FinCrime News - August 2022

International

The Financial Action Task Force (FATF)

• Published a list of national ML/TF risk assessments on 01 August 2022. The effectiveness of measures to combat money laundering and terrorist financing depends on a country's assessment and understanding of the risks it is exposed to, and the extent to which it has mitigated these risks. This page includes examples of published national risk assessments (NRAs) and regional risk assessments.
• Published the Webinar on Beneficial Ownership Transparency of Legal Persons on 23 August 2022. A panel of experts discussed the importance of beneficial ownership transparency of legal persons and how the FATF has changed its standards in this area.
• Published reports on progress in strengthening measures to tackle money laundering and terrorist financing for Ghana, Senegal, Cambodia, Mongolia, Myanmar, Pakistan, The Philippines, Zimbabwe, Zambia, and Ethiopia. These follow-up reports analyse the progress of these countries in addressing the technical compliance deficiencies identified in their MER and FURs.
• Published a report on Germany's measures to combat money laundering and terrorist financing on 25 August 2022. Germany faces significant terrorist financing risks and has a good track record of investigating, prosecuting and disrupting financing activity as part of a holistic approach to combating terrorism.
• Published a report on The Netherlands' measures to combat money laundering and terrorist financing on 24 August 2022. The Netherlands' measures to combat money laundering and terrorist financing are delivering good results, but the country needs to do more to prevent legal persons from being used for criminal purposes, strengthen risk-based supervision, and ensure sanctions for money laundering and terrorist financing offences are proportionate and dissuasive.
• Published a report on Eswatini's measures to combat money laundering and terrorist financing on 01 August 2022. This report summarises the AML/CFT measures in place in Eswatini as at the date of the on-site visit (24 May-4 June 2021). It analyses the country's level of compliance with the FATF 40 Recommendations and the level of effectiveness of the AML/CFT system, and recommends how the system could be strengthened.
• Published a report on The Republic of Uzbekistan's measures to combat money laundering and terrorist financing on 01 August 2022. This report summarises the AML/CFT measures in place in the Republic of Uzbekistan as at the date of the on-site visit (14 June to 2 July, 2021). It analyses the country's level of compliance with the FATF 40 Recommendations and the level of effectiveness of the AML/CFT system, and recommends how the system could be strengthened.

Regional

Asia / Pacific Group (APG)

• Published the 2022 APG Yearly Typologies Report on 13 August 2022. The 2022 APG Typologies Report includes a focus chapter on IUU fishing, summaries of typologies research projects completed by the FATF and FSRBs, effects of COVID-19 related ML and TF trends and Proliferation Financing Methods & Trends.
• Announced the outcomes of the 2022 APG Annual Meeting on 04 August 2022. The APG's 2022 Annual Meeting was attended by over 400 international delegates, both in-person and virtually, during the week of 24 July in Kuala Lumpur, Malaysia. Delegates discussed important issues affecting the region and the globe relating to serious financial crime, including money laundering and terrorist financing.

Australia

The Australian Transaction Reports and Analysis Centre (AUSTRAC)

• Announced an audit of Gold Corporation's compliance with financial crime laws on 30 August 2022. AUSTRAC has ordered the appointment of an external auditor to Gold Corporation. The appointed external auditor will be authorised by AUSTRAC to assess Gold Corporation's compliance with the AML/CTF Act and Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) (AML/CTF Rules).
• Hosted the inaugural Pacific Financial Intelligence Analyst Course at the Australian National University (ANU) on 01 August 2022. New technologies are changing the financial landscape in the Pacific which transnational crime syndicates are exploiting. AUSTRAC's partnership with Pacific financial intelligence units mitigates these vulnerabilities, and ensures Pacific Islands are not seen as an attractive conduit by criminals.

Canada

Canadian Government

• Announced an updated schedule for changes to FINTRAC's reporting forms on 18 August 2022. In an effort to further improve the effectiveness of the Anti-Money Laundering and Anti-Terrorist Financing Regime, three sets of regulatory amendments were published in the Canada Gazette in 2019, 2020, and 2022. Implementing the changes to FINTRAC's reporting forms is a multi-year project. In 2020 and 2021, FINTRAC designed and implemented the new Large Virtual Currency Transaction Report (LVCTR) form. This year, FINTRAC is focusing on updating and modernizing the Large Cash Transaction Report (LCTR) form and the Suspicious Transaction Report (STR) form.
• Announced a monetary penalty of $33,000 on Cheetah Consulting Ltd on 16 August 2022. This money services business in Richmond, 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.

United Kingdom

Financial Conduct Authority (FCA)

• Announced consultation on proposed updates to the sourcebook of the Office for Professional Body Anti-Money Laundering Supervision (OPBAS) on 11 August 2022. The FCA is committed to improving the consistency and effectiveness of anti-money laundering supervision. So, in this consultation, there are changes to guidance on how PBSs can meet their supervisory obligations under the Money Laundering Regulations 2017.

Gambling Commission (GC)

• Announced online gambling business to pay £1.36 million. Gambling business Spreadex Limited is to pay £1.36 million after a Gambling Commission investigation revealed social responsibility and anti-money laundering failures.
• Announced Entain to pay £17 million for regulatory failures. The gambling business is to pay £17 million for social responsibility and anti-money laundering failures at its online and land-based businesses.
• Announced on Smarkets fined £630,000. The online gambling operator will pay a financial penalty of £630,000 after an investigation by the Gambling Commission revealed a series of anti-money laundering and social responsibility failings.
• Announced online operator LeoVegas fined £1.32 million. Gambling operator LeoVegas will pay a £1.32 million penalty for social responsibility and anti-money laundering failures.

Law Society of Scotland

• Announced the new Register of Overseas Entities (ROE) opened on 01 August 2022. The ROE has been implemented through the provisions of the Economic Crime (Transparency and Enforcement) Act 2022 and is designed to enable greater transparency of property ownership in the UK.

UK Government

• Announced a new register to crack down on dirty money and corrupt elites in the UK that went live on 01 August 2022. The new register was launched to help root out corrupt elites using UK property to launder their illicit wealth.
• Published a post-implementation review of the Oversight of Professional Body Anti-Money Laundering and Counter-Terrorist Financing Supervision Regulations 2017. The OPBAS sought to create a supervisory body, with the intention to improve anti-money laundering standards, promote the sharing of best-practice and improve collaboration amongst interested parties.

United States

Department of the Treasury (OFAC)

• Announced sanctions of Tornado Cash on 08 August 2022. Tornado Cash, a notorious virtual currency mixer, has been used to launder more than $7 billion worth of virtual currency since its creation in 2019.
• Announced a new round of sanctions targeting Kremlin-connected elites, a major multinational company, and a sanctions evasion operation, as well as one yacht. These elites and businesses operate in economic sectors that generate substantial revenue for the Russian regime, including from sources outside of Russia.

District of Columbia

• Issued a bulletin announcing Bitcoin activity is subject to money transmission laws on 08 August 2022. The bulletin provides information to industry participants engaging in or planning to engage in money transmission with Bitcoin or other virtual currency used as a medium of exchange, method of payment or store of value in the District.

European Union

European Banking Authority (EBA)

• Published the AML/CFT Newsletter Issue 8 on 02 August 2022. With news and updates since the May Newsletter.

Hong Kong

Hong Kong Monetary Authority (HKMA)

• Announced disciplinary action against Commerzbank AG on 26 August 2022. The HKMA completed an investigation and disciplinary proceedings for Commerzbank AG, Hong Kong Branch (CBHK, and imposed a pecuniary penalty of HK$6,000,000 against CBHK for contraventions of the AMLO.
• Issued a circular on Supporting the Use of New Technologies for AML/CFT: Suggested Actions for the Hong Kong Banking Sector on 11 August 2022. The circular states that, in line with global efforts, the HKMA plans to take further steps to support AML/CFT innovation and help strengthen AIs' implementation of the risk-based approach to AML/CFT.

Singapore

Money Authority of Singapore

• Published a paper on Strengthening AML/CFT Practices for External Asset Managers on 24 August 2022. This information paper follows a series of AML/CFT thematic inspections and engagements conducted by MAS of selected external asset managers. It sets out MAS' supervisory expectations for effective AML/CFT frameworks and controls and includes good practices and illustrative examples observed.

South Africa

Financial Intelligence Centre

• Announced Cabinet's approval of the submission of the General Laws (AML/CTF) Amendment Bill, 2022 to Parliament for further processing. The Amendment Bill is aimed at progressing South Africa's fight against money laundering and terrorist financing.
• Issued Public Compliance Communication 53 (PCC 53) as guidance for accountable institutions on 30 August 2022. PCC 53 discusses the drafting of RMCP documentation in detail and is limited to assisting Designated Non-Financial Businesses and Professions (DNFBPs) accountable institutions that do not form part of a group structure and are not complex structures.
• Published a consultation feedback note relating to the draft Public Compliance Communication 114 on the RMCP for DNFBP accountable institutions and the issuance thereof in Public Compliance Communication 53.

Other Jurisdictions

No major updates this month.