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FinCrime News - June 2022

Anthony Quinn
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International

The Financial Action Task Force (FATF)

  • Published a targeted update on the implementation of FATF’s Standards on VAs and VASPs on 30 Jun 2022. FATF has produced a targeted update on the implementation of its Standards on virtual assets and virtual asset service providers, with a focus on FATF’s Travel Rule. This report comes three years after FATF extended its anti-money laundering and counter-terrorist financing (AML/CFT) measures to VAs and VASPs to prevent criminal and terrorist misuse of the sector.
  • Issued revision of Recommendation 25 - White Paper for Public Consultation on 23 Jun 2022. The Financial Action Task Force (FATF) is conducting a review of Recommendation 25 (R.25) on the transparency and beneficial ownership (BO) of legal arrangements.
  • Published Jurisdictions under Increased Monitoring on 17 Jun 2022. Jurisdictions under increased monitoring are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing.
  • Published High-Risk Jurisdictions subject to a Call for Action on 17 Jun 2022. High-risk jurisdictions have significant strategic deficiencies in their regimes to counter money laundering, terrorist financing, and financing of proliferation. For all countries identified as high-risk, the FATF calls on all members and urges all jurisdictions to apply enhanced due diligence, and, in the most serious cases, countries are called upon to apply counter-measures to protect the international financial system from money laundering, terrorist financing, and proliferation financing (ML/TF/PF) risks emanating from the country.
  • Published outcomes of the FATF Plenary, 14-17 June 2022 on 17 Jun 2022. FATF President, Dr. Marcus Pleyer, chaired the last Plenary under the German Presidency in June 2022.
  • Announced results of FATF Conference on Digital Transformation on 13 Jun 2022. FATF Ministers have identified Digital Transformation as a strategic priority of the FATF. More than 100 experts in financial crime, data protection, and technology gathered at a conference to discuss the potential benefits and challenges of digital transformation in the fight against money laundering and terrorist financing.
  • Released consolidated assessment ratings on 09 Jun 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 the United Kingdom's progress in strengthening measures to tackle money laundering and terrorist financing on 09 Jun 2022. This follow-up report analyses the United Kingdom's progress in addressing the technical compliance deficiencies identified in its 2018 Mutual Evaluation.
  • Published the AML/CFT Digital Strategy for Law Enforcement Authorities on 08 Jun 2022. The FATF completed work that explores how law enforcement agencies can use technology to successfully investigate money laundering and terrorist financing, mitigate the risks of these crimes, and share information in a secure manner.

United Nations Security Council

  • Announced renewal of Democratic Republic of Congo Sanctions Regimes, Adopting Resolution 2641 (2022), on 30 Jun 2022. Amid a deteriorating security situation in the Democratic Republic of the Congo, the Security Council renewed the sanctions regime imposed on that country and extended until 1 August 2023 the mandate of the Group of Experts overseeing its implementation.

Australia

The Australian Transaction Reports and Analysis Centre (AUSTRAC)

  • Announced changes to cross-border movement reporting, on 27 June 2022. Changes to the reporting of cross-border movement of monetary instruments of AUD10,000 or more (or foreign currency equivalent) to AUSTRAC took effect on 17 June 2022. The changes to CBM reporting are a result of reforms to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 passed in 2020.
  • Announced visits to pubs and clubs across Australia, on 27 June 2022. In March 2022, AUSTRAC embarked on a national educational campaign to help pubs and clubs stop criminals laundering proceeds of crime through electronic gaming machines.
  • Released updated guidance on reporting TTRs on 27 June 2022. AUSTRAC has released updated guidance on reporting threshold transaction reports (TTRs) when a customer conducts multiple cash transactions, following industry consultation on the draft guidance released in November 2021.
  • Issued a statement highlighting the latest financial crime guides, on 27 June 2022. New financial crime guides to help businesses identify and stop criminal activity. These guides provide patterns and indicators to understand, identify and report suspicious financial activity for a range of serious and organised crimes.

Federal Register of Legislation

New Zealand

Department of Internal Affairs (DIA)

  • Issued an extension on the interim solution for corporate trustee annual report obligations on 14 June 2022. The Ministry of Justice continues to examine the issues regarding corporate trustees. While this is in progress, the Department of Internal Affairs (the Department) wants to provide reporting entities with the same certainty as the previous two years around their annual reporting obligations. Therefore, the Department is extending the interim solution for corporate trustee annual report obligations for 2022.

Canada

Financial Transactions and Reports Analysis Center of Canada (FINTRAC)

  • Issued a statement on FINTRAC’s financial intelligence disclosures on 24 June 2022. FINTRAC provided 2,292 financial intelligence disclosures last year in support of money laundering and terrorist financing investigations across Canada and around the world – or more than six disclosures every day.
  • Announced an administrative monetary penalty of $33,000 on Sokhom Ung, operating as Bureau de change Saint-Michel on 23 June 2022. This money services business in Montréal, Quebec, was imposed an administrative monetary penalty of $33,000 on March 29, 2022, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.
  • Published remarks from Sarah Paquet, Director and Chief Executive Officer, at the Canadian Institute's 21st Annual Canadian Forum on Anti-Money Laundering and Financial Crime on 15 June 2022.

Canadian Government

  • Announced sanctions on Russian oil, gas and chemical industries on 08 June 2022. These new measures impose a ban on the export of 28 services vital for the operation of the oil, gas and chemical industries, including technical, management, accounting and advertising services. The banning of the exportation of oil, gas and chemical services targets an industry that accounts for about 50% of Russia’s federal budget revenues.

United Kingdom

Financial Conduct Authority (FCA)

  • Announced it has fined Ghana International Bank Plc £5.8m for failings in its anti-money laundering controls. The FCA has fined Ghana International Bank Plc (GIB) £5,829,900 for poor anti-money laundering and counter-terrorist financing controls over its correspondent banking activities.

UK Government

  • Announced a review of the UK’s AML/CFT regulatory and supervisory regime on 24 June 2022. The government is publishing two post-implementation reviews and a forward-looking review of the UK’s anti-money laundering and countering the financing of terrorism regime.
  • Announced proposed amendments to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 Statutory Instrument 2022, on 15 June 2022. The government is seeking views on the amendments.
  • Announced sanctions on Russian gold exports on 26 June 2022. New exports of Russian gold will no longer be allowed to enter the UK, Canada, US and Japan thanks to tough new measures to be announced at the G7 Summit.
  • Announced new sanctions on Putin’s inner circle on 29 June 2022. The sanctions include Russia’s second-richest man and the president of a prominent Russian coal mining company. The new measures ensure that oligarchs cannot use UK trusts services.
  • Announced extra powers for regulators to clamp down on rule-breaking solicitors on 29 June 2022. The SRA will be given new powers to fine rule-breakers up to £25,000, under the new measures. The changes mean the SRA can now fine law firms and individual solicitors for a broader range of offences - from lower-level cases involving inadequate staff training to those with more serious consequences including failure to implement the appropriate checks required to uncover signs of money laundering by clients.

European Union

European Banking Authority (EBA)

  • Published Guidelines on the role and responsibilities of the AML/CFT compliance officer, on 14 June 2022. The guidelines specify the role and responsibilities of the anti-money laundering and countering the financing of terrorism (AML/CFT) compliance officer and of the management body of credit or financial institutions. These Guidelines aim to ensure a common interpretation and adequate implementation of AML/CFT internal governance arrangements across the EU in line with the requirements of the EU Directive on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (ML/FT).
  • Launched a consultation on technical standards on the identification of a group of connected clients on 08 June 2022. The European Banking Authority (EBA) launched a public consultation on draft Regulatory Technical Standards (RTS) on the identification of a group of connected clients (GCC). The draft RTS, in conjunction with the EBA Guidelines on connected clients, provide the complete framework for the identification of the GCC. The consultation runs until 8 September 2022.
  • Publish the joint report on the withdrawal of authorisation for serious breaches of AML/CFT rules, on 01 June 2022. The European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) published a joint Report, which provides a comprehensive analysis of the completeness, adequacy and uniformity of the applicable laws and practices on the withdrawal of licenses for serious breaches of the rules on anti-money laundering and countering the financing of terrorism (AML/CFT).

United States

Department of the Treasury (OFAC)

  • Announced the updated FATF list of Jurisdictions with AML/CFT/CPF Deficiencies. FinCEN is informing U.S. financial institutions that the Financial Action Task Force (FATF) has issued public statements updating its lists of jurisdictions with strategic AML/CFT/CPF deficiencies following its plenary meeting this month. U.S. financial institutions should consider the FATF’s stance toward these jurisdictions when reviewing their obligations and risk-based policies, procedures, and practices.
  • Issued advance notice of Proposed Rulemaking for No-Action Letter Process on 03 June 2022. FinCEN issued an Advance Notice of Proposed Rulemaking (ANPRM) to solicit public comment on questions relating to the implementation of a no-action letter process at FinCEN. A no-action letter is generally understood to be a form of enforcement discretion where an agency states by letter that it will not take enforcement action against the submitting party for the specific conduct presented to the agency. A no-action letter process has the potential to spur innovation and enhance the overall effectiveness of the AML/CFT framework.

Hong Kong

Hong Kong Monetary Authority (HKMA)

  • Published a PDF of ‘Frequently Asked Questions in relation to Anti-Money Laundering and Counter-Financing of Terrorism’ on 30 June 2022.

Insurance Authority (IA)

  • Published the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022. The proposed amendments, which are more relevant to the insurance sector, include (i) amending the definition of “politically exposed person” (“PEP”); (ii) better aligning the definition of “beneficial owner”; (iii) allowing the engagement of digital identification systems; (iv) consolidating the different provisions under individual Parts of AMLO.

Singapore

Monetary Authority of Singapore (MAS)

  • Announced the June 2022 FATF Statement on 27 June 2022. Read MAS' announcement on the June 2022 FATF Statement highlighting jurisdictions with strategic deficiencies in AML/CFT.

South Africa

Financial Intelligence Centre

  • Issued an advisory on 29 June 2022 on the Financial Action Task Force public statement on jurisdictions under increased monitoring.
  • Issued an advisory on the Financial Action Task Force public statement on high-risk jurisdictions that are subject to a call for action – June 2022.

Brunei

Brunei Darussalam Central Bank (BDCB)

  • Published the FIU Annual Report 2020. This is the fifth publication of the Annual Report of the Financial Intelligence Unit (FIU), Brunei Darussalam Central Bank (BDCB) for the year 2020.

Other Jurisdictions

No major updates this month.

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