Doing the bare minimum is no longer acceptable when it comes to anti-money laundering/counter-terrorist financing (AML/CTF) compliance. The global regulatory environment is evolving around governments implementing stricter AML laws, international regulators increasing enforcement actions, and new innovative technology that opens up opportunities for businesses, consumers, and criminals. Let’s have a look at what has been happening over this week.
European Gambling commission to launch a consultation on the financial threshold
The European Gambling Commission has reiterated its commitment to creating a safer gambling market — but warned that many operators were falling short. The regulator announced that it would launch a new consultation about thresholds for financial risk. The consultation will be open to discussing financial risks, losses over short or long periods, and other financial vulnerabilities faced by gambling companies. The Commission’s executive director Tim Miller said, “Just to be clear; we are not talking about grey areas here. We are talking about significant binge gambling or clearly unaffordable levels of gambling without action being taken. Can anyone seriously justify allowing a new customer to lose £10,000 within minutes without any checks or interaction?”. Miller stressed that the Commission must permit gambling, but operators won’t be allowed to put commercial gain above customer safety.
Fraud and corruption news:
Reserve Bank of India fines Bank for breaching KYC regulations
Sarvodaya Co-operative Bank had failed to access its customers’ risk level, leading RBI to impose a fine of INR 200,000 (USD 2719.96). According to the RBI’s KYC mandate, banks should classify customers as low, medium, and high-risk category, based on the assessment and risk perception of the lender. Also, organisations have to update their KYC periodically.
KYC tech and trends:
Australian watchdog, AUSTRAC Outlines Common Reporting Mistakes
The Australian watchdog, AUSTRAC, highlighted the serious reporting mistakes in AML/CTF programs of reporting entities and suggested critical improvement practices. The report states the standard reporting errors of incorrect identity verification, incorrect address verification, incorrect entries are placed, delaying in reporting, inconsistent formats being uses, and too much reporting leading to unnecessary information processing. AUSTRAC also mentions the common deficiencies in the organisations AML/CTF programs.
AUSTRAC released Australia’s financial planning sector risk assessment
The Australian watchdog, AUSTRAC, assessed the money laundering and terrorism financing risks associated with the financial planning sector. The assessment evaluated the industry’s overall risk rating, criminal threat environment, vulnerabilities, and consequences. The report provides sector-specific information to the financial planning industry on ML/TF risks at the national level. Its primary aim is to assist the sector in combating ML/TF crimes in Australia’s financial system.
This week at Data Zoo:
Podcast: Data Insider’s first episode releasing on 14th September
Data Insider is your go-to for insights into the complex and current issues presented by raw digital information and its processing. Our first episode is releasing on 14th September featuring our Sales Operations Manager, Leah Hu and Head of Compliance and Digital Strategy, Memoona J. Anwar.
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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.