Know Your Customer (KYC) and Anti-Money Laundering (AML) updates are on a continuous rise with the digital shift countries are taking action against illegal activities through fines and regulations. Let’s have a look at what has been up this week:
Global regulatory changes:
Hong Kong authorities to set out new AML/CTF requirements as per FATF regulations
Dated 24.05.21
Under the new regime, those found to be operating unlicensed VA businesses can face up to $600,000 in fines and seven years’ imprisonment. The two-tiered registration system for the DPMS sector will be introduced, subjecting all cash transactions worth $15,000 and above to the same AML/CTF obligations now applicable to other DNFBPs (designated non-financial businesses and professions). Non-compliance can lead to heavy fines and imprisonment. The regulatory authorities will also amend the definition of the politically exposed person (PEP) and will be empowered to make guidelines to allow the exemption of enhanced customer due diligence requirements in respect of former PEPs on a risk-sensitive basis.
Philippine’s authorities to make amendments to the Anti-Money Laundering Act, as a result of incorrect STR fillings
Dated: 24.05.21
Philippine’s President Rodrigo Duterte signed into law amendments to the Anti-Money Laundering Act. The AMLC’s investigations have resulted in freeze orders and civil forfeiture cases amounting to a combined outstanding balance of about $ 84 million between January 2018 and March 2021. The country is criticised for being the only one that still has bank secrecy laws in place, prohibiting regulators from accessing customer information. But under an existing MOA with the BSP (Bangko Sentral ng Pilipinas), the central bank can request bank information from the AMLC for use in its supervisory examinations, investigations, or any inquiry, helping to address deficiencies, specifically in relation to late reporting.
AUSTRAC looking for ways to extend its AML regulations to crypto exchange
Dated: 26.05.21
The Australian Transaction Reports and Analysis Centre (Austrac) in late 2017 gained authorisation to extend anti-money laundering and counter-terrorism financing (AML/CTF) regulation to cryptocurrency exchanges. Similar to a bank, the exchange must also identify and verify the identity of its customers and report suspicious matters, international transactions, and transactions in physical currency in excess of AU $ 10,000 to AUSTRAC.
The Financial Action Task Force (FATF) started a consultation earlier this year on proliferation financing risk as well as digital currencies and digital currency exchange providers. AUSTRAC is keen to regulate the exchanges that “convert cash to cryptocurrency” because they want the AML / CTF procedures in place to ensure money laundering doesn’t happen at this intersection.
Fraud and corruption news:
Dh 1.35 million fine to be paid by a gold trader for breaching eight money laundering and terrorism financing regulations
Dated: 24.05.21
The Dubai gold trader was fined for breaches including a failure to adopt the necessary measures to determine criminal risks, failure “to establish internal policies, controls and procedures commensurate with the volume of its business”, failure to reduce risk, and a series of other offences. The breaches were found as part of the Ministry of Economy’s extensive inspection campaign into Designated Non-Financial Business and Professions (DNFBPs).
Earlier this year, the UAE established a new Anti-Money Laundering and Counter Terrorism Financing agency to act as a “national co-ordinator with internal, intergovernmental and international organisations to tackle money laundering”. The ministry reiterated its warning to DNFBPs who fail to comply with federal law introduced to combat financial crime that they face fines of between Dh50,000 and Dh5m for offences, as well as the potential suspension of their licences or even the closure of their businesses.
Reserve Bank of New Zealand takes legal action against TSB Bank for AML/CTF failures
Dated: 27.05.21
The Reserve Bank (RBNZ) is taking a bank to court for the first time, filing a statement of claim in the High Court against TSB for “acknowledged breaches” of the AML/CFT Act. RBNZ is seeking pecuniary penalties in respect of four categories of non-compliance: the absence of adequate and effective procedures, policies and controls for monitoring and managing compliance with its AML/CFT programme; the failure to review and maintain TSB’s AML/CFT programme; the failure to conduct a risk assessment in respect of its realty operations and the failure to have regard to certain countries it deals with when reviewing its 2017 risk assessment.
KYC tech and trends:
Video KYC Market analysis, segmentation, growth, opportunity and development strategies reported till 2030
Dated: 25.05.21
The report provides a detailed analysis of the Video KYC market size, share, industry growth & demand, defining the product type along with its application in various industry verticals with reference to various regions and major countries. Further, the study has identified and studied all the major players operating in the Video KYC market space and equated based on various parameters such as market revenue, annual sales volume, historical growth rate, and business strategies. Based on all these insights, the Video KYC market report recommends a business strategy for the current market participants to strengthen their market positions.
Global E-KYC Market: Industry Analysis, Size, Share, Growth, Trends, and Forecasts 2021–2027
Dated: 27.05.21
The report provides a study with an in-depth overview, describing the Product / Industry Scope and elaborates market outlook and status (2021–2026). The research study provides a near look at the market scenario and dynamics impacting its growth. This report highlights the crucial developments along with other events happening in the market which are marking on the growth and opening doors for future growth in the coming years. Additionally, the report is built on the basis of the macro and micro-economic factors and historical data that can influence the growth.
State Bank of India to conduct KYC through emailed documents
Dated: 27.05.21
The State Bank of India (SBI) has announced that SBI account holders do not need to visit branches to update their Know Your Customer (KYC) documents amid the COVID-19 pandemic. Customers can submit address proof and identity to their bank branch via email or courier.
This week at Data Zoo:
How to prioritise a proactive approach for KYC and Remediation
Dated: 26.05.21
Doing the bare minimum is no longer acceptable when it comes to AML/CTF compliance. Financial institutions need to understand the importance of prioritising a proactive approach to customer due diligence. Understand how to enhance your customer data and make accurate risk-based decisions.
Learn about Argentina, its regulations and how to verify an Argentinian
Dated: 27.05.21
Argentinian’s have established regulatory bodies and strong law enforcement of KYC and AML regulations in compliance with the FATF recommendations. Institutions have maintained their customer due diligence by verifying the name, date of birth and address against the individual’s passport, national identity card, or driver’s licence. Along with identity verification, they are required to conduct an AML screening to identity if Argentinian citizens are high-risk individuals or entities.
Author Sara Singh Tak, Data Zoo Marketing Specialist
About Data Zoo
Data Zoo is setting the new standard for identity verification. With over a decade of experience, we have helped top global organisations reduce risk and verify their customers. Our innovative global solutions utilise independent; government, credit, utility, and commercial data sources to provide clients with industry-leading match rates and unparalleled response times.
