Top KYC and AML news of the week | 08 October — 15 October’21
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.
China releases the Personal Information Protection Law
On August 20, 2021, the Standing Committee of China’s National People’s Congress passed the Personal Information Protection Law (“PIPL”), which will take effect on November 1, 2021. The PIPL establishes guiding principles on protecting personal information, adopts a risk-based approach (imposing strict compliance obligations in specified high-risk scenarios), and creates legal rights for data subjects.
Foreign businesses operating in China may be subject to PIPL’s regulatory requirement, and failing to the obligations will result in penalties. Foreign organisations may also be subject to consequences under the PIPL for violating Chinese citizens’ personal information rights or harming China’s national security or public interest.
Fraud and corruption news:
German watchdog imposed $5 million fine on an online bank for weak AML regulations
German online bank N26 was investigated by financial watchdog BaFin for weak AML controls and imposed a $4.93 million fine on the digital banking platform. N26 was ordered to strengthen its regulatory structure.
British Bank expected to pay $463 million in fine for failing to prevent money laundering
A British high street bank faces a massive fine for failing to prevent a jewellery wholesaler from laundering almost $500m. NatWest is expecting to pay up to $463 million following a historic prosecution by financial regulators. It’s the first time a bank has been prosecuted under the Money Laundering Regulations since they became law in 2007.
KYC tech and trends:
Dubai is a growing hub for crypto
Dubai and the UAE are attractive crypto destinations due to the ease of converting cryptocurrencies into cash with low fees while remaining almost anonymous. Exchanges generally require basic know-your-customer (KYC) identity and “nothing more.” Dubai is pro-crypto, allowing investors to buy, sell, or hold digital assets at zero taxes. In comparison, global regulators and countries are creating new regulations for the crypto industry. The motive behind Dubai’s ease of crypto activities is to increase investment in local crypto markets.
This week at Data Zoo:
Hear Data Insider’s second podcast on “Opening Banking and Digital Identity”
Our host, Memoona J. Anwar, Ph.D., discusses the use cases, relevance, and future of the opening banking sector and consent management with industry expert and CEO of Data Zoo, Tony Fitzgibbon. The conversation explores how opening banking empowers an individual to control their own identity through consent management.
Hear more and follow us!
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.