FinCrime News - November 2022

International

The Financial Action Task Force (FATF)

• Published a report on China's progress in strengthening measures to tackle money laundering and terrorist financing on 29 Nov 2022. This follow-up report analyses China's progress in addressing the technical compliance deficiencies identified in its 2019 Mutual Evaluation.
• Published a report on Paraguay's measures to combat money laundering and terrorist financing on 10 Nov 2022. This report summarises the AML/CFT measures in place as at the date of the on-site visit from 23 Aug 2021 to 3 Sep 2021. It analyses the level of compliance with the FATF 40 Recommendations and the level of effectiveness of the AML/CFT system and recommends how the system can be strengthened.
  
• Published an article on Money Laundering from Fentanyl and Synthetic Opioids on 30 Nov 2022. Organised crime groups are fuelling a synthetic opioid crisis that has contributed to hundreds of thousands of drug overdose deaths in the past decade. This report looks at the way proceeds are laundered from synthetic opioid trafficking.

Australia

The Australian Transaction Reports and Analysis Centre (AUSTRAC)

• Announced the commencement of civil penalty proceedings in the Federal Court against The Star Pty Limited and The Star Entertainment QLD Limited (the Star Entities), on 30 Nov 2022, for alleged serious and systemic non-compliance with Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.
• Announced an Enforceable Undertaking (EU) from two entities in the ING Bank Australia group (ING Bank Australia Ltd and ING Bank N.V., Sydney Branch) on 24 Nov 2022. ING has accepted to uplift its compliance with Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws. ING self-identified and voluntarily reported shortcomings in relation to its compliance with its anti-money laundering obligations. The resulting regulatory inquiries, including an investigation, identified concerns in relation to its AML/CTF program, monitoring systems and controls, and reporting to AUSTRAC.
• Announced ordering the appointment of external auditors to two corporate bookmakers on 3 Nov 2022.  The order, under section 162 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act), will assess compliance of corporate bookmakers, Sportsbet Pty Ltd (Sportsbet) and Hillside (Australia New Media) Pty Limited (Bet365).
• Released draft guidance for consultation, to help financial institutions understand AUSTRAC’s expectations when they provide financial services to higher risk customers. The guidance was released on 9 Nov, and feedback is due on 21 Dec 2022.
• Released draft guidance for consultation, focused on enhanced customer due diligence and employee due diligence and training. The guidance was released on 3 Nov, and feedback is due on 15 Dec 2022. 

New Zealand

Department of Internal Affairs (DIA)

• Announced a formal warning to Openpay Pty Limited on 4 Nov 2022. OpenPay, a financial institution that operates a ‘buy-now-pay-later’ service, failed to establish, implement, and maintain an AML/CFT programme and adequately monitor accounts and transactions over an extensive period.

Canada

Financial Transactions and Reports Analysis Center of Canada (FINTRAC)

• Announced on 23 Nov that a nation-wide professional money laundering organisation has been dismantled following an unprecedented three-year financial crime investigation called Project Collector. Project Collector was conducted jointly between ALERT Calgary’s financial crime team and RCMP Federal Serious and Organized Crime (FSOC). 
• Published updated resource documents to help regulated entities prepare for changes to the Large Cash Transaction Report (LCTR) form on 17 Nov. FINTRAC is expecting to implement the changes to the Large Cash Transaction Report (LCTR) form in June 2023. The form will reflect the legislative amendments that came into force on June 1, 2021, and include added functionality that allows for a more streamlined experience when reporting large cash transactions.
• Announced on 10 Nov 2022 that between 1 Apr 2022 and 30 Sep 2022, FINTRAC revoked the registrations of 32 money services businesses. The entities did not meet the requirements of the PCMLTFA and associated regulations, and are not eligible for registration as money services businesses or foreign money services businesses with FINTRAC.

United Kingdom

Gambling Commission (GC)

• Announced on 30 Nov 2022 that gambling operator, AG Communications, will pay a £237,600 penalty for anti-money laundering (AML) failures. The operator, which trades as Aspire Global and runs 66 websites, will also receive an official warning and have conditions added to its licence. AML breaches related to the operator being unable to demonstrate that it had carried out appropriate due diligence checks on six third-party businesses it had entered into white-label partnerships with.

European Union

European Banking Authority (EBA)

• Published final guidelines on the use of remote customer onboarding solutions on 22 Nov 2022. These Guidelines set out the steps credit and financial institutions should take to ensure safe and effective remote customer onboarding practices in line with applicable anti-money laundering and countering the financing of terrorism (AML/CFT) legislation and the EU’s data protection framework. The Guidelines apply to all credit and financial institutions that are within the scope of the Anti-money Laundering Directive (AMLD).

United States

Financial Crimes Enforcement Network (FinCEN)

• Issued its most recent Financial Trend Analysis of ransomware-related Bank Secrecy Act (BSA) filings for 2021 on 1 Nov 2022, indicating that ransomware continued to pose a significant threat to U.S. critical infrastructure sectors, businesses, and the public. The report focuses on ransomware trends in BSA filings from Jul 2021 to Dec 2021 and addresses the extent to which a substantial number of ransomware attacks appear to be connected to actors in Russia.  

Singapore

Money Authority of Singapore

• Issued a Compliance Toolkit for Approvals, Notifications and Other Regulatory Submissions to MAS for Wholesale Banks and Full Banks on 29 Nov 2022. This Compliance Toolkit aims to guide and facilitate wholesale banks’ and full banks’ understanding and compliance with the various MAS approval, notification, and reporting requirements and timelines.
• Issued a Compliance Toolkit for Approvals, Notifications and Other Regulatory Submissions to MAS for Merchant Banks on 29 Nov 2022. This Compliance Toolkit aims to guide and facilitate merchant banks’ understanding and compliance with the various MAS approval, notification, and reporting requirements and timelines.

South Africa

Financial Intelligence Centre

• Issued guidance on the compliance obligations of regulated entities on 30 Nov 2022. The guidance is in terms of the Financial Intelligence Centre Act (FIC) in a mutually, non-conflicting manner with the principles of data privacy protection laws. The FIC Act provides the necessary justification in law that accountable institutions require to process personal and special personal information in terms of data privacy protection laws. 
• Announced on 30 Nov, the Minister of Finance has amended the "Schedules" in the Financial Intelligence Centre Act (FIC) effective as of 19 Dec 2022. The amendments significantly increase the number of sectors included as accountable institutions in Schedule 1 of the FIC Act as well as widen the scope of activities of businesses under Schedule 1. 
• Issued a request for feedback on the draft of Directive 7 and an associated questionnaire on 25 Nov 2022. Draft Directive 7 is aimed at addressing two key “Immediate Outcomes” identified by the Financial Action Task Force (FATF), which are focused on improving coordinated domestic efforts to combat ML/TF/PF and the development of a risk-sensitive approach to supervising and monitoring accountable institutions’ AML/CFT/CPF requirements.

Other Jurisdictions

No major updates this month.