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:
FinCEN has issued the first government-wide priorities for AML/CFT policy
Dated: 06.07.21
The Financial Crimes Enforcement Network (FinCEN) tipped its hand at significant global AML/CFT regime changes. The priorities intend to assist FIs in their AML/CFT efforts and enable them to prioritise the use of their compliance resources. FinCEN added that “they may wish to start considering how FIs will incorporate the AML/CFT priorities into their risk-based AML programmes” ahead of new rules published within 180 days.
Anti-Money Laundering Authority (AMLA) could be the new EU watchdog
Dated: 07.07.21
According to a proposal, European Commission plans to strip the European Banking Authority of all its anti-money laundering duties and hand them to a new EU anti-money laundering watchdog. These strict measures were taken to repair much of the bloc’s reputational damage in recent years after several scandals revealed gaps in banking supervision. The responsibilities and powers are expected to be transferred to the dedicated unit of AMLA. The authority will have direct supervisory powers over financial companies across the bloc, with the ability to impose fines totaling millions of euros.
Central Bank of Ireland revised AML/CFT regime in response to EU’s 5AMLD
Dated: 07.07.21
The Central Bank of Ireland published revised guidelines on AML/CFT with changes to the Irish laws. The revisions reflect the further transposition of 5MLD and bring the Guidelines in line with current CBI expectations concerning designated persons’ (“firms”) existing obligations under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010.
Fraud and corruption news:
Hong Kong officials fined Yardley Securities Limited Senior Management $5 million for AML breaches
Dated: 05.07.21
The Securities and Futures Commission (SFC) announced that they plan to reprimand the Chief Executive Officer, Director, Compliance Officer, and Money Laundering Reporting Officer of YSL for regulation breaches. The measure was decided after a series of sanctions imposed by the SFC against YSL on breaching rulings of complying with counter-financing of terrorism (AML/CFT) regulatory requirements. The wrongdoing allegedly happened after handling third-party fund transfers.
Chinese hacker target State Bank of India’s (SBI) customer with fake KYC link
Dated: 08.07.21
SBI customers are targeted with phishing messages by hackers, reportedly of Chinese origin. Cybersecurity researchers found hackers luring customers with price money for completing KYC through a particular link sent on WhatsApp. The link takes the customer to a landing page that is very similar to SBI’s website that future asks for the OTP and other confidential information. The bank has issued warning against such messages and asked customers to stay aware. But is that enough from a State Bank to control the situation?
KYC tech and trends:
e-KYC Market Analysis reporting growth, challenges, opportunities, and future developments to 2027
Dated: 07.07.21
The report provides facts and statistics on worldwide market trends and developments, manufacturing, capabilities, technologies, and the market’s fragile structure. COVID-19 has given way to digitalisation — boosting the e-KYC market. The research highlights critical information about the Covid-19 pandemic’s impact on research and development, sales, production, revenues, and other critical areas of the global e-KYC market.
This week at Data Zoo:
Four steps to manage risk in 2021
Dated: 07.07.21
Managing risk does not mean operating in a completely risk-free environment — this is not realistic. However, businesses must identify the opportunities of threats and then find the best ways to reduce and manage them. These actions should be in proportion to the company’s size, the possible risks, and the available resources. This approach provides efficient and effective use of resources minimising compl6ance costs and burden on customers. Learn how you can manage your risk in 2021.
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.
