Doing the bare minimum is no longer acceptable when it comes to 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 open up opportunities for businesses, consumers and criminals. Let’s have a look at what has been happening over this week.
Global regulatory changes:
Crypto Exchanges to face stricter AML regulations by the European Commission
Dated: 21.07.21
European Commission proposes to extend ‘Travel Rule’ to crypto transactions to prevent and detect their use for money laundering and terrorist financing. The ‘Travel Rule’ will make it compulsory for crypto service providers to collect crucial information like the customer’s name, address, and account details. This will immediately confiscate anonymous crypto asset wallets, hence keeping them out of the EU financial system. The proposed regime complies with the latest FATF recommendations for virtual assets. Is this the new norm for the Crypto industry?
South Korean regulator warns cryptocurrencies to follow the new regulatory regime or face jail
Dated: 23.07.21
The South Korean financial watchdog, Financial Services Commission, has warned 27 companies to stop serving the locals without having licensing norms before 24th September. Non-compliant crypto exchange operators may face imprisonment of up to five years or a fine of around US $43,500. The mandate is based on the South Korean law that requires KYC procedures for all cross-border fund transfers.
Japanese banks working to implement a shared AML/CFT monitoring system for the industry
Dated: 23.07.21
The new shared platform for AML/CFT monitoring and screening addresses the issue of false positives in the banking industry. According to officials. The new system has proven to enhance the effectiveness and efficiency of AML/CFT monitoring and detection. FATF (Financial Action Task Force) report recently featured the project on data pooling and collaborative analytics. Can this new system for the banking industry help to mitigate the increasing fraud?
Fraud and corruption news:
Robinhood Crypto to expected to pay $30 million fine for AML failure
Dated: 19.07.21
Robinhood Markets Inc.’s cryptocurrency arm expects to pay a $30 million fine to settle a New York state probe into its cybersecurity and anti-money-laundering practices. Other violations include cybersecurity and virtual currency requirements; an official added, “including certain deficiencies in our policies and procedures regarding risk assessment, lack of an adequate incident response and business continuity plan, and deficiencies in our application development security.” The penalty would be on top of a $70 million fine from the Financial Industry Regulatory Authority (FINRA) and a $65 million settlement with the Securities and Exchange Commission (SEC).
KYC tech and trends:
Cryptocurrency industry shifting from a decentralised to a centralised structure with the latest global regulatory reforms
Dated: 16.07.21
The crypto industry had started on a no trace exchange system giving the liberty to transact without any regulations. But the growing fraud using virtual assets has forced regulators to issue strict actions for the industry to operate. The FATF added virtual assets to its updated recommendations; following the updates, the European Commission has proposed new rules for the industry. Many Asian countries like South Korea and Hong Kong are also imposing restrictions on crypto exchanges. These changes have taken a turn on the industry, forcing it to adapt to a regulated and centralised structure.
This week at Data Zoo:
Bangladesh and Thailand National ID added to our data sources
Dated: 19.07.21
We recognise the dynamic data landscape and want to keep you updated with the new and improved recently updated services. This week, we have added two new services — Bangladesh and Thailand National ID to production, with several others in testing and development.
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.
