a reporting entity to appoint an external auditor.
- Ordered the appointment of an external auditor to Afterpay Pty Ltd (Afterpay) to examine its compliance with the AML/CTF Act. The audit will be used to determine the extent of any compliance issues and whether further regulatory action concerning Afterpay is required.
- Released new case studies to make regulated entities aware of indicators of money laundering, terrorism financing and other serious financial crime.
New Zealand
The Department of Internal Affairs (DIA):
- Issued June 2019 AML/CFT Newsletter:
- New online tool and website improvements - AML Online
- Helping businesses comply with the Act by conducting onsite reviews of businesses, meeting with them to talk through what their obligations are under the AML/CFT Act, and running a series of 16 training workshops nationwide.
- Formal warning issued to Auckland-based business - Denton Morrell Limited
- Lifting the AML/CFT capability of our Pacific partners
The Financial Markets Authority (FMA):
- Morgan DeVere fined $40,000 in first FMA case of company abuse of the Financial Services Providers Register.
Hong Kong
The Hong Kong Monetary Authority (HKMA):
- Undertook a thematic review to provide independent and in-depth analysis of how a number of Authorized Institutions, collectively accounting for a significant market share of the SME customer segment, assess money laundering and terrorist financing (ML/TF) risks for this group of customers and how such risk assessment was driving actions to comply with applicable legal and regulatory requirements, particularly with regard to customer due diligence (CDD) at onboarding.
Canada
The Department of Finance Canada:
- Committed that The Government of Canada will lead national response to money laundering and terrorist financing and continue to use every tool at its disposal to detect, stop and prosecute financial criminals.
- Released a joint statement that federal, provincial and territorial governments will work together to combat money laundering and terrorist financing in Canada.
United Kingdom
The Financial Conduct Authority (FCA):
- Fined Bank of Scotland (BOS) £45,500,000 for failure to disclose information about its suspicions that fraud may have occurred at the Reading-based Impaired Assets (IAR) team.
Singapore
The Monetary Authority of Singapore (MAS):
- Published a consultation paper on new Notices to payment services providers on the prevention of money laundering and countering the financing of terrorism, which applies to 3 classes of licensees – Money-Changing licence, Standard Payment Institution licence, and Major Payment Institution licence.
United States
No major updates this month.
South Africa
No major updates this month.
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