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FinCEN gears up to UBO register launch as New York mulls a public state version
US financial intelligence unit (FIU) FinCEN has been finalising arrangements for a 1 January 2024 deadline for private corporations, limited liability companies and all companies created by filing documents with US states or Indian (native American) tribes operating in the USA to start collecting and filing beneficial ownership information with the agency. While reporting companies created or registered before 1 January 2024 will have until 1 January 2025 to file their initial reports, FinCEN has proposed easing demands on businesses created next year [2024], extending their deadline for filing BO information on owners with 25% or more control to 90 days, rather than the 30 days mandated under previous rules. Companies created in 2025, however, will face 30-day filing terms. [1]
Online Published Date:
03 November 2023
Appeared in issue:
309 - 01 December 2023
Australian police break laundering ring that hid in plain sight
Australian Federal Police (AFP) have led the take-down of a major Chinese-organised money laundering syndicate, which allegedly transferred AU$228.8 million (US$145 million) in criminal funds between 2020 and 2023. It had been operating within a leading Chinese currency exchange business, according to the AFP.
Online Published Date:
03 November 2023
Appeared in issue:
309 - 01 December 2023
FATF plenary takes aim at terrorist financing and civil forfeiture
With weaknesses in terrorist financing controls exposed by Hamas' deadly attack on Israel, sparking military reprisals in Gaza, the Financial Action Task Force (FATF) has proposed a range of reforms. These had been planned before the latest bloody chapter opened in the Middle East and were announced, on 27 October [2023], as the global anti-money laundering/counter financing of terrorism (AML/CFT) body's October plenary wrapped.
Online Published Date:
03 November 2023
Appeared in issue:
309 - 01 December 2023
Murky flows in Africa - the Great Lakes Region
Wracked by decades of conflict and still prey to multiple armed groups with their own agendas, the Democratic Republic of Congo (DRC), abundant in natural resources, is a prime target for illicit trade in the Great Lakes Region. Paul Cochrane looks into efforts to bolster the financial crime and other defences of the DRC and its neighbours.
Online Published Date:
03 November 2023
Appeared in issue:
309 - 01 December 2023
On the inside - profile of a professional launderer
An illegal, high-stakes business with demanding, sometimes extremely dangerous clients - professional money laundering may not be at quite the edge cut by drugs, arms and people traffickers, but it's vital to their operations and calls for particular character traits and skills, Keith Nuthall learns from some who've been there, done it.
Online Published Date:
03 November 2023
Appeared in issue:
309 - 01 December 2023
Fine or not? - the use of penalties
Punish according to the seriousness of the offence - a graduation that fits with commonsense notions of justice and should, if the penalties are set on a high enough scale, act as a deterrent: but does the evidence of anti-money laundering enforcement support the theory? Keith Nuthall reviews the magnitude and impact of fines internationally and whether they are any more than just a cost of doing business.
Online Published Date:
03 November 2023
Appeared in issue:
309 - 01 December 2023
Finland further tunes technical compliance but professions exposed to criminals, FATF finds
In a fourth follow-up to 2019's mutual evaluation report on Finland, the Financial Action Task Force (FATF) records a partially to largely compliant re-rating for four of its Recommendations. The Scandinavian country puts requirements on correspondent banking and payable through accounts that the global AML standard-setter says accord with Recommendation 13; although they only apply to EEA country relationships when these are identified as higher risk, a mandatory requirement to use a risk-based approach that provides for enhanced due diligence, and to treat EU countries found by FATF to have strategic deficiencies as high risk, effectively nullifies any apparent exemption.
Online Published Date:
03 November 2023
Appeared in issue:
309 - 01 December 2023
DKLM fined £12,000 in UK over reliance on Ukraine lawyer's due diligence
A law firm based in the City of London has accepted that it should not have relied on customer due diligence (CDD) and source of funds (SOF) checks by a Ukrainian lawyer, working at a Ukrainian practice, in support of a house purchase in the UK.
Online Published Date:
03 November 2023
Appeared in issue:
309 - 01 December 2023
FinCEN to class crypto mixers as source of primary ML concern
US financial intelligence unit FinCEN is to designate transactions involving international convertible virtual currency mixing (CVC mixing) a source of 'primary money laundering concern'. The move, the first time FinCEN has used its authority under Section 311 of the USA Patriot Act to target a class of transactions in this way, follows the Hamas attack on Israel on 7 October [2023], believed to have been funded with crypto.
Online Published Date:
06 November 2023
Appeared in issue:
309 - 01 December 2023
Disclosure and fraud offences review under way
Foreshadowed in the Fraud Strategy, published May [2023], the UK government, on 12 October [2023], announced an independent review into the operation of the disclosure regime and whether existing fraud offences are fit for purpose in England, Wales and Northern Ireland.
Online Published Date:
07 November 2023
Appeared in issue:
December 2023/January 2024 - 01 December 2023
Disclosure and fraud offences review under way
Foreshadowed in the Fraud Strategy, published May [2023], the UK government, on 12 October [2023], announced an independent review into the operation of the disclosure regime and whether existing fraud offences are fit for purpose in England, Wales and Northern Ireland.
Online Published Date:
07 November 2023
Appeared in issue:
309 - 01 December 2023
Social media & search engines face new anti-fraud duty under UK Online Safety Act
The UK Online Safety Act received Royal Assent on 26 October [2023], an event that consumer association Which? described as "a major step forward in the fight back against fraud". The new law will authorise penalties for social media companies and search engines that fail to prevent their platforms from being used for fraud - for false claims, profiles and promotions through to misleading statements and counterfeiting, whether via user-generated content or paid-for advertising. Under the law, these companies must carry out risk assessments of their platforms' possible use for fraud; act against any discovered scams (including removing harmful content); and open channels to report illegal content.
Online Published Date:
07 November 2023
Appeared in issue:
December 2023/January 2024 - 01 December 2023
Social media & search engines face new anti-fraud duty under UK Online Safety Act
The UK Online Safety Act received Royal Assent on 26 October [2023], an event that consumer association Which? described as "a major step forward in the fight back against fraud". The new law will authorise penalties for social media companies and search engines that fail to prevent their platforms from being used for fraud - for false claims, profiles and promotions through to misleading statements and counterfeiting, whether via user-generated content or paid-for advertising. Under the law, these companies must carry out risk assessments of their platforms' possible use for fraud; act against any discovered scams (including removing harmful content); and open channels to report illegal content.
Online Published Date:
07 November 2023
Appeared in issue:
309 - 01 December 2023
The Economic Crime and Corporate Transparency Act 2023: tough medicine?
A corporate offence of failure to prevent fraud, Companies House reforms that impose integrity checks on data submitted and extant, and changes to the identification doctrine that will make it easier to prosecute senior managers - the expansive Economic Crime and Corporate Transparency Act 2023 finally received Royal Assent on 27 October. Tony Lewis, Natalie Quinlivan, Farheen Ishtiaq-Stansfeld and Katherine Varatharajah of Fieldfisher review the statute and its likely impact on business in the battle against fraud.
Online Published Date:
07 November 2023
Appeared in issue:
December 2023/January 2024 - 01 December 2023
The Economic Crime and Corporate Transparency Act 2023: tough medicine?
A corporate offence of failure to prevent fraud, Companies House reforms that impose integrity checks on data submitted and extant, and changes to the identification doctrine that will make it easier to prosecute senior managers - the expansive Economic Crime and Corporate Transparency Act 2023 finally received Royal Assent on 27 October. Tony Lewis, Natalie Quinlivan, Farheen Ishtiaq-Stansfeld and Katherine Varatharajah of Fieldfisher review the statute and its likely impact on business in the battle against fraud.
Online Published Date:
07 November 2023
Appeared in issue:
309 - 01 December 2023
Supercharged detection - the promise in computational advances
Milestones in mathematical research on algorithms are passed with increasing frequency, which, combined with accelerating development in artificial intelligence and quantum computing, Keith Nuthall finds could radically shift the fraud advantage in favour of investigators.
Online Published Date:
07 November 2023
Appeared in issue:
309 - 01 December 2023
Supercharged detection - the promise in computational advances
Milestones in mathematical research on algorithms are passed with increasing frequency, which, combined with accelerating development in artificial intelligence and quantum computing, Keith Nuthall finds could radically shift the fraud advantage in favour of investigators.
Online Published Date:
07 November 2023
Appeared in issue:
December 2023/January 2024 - 01 December 2023
Switzerland pushes up FATF technical compliance ratings; needs more graduated sanctions penalties
Switzerland will move on to regular monitoring by the Financial Action Task Force (FATF) after a fourth follow-up on its 2016 mutual evaluation report found it had made technical progress in aligning its anti-money laundering regime with international standards.
Online Published Date:
09 November 2023
Appeared in issue:
309 - 01 December 2023
Muleheaded - FCA finds stubborn failings in UK payment account providers
If fraud constitutes 40% of all reported crime in England & Wales and the funds are laundered through accounts operated by regulated entities, one would think these would be working hard to frustrate the criminals: research by the UK Financial Conduct Authority (FCA) found that most are making some effort but "there were many areas we identified where firms should be doing more".
Online Published Date:
09 November 2023
Appeared in issue:
309 - 01 December 2023
No better - law firm AML compliance in England & Wales
Under a third (30%) of law firms in England and Wales inspected by the Solicitors Regulation Authority (SRA) were fully compliant with their anti-money laundering obligations in 2022/23.
Online Published Date:
09 November 2023
Appeared in issue:
309 - 01 December 2023
Japan scores higher on FATF technical compliance but risk-based approach scope opaque
Japan has made further progress in technical compliance with the Financial Action Task Force (FATF) 40 Recommendations, according to a second follow-up report (FUR) to its 2021 mutual evaluation.
Online Published Date:
09 November 2023
Appeared in issue:
309 - 01 December 2023
Sunny days - Bermuda
On a high rating for both technical compliance with Financial Action Task Force Recommendations and AML/CFT effectiveness, Bermuda has continued to work on its regime since the evaluation findings of 2020. Keith Nuthallconsiders recent changes and access to the British overseas territory's beneficial ownership register.
Online Published Date:
09 November 2023
Appeared in issue:
309 - 01 December 2023
Workaround - Iran: a sanctions review
Over four decades of sanctions may have prevented Iran from developing nuclear weapons but have also taught it to exploit every means of circumvention, and seek new ones. Expiry of UN Security Council Resolution 2231, shifting geopolitics and weakening hegemony of the US dollar in global finance are now ratcheting up the threat. Paul Cochranereports.
Online Published Date:
09 November 2023
Appeared in issue:
309 - 01 December 2023
Anti-Money Laundering - a job, an occupation, or a profession?
Mario Menz talks about the difference between AML as a job, an occupation, and a profession.
Online Published Date:
09 November 2023
Appeared in issue:
309 - 01 December 2023
The PSR numbers are out, so what do they mean?
The Payments Systems Regulator (PSR) has published league tables for banks, payment firms and consumers. The data informs prospective bank/payment firm customers of performance. For some banks there is a ying and a yang. TSB rank top for reimbursing 91% of the value of authorised push payment (APP) fraud losses. Whereas DZing Finance receives more of the proceeds of APP fraud than any other bank/firm.
Online Published Date:
09 November 2023
Appeared in issue:
309 - 01 December 2023
daVinci Payments pays US$206,213 over prepayment card redemptions in breach of US sanctions
Illinois, USA-based Swift Prepaid Solutions, Inc, which trades as daVinci Payments, has accepted a US$206,213 penalty for apparent violations of US Office of Foreign Assets Control (OFAC) sanctions against Crimea, Iran, Syria and Cuba between 15 November 2017 and 27 July 2022.
Online Published Date:
09 November 2023
Appeared in issue:
309 - 01 December 2023
Payoneer pays US$1.25m in New York over US sanctions violations
Payoneer, Inc, which operates a payment service platform for e-commerce businesses, is liable for a US$1,250,000 penalty after the New York Department of Financial Services (DFS) concluded it had breached US sanctions.
Online Published Date:
10 November 2023
Appeared in issue:
309 - 01 December 2023
Money laundering risks rise around the world, says Basel Institute
The risks of money laundering and terrorist financing (ML/TF) are increasing globally, according to the 2023 edition of the Basel AML Index, mainly through a "concerning" drop in the effectiveness of AML/CFT systems, indicated by Basel Institute on Governance analysis of Financial Action Task Force (FATF) data. In the 152 countries covered in the Index's public edition, the average global ML/TF risk level increased from 5.25 in 2022 to 5.31 in 2023, where 10 is the maximum risk.
Online Published Date:
15 November 2023
Appeared in issue:
309 - 01 December 2023
Binance pays US$4.3bn for AML and sanctions breaches - monitor to oversee US exit
The world's largest cryptocurrency exchange must pay a record civil penalty of US$3.4 billion to US AML agency FinCEN for non-compliance with Bank Secrecy Act regulations and another US$969m to the US Office of Foreign Assets Control for apparent violations of multiple US sanctions programmes.
Online Published Date:
22 November 2023
Appeared in issue:
309 - 01 December 2023
European Commission lists PEP functions
The European Commission has published an extensive list of the European Union's (EU)politically exposed persons (PEPs) who should be subject to greater due diligence in banking and other transactions.
Online Published Date:
23 November 2023
Appeared in issue:
309 - 01 December 2023
FATF puts focus on asset recovery with Recommendation changes
The Financial Action Task Force (FATF) has released changes to its formal Recommendations designed to push governments to ensure more money is seized and confiscated.
Online Published Date:
23 November 2023
Appeared in issue:
309 - 01 December 2023
FATF sharpens aim at not-for-profit terrorist financing risk with Recommendation change
The Financial Action Task Force (FATF) has reformed Recommendation 8 on the terrorist financing abuse of non-profit organisations (NPOs) to ensure that many charities, associations, trade unions, research units and advocacy groups are not targeted for counter financing of terrorism (CFT) measures.
Online Published Date:
23 November 2023
Appeared in issue:
309 - 01 December 2023
Crowdfunding for terrorism detailed in FATF report
The Financial Action Task Force (FATF) has profiled how crowdfunding networks can be abused by terrorist groups, as US financial intelligence unit FinCEN warns these have been exploited by Gaza-based terror group Hamas, which launched its murderous attack on Israel on 7 October [2023].
Online Published Date:
24 November 2023
Appeared in issue:
309 - 01 December 2023
Crypto crackers
'Tis the season to be jolly (almost) - indeed, but that can ring hollow when war rages: Gaza and Ukraine are only two theatres.
Online Published Date:
26 November 2023
Appeared in issue:
309 - 01 December 2023
FATF, Interpol & Egmont issue joint advice on combating cyber-fraud ML
FATF, Interpol and the Egmont Group have called on governments to undertake three priority reforms to combat increasing money laundering generated by cyber-enabled fraud, which mushroomed during and has since the Covid-19 pandemic.
Online Published Date:
27 November 2023
Appeared in issue:
309 - 01 December 2023
FinCrime Curator - December 2023
The year may be winding down but not so the malefactors bent on economic crime. Whether it's a weekly round-up of their activities and the latest legal and regulatory responses that you need or an in-depth analysis of their shams and scams - past and present - we've gathered the online links.
Online Published Date:
27 November 2023
Appeared in issue:
309 - 01 December 2023
Ashfords Solicitors fined £101,357 in UK after sanctions risk fail
Exeter-based law firm Ashfords LLP will pay a UK£101,357 penalty after the Solicitors Regulation Authority (SRA) found it had breached the Money Laundering Regulations 2017 in respect of three property transactions between October 2017 and March 2018.
Online Published Date:
29 November 2023
Appeared in issue:
309 - 01 December 2023