FinCrime News - May 2022

International

The Financial Action Task Force (FATF)

• Published a report on New Zealand's progress in strengthening measures to tackle money laundering and terrorist financing on 31 May 2022. This follow-up report analyses New Zealand's progress in addressing the technical compliance deficiencies identified in its 2021 Mutual Evaluation.
• Published consolidated assessment ratings on 31 May 2022. 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.
• Published a report on Israel's progress in strengthening measures to tackle money laundering and terrorist financing on 24 May 2022. This follow-up report analyses Israel's progress in addressing the technical compliance deficiencies identified in its 2018 Mutual Evaluation.
• Published a report on Guinea Bissau's measures to combat money laundering and the financing of terrorism and proliferation on 23 May 2022. This report provides a summary of the AML/CFT measures in place in Nigeria as at the date of the on-site visit (17 January to 5 February 2021). 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 France's measures to combat money laundering and terrorist financing on 17 May 2022. France has a robust and sophisticated framework to fight money laundering and terrorist financing that is effective in many respects, notably in law enforcement, confiscation areas and international cooperation.
• Published a report on Mexico's progress in strengthening measures to tackle money laundering and terrorist financing on 12 May 2022. This follow-up report analyses Mexico's progress in addressing the technical compliance deficiencies identified in its 2018 Mutual Evaluation and since its 2021 follow-up report.
• Published a report on Turkey's progress in strengthening measures to tackle money laundering and terrorist financing on 10 May 2022. This follow-up report analyses Turkey's progress in addressing the technical compliance deficiencies identified in its 2019 Mutual Evaluation and since its 2021 follow-up report.

Australia

The Australian Transaction Reports and Analysis Centre (AUSTRAC)

• Announced acceptance of enforceable undertaking from National Australia Bank on 2 May 2022. AUSTRAC has accepted the undertaking from National Australia Bank (NAB) to uplift its compliance with Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.

Federal Register of Legislation

• Amended the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) on 09 May 2022, taking into account amendments up to Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2022 (No. 1).

Canada

Financial Transactions and Reports Analysis Center of Canada (FINTRAC)

• Announced an administrative monetary penalty of $222,750 on Montecristo Jewellers Inc. on 12 May 2022. This precious metals and precious stones dealer in Vancouver, British Columbia, was imposed an administrative monetary penalty for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.
• Announced an administrative monetary penalty of $101,227 on 9293-0809 Québec Inc. on 10 May 2022. This real estate broker in Montréal, Quebec, was imposed an administrative monetary penalty for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.
• Released an advisory on key characteristics of illicit underground banking through unregistered money services businesses on 05 May 2022. The new Sectoral and Geographic Advisory, Underground Banking through Unregistered Money Services Businesses, helps businesses and Canadians better protect themselves against illicit activities associated with underground banking, and to facilitate the reporting of suspicions of money laundering or terrorist activity financing to FINTRAC.

Canadian Government

• Announced additional sanctions on Russian oligarchs on 20 May 2022. These new measures impose restrictions on 14 individuals including Russian oligarchs, their family members, and close associates of the Putin regime. In addition, the announcement includes a ban on the export of targeted luxury goods to Russia, as well as a ban on the import of targeted luxury goods from Russia.
• Announced additional sanctions on the Russian regime on 31 May 2022. These new measures impose restrictions on 22 individuals and 4 entities. Among the individuals and entities listed are senior officials of Russian financial institutions and their family members, as well as key financial institutions and banks.

United Kingdom

Gambling Commission (GC)

• Announced online gambling businesses face £675,000 regulatory action on 17 May 2022. Gambling Commission investigations revealed social responsibility and anti-money laundering failures in two online gambling businesses. Jumpman Gaming Limited – which runs 243 websites – will pay £500,000 and Progress Play Limited – which runs 201 websites – will pay £175,718 to the National Strategy to Reduce Gambling Harms.
• Announced suspension of the operating licence of Goldchip Limited on 17 May 2022. The review and consequent suspension follow concerns that activities may have been carried out contrary to the Act, not in accordance with the conditions of their licence and that the Licensee may be unsuitable to carry on the licensed activities. Suspected social responsibility and anti-money laundering failings were key considerations in the suspension decision.

UK Government

• Announced sanctions targeting Russian airlines on 19 May 2022. New sanctions on major Russian airlines will prevent them from cashing in on their UK landing slots.
• Announced sanctions targeting the shady network funding Putin's lavish lifestyle on 13 May 2022. Sanctions hit Putin’s financial network, tightening the vice on the President and his inner circle.
• Announced a new round of sanctions on £1.7 billion of goods on 8 May 2022. The UK announced a new package of sanctions on Russia and Belarus targeting £1.7 billion worth of trade.
• Announced sanctions on a major manufacturer of Russian steel on 5 May 2022. The UK has sanctioned Evraz plc, a steel manufacturing and mining company that operates in sectors of strategic significance to the Government of Russia.

European Union

European Banking Authority (EBA)

• Published a framework for reporting deposits subject to Russian and Belarusian sanctions on 10 May 2022. The European Banking Authority (EBA) has developed a template for the annual reporting of information on deposits subject to the Russia and the Belarus Economic Sanctions Regulations. The EBA is making the template available for voluntary use by the relevant national competent authorities and by the EU Commission, with the aim to promote a convergent approach and reduce any associated reporting costs, especially for cross-border banks.
• Published technical standards to identify shadow banking entities on 23 May 2022. The final draft Regulatory Technical Standards (RTS) specifies the criteria to identify shadow banking entities for the purposes of reporting large exposures. The final draft RTS clarify that entities carrying out banking activities or services, which have been authorised and supervised in accordance with the EU prudential framework, shall not be considered shadow banking entities.
• Adopted a decision on supervisory reporting for intermediate EU parent undertaking threshold monitoring on 18 May 2022. The EBA has adopted a decision on supervisory reporting for EU parent undertaking (IPU) threshold monitoring for those entities belonging to third country groups, including third-country branches. Competent authorities shall report to the EBA information on the total value assets held by these entities within the scope of their jurisdiction.
• Published the annual report on convergence of supervisory practices for 2021 on 11 May 2022. Competent Authorities made progress in the implementation of the EBA Guidelines on supervisory review and evaluation process (SREP). The Report also reflects consistent implementation into their supervisory practices of the key supervisory priorities for 2021. However, the Report sets expectations for additional efforts from Competent Authorities on topics such as ICT risks, namely cyber risk and business model challenges and the respective digital transformation.

United States

Department of the Treasury (OFAC)

• Announced sanctions of an individual, banks, and trading company for supporting North Korea’s WMD and ballistic missile programs. OFAC sanctioned one individual, two banks, and a trading company for their support of the Democratic People’s Republic of Korea’s (DPRK) development of weapons of mass destruction (WMD) and ballistic missile programs and to the U.S.-designated DPRK national airline.
• Announced designations of individuals and entities critical to Russia’s ability to wage war against Ukraine. These include the board members of two of Russia’s most important banks, a Russian state-owned bank and 10 of its subsidiaries, a state-supported weapons manufacturer, and three of Russia’s state-controlled television stations that generate revenue for the state.
• Announced first-ever sanctions on a virtual currency mixer and targets DPRK cyber threats. OFAC sanctioned virtual currency mixer Blender.io (Blender), which is used by the Democratic People’s Republic of Korea (DPRK) to support its malicious cyber activities and money-laundering of stolen virtual currency.

Hong Kong

Securities and Futures Commission (SFC)

• Issued a circular on 30 May 2022 to licensed corporations and associated entities - AML/CFT early alert on United Nations sanctions of ISIL (Da’esh) and Al-Qaida. The sanctions committee of the United Nations Security Council (“UNSC”) which administers the sanctions regime for ISIL (Da’esh) and Al-Qaida amended the details of six individuals on its sanctions list.
• Issued a circular on 27 May 2022 to licensed corporations and associated entities - United Nations sanctions (Yemen) regulation 2019 (amendment) regulation 2022. The Yemen Amendment Regulation amends the United Nations Sanctions (Yemen) Regulation 2019 to implement sanctions in respect of Yemen as imposed and renewed by the United Nations Security Council.

Customs and Excise Department

• Announced crackdown on a money laundering case involving about $600 million on 7 May 2022. Hong Kong Customs on April 28 mounted an operation codenamed "Eagle Net" and detected a suspected money laundering case. Four persons suspected to be connected with the case were arrested.

Other Jurisdictions

No major updates this month.