The Financial Action Task Force (FATF)
- Issued a public consultation on the revision of Recommendation 8 and its Interpretive Note (R.8/INR.8), which aims to protect NPOs from potential terrorist financing abuse. The FATF is consulting all interested stakeholders in advance of finalising the amendment text to R.8/INR.8. Responses must be submitted by 18 Aug 2023.
- Issued a public consultation for the update of the FATF Best Practice Paper to Combat the Abuse of NPOs. This project is being undertaken parallel to the proposed amendments to Recommendation 8 and its Interpretive Note (also under public consultation) to better clarify the implementation of a risk-based approach.
- Published a targeted update on the Implementation of FATF Standards on VAs and VASPs. This report provides an update on country compliance with FATF’s Recommendation 15 for Virtual Assets and Virtual Asset Service Providers.
- Published the FATF Plenary outcomes for 21-23 June 2023.
- Announced the High-Risk Jurisdictions subject to a Call for Action. This list is often externally referred to as the “black list”. This list continues to include the Democratic People's Republic of Korea (DPRK) and Iran. Myanmar also continues to be subject to enhanced due diligence measures proportionate to the risks arising from the jurisdiction.
- Published the Jurisdictions under Increased Monitoring. This list is often externally referred to as the “grey list”. FATF has added Cameroon, Croatia and Vietnam to this list.
- Published a report on Albania's progress in strengthening measures to tackle money laundering and terrorist financing. Albania has made progress to address the technical compliance deficiencies identified in the MER and subsequent FURs.
- Published a report on Mexico's progress in strengthening measures to tackle money laundering and terrorist financing. Mexico has made progress in addressing most of the technical compliance deficiencies identified in its 2016 Mutual Evaluation Report.
- Published a report on Seychelles' progress in strengthening measures to tackle money laundering and terrorist financing. Seychelles has made progress in resolving some of the technical compliance deficiencies identified in its 2018 Mutual Evaluation.
- Published a report on Madagascar's progress in strengthening measures to tackle money laundering and terrorist financing. Madagascar has made significant overall progress in resolving the technical compliance shortcomings identified in its 2018 Mutual Evaluation Report.
- Published the ESAAMLG Mutual Evaluation of Angola. This evaluation was based on the 2012 FATF Recommendations.
Asia / Pacific Group (APG)
- Announced the launch of the APG Virtual Asset (VA) and Virtual Asset Service Provider (VASP) Network for public sector representatives of APG members and observers to share information on challenges, enforcement activities, experiences and policy developments relating to VAs and VASPs.
The Australian Transaction Reports and Analysis Centre (AUSTRAC)
- Announced a Reporting Entity System Transformation update. Read about the upcoming changes to AUSTRAC Online, how these changes may impact you, and how to get involved.
- Released two new AML/CTF e-learning modules focused on (a) conducting enhanced customer due diligence (ECDD); and (b) submitting suspicious matter reports (SMRs).
- Released new guidance on debanking that is designed to (a) help financial institutions understand AUSTRAC’s expectations when providing designated services to businesses they consider higher risk; and (b) encourage businesses in affected sectors to engage openly with financial institutions and demonstrate the steps they are taking to address risks within their business.
Department of Internal Affairs (DIA)
- Announced proposed changes to AML/CFT Act following a Ministry of Justice-led review completed in June 2022. The draft includes definitions of existing terminology, an extension to SAR reporting for law firms, and a relaxation of the address verification requirement under standard CDD.
- Released findings from a review focused on law firms, accounting practices and real estate agents’ compliance with the AML/CFT Act on 1 Jun 2023. Common findings included a lack of clear policies, procedures, and controls to verify the identity of customers and the continued use of generic templates that have not been customised to the reporting entity’s risks, context, and business.
- Announced an extension of the “interim solution” for corporate trustee annual reporting obligations for 2023. A corporate trustee whose AML/CFT obligations are being fulfilled by a parent law firm, accounting practice or a trust and company service provider (TCSP) is not required to submit an annual report by 31 Aug 2023.
Financial Transactions and Reports Analysis Center of Canada (FINTRAC)
- Issued new sanctions to protect Ukrainian culture from destruction by Russia on 10 Jun 2023. Canada is sanctioning persons connected to Russia’s theft of Ukrainian cultural objects.
- Issued new sanctions against Russian collaborators in Moldova on 1 Jun 2023. These sanctions target a number of individuals, including Moldovan oligarchs, business people, parliamentarians and politicians who are connected to Russia.
- Announced a public consultation focused on examining ways to improve Canada's AML/CFT Regime. The paper includes recommendations for improving the operational results of the AML/CTF Regime regarding the detection and disruption of money laundering and terrorist financing activities. The paper is open for feedback until 31 Aug 2023.
- Published a consultation on the reform of the AML/CTF supervisory system, in line with a commitment in the Economic Crime Plan. The consultation will be open for three months, closing on the 30th September, 2023.
- Announced new sanctions which will prevent UK lawyers from advising Russian companies in certain business deals. This could include trade deals between global corporations or international money lending.
- Announced the 11th package of economic and individual sanctions on Russia’s war against Ukraine on 23 Jun 2023. The Council added an additional 71 individuals and 33 entities to the list of entities directly supporting Russia’s war against Ukraine.
- Announced new draft legislation which will target organised crime and their illegal profits on 9 Jun 2023. Ministers of justice have agreed on the Council’s position on a draft directive on asset recovery and confiscation. It sets minimum rules on the tracing, identification, freezing, confiscation and management of criminal property.
European Banking Authority (EBA)
- Published a report that outlines how money laundering and terrorist financing risks in payments institutions are not managed effectively on 16 Jun 2023. The report incorporates findings from a 2022 EBA assessment of ML/TF risks in the payment institutions sector.
- Issued a "Dear CEO" letter to High Cost Credit Providers (HCCP) highlighting a lack of compliance with their AML/CFT obligations on 30 Jun 2023. The letter provides an overview of the Central Bank’s findings through its supervisory engagements and summarises the Central Bank’s expectations in relation to HCCPs.
Department of the Treasury (OFAC)
- Issued sanctions against illicit gold companies that fund Wagner Forces on 27 Jun 2023. These companies have engaged in illicit gold dealings to fund the Wagner Group to sustain and expand its armed forces in Ukraine and Africa.
Hong Kong Monetary Authority (HKMA)
- Announced the launch of the Financial Intelligence Evaluation Sharing Tool (FINEST), a bank-to-bank information-sharing platform, on 20 Jun 2023. This initiative will increase banks’ ability to share information for detecting and disrupting fraud and financial crime.
Money Authority of Singapore (MAS)
- Issued guidance on the effective use of data analytics to detect and mitigate ML/TF risks from the misuse of legal persons on 27 Jun 2023. Financial institutions are encouraged to review their existing controls against the practices set out in the paper, and assess whether there is scope to incorporate or enhance the use of data analytics in their ML/TF risk detection.
No major updates this month.