AML News - April 2023

International

The Financial Action Task Force (FATF)

• Published an updated version of the Consolidated Assessment Ratings on 27 Apr 2023. The Assessment Ratings provide an up-to-date overview of the ratings on both the effectiveness and technical compliance for all countries assessed against the 2012 FATF Recommendations and using the 2013 Assessment Methodology.
• Published a report on Indonesia's measures to combat money laundering and terrorist financing on 27 Apr 2023. According to the report, Indonesia has a strong legal framework to tackle money laundering and terrorist financing and is making good use of financial intelligence and domestic and international cooperation. Indonesia needs to focus more on improving asset recovery, risk-based supervision and proportionate and dissuasive sanctions.
• Published a report on Venezuela's measures to combat money laundering and terrorist financing on 3 Apr 2023. The report presents a comprehensive review of the effectiveness of the country's AML/CFT system and its level of compliance with the FATF 40 Recommendations as at the time of the on-site visit from 17 to 28 Jan 2022.
  
  

Regional

Asia / Pacific Group (APG)

• Announced the completion of the Lao PDR face-to-face meeting on 21 Apr 2023. The APG assessment team of Lao PDR met with authorities over three days from 19 to 21 Apr 2023 in Vientiane to discuss the third draft of the mutual evaluation report.

Australia

The Australian Transaction Reports and Analysis Centre (AUSTRAC)

• Announced a public consultation on proposed reforms to Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime on 20 Apr 2023. The proposed reforms include extending the existing AML/CTF legislation to capture additional ‘tranche-two’ high risk entities, including lawyers, accountants, trust and company service providers, real estate agents and dealers in precious metals and stones. Feedback on the consultation paper must be submitted by 16 Jun 2023.
• Announced the release of two new anti-money laundering and counter-terrorism financing (AML/CTF) e-learning modules on 20 Apr 2023. The new modules are focused on 
  Applicable Customer Identification Procedures and Beneficial Owners and Politically Exposed Persons. They join the existing AUSTRAC e-learning suite, which is available to reporting entities to increase their understanding of AML/CTF regulation and compliance obligations.
• Published updated guidance on employee due diligence (EDD) and AML/CTF risk awareness training on 20 Apr 2023. The guidance provides an overview of the risks in meeting EDD and AML/CTF risk awareness training obligations and outlines best practices to help mitigate and manage those risks.
• Announced the release of a new financial crime guide in partnership with the Australian Federal Police and Australian Centre to Counter Child Exploitation to help businesses identify and stop the purchase of child sexual exploitation material and report suspicious activity on 20 Apr 2023.
• Announced the release of new pubs and clubs resources on 20 Apr 2023. These resources include a list of suspicious activity indicators, an updated brochure and poster outlining AML/CTF tips plus myths and facts around money laundering and terrorism financing and a video highlighting examples of what money laundering can look like in pubs and clubs, no matter how small or big the venue.

New Zealand

Department of Internal Affairs (DIA)

• Announced that for all reporting entities supervised by the Department of Internal Affairs, it is a legal obligation under the AML/CFT Act to file an annual report by 31 August 2023. From 1 Jul 2023, regulated entities will be able to file your AML/CFT annual report via AMLOnline. Before starting, regulated entities will need to verify their identity with the RealMe application.
• Announced new prohibited cash transactions for specified high-value goods on 19 Apr 2023. From 11 May 2023, any person in trade/business that buys or sells any of the following high value goods will be prohibited from doing so by a cash transaction of $10,000 or more: jewellery, watches, gold, silver, or other precious metals, diamonds, sapphires, or other precious stones, motor vehicles and boats/ships.
• Published key findings from a thematic review of suspicious transaction reports on 19 Apr 2023. From Oct 2022 to Jan 2023, the Department of Internal Affairs (Department) conducted a thematic review to establish how well the procedures, policies and controls in relation to the detection and filing of Suspicious Activity Reports (SARs) were implemented.

Reserve Bank of New Zealand

• Released a reminder of AML CFT obligations following an ANZ investigation on 27 Apr 2023. The closure of an investigation into ANZ Bank New Zealand’s (ANZ) following self-reported international wire transfer reporting failures is a timely reminder for reporting entities’ AML/CFT obligations.

United Kingdom

Financial Conduct Authority (FCA)

• Published a report on the Anti-Money Laundering Supervision by the Legal and Accountancy Professional Body Supervisors on 28 Apr 2023. The report is focused on progress and themes from the Office for Professional Body Anti-Money Laundering Supervision's (OPBAS) supervisory work in 2022-2023.
• Announced a series of measures designed to reduce the risk of money laundering via the Post Office on 24 Apr 2023. The regulator brought together partners, including the National Economic Crime Centre (NECC), industry and government, to strengthen controls while seeking to ensure that legitimate customers can continue to use the Post Office for Everyday Banking.

Gambling Commission (GC)

• Announced that gambling operator TGP Europe Limited will pay a £316,250 penalty for anti-money laundering (AML) and social responsibility failures on 05 Apr 2023. Anti-money laundering failures included not having a money laundering and terrorist financing risk assessment that adequately addressed risks, such as customers providing false or stolen identification documentation and risks linked to complex or unusually large transactions

Law Society of Scotland

• Published results of an AML thematic review of Policies, Controls and Procedures (PCPs) on 20 Apr 2023. The Law Society recommends that all practices in the scope of the money laundering regulations fully consider the findings of this report and review their AML PCPs accordingly.
• Announced initial findings from its AML Attestation Process on 14 Apr 2023. The Law Society launched this new AML Attestation Process in November 2022. The Attestation Process and associated document focus on compliance with the Legal Sector Affinity Group (LSAG) Guidance Key Compliance Principles.
• Announced that the anti-money laundering (AML) team released an updated breach reporting form on 3 Apr 2023. The form should be used by practices to report to the AML team any serious breaches of the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017.

UK Government

• Released updated guidance for money laundering supervision for letting agency businesses on 4 Apr 2023. The updated guidance has clarified the criteria for acting as a letting agency business that needs to register.

European Union

European Parliament

• Announced that parliament has endorsed the first EU rules to trace crypto-asset transfers and prevent money laundering, as well as common rules on supervision and customer protection on 20 Apr 2023. The rule aims to ensure that crypto transfers can always be traced and suspicious transactions blocked, as is the case with any other financial operation. It will now have to be formally endorsed by Council before publication in the EU Official Journal.

European Gaming and Betting Association (EGBA)

• Released a video of a webinar entitled Anti-money laundering: Guidelines and best practices for Europe’s online gambling sector on 27 Apr 2023. An expert panel of speakers, including the Swedish and Maltese gambling authorities, discussed the EGBA’s new anti-money laundering guidelines and best practices for Europe’s online gambling sector and the latest regulatory developments in anti-money laundering.

United States

Financial Crimes Enforcement Network (FinCEN)

• Announced that it has assessed a $1.5 million civil money penalty on South Dakota-chartered The Kingdom Trust Company (Kingdom Trust) for willful violations of the Bank Secrecy Act (BSA) and its implementing regulations on 26 Apr 2023. This is FinCEN’s first enforcement action against a trust company.
• Announced the renewal and expansion of its Geographic Targeting Orders (GTOs) that require U.S. title insurance companies to identify the natural persons behind shell companies used in non-financed purchases of residential real estate on 21 Apr 2023. The GTOs continue to provide valuable data on the purchase of residential real estate by persons possibly involved in various illicit enterprises.

Hong Kong

Hong Kong Monetary Authority (HKMA)

• Released key observations and best practices identified in the onboarding of corporate customers on 27 Apr 2023. This guidance has been released to assist regulated entities in meeting their AML/CFT obligations.

South Africa

Financial Intelligence Centre (FIC)

• Released a consultation feedback note on Guidance Note 102A on the Directive for conduct within the National Payment System in respect of the Financial Action Task Force Recommendations for Electronic Fund transfers (Directive 1 of 2022) on 6 Apr 2023.
• Published, together with the National Payment System Department (NPSD) of the South African Reserve Bank, Guidance Note 8 on 6 Apr 2023. Guidance Note 8 provides guidance on the conduct of accountable institutions relating to electronic fund transfers in South Africa, as required in Directive 1 of 2022. The intention is to align the regimes for combating money laundering and terrorist financing to the FATF Recommendations.

Other Jurisdictions

No major updates this month.