KYC360 Weekly Roundup - 16th Feb 2024

Published on Feb 16, 2024

Top stories this week: 

FCA states that Enforcement Alone Cannot Tackle Financial Crime | UK Imposes Sanctions on 4 Israeli Settlers Accused of Extremist Activities | Congress Expands DOJ’s Authority to Pursue Corrupt Non-US Government Officials

Welcome to this week’s edition of the KYC Roundup. In the AML arena articles cover the British Virgin Islands Former Premier who has been found guilty in a landmark drug case. The FCA states that enforcement alone cannot tackle financial crime and the UK government issues a response to the Law Commission's review of the SARs regime.

In the fast-paced world of sanctions the UK imposes sanctions on 4 Israeli settlers accused of extremist activities. France imposes economic sanctions on Israel due to its continued construction of settlements in the West Bank and the EU contemplates sanctions on Chinese companies supporting Russia's military activities.

In the corruption space congress expands DOJ’s authority to pursue corrupt non-US government officials with The International Foreign Extortion Prevention Act (IFEP).

We round off this week’s roundup with an invitation to our upcoming webinar. Stephen Platt, Founder of KYC360 is joined by Neil Martin, former Head of Race Strategy at Ferrari F1 to discuss how to transform compliance into a competitive advantage allowing you to do more, better business faster.

 

Financial_ServicesKYC & AML

British Virgin Islands Former Premier, Guilty in Landmark Drug Case

The former Premier of the British Virgin Islands, Andrew Fahie, was accused of accepting bribes to protect drug traffickers and facilitating the entry of illegal drugs into the territory. The case is part of a wider crackdown on corruption and organized crime in the region. The conviction highlights the challenges faced by Caribbean countries in combating drug trafficking and corruption. 

FCA states that Enforcement Alone Cannot Tackle Financial Crime 

The FCA's executive director emphasized the need for a collaborative approach involving technology, intelligence sharing, and cooperation with other agencies to effectively combat financial crime. The regulator also acknowledged the challenges posed by evolving criminal methodologies and the importance of staying ahead of these trends. 

U.S. Treasury Department Plans to Strengthen Regulations within the Investment Advisory Industry

The proposed rules aim to enhance transparency and accountability by requiring investment advisers to report suspicious transactions and maintain robust anti-money laundering programs. The Treasury's Financial Crimes Enforcement Network (FinCEN) will oversee the implementation and enforcement of these regulations, which will also involve cooperation with other regulatory bodies. 

UK government Issues Response to the Law Commission's review of the SARs regime

The response addresses various recommendations made by the Commission, particularly focusing on Recommendation 7. The government acknowledges the need to improve the SARs regime and is committed to implementing changes to enhance efficiency and effectiveness. They are exploring options to simplify and streamline the SARs process while ensuring appropriate information sharing between law enforcement agencies.  

 

SanctionsSanctions

Small Hamburg-based Bank Under Investigation by German Regulatory Authority, BaFin 

The bank is suspected of facilitating illicit transactions and violating sanctions imposed on Iran. The investigation comes amid increasing scrutiny of financial institutions' compliance with anti-money laundering regulations. 

EU Imposes New Sanctions on Foreign Companies supporting Russian War 

The move comes as a response to Russia's annexation of Crimea and its support for separatist movements in eastern Ukraine. The EU hopes that these sanctions will deter foreign businesses from aiding Russia in its aggression. The law allows the EU to freeze assets, ban travel, and impose other restrictions on companies found to be assisting Russia

UK Imposes Sanctions on 4 Israeli Settlers Accused of Extremist Activities

These measures target individuals involved in the expansion of Israeli settlements in the occupied Palestinian territories, which the UK considers illegal under international law. The move comes as a part of the UK's efforts to promote a peaceful resolution to the Israeli-Palestinian conflict. The sanctions include travel bans, asset freezes, and restrictions on financial interactions with these individuals.  

France Imposes Economic Sanctions on Israel Due to its Continued Construction of Settlements in the West Bank

This move is seen as a significant step by France to pressure Israel into halting the expansion of settlements, which is deemed illegal under international law. The decision has drawn both support and criticism, with some arguing it is necessary to hold Israel accountable for its actions, while others believe it further complicates the already tense Israeli-Palestinian conflict. 

EU Contemplates Sanctions on Chinese companies supporting Russia's Military Activities 

This consideration comes as the EU aims to deter Russia's aggressive actions in Ukraine. The potential sanctions would target Chinese firms providing critical components and technology to Russia's defense sector, which could impact sectors like aerospace and telecommunications. 

 

CryptoCorruption

Congress expands DOJ’s authority to pursue corrupt non-US government officials with The International Foreign Extortion Prevention Act (IFEP) 

The Act, recently passed by Congress, expands the DOJ's authority to investigate and prosecute individuals engaged in foreign extortion. It aims to prevent corruption by holding accountable both US and non-US citizens involved in bribery and other unlawful activities. 

 

Gambling_GamingGaming and Gambling

The Importance of KYC Regulations in the United States' Online Gambling Industry

KYC procedures are designed to prevent fraud, money laundering, and underage gambling. Reputable gambling sites comply with these regulations to ensure the safety and security of their customers' personal and financial information. KYC regulations are necessary for the industry's integrity and continued growth.

SkyCity Faces fine of up to $8m

The Department of Internal Affairs is set to prosecute SkyCity Entertainment Group, a prominent casino operator, for alleged non-compliance with anti-money laundering laws. The company could face a fine of up to NZD 8 million ($5.6 million) if found guilty. The charges relate to the period between 2013 and 2019 and involve failures in conducting customer due diligence and suspicious transaction reporting. 

Resources

KYC360 News

Join our webinar: Comply and Outperform - Lessons from Formula 1 

What if you could turn compliance from being a brake into an accelerator? Join us on the 28th February at 3pm, when Stephen Platt, Founder of KYC360 and Neil Martin, former Head of Race Strategy at Ferrari F1 discuss how to transform compliance into a competitive advantage allowing you to do more, better business faster. 
Sign up.

 

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