FinCrime News - September 2023

International

The Financial Action Task Force (FATF)

• Published a report on Luxembourg's measures to combat ML/TF. The report states that Luxembourg has a solid AML/CFT framework and a good understanding of its money laundering and terrorist financing risks.
• Published an updated version of the 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 using the 2013 Assessment Methodology.
• Published outcomes from the second global roundtable in FATF-INTERPOL’s joint initiative to improve global asset recovery and combat financial crime. Over 200 law enforcement, prosecutors, asset recovery, policy and regulatory experts from public and private sectors attended the two-day FATF-INTERPOL roundtable. 

International Monetary Fund (IMF)

• Published an article highlighting an IMF partnership with eight Nordic and Baltic countries focused on the creation of an anti-money laundering technical assistance project. The project aims to improve countries’ understanding of unusual financial flows warranting scrutiny.

Regional

Asia/Pacific Group (APG)

• Released the 3rd round APG Mutual Evaluation Report for Nepal, which was adopted by the APG membership in July 2023.
• Released a Typology Report on ML associated with tax crimes in the Asia/Pacific, which was jointly prepared by the Australian Tax Office and the APG. The report collates tax crime typologies observed by members and documents the experiences of competent authorities in responding to ML associated with tax crimes. 

Australia

The Australian Transaction Reports and Analysis Centre (AUSTRAC)

• Announced strengthened customer identification procedures for online gambling service providers. Effective as of 29 September 2024, all online gambling service providers must complete customer identification procedures before creating an online gambling account or providing a designated service.

Government

• Passed the Crimes and Other Legislation Amendment Bill 2023, which amends the AML/CTF Act. The amendment introduces new penalties for failing to enrol with AUSTRAC, including a fine for each day out of compliance. Other amendments focus on computer‑assisted decision-making by the AUSTRAC CEO and dealing with AUSTRAC information.

Canada

Financial Transactions and Reports Analysis Center of Canada (FINTRAC)

• Released draft guidance concerning the "24 hour rule". This guidance describes when reporting entities must consider multiple transactions made within a 24-hour period as a “single transaction”. This concept is referred to as “the 24-hour rule”.

United Kingdom

Financial Conduct Authority

• Issued a final warning for cryptoasset firms marketing to UK consumers. All firms marketing cryptoassets to UK consumers, including firms based overseas, must comply with local regulations, including AML/CFT obligations.
• Published a report highlighting the best practices and common concerns regarding compliance with Russia sanctions obligations. The report focuses on strengthening governance and oversight, skills and resources, and screening capabilities.
• Issued a reminder that the annual frozen asset review and reporting form is due for all entities that hold or control funds or economic resources belonging to a designated person. The form must be submitted to the Office of Financial Sanctions Implementation (OFSI) by 10 November 2023.
• Published a research note on international perspectives on de-risking in the banking sector. The report includes common factors that lead banks to de-risk, refusing services to certain customers, including stringent AML/CFT obligations, severity of penalties, and reputational risk.
  

Government

• Announced that the UK, France and Germany will incorporate UN sanctions on Iran into domestic regimes as these UN sanctions on Iran are due to lift in October. The sanctions on Iran target individuals and entities involved in Iran’s missile, nuclear, and other weapons programs.
  

European Union

Europol

• Published the 2023 European Financial and Economic Crime Threat Assessment. Using insights and case examples from Europol’s dedicated crime centre, this report analyses the threats posed by money laundering, criminal finances and corruption, and how they have evolved as a result of technological and geopolitical changes.

United States

Financial Crimes Enforcement Network (FinCEN)

• Announced an extension of the deadline for certain reporting companies to file their initial beneficial ownership information (BOI) reports. FinCEN is proposing to amend its final BOI Reporting Rule to provide 90 days for reporting companies created or registered in 2024 to file their initial reports instead of 30 days.
• Published a Small Entity Compliance Guide to assist the small business community comply with the beneficial ownership information (BOI) reporting rule. The Guide is intended to help businesses determine if they are required to report their beneficial ownership information to FinCEN.
• Issued a Financial Trend Analysis (FTA) on patterns and trends contained in the Bank Secrecy Act (BSA) reporting on suspected evasion of Russia-related export controls. The BSA reports analysed for this FTA were filed in response to previous joint alerts on this topic and indicate almost $1 billion in suspicious activity.

Hong Kong

Hong Kong Monetary Authority (HKMA)

• Published AML/CFT Regtech: Case Studies and Insights Volume 2. The report builds on the first volume published in January 2021 and promotes the adoption of Regtech.

South Africa

Financial Intelligence Centre

• Published the 2022/2023 Annual Report. The report highlights accomplishments from the 2022/2023 year and the strategic vision and summarises legislative and other mandates.

Other Jurisdictions

No major updates this month.