AML News - September 2022

International

The Financial Action Task Force (FATF)

• Published a report on Japan's progress in strengthening measures to tackle money laundering and terrorist financing on 13 Sep 2022. This follow-up report analyses Japan's progress in addressing the technical compliance deficiencies identified in its 2021 Mutual Evaluation.
• Published a report summarising the AML/CFT measures in force in the Congo on the date of the on-site visit (from 7 to 25 June 2021) on 2 Sep 2022. It analyses the level of compliance with the 40 FATF Recommendations and the level of effectiveness of the Congo’s AML/CFT system, and makes recommendations for strengthening the system.

Regional

Asia / Pacific Group (APG)

• Published Cambodia and Myanmar Follow Up Reports on 6 Sep 2022. In July 2022, the APG membership adopted the Follow Up Reports of Cambodia and Myanmar. Both of these reports considered requests for re-ratings of technical compliance.

Australia

The Australian Transaction Reports and Analysis Centre (AUSTRAC)

• Published new resources for the bullion sector on 26 Sep 2022. These resources include an overview of the unique requirements for the bullion sector, indicators of suspicious activity, and new money laundering/terrorism financing risk assessment of the Australian bullion dealers sector. 

• Published three new risk assessments to help remittance service providers, bullion dealers, and the superannuation sector understand the money laundering and terrorism financing (ML/TF) threats and vulnerabilities they face on 26 Sep 2022. 

• Released four anti-money laundering and counter-terrorism financing (AML/CTF) e-learning modules on 26 Sep 2022. The modules are designed for new reporting entities or those wanting to refresh their understanding of AML/CTF regulation and their compliance obligations.
• Announced an enforcement investigation into Entain Group Pty Ltd on 12 Sep 2022. This follows an extensive supervisory campaign that assessed entities within the corporate bookmakers sector. The investigation will focus on whether Entain has complied with its obligations under the AML/CTF Act.


New Zealand

Department of Internal Affairs (DIA)

• Published class exemption on 8 Sep 2022 for accounting practices carrying out most types of tax transfers under the Anti-Money Laundering and Countering the Financing of Terrorism Act 2009 (AML/CFT Act) which exempts accounting practices from most (but not all) obligations under the Act.

Canada

Financial Transactions and Reports Analysis Center of Canada (FINTRAC)

• Published a new operational alert, Laundering of Proceeds from Illicit Cannabis, on 28 Sep 2022. This operational alert is meant to assist businesses in better identifying and reporting to FINTRAC financial transactions related to the laundering of proceeds from illicit cannabis activities.

United Kingdom

Gambling Commission (GC)

• Announced Petfre (Gibraltar) Limited will pay a £2.87m penalty for social responsibility and anti-money laundering failures on 28 Sep 2022. 

UK Government

• Published the National Risk Assessment (NRA) of Proliferation Financing on 23 Sep 2022. The NRA sets out the key proliferation financing risks and vulnerabilities in the UK and is a requirement of the Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022. The amendment, effective 1 Sep 2022, also requires regulated entities to identify, assess, and mitigate the risks of proliferation financing.
• Announced a new bill to crack down on fraud and money laundering to protect the UK economy on 22 Sep 2022. It includes wide-ranging reforms designed to bear down on kleptocrats, organised criminals and terrorists abusing the UK’s open economy and has been introduced into Parliament. 

United States

Financial Crimes Enforcement Network (FinCEN)

• Issued Final Rule for Beneficial Ownership Reporting to Support Law Enforcement Efforts, Counter Illicit Finance, and Increase Transparency on 29 Sep 2022. The rule will require entities created in or registered to do business in the United States to report information about their beneficial owners to FinCEN.  

Department of the Treasury (OFAC)

• Issued Request for Comment (RFC) on Illicit Finance, National Security Risks Posed by Digital Assets on 19 Sep 2022. The RFC is open for comment until 3 Nov 2022. 

Hong Kong

Hong Kong Monetary Authority (HKMA)

• Announced disciplinary action against Cathay United Bank Company, Limited, Hong Kong Branch on 23 Sep 2022. The Monetary Authority (MA) has imposed a penalty of HK$11,000,000 against CUBHK for contraventions of the AMLO.

Singapore

Money Authority of Singapore

• Published a circular on Enhancing Anti-Money Laundering and Countering the Financing of Terrorism Controls in the Variable Capital Companies (VCC) Sector on 13 Sep 2022. The circular sets out MAS’ key observations and supervisory expectations for effective AML/CFT frameworks and controls that VCCs should note.

South Africa

Financial Intelligence Centre

• Issued a media release on 29 Sep 2022 recognising FIC’s efforts to recover more than R5 billion in criminal assets during the 2021-2022 financial year. More detail on the  FIC’s accomplishments can be found in the FIC’s 2021-2022 Annual Report. 
• Announced the pilot of a new legislative initiative targeting unexplained wealth. This initiative, being piloted by a number of government departments and agencies in law enforcement and prosecution, will make it more cost-effective, faster and easier to investigate and recover assets acquired through suspected unlawful activities such as corruption, fraud, tax evasion and money laundering
• Issued draft Guidance Note 7A for the second round of consultation on 30 Sep 2002. Comments are invited by accountable institutions, supervisory bodies and all other persons to be submitted by 21 Oct 2022. 
• Issued Public Compliance Communication 54 (PCC 54) as guidance for accountable institutions on 30 Sep 2022. PCC 54 provides guidance on compliance measures aimed at combating proliferation financing.

Other Jurisdictions

No major updates this month.