AML News - November 2023

International

The Financial Action Task Force (FATF)

• Issued an updated version of the Consolidated Assessment Ratings. The Ratings are 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.
• Released amendments to Recommendation 8 and its Interpretive Note to address the misapplication and misinterpretation of Recommendation 8, that had led countries to apply disproportionate measures on Non-Profit Organisations (NPOs).
• Published a report on best practices in Combating the Abuse of Non-Profit Organisations. The FATF has updated its best practices to reflect the amendments to Recommendation 8 and to help countries, the non-profit sector and financial institutions understand how best to protect relevant NPOs from abuse for terrorist financing without unduly disrupting or discouraging legitimate NPO activities.
• Released a joint FATF-OECD report on the Misuse of Citizenship and Residency by Investment Programmes. This report highlights how citizenship and residency by investment (CBI/RBI) programmes can allow criminals more global mobility and help them hide their identity and criminal activities behind shell companies in other jurisdictions.
• Published a report on Illicit Financial Flows from Cyber-enabled Fraud. Cyber-enabled fraud is a major transnational organised crime that has grown exponentially in recent years, both in the volume of frauds reported and their global spread. The FATF, in partnership with the Egmont Group and INTERPOL, analysed how the cyber-enabled fraud landscape has evolved, its links to other crimes and how criminals may exploit vulnerabilities in new technologies.
• Published a report on the Turks and Caicos Islands’ progress in strengthening its framework to tackle ML/TF. This follow-up report analyses the Turks and Caicos Islands’ progress in addressing certain technical compliance deficiencies that were identified in the Mutual Evaluation.
• Published a report on South Africa's progress in strengthening measures to tackle ML/TF. South Africa has made progress in addressing the technical compliance deficiencies identified in its Mutual Evaluation.
• Published a report on Suriname's progress in strengthening measures to tackle ML/TF. This follow-up report analyses Suriname's progress in addressing certain technical compliance deficiencies that were identified in the Mutual Evaluation.
• Published a report on Myanmar's progress in strengthening measures to tackle ML/TF. In light of the progress made by Myanmar since its Mutual Evaluation Report was adopted, the country has been re-rated on one Recommendation.
• Published a report on Cambodia's progress in strengthening measures to tackle ML/TF. As a result of progress in addressing the technical compliance deficiencies identified in its Mutual Evaluation Report, Cambodia has been re-rated on one recommendation.
• Published a report on Mongolia's progress in strengthening measures to tackle ML/TF. In light of the progress made by Mongolia since its MER was adopted, the country has been re-rated on one Recommendation.
• Published a report on Thailand's progress in strengthening measures to tackle money laundering and terrorist financing. Overall, Thailand has made some progress in addressing the technical compliance deficiencies identified in its MER and has been re-rated on two Recommendations.

Regional

Asia/Pacific Group (APG)

• Issued a paper on illicit financial flows generated from illegal fishing. In October 2021, the APG commenced a project on illicit financial flows arising from illegal, unreported and unregulated (IUU) fishing. This Issues Paper is the final output from that project.
• Announced that Indonesia has become APG’s 12th joint APG/FATF Member. The FATF granted full membership to Indonesia at the FATF’s meeting on 27 Oct 2023. Indonesia has become the FATF’s 40th member and 12th joint member in the APG.
  
  

Australia

The Australian Transaction Reports and Analysis Centre (AUSTRAC)

• Released a consultation on draft AML/CTF Rules, which aim to clarify that the domestic financial market operator Australian Securities Exchange Limited (ASEL) is not a ‘prescribed financial market’ under the Corporations Act 2001, but rather, has been specified as an exempt financial market by the AUSTRAC CEO. Feedback on the draft AML/CTF Rules can be submitted until 13 Dec 2023.
  

Government

• Announced the introduction of new legislation in the Senate to strengthen and expand Australia’s Digital ID System. Digital ID is a secure, convenient, voluntary, and inclusive way for Australians to verify their ID online. Digital ID is not a card, it’s not a unique number, and it’s not a new form of ID. Digital ID allows people to verify their ID when interacting online without having to repeatedly provide copies of their most sensitive documents, such as passports, birth certificates and driver's licences.

Canada

Financial Transactions and Reports Analysis Center of Canada (FINTRAC)

• Announced a global commitment to combat the illegal wildlife trade. The financial intelligence units (FIUs) of Australia, Canada, New Zealand, South Africa, Singapore, the United Kingdom, and the United States became the first countries to announce their support for international collaboration to detect and prevent financial activity that sustains wildlife crime. 

United Kingdom

Financial Conduct Authority (FCA)

• Issued a "Dear CEO" letter to Wealth Management and Stock Broking Companies highlighting ongoing concerns with the industry's ability to prevent financial crime and meet consumer duty outcomes.

Gambling Commission

• Released its updated version of its risk assessment of money laundering and terrorist financing in the British gambling market in 2023 and builds upon its previous 2020 publication.

Government

• Issued an article on the policy intention of the UK government’s approach to ownership and control in UK sanctions regulations to ensure that sanctions cannot be easily circumvented.

European Union

European Banking Authority (EBA)

• Announced an extension of its risk-based AML/CFT supervision guidelines to AML/CFT supervisors of crypto-asset service providers (CASPs). The new guidelines set clear expectations of the steps supervisors should take to identify and manage ML/TF risks.
• Announced a public consultation on new guidelines on preventing the abuse of funds and certain crypto-assets transfers for ML/TF purposes. These ‘travel rule’ guidelines specify the steps that Payment Service Providers (PSPs), Intermediary PSPs (IPSPs), crypto-asset service providers (CASPs) and Intermediary CASPs (ICASPs) should take to detect missing or incomplete information that accompanies a transfer of funds or crypto-assets.

United States

Financial Crimes Enforcement Network (FinCEN)

• Announced an extension to the deadline for the Beneficial Ownership Information Reports for companies created or registered in 2024. These companies will have 90 calendar days from the date of receiving actual or public notice of their creation or registration becoming effective to file their initial reports.
• Announced the creation of a task force with twelve financial intelligence units (FIUs) with an aim to strengthen efforts to disrupt international financial flows to Hamas and other terrorist organizations.
• Published a final rule that specifies when an entity’s FinCEN identifier can be used in lieu of information about an individual beneficial owner. A FinCEN identifier is a unique number that FinCEN will issue upon request after receiving the required information. 

Hong Kong

Securities and Futures Commission (SFC)

• Released presentation materials from a recent AML/CFT webinar. Licensed corporations, SFC-licensed virtual asset service providers and associated entities are encouraged to use the materials for reference and internal training.
• Published an updated AML/CFT Self-Assessment Checklist, which reflects the latest Guideline on AML/CFT. The Checklist aims to provide a structured and comprehensive framework for licensed corporations, SFC-licensed virtual asset service providers and associated entities to assess compliance with the key AML/CFT requirements.

Other Jurisdictions

No major updates this month.