News in brief – October 2020

This year we have witnessed some of the largest fines in history with many international financial services organisations and other regulated entities under scrutiny from regulators. As the business landscape adapts to the pandemic, we are seeing authorities provide businesses direction on how to protect themselves from vulnerabilities to financial crime such as AML guidance, human trafficking and wildlife trafficking.

Now more than ever, we are seeing more organisations adopt technology to identify and manage their vulnerabilities to financial crime, and put in place measured and effective controls. 

Find out some of the October global financial crime news below.

AFRICAS

• Nigeria Customs Service have over 5,000 reasons why a Dubai-bound passenger was arrested after finding that equivalent of fraudulent ATM cards concealed in bean sacks. Further investigation will be conducted by Economic and Financial Crimes Commission (EFCC)
• Financial Crime Risk Management Consultants have conducted a 3-part webinar series in partnership with Arctic Intelligence to deliver a pragmatic approach on AML risk assessment

AUSTRALIA

• AUSTRAC has decided no regulatory action will be taken on Afterpay after their findings of AML breaches
• Major Banks in Australia are taking major approaches towards anti-money laundering compliance as AUSTRAC has issues two of the top 4 banks with multi-million fines in the last few years
• Financial Crime Guide has been developed in partnership with the Fintel Alliance and the Department of Agriculture, Water and Environment to educate businesses on how to detect illicit wildlife trafficking operations
• Tax evasion and money laundering identified as highest potential threats to national security by the Australian Criminal Intelligence Commission

EU

• European Council removes Cayman Islands from its non-cooperative jurisdictions
• The UK’s company registrar, Companies House are set to reform procedures to clamp down on fraud and money laundering
• Cyprus is suspending its citizenship-by-investment program from 1^st November 2020
• Leeds national who amassed a property portfolio worth nearly £10m has lost his assets in a settlement with the National Crime Agency

North America

• Financial Action Task Force (FATF) recently issued Virtual Assets Red Flag Indicators of Money Laundering and Terrorist Financing Report
• Female human trafficking victim was discovered by Montreal police were responding to a report of “disturbance”. A male and female both from Montreal have been arrested and charged for Human Trafficking offences
• New rules for “Non-Federal Functional Regulated” (NFFR) institutions such as asset management and investment funds, non-federally insured credit unions, trusts, private banks etc will be subject to the same rules applied to Federal Deposit Insurance Corporation-insured (FDIC) depository institutions.

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