FinCrime News - December 2023

International

The Financial Action Task Force (FATF)

• Published an updated version of the Consolidated Assessment Ratings. The Ratings provide an up-to-date overview of the effectiveness and technical compliance ratings for all countries assessed against the 2012 FATF Recommendations.
• Issued an updated version of the Consolidated Processes and Procedures for Mutual Evaluations and Follow-Up Universal Procedures. This set of core elements applies to all AML/CFT assessments, per the FATF 2013 Methodology.
• Published a report on Lebanon's measures to combat ML/TF. 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 2022.
• Published a report on Brazil's measures to combat ML/TF. Brazil has made important strides to improve its system to combat ML/TF and is achieving some positive results.
• Published a report on Germany's progress in strengthening measures to tackle ML/TF. As a result of Germany’s progress in strengthening its measures to fight money laundering and terrorist financing since the assessment of the country’s framework, the FATF has re-rated the country on two Recommendations.
• Published the Mutual Evaluation of the Central African Republic. 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 of the time of the on-site visit in 2022.
• Issued a blog article entitled 'Financial Crimes Hurt Economies and Must be Better Understood and Curbed.' The article states that the world needs to do more to limit the economic impact of crime, and policymakers need to have a fuller view of the consequences of illicit flows, including tallies of the fiscal, monetary, financial, and structural costs.

Australia

The Australian Transaction Reports and Analysis Centre (AUSTRAC)

• Released its regulatory priorities for 2024. The priorities include an ongoing focus on businesses understanding, mitigating and managing the money laundering and terrorism financing risks they face, particularly across the banking, gambling and remittance sectors which face higher risks.  Additional sectors will be under scrutiny to uplift Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) capability and to ensure legislative compliance. The additional sectors:
  • Digital Currency Exchanges (DCEs)
  • Payment platforms
  • Bullion Dealers
  • Non-Bank Lenders and Financiers.
• Issued an article outlining AUSTRAC's international activities for 2023. AUSTRAC’s global financial intelligence collaboration is critical to combat transnational crimes, including money laundering, terrorism financing (ML/TF) and other serious crimes. Engaging with neighbours in the region and working with international partners to build capability and produce and share financial intelligence plays a significant role in maintaining Australia's security.
• Issued a reminder that businesses providing designated services must enrol with AUSTRAC. As of 9 Nov 2023, legislative amendments have been implemented that increase penalties for businesses providing designated services that fail to enrol under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 Act.
• Issued an article with top tips for completing the 2023 compliance report. Businesses that provide designated services must submit a compliance report to AUSTRAC every year. The top tips are based on last year’s results and frequently asked questions.

Canada

Financial Transactions and Reports Analysis Center of Canada (FINTRAC)

• Released new resource documents to help reporting entities prepare for changes to the Electronic Funds Transfer Report Form and Casino Disbursement Report Form. These resource documents are part of a multi-year initiative to implement important changes to its reporting forms and related guidance.

• Published its 2022–23 Annual Report, which describes its work to safeguard Canada's financial system and economy by assisting and ensuring the compliance of thousands of businesses with the AML/CFT Act and Regulations.

United Kingdom

Government

• Issued a reminder that a new Iran sanctions regime has come into force on 14 Dec 2023, giving the UK extensive new powers to hold Iran and its decision-makers to account. Announced in July, the sanctions regime has been developed to respond to threats from the Iranian regime.
• Announced a new government unit to crack down on firms evading sanctions. Companies that are found to be dodging strict trade sanctions, including those imposed since the war in Ukraine, will face tougher penalties with the creation of this new Office of Trade Sanctions Implementation (OTSI).
• Issued an article on correspondent banking restrictions with a focus on the impact of newly released Russia sanctions. The articles provide examples to assist reporting entities, especially those providing correspondent banking services, in meeting sanctions obligations.   
• Published an updated version of the UK Financial Sanctions Guidance. This version includes updates to the monetary penalty and enforcement guidance and the Russia-specific guidance.

European Union

European Council

• Announced a provisional agreement between the Council and the Parliament to create a new European authority to protect EU citizens and the EU's financial system against ML/TF. This authority will have direct and indirect supervisory powers over high-risk obliged entities in the financial sector.

European Banking Authority (EBA)

• Launched a public consultation on two sets of Guidelines on internal policies, procedures and controls to ensure the implementation of Union and national sanctions. Through these Guidelines, the EBA creates, for the first time, a common understanding among payment service providers (PSPs), crypto-asset service providers (CASPs) and their supervisors, of the steps they need to take to be able to comply with restrictive measures. The consultation ends on 25 Mar 2024.

United States

Financial Crimes Enforcement Network (FinCEN)

• Issued a final rule regarding access to beneficial ownership information (BOI). This final rule prescribes the circumstances under which BOI reported in compliance with FinCEN’s BOI Reporting Rule may be disclosed to domestic government agencies, foreign governments, and financial institutions and how it must be protected.

South Africa

Financial Intelligence Centre (FIC)

• Issued a reminder of the consequences of non-compliance with the FIC Act.
• Announced the extension of the consultation period for comments on targeted financial sanctions draft PCC 44A and draft guidance on beneficial ownership.
• Published sector risk assessment for accountants, dealers in precious metals and stones, and company service providers. These documents provide an updated assessment of these sectors' inherent ML/TF risks.

Other Jurisdictions

No major updates this month.