November 2021

International

The Financial Action Task Force (FATF)

• Published a report on Turkey's progress in strengthening measures to tackle money laundering and terrorist financing on 30 Nov 2021. This follow-up report analyses Turkey's progress in addressing the technical compliance deficiencies identified in its 2019 Mutual Evaluation.
• Published an overview of consolidated assessment ratings on 30 Nov 2021. This is an up-to-date 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.
• On 26 Nov 2021 FATF announced a webinar on Proliferation Financing Risk Assessment and Mitigation. The webinar builds on its Guidance Proliferation Financing Risk Assessment and Mitigation and brings together panelists from public and private sectors with a global and domestic focus on tackling the financing of the proliferation of weapons of mass destruction.
• Published a report on Niger's measures to combat money laundering and the financing of terrorism and proliferation on 25 Nov 2021. This report provides a summary of the AML/CFT measures in place in Nigeria as at the date of the on-site visit (13 to 29 January 2020). It analyses the level of compliance with the FATF 40 Recommendations, the level of effectiveness of its AML/CFT system and makes recommendations on how the system could be strengthened.
• Published a report on the Cayman Islands' progress in strengthening measures to tackle money laundering and terrorist financing on 16 Nov 2021. This follow-up report analyses Cayman Islands' progress in addressing certain technical compliance deficiencies which were identified in its MER.
• Published explanatory materials on the Application of Group-Wide Programmes by Non-Financial Business and Professions on 10 Nov 2021. These Explanatory Materials accompany FATF's minor amendments to its Standards with respect to designated non-financial businesses and professions.
• Published the FATF Recommendations on 10 Nov 2021. The FATF Recommendations are the basis on which all countries should meet the shared objective of tackling money laundering, terrorist financing and the financing of proliferation. The FATF calls upon all countries to effectively implement these measures in their national systems.
• Published a report on Sri Lanka's progress in strengthening measures to tackle money laundering and terrorist financing on 08 Nov 2021. This follow-up report analyses the progress of Sri Lanka in addressing the technical compliance deficiencies identified in its MER.
• Published a report on Nigeria's measures to combat money laundering and the financing of terrorism and proliferation on 04 Nov 2021. This report provides a summary of the AML/CFT measures in place in Nigeria as at the date of the on-site visit (25 September to 14 October 2019). It analyses the level of compliance with the FATF 40 Recommendations, the level of effectiveness of its AML/CFT system and makes recommendations on how the system could be strengthened.

Regional

Asia / Pacific Group (APG)

• Announced the conclusion of its 2021 Special Plenary Meeting in Virtual Format on 22 Nov 2021. The APG special plenary was hosted in virtual format by the Government of Australia. Deputy Commissioner Ian McCartney of the Australian Federal Police chaired the meeting held on 18 November 2021.

Australia

The Australian Transaction Reports and Analysis Centre (AUSTRAC)

• Published new financial crime guide targets for technology-facilitated abuse on 19 Nov 2021. A new financial crime guide will help businesses understand, identify and report technology-facilitated abuse through financial transaction payment text fields. AUSTRAC’s Fintel Alliance has seen an increase in the use of these fields to stalk, harass or threaten victims, in an attempt to avoid law enforcement scrutiny.  

New Zealand

Department of Internal Affairs (DIA)

• Welcomed improved AML compliance from Property Brokers on 3 Nov 2021. The hard work of Property Brokers Limited to meet its anti-money laundering obligations has been recognised by Te Tari Taiwhenua Department of Internal Affairs. This follows a formal warning in March 2021 under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.

Financial Market Authority (FMA)

• Announced on 10 Nov 2021 that auditors responded well to challenges presented by COVID-19. Auditors have responded well to financial reporting challenges presented by the pandemic, according to the Financial Markets Authority (FMA) - Te Mana Tātai Hokohoko Audit Quality Monitoring Report for 2020/21.
• Announced on 04 Nov 2021 that self-reporting issues to FMA does not provide immunity from litigation. The Financial Markets Authority (FMA) - Te Mana Tātai Hokohoko - has laid its expectations for how firms under its supervision should deal with the regulator when day-to-day interactions evolve in the event of an enforcement process.

Reserve Bank of New Zealand

• Announced on 25 Nov 2021 that an external report highlights material shortcomings with Westpac NZ’s risk governance. The Reserve Bank of New Zealand - Te Pūtea Matua in March instructed Westpac NZ to commission an independent report to address concerns, stemming from material compliance issues, with the risk governance processes and practices applied by the Westpac NZ Board and executive management.

Canada

Financial Transactions and Reports Analysis Center of Canada (FINTRAC)

• Published Advisory: Financial transactions related to countries identified by the Financial Action Task Force (FATF) on 30 Nov 2021.
• Announced on 12 Nov 2021 the RCMP Integrated Money Laundering Investigative Team had charged a Money Services Business owner. The Royal Canadian Mounted Police (RCMP) Greater Toronto Area (GTA), Integrated Money Laundering Investigative Team (IMLIT) charged Nishanthan Gunapalan (38) of Markham, Ontario with 4 counts of knowingly providing false or misleading information, contrary to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
• Announced on 09 Nov 2021 that it had imposed an administrative monetary penalty on Pacific Place – Arc Realty Ltd. This real estate broker in Vancouver, British Columbia, was imposed an administrative monetary penalty of $255,750 on July 27, 2021, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.

United Kingdom

No major updates this month.

European Union

European Banking Authority (EBA)

• Published its final draft of Regulatory Technical Standards (RTS) on 24 Nov 2021 specifying the methodology to apply to calculate the risk-weighted exposure amounts, in the context of the mandate-based approach when there are some missing inputs.
• Acknowledged Commission’s decision on equivalence for Bosnia and Herzegovina and North Macedonia on 18 Nov 2021. The EU Commission’s decision considered the EBA’s assessments carried out in 2019-20 and the respective Opinions, concluding that the supervisory and regulatory framework applicable to credit institutions in Bosnia and Herzegovina and North Macedonia could be regarded as equivalent to that applied in the Union.
• Published its final draft of Regulatory Technical Standards (RTS) on 05 Nov 2021 specifying the types of factors and conditions to be considered for the assessment of the appropriateness of risk weights and of minimum loss given default (LGD) values.

European Securities and Markets Authority (ESMA)

• Published its annual report on administrative and criminal sanctions, as well as other administrative measures, issued across the European Union under the Market Abuse Regulation (MAR) in 2020 on 23 Nov 2021. The Report found that National Competent Authorities (NCAs) and other authorities imposed a total of €17.5 million in fines related to 541 administrative and criminal actions under MAR.

United States

Financial Crimes Enforcement Network (FinCEN)

• Held the FinCEN Exchange on Environmental Crimes and Related Financial Activity on 16 Nov 2021. The Financial Crimes Enforcement Network (FinCEN) convened a virtual FinCEN Exchange focused on identifying and combating illicit financial flows associated with environmental crimes and related money laundering.
• Announced on 09 Nov 2021 that it had brought together public and private stakeholders to discuss Bank Secrecy Act Suspicious Activity Reporting Statistics. FinCEN convened a virtual FinCEN Exchange with members of the financial industry and law enforcement to discuss FinCEN’s analysis of suspicious activity reporting (SAR) with a transactional nexus to Alabama, Florida, Georgia, Mississippi, and South Carolina.  Topics of discussion included an analysis of certain Bank Secrecy Act (BSA) filing statistics for SARs and analysis of SAR filings related to recent FinCEN advisories.

Hong Kong

Hong Kong Monetary Authority (HKMA)

• Launched the AML Regtech Lab on 05 Nov 2021. This was the first Anti-Money Laundering (AML) Regtech Lab (AMLab), in collaboration with Cyberport and supported by Deloitte, to further encourage the use of Regtech under the “Fintech 2025” strategy. AMLab will strengthen banks’ capabilities to protect customers from fraud and financial crime losses, reduce risk displacement across the banking sector and raise the overall effectiveness of the AML ecosystem.

Securities and Futures Commission (SFC)

• Published circulars to licensed corporations and associated entities - Anti-Money Laundering / Counter-Financing of Terrorism on 11 Nov 2021 and 26 Nov 2021 on the United Nations Sanctions for Mali and Yemen.
• Announced on 12 Nov 2021 they will host two sessions of anti-money laundering and counter-financing of terrorism (AML/CFT) webinar on 6 and 7 December 2021 respectively. The webinar will be conducted via Zoom.

Customs and Excise Department

• Announced on 05 Nov 2021 it had smashed a drug trafficking and money laundering syndicate. Hong Kong Customs on October 19 seized about 260 kilograms of suspected cocaine with an estimated market value of about $300 million at the Tsing Yi Customs Cargo Examination Compound. Customs officers found that the case also involved money laundering activities, in which about $130 million of suspected crime proceeds had been laundered.
• Announced on 05 Nov 2021 it conducted a joint counter-terrorism exercise with FSD. Hong Kong Customs and the Fire Services Department (FSD) co-organised a counter-terrorism exercise codenamed "GATEKEEPER" yesterday (November 4) afternoon at the Passenger Clearance Building of the Hong Kong-Zhuhai-Macao Bridge Hong Kong Port. 
• Announced on 04 Nov 2021 the director of a remittance company was jailed for engaging in wrongly accepting payment. The director was sentenced to five months' imprisonment at West Kowloon Magistrates' Courts after an earlier conviction of wrongly accepting payment in the course of business, in contravention of the Trade Descriptions Ordinance (TDO).

Singapore

No major updates this month.

South Africa

Financial Intelligence Center (FIC)

• Published an in-depth report about financial flows associated with illegal wildlife trade in South Africa on 16 Nov 2021. Role players in the ecosystem of illegal trade in wildlife and wildlife products have been profiled through the work of the South African Anti-Money Laundering Integrated Task Force (SAMLIT).

Other Jurisdictions

No major updates this month.