FinCrime News - December 2022

International

The Financial Action Task Force (FATF)

• Published an up-to-date overview on 21 Dec 2022 of the ratings on both effectiveness and technical compliance for all countries assessed against the 2012 FATF Recommendations and using the 2013 Assessment Methodology. These should be read in conjunction with the detailed Mutual Evaluation Reports, which are available on FATF's website.
• Published a report on Kyrgyzstan's progress in strengthening measures to tackle money laundering and terrorist financing, on 21 Dec 2022. Kyrgyzstan has made efforts to address deficiencies remaining since the 2018 Mutual Evaluation Report.
• Published a report on Turks and Caicos Islands' progress in strengthening measures to tackle money laundering and terrorist financing, on 21 Dec 2022. This follow-up report analyses Turks and Caicos Islands' progress in addressing certain technical compliance deficiencies which were identified in their Mutual Evaluation Report.
• Published a report on Jamaica's progress in strengthening measures to tackle money laundering and terrorist financing, on 20 Dec 2022. This follow-up report analyses Jamaica’s progress in addressing certain technical compliance deficiencies which were identified in Jamaica’s Mutual Evaluation Report.
• Published a report on the Isle of Man's progress in strengthening measures to tackle money laundering and terrorist financing, on 2 Dec 2022. This follow-up report analyses the Isle of Man’s progress in addressing the technical compliance deficiencies identified in the Mutual Evaluation Report and ensuing follow-up Report.
• Published a report on Georgia's progress in strengthening measures to tackle money laundering and terrorist financing, on 2 Dec 2022. This follow-up report sets out the progress that Georgia has made in improving its level of compliance with the FATF standards, since their 2020 mutual evaluation.
• Published a report on Cyprus' progress in strengthening measures to tackle money laundering and terrorist financing, on 2 Dec 2022. This follow-up report sets out the progress that Cyprus has made in improving its level of compliance with the FATF standards, since their 2019 mutual evaluation.
• Published a follow-up report on 2 Dec 2022 on the Slovak Republic's progress in strengthening measures to tackle money laundering and terrorist financing. This follow-up report analyses the Slovak Republic's progress in addressing certain technical compliance deficiencies identified in its Mutual Evaluation Report.
• Published a report on the Czech Republic's progress in strengthening measures to tackle money laundering and terrorist financing, on 2 Dec 2022. This follow-up report sets out the progress that the Czech Republic has made in improving its level of compliance with the FATF standards, since their 2018 mutual evaluation, and the 2020 and 2021 follow-up reports.
  

Regional

Asia/Pacific Group (APG)

• Released the fourth and final session of the virtual APG Training Series on Implementation of the FATF Standards relating to Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs) ‘Risk-Based Supervision & Enforcement’ on 8 Dec 2022 and was attended by over 30 APG member jurisdictions and observer jurisdictions and organisations.
• Announced on 2 Dec 2022, Brunei Darussalam’s APG Mutual Evaluation was conducted from 7 to 18 November 2022.
  

Australia

The Australian Transaction Reports and Analysis Centre (AUSTRAC)

• Released draft guidance on debanking, on 12 Dec 2022. In recent years, some banks have limited or declined services to businesses operating in sectors they assess as having higher risks of money laundering and terrorism financing. This is known as ‘debanking’ or ‘derisking’ and can have a devastating impact on legitimate businesses who are impacted.
• Released new guidance on conducting source of funds and wealth checks, on 12 Dec 2022. AUSTRAC developed this guidance to help regulated entities undertake the appropriate checks and mitigate the risk that a customer’s funds and wealth relate to money laundering, terrorism financing or other serious crimes.
• Published guidance to help financial institutions support customers who don’t have standard identification, on 12 Dec 2022. This guidance aims to support financial inclusion and help financial institutions adopt a flexible approach to assist their customers and use alternative methods to verify their identity.
• Published a financial crime guide on the exploitation of international trade, on 12 Dec 2022. The guide includes indicators and customer behaviours that can detect suspicious financial activity related to international trade.
• Released an article with "Tips to help you get your 2022 compliance report right." These tips are intended to assist regulated entities with the accurate and on-time lodgement of their 2022 compliance report. 
• Released an article with "Top tips for transaction reporting" on 12 Dec 2022. These tips will assist regulated entities with the submission of accurate and timely transaction reporting. 
• Published Australia’s first national proliferation financing risk assessment on 14 Dec 2022. The assessment is aimed at strengthening domestic and international efforts to combat this serious criminal activity.
• Commenced civil penalty proceedings against SkyCity Adelaide Pty Ltd (SkyCity) on 7 Dec 2022 for alleged serious and systemic non-compliance with Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.

New Zealand

Department of Internal Affairs (DIA)

• Released an article called "In the know burning questions" on 6 Dec 2022. This article provides answers to frequently asked questions with the requirements of the AML/CFT Act.

Financial Market Authority (FMA)

• Announced the release of a guideline on designated business groups (DBG) on 15 Dec 2022. This guideline is designed to help reporting entities forming a DBG understand the process for doing so. Entities may form a DBG if they are eligible to do so under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the AML/CFT Act) and associated regulations.
• Announced proceedings against Tiger Brokers (NZ) Limited on 21 Dec 2022 for allegedly breaching the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009. The FMA’s case relates to Tiger Brokers’ AML/CFT policies, processes, controls and obligation to file suspicious activity reports.
• Announced that it has formally warned Pencarrow Private Equity Management for AML/CFT record-keeping failures on 15 Dec 2022.

Canada

Financial Transactions and Reports Analysis Center of Canada (FINTRAC)

• Published resource documents to assist reporting entities in preparing for changes to the Suspicious Transaction Report (STR) form. FINTRAC is expecting to implement important changes to the Suspicious Transaction Report (STR) form in 2023. The resource documents will assist financial institutions in updating business processes and IT systems to be in compliance with the new STR form. 
• Published an Operational Alert focused on Terrorist Activity Financing, on 15 Dec 2022. This Alert is intended to assist regulated entities in identifying and reporting suspicious transactions and terrorist property to FINTRAC.

United Kingdom

Financial Conduct Authority (FCA)

• Announced a financial penalty of £107,793,300 on Santander UK Plc (Santander) on 8 Dec 2022 after it found serious and persistent gaps in its anti-money laundering (AML) controls, affecting its Business Banking customers.

Law Society of Scotland 

• Published the AML Supervisory Annual Report 2022 on 1 Dec 2022. The report highlights work undertaken between April 2021 and April 2022 by the Law Society in fulfilling its supervisory obligations, in line with the requirements of the Money Laundering Regulations 2019, including the recruitment of new members of the AML team and new supervisory processes and assurance initiatives.

UK Government

• Published the Annual Report for 2020 to 2022 on anti-money laundering and counter-terrorist financing (AML/CFT) supervision on 19 Dec 2022. This report provides information about the performance of AML/CTF supervisors between 6 Apr 2020 to 5 Apr 2022 and fulfils the Treasury’s obligation to publish an annual report on supervisory activity.

European Union

European Banking Authority (EBA)

• Published the ninth issue of its AML/CFT Newsletter on 16 Dec 2022. 
• Released a public consultation on 6 Dec 2022 on new guidelines on the effective management of money laundering and terrorist financing (ML/TF) risks when providing access to financial services. Through these guidelines, the EBA aims to ensure that customers, especially the most vulnerable ones, are not denied access to financial services without valid reason. This consultation runs until 6 Feb 2023.

United States

Financial Crimes Enforcement Network (FinCEN)

• Issued a Notice of Proposed Rulemaking (NPRM) on 15 Dec 2022 that would implement provisions of the Corporate Transparency Act (CTA) that govern the access to and protection of beneficial ownership information. This NPRM proposes regulations that would govern the circumstances under which such information may be disclosed to the government and financial institutions, and how it must be protected.

Hong Kong

Hong Kong Monetary Authority (HKMA)

• Announced the passage of the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022 by the Legislative Council on 7 Dec 2022. This amendment focuses on virtual asset service providers and dealers in precious metals and stones. It also includes miscellaneous amendments to ensure alignment with the latest international standards set by the Financial Action Task Force (FATF).

South Africa

Financial Intelligence Centre

• Published a reference guide to assist all new, and existing accountable institutions on 19 Dec 2022. The guide provides an overview of the Financial Intelligence Centre, the Financial Intelligence Centre Act, 2001 (Act 38 of 2001) (the FIC Act) and directs accountable institutions to the available guidance material.
• Published an article entitled ‘Bringing More Business Under the Purview of the FIC Act’ on 13 Dec 2022. This article provides more background on the rationale for the Nov 2022 amendments to the FIC Act. The amendment will improve the FIC’s ability to obtain information from a wider range of institutions through the inclusion of additional categories of institutions and businesses under its scope.
• Issued draft public compliance communications (PCC) 47A, PCC 6A, PCC 23A, PCC 118, PCC 119 and PCC 120 on 15 Dec 2022. These draft communications are aimed at providing guidance on Nov 2022 amendments to the FIC Act. Feedback on the drafts is due on 20 Jan 2023.

Other Jurisdictions

No major updates this month.