FinCrime News - July 2023

International

The Financial Action Task Force (FATF)

• Published an updated version of the Consolidated Assessment Ratings. This version provides updated ratings that countries have obtained for effectiveness and technical compliance. 
• Published a report on Dominica's measures to combat ML/TF. The report was based on information provided by Dominica in the technical compliance and effectiveness questionnaire, and information obtained by the assessment team during its on-site visit to the country in August 2022.
• Published a report on Turkmenistan's measures to combat ML/TF. This evaluation was based on information provided by Turkmenistan in the technical compliance and effectiveness questionnaire, and information obtained during an on-site visit to the country in August 2022.
• Published a report on Kazakhstan's measures to combat ML/TF. The evaluation was based on information provided by Kazakhstan in the technical compliance and effectiveness questionnaire, and information obtained during an on-site visit to the country in September 2022.
• Published a report on the Mutual Evaluation of North Macedonia. The Mutual Evaluation Report presents a comprehensive review of the effectiveness of the country's AML/CFT system at the time of the on-site visit in September and October 2022.
• Published the Mutual Evaluation of Romania. The Mutual Evaluation 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 September and October 2022.
• Published a report on Uzbekistan's progress in strengthening measures to tackle ML/TF. The Republic of Uzbekistan has made progress in resolving some of the technical compliance deficiencies identified in its 2022 Mutual Evaluation.
• Published a report on Türkiye's progress in strengthening measures to tackle ML/TF. Türkiye has made progress in addressing most of the technical compliance deficiencies identified in its 2019 Mutual Evaluation Report.
• Published the Mutual Evaluation of Algeria. The Mutual Evaluation 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 in July and August 2022.
• Published the Mutual Evaluation of Gabon. The Mutual Evaluation 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 in April 2022.
• Published the Mutual Evaluation of Chad. The Mutual Evaluation 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 in May 2022.
• Published a report on The United Arab Emirates' progress in strengthening measures to tackle ML/TF. This follow-up report sets out the progress that the United Arab Emirates, member of FATF-Style Regional Body MENAFATF, has made in improving its level of compliance with the FATF standards since their 2020 mutual evaluation.
• Published a report on Slovenia's progress in strengthening measures to tackle ML/TF. This follow-up report analyses the progress made by Slovenia in addressing the technical compliance deficiencies identified in its Mutual Evaluation report.

International Monetary Fund (IMF)

• Published a report calling for comprehensive regulation of crypto assets. One of the key recommendations in the report states that strong AML/CFT, prudential and conduct rules should be implemented to cover all entities and activities related to the issuance, trading, custody, or transfer of crypto assets.

New Zealand

Department of Internal Affairs (DIA)

• Released a package of amendments to the AML/CFT Act which will come into force in three stages from 31 July 2023 to 1 June 2025. These new changes will reduce the burden on businesses to comply with the AML/CFT Act in areas identified as low-risk such as verification of source of wealth and funds on low-risk trusts and exempting registered charities from AML/CFT obligations when they are providing small loans.

Canada

Financial Transactions and Reports Analysis Center of Canada (FINTRAC)

• Released an operational alert focused on detecting ML through underground banking schemes on 25 Jul 2023. This Alert lists new indicators to assist reporting entities in recognising financial transactions suspected of being related to the laundering of proceeds of crime with roots in underground banking related to China, notably in Hong Kong.
• Released an update to the schedule to implement changes to FINTRAC’s reporting forms on 13 Jul 2023. The new schedule impacts the dates for implementation of the new Electronic Funds Transfer Report (EFTR) and the Casino Disbursement Report (CDR) forms.

United Kingdom

Financial Conduct Authority

• Announced the continued crackdown on unregistered crypto ATMs in the UK on 11 Jul 2023. Since the start of 2023, the Financial Conduct Authority (FCA) has visited and inspected 34 locations across the UK suspected of hosting crypto ATMs.

Solicitors Regulation Authority

• Released an AML/CFT Sectoral Risk Assessment, which identifies several potential emerging issues in the legal sector, the use of crowdfunding, and crypto assets for payment.

Government

• Issued sanctions on businesses funding the Sudan war on 12 Jul 2023. The sanctions are part of the UK’s response to ongoing hostilities in Sudan since fighting broke out in April and a growing humanitarian crisis.
• Released updated guidance for estate agencies and property-related businesses on the requirements for ML supervision. The latest version includes guidance on proliferation financing.

European Union

European Council

• Announced an amendment to its Haiti sanctions regime which allows the EU to autonomously impose restrictive measures for undermining democracy or the rule of law in Haiti. No individuals or entities are being listed at this stage, in line with the EU's gradual approach. The framework complements the sanctions imposed by the United Nations Security Council in October 2022.

European Banking Authority (EBA)

• Issued a 4th Opinion on the ML/TF risks affecting the EU’s financial sector. New TF risks identified in this opinion are focused on recent geopolitical events and an increase in right-wing extremism and terrorism.
• Released findings from the third round of AML reviews of competent authorities that took place between January and December 2022. The report found that more than half of all competent authorities’ approaches to assessing risks were not conducive to the development of a comprehensive understanding of ML/TF risks in the banking sector, and more than half of all prudential supervisors in this round were aware of their role in tackling ML/TF risks.

Europol

• Published its annual report on emerging threats and developments in cybercrime. The report focuses on online criminal markets and cross-cutting crime enablers, factors that straddle more than one crime area but are not necessarily inherently criminal themselves. It reviews trends in money laundering and techniques such as criminal abuse of cryptocurrencies, money muling, anonymisation tools, and phishing/smishing/vishing.

Singapore

Money Authority of Singapore (MAS)

• Released a summary of the work of an AML/CFT industry working group focused on digital assets risk management. The paper aims to provide financial institutions with a foundational framework to advance understanding and management of ML, TF and sanctions risks arising from customer relationships with a nexus to digital assets in Singapore.

South Africa

Financial Intelligence Centre

• Issued call for increased collaboration between the public and private sector in the fight against financial crime on 20 Jul 2023. The FIC targeted the forensic industry calling for strengthened efforts against financial crime by creating bridges between law enforcement, financial institutions, and regulators.
• Issued guidance on the definition of crypto asset service providers (CASP) and their money laundering and terrorist financing risks. The guidance states that when considering whether a business is a CASP, the focus should be on the business's economic activities rather than the technology platform or the specific type of crypto asset used for the transaction.

Other Jurisdictions

No major updates this month.