KYC360 Weekly Roundup - 30th Jun 2023

Published on Jun 30, 2023

FATF update list of high risk countries

Welcome to this week’s AML Roundup. In our anti-money laundering news this week, the international body the Financial Action Task Force, adds an EU member state to its list of countries under increased monitoring. Two separate reports show big growth in the AML software market. There’s also news on the Payment Association’s concerns about regulation hampering the growth of the market in the UK.

In Sustainability news, we have details on the EU parliament’s knife-edge vote on the nature restoration law. We also have views on how the UK needs to catch up with the US in its support for whistleblowers and details on the Law Commission’s first report on how the UK could do more to support digital assets including crypto.

To complete this week’s Roundup, we provide you with further money laundering, fraud, corruption and bribery updates from around the world. The latest news from the crypto and virtual assets sector. What’s new in global sanctions and the latest in gaming and gambling including the IGSA’s launch of their Responsible Gaming Committee.


Financial_ServicesMoney Laundering, Fraud & Corruption

FATF adds Croatia to list of countries under special scrutiny

The international financial watchdog, the Financial Action Task Force (FATF) has updated its list of countries under ‘increased monitoring’ adding EU member state Croatia, Cameroon and Vietnam to the list. This comes after concerns being raised about the countries’ prevention of money laundering and terrorism financing deficiencies. The full updated list is available here.

HM Treasury has issued an advisory notice and the Jersey Financial Services Commission has updated its AML/CFT/CPF Handbook in response.

HMRC updates its Economic Crime Supervision Handbook

New information on sanctions for non-compliance, financial penalties and the use of gross profit to calculate penalties for contraventions of money laundering regulations have been included in the update.

Reports suggest anti-money laundering software market size to exceed $2.7bn by 2025

Two reports are out this week both suggesting rapid growth in the size of the anti-money laundering software market. The reports suggest the software market is being driven primarily by increasing regulatory compliance requirements, the growing financial services market (along with a corresponding growth in financial crime) and advancements in technology and analytics.

The Payments Association expresses concern over forthcoming measures from the UK Government to prevent fraud

In a letter to Lord Dominic Johnson, Minister of State for Investment, the Payment Association warns that stringent regulations may hamper the continued growth of the sector and make the UK less attractive to investors.


RequirementsLegislation, Regulation and Sustainability

The need for change around whistleblowing

The US has boosted incentives for whistleblowers in recent years and this article discusses whether the UK could follow suit and what other changes could be made to catch-up.

UK and EU sign pact to increase cooperation on financial services regulation

The agreement will establish an ongoing forum for the EU and UK to discuss voluntary regulatory cooperation on financial services issues. 44% of the £11trillion of assets managed in the UK in 2020, is on behalf of international investors including the EU.

EU’s nature restoration law in knife-edge vote

We reported last week on the EU’s new Nature Restoration Law. Its future is in doubt after a vote tied 44 in favour and 44 against in the European parliament. It now progresses to a vote of the full parliament in a plenary session in July.

The importance of protecting client money

Here’s a useful summary from the International Compliance Association (ICA) of why the work we all do is so important.

How Insurers can successfully implement a digital transformation strategy

Digital transformation is not only about digitising existing manual or paper-based processes. It’s about reimagining and reinventing the business with digital technology as the driver for innovation. Here’s an interesting article about how insurers in particular, can benefit from digital transformation while avoiding its pitfalls.


Gambling_GamingGaming and Gambling

Gambling Select Committee calls for further feedback on the gambling reform white paper

A new deadline of the 14th July has been set to gather additional feedback on the gambling white paper.

International Gaming Standards Association (IGSA) launches Responsible Gaming Committee

The standards body says it will offer support for regulators and operators with a framework called the Responsible Gaming Maturity Model (RGMM). It hopes to provide the industry with guidelines for a more responsible gaming model.


Crypto-1Crypto & Virtual Assets

UK Law Commission publishes digital assets report including reforms to support crypto

For the first time, the Law Commission has been asked by the UK Government to investigate how the law can be changed to better accommodate digital assets. The report’s recommendations provide for a new category of personal property to accommodate digital assets, better protection for crypto asset holders and support for the UK becoming a tech hub for crypto digital innovation.

EU reaches agreement on crypto capital rules for banks

The EU Parliament’s Committee on Economic and Monetary Affairs announced an agreement on Tuesday to adopt changes requiring tough bank capital rules in line with internationally agreed standards. The agreement covers areas such as the way banks assess risk in business and home loans. This will now go to member states and law makers in the EU Council before becoming law.



US sanctions gold firms connected to Wagner mercenary group

The US Treasury Department is preparing new sanctions targeting countries and firms related to gold smuggling operations for the Wagner Group in Africa. The US has already designated the group a transnational criminal organisation.


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Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.

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