The Financial Action Task Force (FATF)
- Updated its list of examples of published national risk assessments (NRAs) and regional risk assessments.
- Published The Democratic Republic of Congo (DRC)'s measures to combat money laundering and terrorist financing
The Australian Transaction Reports and Analysis Centre (AUSTRAC)
- Issued a remedial direction to Australian Military Bank Ltd (AMB) requiring the mutual bank to review and uplift its compliance with Australia’s AML/CTF laws. The remedial direction requires AMB to:
- With the assistance of an independent auditor, conduct an assessment of the money laundering and terrorism financing risks faced by the business.
- Improve its systems, controls and record keeping; this includes addressing concerns related to its AML/CTF program, implementing appropriate systems to collect and verify information to identify a customer (Know Your Customer), ensuring compliance with reporting obligations and reviewing its governance and oversight arrangements to ensure senior management and its board maintain oversight.
- Appoint a second independent auditor to assess whether AMB has implemented measures and addressed any deficiencies in its compliance.
The Department of Internal Affairs (DIA)
- Produced monthly reports called “The Suspicious Activity Report”. The most recent report focuses on suspicious activity reporting and what makes a good suspicious activity report (SAR). Some key points for reporting entities are:
- Suspicious activity reporting is based on an objective test applied to reasonable grounds for suspicion. “Where an objective observer would conclude that reasonable grounds for suspicion were known to the reporting entity, it is no defence that the reporting entity did not actually consider the transaction to be suspicious.” Department of Internal Affairs v Ping An Finance
- The FIU expects reporting entities to conduct enquires to gather information to establish reasonable grounds for suspicion. This may be required to comply with enhanced customer due diligence requirements.
- Reasonable grounds for suspicion means “an activity and/or transaction that is inherently likely to be relevant to the investigation or prosecution of any person for a money laundering offence (or any other offence as specified - NZ Legislation website)”.
- Once reasonable grounds for suspicion exist, the legal obligation is triggered to submit a SAR to the FIU (as soon as practicable, but no later than three working days) using goAML.
- If your business is not registered for goAML please visit the FIU website. The FIU may also be contacted at FIU.Compliance@police.govt.nz.
- Recently used targeted compliance assessments to focus on the requirement for a reporting entity to have an independent AML/CFT audit conducted every two years. The most common areas of non-compliance identified by auditors were:
- In assessing risk, having regard to the products and services offered;
- Having regard to guidance material (risk assessment); and
- Policies, procedures and controls for politically exposed persons.
- Issued extension on interim solution for corporate trustee annual report obligations. A corporate trustee, whose AML/CFT obligations are being fulfilled by a parent law firm, accounting practice or a trust and company service provider (TCSP) that is a reporting entity in New Zealand is not required to submit an annual report by 31 August 2021.
- Issued compliance newsletter in May 2021:
- The New Zealand mutual evaluation report has been published
- Get ready to submit your annual report
- Targeted compliance assessment findings – s59 audits
- FIU monthly report
- Took enforcement action against Qian DuoDuo Limited (an Auckland based remittance business) as a result of suspected breaches of the AML/CFT Act 2009 to prevent it from acting as a reporting entity.
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
- Imposed an administrative monetary penalty on Magasin Château D'Ivoire Inc., also operating as Château D'Ivoire. This dealer in precious metals and stones in Montréal, Quebec, was imposed an administrative monetary penalty of $206,910 on March 1, 2021, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.
- Signed a Memorandum of Understanding with the Society of Notaries Public of British Columbia to allow for the sharing of compliance-related information in order to help strengthen the compliance of the British Columbia notaries sector with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, and to reduce duplication of effort and compliance burden for notaries public in British Columbia.
The Gambling Commission
- Published COVID-19 emerging risks bulletin which looks at innovations in cryptoassets, the quality of suspicious activity report (SAR) submissions, insufficient due diligence checks and the threat of organised crime.
The European Banking Authority (EBA)
- Launched a public consultation on draft Regulatory Technical Standards (RTS) on a central database on AML/CFT in the EU. This database will be a key tool for the EBA’s recently enhanced mandate to lead, coordinate and monitor AML/CFT efforts in the European Union. The consultation runs until 17 June 2021.
- Launched a public consultation on its new Guidelines that set out how prudential supervisors, AML/CFT supervisors and FIUs should cooperate and exchange information in relation to AML/CFT, in line with provisions laid down in the Capital Requirements Directive. This consultation runs until 27 August 2021.
No major updates this month.
The Hong Kong Monetary Authority (HKMA)
- Updated FAQs in relation to AML/CFT to to assist Authorized Institutions regulated by the HKMA in understanding relevant AML/CFT requirements.
- Updated the FAQs in relation to AML/CFT to help authorized institutions understand how iAM Smart (technology for remote on-boarding) can be used in complying with the relevant AML/CFT requirements.
The Monetary Authority of Singapore (MAS)
- Published consultation paper that seeks comments on the draft Notices setting out the proposed anti-money laundering and countering the financing of terrorism requirements under both the proposed Branch Framework and notified FRC framework.
No major updates this month.