KYC360 Weekly Roundup - 22nd Sep 2023

Published on Sep 22, 2023

Lessons to learn for MLROs

In our anti-money laundering news this week, we have an interesting article on the lessons MLROs should take from the FCA’s recent fine of an MLRO. The fallout from the Singapore money laundering scandal continues as the total value of assets seized has been revised upwards. There’s also an update on how Singapore is trying to restore its reputation after recent events.

We’ve news on the ESA’s Autumn 2023 report on risks and vulnerabilities in the EU’s financial system and news on how the EU’s regulation of ESG may need to change.

In crypto news, Germany pushes for universal regulation and in the US, a bill to more tightly regulate the sector gains additional support. In gambling news, the Swedish government proposes an increase to the country’s gambling tax rate.

To complete this week’s Roundup, we provide you with further money laundering, fraud, corruption and bribery updates from around the world. In addition, there’s news from RiskScreen about our latest success story – this time with CoinPayments.

 

Financial_ServicesMoney Laundering, Fraud & Corruption

Lessons for MLROs from the FCA’s recent fine on one of their own

Back in May and for the first time since 2016, the Financial Conduct Authority (FCA) fined a Money Laundering Reporting Officer (MLRO) for failings in their role. This interesting article looks at the lessons MLRO’s can learn from what happened. You can read the full FCA Decision Notice here.

Fallout from last month’s money laundering bust in Singapore continues

The total value of assets seized in the Singapore money laundering case we reported on last month continues to grow. Police said on Wednesday that the total has grown to S$2.4 billion ($1.76 billion), which includes cash amounting to more than S$76 million, 68 gold bars, cryptocurrencies of more than S$38 million, more than 110 properties and 62 vehicles worth more than S$1.2 million. The Singapore government continues to work on restoring the country’s reputation after the event (see next story).

Singapore MAS releases its 4th Enforcement Report, with a stricter approach to financial misconduct and heavier fines

In the Monetary Authority of Singapore’s (MAS) latest Enforcement Report, details are provided of actions taken against financial institutions and individuals. These range from anti-money laundering violations to wider market abuses. The report outlines heavier penalties being levied for misdemeanours with a total of $20 million in civil and financial penalties.

 

RequirementsLegislation, Regulation and Sustainability

European Supervisory Authorities issue their Autumn 2023 report on risks and vulnerabilities in the EU financial system

The latest report from the three major supervision authorities (European Banking Authority (EBA), European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA)), underlines continued economic uncertainty and calls for vigilance from all financial market participants.

EU Commission launches consultation on ESG regulation

The EU Sustainable Finance Disclosures Regulation (SFDR) legislation requires financial market participants to inform investors of their approach to sustainability risks and the potential impact of investments on the environment, both of which might affect investment values. The Commission last week launched a consultation on the law’s “potential shortcomings”, including “legal certainty, the useability of the regulation and its ability to play its part in tackling greenwashing”.

 

Gambling_GamingGaming and Gambling

Swedish government proposes increase in gambling tax rate

Sweden has announced proposals to increase the gambling tax rate in the country from 18% to 22% of gross gaming revenue (GGR). If approved, the change will come into effect from 1 July 2024.

Gambling Commission establishes new industry forum

In order to better improve its insight into the views of operators, the Gambling Commission has established a new body called the Industry Forum.

 

Crypto-1Crypto & Virtual Assets

Germany pushes for universal crypto regulation

Although the EU’s Markets in Crypto-Assets Regulation (MiCA) regulation is now in place, Germany says that localised rules are inadequate and that it’s time to bring the world under a consistent and all-encompassing cryptocurrency regulatory umbrella.

Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act gains additional support

Nine new United States Senators have declared support for Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act. This bipartisan support will bolster the legislative push to regulate and combat illicit activities within the cryptocurrency space.

 

Sanctions-1Sanctions

UN, EU and UK extend Iran sanctions

Under the Joint Comprehensive Plan of Action (JCPoA), a range of UN, EU and UK sanctions on Iran were due to be lifted on 18 October 2023. The UN, EU and UK have said that Iran has failed to comply with their JCPoA commitments and as a result, they will transfer UN sanctions into their domestic sanctions regimes and the EU and UK sanctions will not be lifted on 18 October 2023.

 

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