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 opens up opportunities for businesses, consumers and criminals. Let’s have a look at what has been happening over this week.
Global regulatory changes:
EU’s new AML authority will not have regulatory power over the UK due to Brexit
Dated: 12.07.21
The European Commission will launch the Anti-Money Laundering Authority (AMLA) as part of a raft of measures in its anti-money laundering action plan. EU’s new independent money-laundering authority will not have powers over UK estate agents, banks, accountants, and other companies targeted by money launderers.
FinCEN issues a list of AML/CFT priorities
Dated: 13.07.21
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.
South Korea tightens AML guidelines for crypto exchanges
Dated: 13.07.21
The new AML guidelines would require crypto exchanges to have real bank accounts under stricter guidelines. None of the 200 crypto exchanges operating in the country filed for the compliance license under new regulations, and most of them feared closure due to the strict nature of the policy. The main concern of regulators around the crypto space is money laundering, and that is the key reason behind the implementation of strict AML policies on crypto platforms.
Japanese watchdog, BOJ to assess AML measures at FIs
Dated: 14.07.21
The Financial Services Agency (FSA) and the Bank of Japan (BOJ) aim to learn if financial institutions implement sufficient steps against fraudulent money transfers. If found to be inadequate, the FSA and BOJ will ask them to take corrective action. The move comes as the global financial watchdog Financial Action Task Force (FATF) will likely point out inadequate internal control systems at Japanese financial institutions in an assessment it will publish in August, the paper said.
Fraud and corruption news:
Hong Kong Official arrests 4 suspects for laundering $155 million crypto
Dated: 08.07.21
Hong Kong authorities arrested four men suspected of involvement in a money-laundering syndicate that involved HK $1.2 billion (US$155 million). Customs authorities say the alleged money-laundering cartel charged criminal clients a commission of 3% to 5%. According to reports, this is the first money-laundering case involving cryptocurrency detected by the city’s customs authorities. Will the upcoming crypto regulations mitigate these financial crimes?
Crypto exchange fined $15 million by NY regulators in AML probe
Dated: 12.07.21
Robinhood Crypto, the digital currency arm of Robinhood stock trading platform, is set to fork out $15 million in a settlement with a New York regulator. According to regulatory filings, the payment is in connection with anti-money laundering and cybersecurity issues. Aside from paying the tentative $15 million penalties, Robinhood will have to engage a monitor. This is an individual who surveys a company’s activities and evaluates its compliance to certain practices. In the Robinhood case, the monitor will ensure that the firm adheres to anti-money laundering and cybersecurity practices.
KYC tech and trends:
2021 identity verification market report
Dated: 15.07.21
The Global Id Verification Market report by AMA Research evaluates market size, trend, and forecast to 2026. The study gives an in-depth analysis of emerging competitors, market trends, drivers, and opportunities with a country-level break up of the industry.
This week at Data Zoo:
How to verify a Thai Citizen
Dated: 15.07.21
In 2020, Thailand’s cabinet and parliament issued amendments to the AMLA to comply with the international standard of FATF. The reforms highlight a focus on financial technology services. Also, the government implemented a new customer due-diligence regulation under the Ministerial Regulation on Customer Due Diligence 2020. Learn how to verify Thai Citizens in compliance with FATF, APG, and other regulatory bodies.
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.
