AML News - August 2023

International

The Financial Action Task Force (FATF)

• Published an updated list of Consolidated Assessment Ratings. The ratings provide an up-to-date overview of the ratings on both effectiveness and technical compliance for all countries assessed against the 2012 FATF Recommendations and use the 2013 Assessment Methodology.
• Published a report on Côte d'Ivoire's measures to combat ML/TF. This report summarises the AML/CFT measures in place as of June 2022. 
• Published a report on Lao's measures to combat ML/TF. This report summarises the AML/CFT measures in place as of September 2022. 
• Published a report on Brunei-Darussalam's measures to combat ML/TF. This report summarises the AML/CFT measures in place as of November 2022.
• Published a follow-up report to Bhutan's assessment of AML/CTF measures. Bhutan has made progress in addressing the technical compliance deficiencies identified in its Mutual Evaluation and previous follow-up reports.
• Published a report on Benin's progress in strengthening measures to tackle ML/TF. This follow-up report analyses the progress of Benin in addressing the technical compliance deficiencies identified in its Mutual Evaluation Report.
• Published a report on Liberia's measures to combat ML/TF. The Mutual Evaluation Report presents a comprehensive review of the effectiveness of the country's AML/CFT system as of September 2022.
• Published a report on Burkina Faso's progress in strengthening measures to tackle ML/TF. This follow-up report analyses the progress of Burkina Faso in addressing the technical compliance deficiencies identified in its Mutual Evaluation Report.

Regional

Asia/Pacific Group (APG)

• Published the Mutual Evaluation Reports for Lao PDR and Brunei Darussalam. The APG membership adopted the 3rd round of APG Mutual Evaluation Reports (MERs) for Lao PDR and Brunei Darussalam in July 2023, which are now available for download.
• Announced that it admitted Tuvalu as its newest member and Kazakhstan and United Arab Emirates as its newest observers. All three committed to the values and goals of the APG and were admitted unanimously.

Australia

The Australian Transaction Reports and Analysis Centre (AUSTRAC)

• Released a consultation impacting online gambling service providers. The draft amendment would repeal Part 10.4 - Accounts for Online Gambling Services of the AML/CTF Act. This change would require gambling service providers to conduct applicable customer identification procedures before providing a designated service to its customers. The deadline for submission of feedback is 4 Sep 2023.

New Zealand

Department of Internal Affairs (DIA)

• Published an article on the use of third-party accounts to deliver money remittance services by money remitters. The DIA warned that it does not endorse the use of these third-party accounts by money remitters. 

Financial Market Authority (FMA)

• Issued an explanatory note concerning the Electronic Identity Verification Guideline. The note includes additional guidance on commonly used electronic sources in New Zealand. It also sets out the supervisors’ expectations when they review or inspect a reporting entity’s Electronic Identity Verification (EIV) procedures, policies and controls.

Canada

Financial Transactions and Reports Analysis Center of Canada (FINTRAC)

• Released an article on conducting transactions with a money services business. The article provides information for consumers about FINTRAC’s role in regulating money services businesses and tips on how to remain vigilant when deciding to use the services of this type of business.
• Announced minor edits to the Suspicious Transaction Form as part of upcoming changes to FINTRAC’s reporting forms.
• Released a new guidance video on client verification. The video explains how to use the reliance method to verify the identity of a person, which is one of the 5 prescribed methods by AML/CFT regulation.

United Kingdom

Financial Conduct Authority

• Announced expectations for UK cryptoasset businesses compliance with FATF's Travel Rule. The Travel Rule aligns practices for crypto asset businesses sending and receiving transactions with those common in other areas of financial services. The FCA expects Firms to exercise all due diligence to comply with the Travel Rule and to ensure compliance with the Travel Rule when sending or receiving a crypto asset transfer to a firm that is in the UK or any jurisdiction that has implemented the Travel Rule.
• Issued a letter stating that it is undertaking a review of how regulated firms are complying with their legal and regulatory obligations regarding the risk management and treatment of Politically Exposed Persons (PEPs), as well as their relatives and known close associates. It will publish the terms of reference for this review in September and complete it by the end of June 2024.

Government

• Released updated guidance on how to register for money laundering supervision or how to manage an existing account. More information has been added about what businesses should do before applying and what information to use to sign into your account.
• Announced the use of OFSI’s new disclosure enforcement power for the first time. This power allows OFSI to publish details of financial sanctions breaches, including the person/entity who committed the breaches, where OFSI decides that the breaches are not serious enough to justify a civil monetary penalty.
• Published an update to its Enforcement and Monetary Penalty Guidance to provide further details on how it assesses the severity of sanctions breaches.
  

European Union

European Banking Authority (EBA)

• Published its third report on the functioning of AML/CFT colleges. AML/CFT colleges are permanent structures that serve to enhance cooperation between different supervisors involved in the supervision of cross-border institutions. The Report highlights good practices that will be useful to further improve the effectiveness of AML/CFT colleges and of supervisory outcomes.

United States

Department of the Treasury (OFAC)

• Issued guidance on the provision of humanitarian assistance to Syria. This guidance addresses specific questions OFAC has received in connection with humanitarian efforts in Syria and explains how to provide legitimate humanitarian assistance to the Syrian people in compliance with U.S. sanctions.
• Released the second episode of its “Introduction to OFAC” web series, a series of short videos created to provide viewers with a high-level introduction to the fundamentals of OFAC and sanctions implementation. 

Singapore

Money Authority of Singapore (MAS)

• Issued a circular on the effective detection of sanctions-related risks. This circular sets out guidance that financial institutions should consider in order to ensure that they have robust processes in place to effectively detect and manage sanctions-related risks. 
• Released a paper on strengthening AML/CFT controls to prevent the misuse of legal persons/arrangements and complex structures. This paper sets out typologies, case studies, and supervisory expectations of effective AML/CFT controls to detect and mitigate risks associated with the misuse of legal persons/arrangements and complex structures.

South Africa

Financial Intelligence Centre

• Issued guidance on the definition of trust and company service providers. This guidance was issued in response to the amended Schedule 1 to the FIC Act, effective as of 19 Dec 2022.

Other Jurisdictions

No major updates this month.