International
The Financial Action Task Force (FATF)
- Published the latest list of High-Risk Jurisdictions subject to a Call for Action. The list remains unchanged and includes the Democratic People's Republic of Korea (DPRK) and Iran. It also lists Myanmar as a jurisdiction subject to a FATF call on its members and other jurisdictions to apply enhanced due diligence measures proportionate to the risks arising from the jurisdiction.
- Issued an updated list of the Jurisdictions under Increased Monitoring, also referred to as the "grey list." Kenya and Namibia were added to the list, and these countries were removed: Barbados, Gibraltar, Uganda and the United Arab Emirates.
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- Arctic Intelligence's March 2024 Country Risk Rating updates reflect these changes.
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- Published a Public Consultation on Recommendation 16 on Payment Transparency. The FATF is seeking views on proposed amendments to Recommendation 16, to reflect the rapid development of cross-border payment systems, and changes to industry standards, in particular ISO20022. The deadline for comments is 3 May 2024.
- Issued the Methodology for the 5th Round of Mutual Evaluations. The FATF made a number of changes to the Methodology and Procedures, including changing from an average ten-year cycle to a six-year cycle, a strengthened focus on effectiveness, and a greater emphasis on the major risks and context.
- Published the FATF Annual Report 2022-2023. The FATF Annual Report 2022-2023 summarises the FATF's accomplishments and outlines its strategic priorities.
- Released a summary of the outcomes from the FATF Plenary, 21-23 Feb 2024. Among the key outcomes of the Plenary is a new risk-based guidance for implementing Recommendation 25 on the beneficial ownership and transparency of legal arrangements.
- Issued 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 a report on the Russian Federation's progress in strengthening measures to tackle ML/TF. This report analyses the results achieved by the Russian Federation in addressing the technical compliance deficiencies noted in their mutual evaluation.
- Published a report on Azerbaijan's measures to combat ML/TF. This report provides a summary of AML/CFT measures in place in Azerbaijan as at the date of the on-site visit in Mar 2023.
- Published a report on the British Virgin Islands' measures to combat ML/TF. This report provides a summary of AML/CFT measures in place in the British Virgin Islands as at the date of the on-site visit in Mar 2023.
- Published a report on Cuba's progress in strengthening measures against ML/TF. This follow-up report analyses the progress made by Cuba in addressing certain technical compliance deficiencies.
- Published a report on Costa Rica's progress in strengthening measures against ML/TF. This follow-up report analyses the progress Costa Rica made in addressing the technical compliance deficiencies identified in its mutual evaluation report.
- Published a report on Bolivia's measures to combat ML/TF. This report summarises the AML/CFT measures in place in Bolivia as at the date of the on-site visit.
- Published a report on Saint Vincent & the Grenadines' measures to combat ML/TF. The report includes a summary of the AML/CTF measures in place in St. Vincent and the Grenadines.
- Published a report on Montenegro's measures to combat ML/TF. This report provides a summary of AML/CFT measures in place in Montenegro as at the date of the on-site visit in Mar 2023.
- Published a report on Saint Lucia's progress in combatting ML/TF. This report analyses Saint Lucia’s progress in addressing the technical compliance deficiencies identified in a prior assessment.
Australia
The Australian Transaction Reports and Analysis Centre (AUSTRAC)
- Released draft guidance on the practice of outsourcing. Outsourcing is the process of engaging an external provider to help meet AML/CTF obligations. The guidance is focused on assisting regulated entities in identifying, mitigating, and managing ML/TF risks that could arise from outsourcing. The consultation period is open until 18 Mar 2024.
Canada
Financial Transactions and Reports Analysis Center of Canada (FINTRAC)
- Issued guidance related to the Ministerial Directive on Financial Transactions Associated with Russia. The guidance clarifies that every financial transaction originating from or bound for Russia, regardless of its amount, is a high-risk transaction.
- Issued guidance related to the Ministerial Directive on Financial Transactions Associated with the Islamic Republic of Iran. The guidance clarifies that every financial transaction originating from or bound for Iran, regardless of its amount, is high risk.
- Issued an advisory focused on the illegal procurement of dual-use goods by Russian end-users. The purpose of this advisory is to support reporting entities in recognizing financial transactions and other related activity that is suspected of being related to the purchase of dual-use goods for illegal export.
Government
- Announced the establishment of a new sanctions regime under the Special Economic Measures Act to address the serious situation in Guatemala.
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- Arctic Intelligence's March 2024 Country Risk Rating updates reflect these changes.
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United Kingdom
Financial Conduct Authority (FCA)
- Released an update on progress on its three-year strategy to reduce financial crime. The FCA has also identified four areas of focus in the coming year including: fraud, sanctions evasion, money laundering, and terrorist financing.
Government
- Announced sanctions against those that support, enable or deliver work of the Houthis, the Iran-backed proxy group in Yemen responsible for widespread attacks against commercial shipping in the Red Sea.
- Announced new sanctions targeting extremist Israeli settlers who have attacked Palestinians in the West Bank.
- Issued updated guidance tailored for the maritime sector. The refreshed guidance covers new tactics used by illicit actors to evade UK financial sanctions.
National Crime Agency
- Published a SARS Reporter Booklet, which provides a summary of feedback from law enforcement agencies on their use of SARs.
European Union
European Council
- Announced that Frankfurt will host the EU’s new anti-money laundering authority (AMLA). AMLA will begin operations in mid-January 2025 with over 400 staff members.
United States
Financial Crimes Enforcement Network (FinCEN)
- Announced an increase in the use of Convertible Virtual Currency for online child sexual exploitation and human trafficking
- Proposed a Rule to Combat Illicit Finance and National Security Threats in the Investment Adviser Sector. This proposed rule, which complements Treasury’s other recent actions to combat the illicit finance risks from anonymous companies and all-cash real estate transactions, will add further transparency to the U.S. financial system and help assist law enforcement in identifying illicit proceeds entering the U.S. economy.
- Issued Alert on Israeli Extremist Settler Violence Against Palestinians in the West Bank. The alert provides select red flags to assist U.S. financial institutions in identifying and reporting suspicious activity that finances such violence.
Department of the Treasury (OFAC)
- Published its 2024 National Risk Assessment for Money Laundering, Terrorist Financing, and Proliferation Financing. The report details recent, significant updates to the U.S. AML/CTF framework and explains changes to the illicit finance risk environment.
Hong Kong
Hong Kong Monetary Authority
- Issued a circular on the effective execution of a risk-based approach for customer due diligence. This circular reiterates the key principles of a risk-based approach and the importance of effective execution, especially for areas where customer feedback or complaints are occasionally received.
- Released an update on its AML/CFT Surveillance Capability Enhancement Project. This project is part of the broader digital transformation under the HKMA’s “Fintech 2025” strategy and responds to the need, as advocated by the Financial Action Task Force, to modernise AML supervision in light of the risks and opportunities from new and emerging technologies, and the increasingly borderless and fast-moving nature of financial crime.
Other Jurisdictions
No major updates this month.
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