FinregE’s comprehensive horizon scanning has identified a remarkable volume of regulatory activity, capturing over 440 publications related to financial crime and anti-money laundering (AML) from 40 regulatory sources worldwide. This extensive data points to an intensified global focus on strengthening financial systems against unlawful activities. In this blog post, we delve into an array of pivotal AML and counter-terrorism financing (CTF) regulations that have recently been introduced or updated across various jurisdictions.
From the proactive reforms in Australia’s AML/CTF regime to the establishment of a specialized AML authority by the European Union, these regulatory actions underscore the importance of keeping up with the pace of regulatory changes in the AML space. This post aims to unpack some of the key developments, offering a detailed look at the ongoing efforts to combat financial crime and enhance compliance measures globally.
Country | Regulator | Rule/Regulation | Summary |
Australia | AUSTRAC | Second stage consultation on reforming Australia’s AML/CTF regime is now open | The Australian Attorney-General has announced the commencement of the second stage consultation on reforming the country’s anti-money laundering and counter-terrorism financing (AML/CTF) regime. This phase involves the release of consultation papers by the Attorney-General’s Department, outlining detailed proposals for reform based on feedback from the initial round of consultation held between April and June 2023. Seeking feedback until June 13, 2024, the proposed reforms aim to extend AML/CTF legislation to high-risk services such as those provided by lawyers, accountants, real estate agents, and others. They also focus on simplifying and modernizing the regime to align with international standards, reducing regulatory burdens, and strengthening businesses against exploitation by serious organized criminals. The first round of consultation revealed broad support for the reforms, particularly in clarifying obligations and simplifying due diligence requirements. All stakeholders, including current and potential reporting entities, are encouraged to participate in shaping these reforms by making submissions to the Department by the deadline. |
European Union | European Union | EU Regulation Proposal: Establishing the Anti-Money Laundering and Terrorism Financing Authority | European Parliament’s adopted new regulatory measures to establish an authority for Anti-Money Laundering and Countering the Financing of Terrorism. This regulation, referenced under 2021/0240(COD), amends previous EU regulations and aims to address and reinforce the EU’s efforts against money laundering and terrorism financing. It proposes the creation of a specialized authority to oversee and harmonize anti-money laundering and counter-terrorism financing rules across the EU, enhancing the efficiency of the existing framework and addressing disparities in national implementations that hinder the internal market’s function. This authority is intended to strengthen the EU’s financial systems against cross-border criminal activities by facilitating coordinated regulatory practices and effective oversight. |
European Union | European Parliament | The European Parliament has approved a comprehensive package of laws aimed at bolstering the EU’s efforts to combat money laundering and terrorist financing. The new regulations grant broader access to beneficial ownership information, empower Financial Intelligence Units (FIUs) to better analyze and suspend suspicious transactions, and impose enhanced due diligence measures on obliged entities such as banks and real estate agents. Notably, professional football clubs will be subject to these measures starting from 2029. Additionally, the legislation introduces a €10,000 limit on cash payments, establishes a new supervisory authority, the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), and includes provisions to monitor ultra-rich individuals and ensure compliance with financial sanctions. The adoption of these laws represents a significant step towards fulfilling citizen demands for stronger measures against tax evasion and corporate taxation cooperation, as outlined in the Conference on the Future of Europe. | |
European Union | European Commission | COMMISSION DELEGATED REGULATION (EU) amending Delegated Regulation (EU) 2016/1675 | The Commission Delegated Regulation (EU) amends Delegated Regulation (EU) 2016/1675 by adding Kenya and Namibia to the list of high-risk third countries due to strategic deficiencies in their anti-money laundering/countering the financing of terrorism (AML/CFT) regimes and removing Barbados, Gibraltar, Uganda, and the United Arab Emirates from the list as they have addressed their deficiencies. This amendment follows the criteria set in Directive (EU) 2015/849, which obliges Member States to apply enhanced customer due diligence measures for transactions involving high-risk third countries. The Commission’s decision is based on information from international organizations such as the Financial Action Task Force (FATF) and consultations with relevant experts. The regulation aims to adapt to evolving AML/CFT threats and maintain the integrity of the EU financial system. |
European Union | Moneyval | Slovakia strengthened its regulations for financial institutions | Slovakia has significantly bolstered its regulations governing financial institutions, as noted in a recent report by MONEYVAL. The country has notably enhanced its compliance with the Financial Action Task Force’s Recommendation 26, resulting in a re-rating from Partially Compliant to Largely Compliant. Since November 2022, Slovakia has implemented measures aimed at preventing individuals associated with criminals from holding significant interests or management roles in banks and insurance companies, introduced risk assessment procedures for exchange offices and non-banking lenders, and refined its policies for reviewing individual risk profiles within financial institutions. These efforts mark substantial progress in addressing previous compliance deficiencies outlined in the 2020 Mutual Evaluation Report. With the majority of recommendations now rated as Largely Compliant, Slovakia is expected to continue its efforts, with a further progress report due to MONEYVAL by December 2024. |
European Union | European Union | The Commission Delegated Regulation (EU) 2024/595, issued on November 9, 2023, expands upon Regulation (EU) No 1093/2010, introducing specific regulatory technical standards. These standards detail the criteria for assessing the materiality of operational weaknesses and outline the types and methods of information collection, analysis, and dissemination within the Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) central database. This regulation aims to enhance the European Banking Authority’s (EBA) capabilities to monitor and coordinate the prevention of the financial system’s misuse for money laundering and terrorist financing. It specifies the responsibilities of reporting authorities, ensuring that weaknesses are reported early and effectively, and clarifies how this sensitive information should be handled to maintain confidentiality and integrity across jurisdictions. | |
Guernsey | GFSC | The Commission has issued an updated Handbook on Countering Financial Crime (AML/CFT/CPF), including guidance on preventing money laundering and terrorist financing offences. Technical changes to legislation include measures related to understanding customer business nature, senior management approval for high-risk relationships, occasional transactions involving virtual assets, and disclosure requirements for trustees and partners. Additionally, amendments align wire transfer thresholds with FATF Recommendations and extend reporting requirements for money service providers. Updated rules within the Handbook emphasize identifying legal entity powers, enhanced customer due diligence, and monitoring compliance of agents. | |
Ireland | GOV.IE | Guidelines for Designated Persons supervised by the Anti-Money Laundering Compliance Unit (AMCLU) | The Anti-Money Laundering Compliance Unit (AMLCU) of the Department of Justice has published guidelines for Designated Persons supervised by the AMLCU to aid in understanding and fulfilling their obligations under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 and related Statutory Instruments. These guidelines are intended to aid but do not replace legal obligations outlined in the Act. Designated Persons are encouraged to provide feedback on the guidelines for consideration in future reviews. |
Isle of Man | GOV.IM | The Isle of Man Financial Services Authority, in collaboration with the Department of Home Affairs and the Isle of Man Treasury, has released a Consultation Paper seeking feedback on proposed amendments to Schedule 1 of the Designated Businesses (Registration and Oversight) Act 2015 (DBROA15) and Schedule 4 of the Proceeds of Crime Act 2008 (POCA08). These amendments aim to ensure consistency and enhance usability while aligning terminologies with international standards. Notable changes include the addition of a new designated business activity and further clarification of terminology. Feedback is welcome until April 15, 2024, via online survey, email, or post. | |
Japan | JFSA | The Japan Financial Services Authority (JFSA) has updated the “Frequently Asked Questions Regarding Guidelines for Anti-Money Laundering and Combating the Financing of Terrorism” to assist financial institutions in improving the effectiveness of their AML/CFT frameworks. These revisions aim to provide clarity and guidance to stakeholders. Please note that the translated version provided is provisional and should be used for reference purposes only, as it may be subject to future changes. | |
Jersey | JFSC | 2023 AML/CFT/CPF and other supervisory risk data collection exercise | The 2023 AML/CFT/CPF and other supervisory risk data collection exercise commenced on February 5, 2024, with a submission deadline of May 31, 2024. This data collection aims to inform risk-based supervision and financial crime examinations while contributing to the JFSC’s risk model and national risk assessments. This year’s expanded data collection includes additional financial crime and conduct questions applicable to all supervised businesses, as well as inquiries on legal persons and arrangements relevant to trust company service providers. While sector-specific information remains mostly unchanged, workbooks for collective investment funds (CIF) and legal persons and arrangements (LPA) will be delayed until the second week of February, with further updates to follow. Businesses are instructed to submit their data via myJFSC using Excel workbooks, with guidance available in the 2023 collection exercise guidance document, and any inquiries should be directed to the respective supervisor. |
Luxembourg | CSSF | Council Regulation (EU) 2024/576, dated February 12, 2024, amends Regulation (EU) No 833/2014 concerning restrictive measures in response to Russia’s actions destabilizing the situation in Ukraine. It outlines the European Union’s firm stance on maintaining stringent sanctions and introduces modifications to enhance the effectiveness of the restrictive measures imposed on Russia. This includes clarifications and adjustments related to the management of assets and reserves of the Central Bank of Russia, specifically addressing prohibitions, and permitted transactions to ensure compliance with international laws. The regulation underscores the commitment of the EU to uphold international security, support Ukraine, and manage the economic impact of the conflict, highlighting the ongoing efforts to coordinate actions with international partners and ensure legal alignment with the objectives of the Common Foreign and Security Policy. | |
Malaysia | BNM | BNM has issued a document outlining policies and obligations for financial institutions regarding Anti-Money Laundering (AML), Countering Financing of Terrorism (CFT), Countering Proliferation Financing (CPF), and Targeted Financial Sanctions (TFS) for Financial Institutions (FIs). It emphasizes adherence to international standards set by the Financial Action Task Force (FATF) and outlines reporting obligations, risk-based approaches, and targeted sanctions requirements. The objective is to mitigate the risks posed by financial crimes such as money laundering, terrorism financing, and proliferation financing, ensuring the integrity of the financial system while facilitating development objectives. | |
New Zealand | FMA | The “Enhanced Customer Due Diligence Guideline” issued in April 2024 provides comprehensive instructions for executing advanced due diligence measures under the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009. It specifies scenarios where enhanced due diligence (CDD) is mandatory and outlines additional identity verification measures and detailed assessments of customers’ sources of wealth and funds. The document emphasizes a risk-based approach, allowing entities some flexibility in managing and prioritizing responses to money laundering and terrorism financing risks, including for politically exposed persons and complex ownership structures. This guideline is crucial for entities to effectively implement rigorous checks and maintain compliance with regulatory standards. | |
Singapore | MAS | The MAS Notice PSN02, issued on April 2, 2024, under the Financial Services and Markets Act 2022, lays out comprehensive anti-money laundering (AML) and counter-terrorism financing (CTF) directives for digital payment token service providers in Singapore. The notice details rigorous customer due diligence (CDD) requirements, risk assessment protocols, and measures against money laundering and terrorism financing. It outlines the obligations for identifying and verifying customer identities, beneficial owners, and the nature of business relationships, emphasizing the adoption of risk-based approaches to better manage potential financial crimes. The document also specifies the requirements for ongoing monitoring and reporting of suspicious activities, ensuring payment service providers uphold high compliance standards to prevent financial misconduct. | |
United Kingdom | FCA | The Consultation Paper CP24/9 outlines proposed updates to the Financial Crime Guide concerning sanctions, proliferation financing, transaction monitoring, and the inclusion of references to crypto assets and the Consumer Duty. The aim is to assist firms in understanding regulatory expectations, evaluating the adequacy of their financial crime systems and controls, and addressing any deficiencies. The consultation targets FCA financial crime supervised firms, those regulated under the MLRs, including crypto asset businesses, and stakeholders involved in financial crime prevention. Feedback on the proposed changes is invited until June 27, 2024, with plans to publish feedback and the final amended Guide in a Policy Statement, which will inform future updates. The Guide does not impose new requirements but serves as guidance for firms to enhance their financial crime systems and controls. | |
United Kingdom | FCA | GC24/1: Proposed amendments to FG21/4 – Guidance for insolvency practitioners | The consultation document GC24/1 seeks feedback on proposed amendments to FG21/4, titled “Guidance for insolvency practitioners on how to approach regulated firms.” The amendments aim to reflect changes in the legal, regulatory, and economic landscape since the guidance was first published in 2021. The consultation targets insolvency practitioners (IPs) appointed over firms solely authorized or registered by the FCA, with potential relevance for IPs appointed over firms dual-regulated by the FCA and PRA. The consultation period has closed, and the regulatory body is currently reviewing responses with plans to provide an update later in the year. |
United Kingdom | FCA | Action needed in response to common control failings identified in anti-money laundering frameworks | The FCA (Financial Conduct Authority) issued a Dear CEO letter addressing common control failings identified in anti-money laundering (AML) frameworks among financial institutions. The letter emphasizes the importance of firms having robust policies, controls, and procedures in place to combat financial crime, including money laundering, terrorist financing, and proliferation financing. The FCA, through its supervision work, assesses firms’ AML frameworks and provides feedback based on its findings. Common weaknesses observed include discrepancies in business models, weaknesses in risk assessments, deficiencies in due diligence and ongoing monitoring, inadequate governance and management information, and lack of training. Firms are urged to conduct a gap analysis against these weaknesses, take prompt action to address any gaps identified, and ensure compliance with regulatory requirements. Failure to address these issues adequately may result in regulatory intervention, including fines or removal of firm registration. The letter includes an appendix detailing common control failings observed during assessments, providing guidance for firms to review and strengthen their AML frameworks. |
United Kingdom | FCA | The Financial Conduct Authority (FCA) provided an update on its efforts to combat financial crime, emphasizing its role in reducing fraud, money laundering, sanctions evasion, and terrorist financing. Notably, the FCA highlighted progress in reducing investment fraud losses by 40% by the end of 2023 and outlined various prevention initiatives such as issuing warnings about scams, engaging with social media influencers, and hosting multi-agency events. Additionally, the FCA discussed its approach to money laundering and sanctions, including the development of a synthetic data sanctions testing tool and maintaining a robust authorization process. Through partnerships and collaborative efforts with regulated firms and other stakeholders, the FCA aims to address financial crime effectively. | |
United Kingdom | GOV.UK | Improving the effectiveness of the Money Laundering Regulations | HM Treasury has launched a consultation aimed at enhancing the effectiveness of the Money Laundering Regulations (MLRs) while minimizing burdens on legitimate customers. This initiative is part of a broader effort outlined in the Economic Crime Plan 2023-26 to combat money laundering. The consultation addresses identified issues with the MLRs, including making customer due diligence more proportionate and effective, strengthening system coordination, providing clarity on the scope of the regulations, and reforming registration requirements for the Trust Registration Service. HM Treasury seeks input from various stakeholders, including regulated businesses, supervisory bodies, law enforcement agencies, civil society organizations, and the public. In conjunction with the consultation, HM Treasury is conducting a survey on the cost of compliance with the MLRs and hosting virtual events to engage with stakeholders. |
United Kingdom | GOV.UK | Post-Legislative Scrutiny Memorandum: Sanctions and Anti-Money Laundering Act 2018 | The Post-Legislative Scrutiny Memorandum on the Sanctions and Anti-Money Laundering Act 2018 (SAMLA) by the Foreign, Commonwealth & Development Office provides an initial evaluation of the legislation that established the UK’s independent sanctions framework post-Brexit. This memorandum outlines SAMLA’s implementation and impact, including a case study on Russia sanctions and secondary legislation details. It serves as part of the post-legislative scrutiny process and follows the release of the UK sanctions strategy in February 2024, emphasizing the significance of sanctions as a key foreign and security policy tool for deterring threats and defending international norms. |
United States | FinCEN | The Financial Crimes Enforcement Network (FinCEN) issued an immediate release regarding the Financial Action Task Force’s (FATF) latest statements on jurisdictions with deficiencies in anti-money laundering, counter-terrorist financing, and counter-proliferation frameworks. FATF reiterated the suspension of Russia’s membership due to its aggression against Ukraine and highlighted risks associated with financial connectivity to Iran and North Korea, urging vigilance from all jurisdictions. The FATF updated its lists, adding Kenya and Namibia to those under increased monitoring and maintaining calls for action against Iran, North Korea, and Burma. U.S. financial institutions were advised to consider these updates when reviewing their risk-based policies and procedures. Additionally, the release outlined due diligence obligations for correspondent accounts and highlighted U.S. sanctions programs and regulations concerning Iran and North Korea. Financial institutions were reminded of their obligation to report suspicious activities. | |
United States | FinCEN | On February 13, 2024, FinCEN announced a Notice of Proposed Rulemaking (NPRM) aimed at preventing criminals and foreign adversaries from exploiting the U.S. financial system through investment advisers. This rule, part of the Treasury’s efforts to combat illicit finance risks, would require certain investment advisers to adhere to Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) requirements under the Bank Secrecy Act (BSA). The proposal aims to enhance transparency in the financial system, assist law enforcement in identifying illicit proceeds, and level the regulatory playing field. Investment advisers registered with the Securities and Exchange Commission (SEC) would need to implement AML/CFT programs, file suspicious activity reports, and fulfill recordkeeping requirements. FinCEN encourages public comments on the proposal until April 15, 2024. | |
United States | SEC | Anti-Money Laundering Regulations for Residential Real Estate Transfers | The Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury is proposing a rule that would require certain individuals involved in real estate closings and settlements to submit reports and maintain records on identified non-financed transfers of residential real property to specified legal entities and trusts nationwide. Direct transfers to individuals would not fall under this rule. The proposed rule outlines when a report must be filed, who is responsible for filing, the required information, and the deadline for filing. These reports aim to aid the U.S. Treasury, law enforcement at all levels, and national security agencies in addressing illicit finance risks in the U.S. residential real estate sector and in preventing the anonymous laundering of illicit proceeds through residential real estate purchases, which poses a threat to U.S. economic and national security. Comments on the proposed rule are invited until April 16, 2024. |
United States | SEC | The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, is issuing a Notice of Proposed Rulemaking (NPRM) to include certain investment advisers in the definition of “financial institution” under the Bank Secrecy Act (BSA). This NPRM also prescribes minimum standards for anti-money laundering/countering the financing of terrorism (AML/CFT) programs to be established by covered investment advisers, requires covered investment advisers to report suspicious activity to FinCEN pursuant to the BSA, and proposes other related changes to FinCEN regulations. FinCEN aims to address gaps in the existing AML/CFT regulatory framework in the investment adviser sector, targeting those advisers vulnerable to misuse by money launderers, terrorist financiers, or other illicit actors seeking access to the U.S. financial system through investment advisers, thereby posing a threat to U.S. national security. Written comments on this NPRM are invited until April 15, 2024. |
