Topic: Anti-money laundering

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FATF consults on the revision of Recommendation 8 and its interpretive note

On 30 June 2023, the Financial Action Task Force (FATF) launched a public consultation on the revision of Recommendation 8 and its interpretive note. The FATF is considering proposals for draft amendment text to Recommendation 8 of the FATF Standards and its interpretive note (R.8/INR.8), which aims to protect non-profit organisations (NPOs) from potential terrorist … Continue Reading

Targeted update on implementation of the FATF standards on virtual assets and virtual asset service providers

On 27 June 2023, the Financial Action Task Force (FATF) published a report, Targeted update on implementation of the FATF standards on virtual assets and virtual asset service providers. In October 2018, the FATF updated Recommendation 15 (R.15) to extend anti-money laundering / countering the financing of terrorism (AML/CFT) requirements to virtual assets (VAs) and … Continue Reading

Financial services monthly wrap-up: April 2023

April was another fast moving month in the financial services sector. ASIC released updates to the breach reporting requirements to introduce new guidance and clarify existing guidance regarding reportable situations. The regulator also provided further communications surrounding the superannuation performance test, as well as commenced proceedings against an insurance company alleging unfair contract terms in … Continue Reading

FATF updates Recommendations on international standards on combatting money laundering and the financing of terrorism proliferation

On 10 March 2023, the Financial Action Task Force (FATF) published updated Recommendations which were adopted at its plenary on 15 February 2023. The FATF has reviewed and updated the FATF Recommendations, in close co-operation with the FATF-Style Regional Bodies (FSRBs) and the observer organisations, including the International Monetary Fund, the World Bank and the … Continue Reading

FATF consults on guidance on beneficial ownership

On 26 October 2022, the Financial Action Task Force (FATF) launched a public consultation on its guidance on beneficial ownership. At the March 2022 Plenary, the FATF adopted amendments to Recommendation 24, and agreed to immediately start the work to update guidance on beneficial ownership with a view to help support the implementation of the … Continue Reading

[New?] Sheriff in town: governments crack down on crypto’s “Wild West”

Regardless of your position on whether cryptocurrency is a legitimate method of payment, you can’t deny its permeation into mainstream society recently.  From donations to Ottawa “freedom” protests[1] to countries approving bitcoin as legal tender,[2] the use of cryptocurrency is emerging beyond the dark web. But with use comes misuse. In 2021, there were an … Continue Reading

Le shérif arrive en ville : les gouvernements s’attaquent au « Far West » de la cryptomonnaie

Que l’on croit ou non qu’elle constitue un mode de paiement légitime, on ne peut nier que la cryptomonnaie s’insinue récemment dans la société en général.  En effet, qu’elle serve à des dons pour les « manifestations pour la liberté » à Ottawa[1] ou encore que des pays approuvent le bitcoin en tant que monnaie légale[2], la … Continue Reading

Avis du ministère de la Justice américain sur une violation en vertu de la FCPA – est-ce que cela se produirait au Canada?

Avis du ministère de la Justice américain sur une violation en vertu de la FCPA – est-ce que cela se produirait au Canada? En janvier, le ministère de la Justice américain (Ministère) a rendu un avis à une société américaine sur la question de savoir si le fait de payer un tiers pour la libération … Continue Reading

DOJ opinion on FCPA breach – would this happen in Canada?

In January, the US Department of Justice (DOJ) issued an opinion to a US company on whether paying a third party for release of its employees would breach the Foreign Corrupt Practices Act (FCPA).[1] The DOJ said it would not bring charges against the company if it made a payment to prevent imminent threat to … Continue Reading

Wolfsberg Group FAQs on negative news screening

On 11 May 2022, the Wolfsberg Group published FAQs on how undertaking screening for negative news and other forms of adverse information can enhance a financial institution’s awareness of potential financial-crime risk posed by both existing and prospective customers. The Wolfsberg Group recognises that there is no universally agreed and accepted definition of negative news. … Continue Reading

“Suivez le chef de file en matière de lutte contre le blanchiment d’argent” – Le registre canadien de la propriété effective dans un contexte mondial

Le lancement du nouveau registre canadien de la propriété effective est prévu pour 2023, mais les détails à son sujet demeurent vagues. Pour se préparer à ces changements, les sociétés peuvent déjà jeter un coup d’œil au mode de fonctionnement de registres similaires d’autres territoires. La faiblesse relative du régime canadien de lutte contre le … Continue Reading

“Follow the (AML) Leader” – Canada’s Beneficial Ownership Registry in Global Context, Part 2

Canada’s new beneficial ownership registry is slated to arrive in 2023 but the details remain uncertain. One way for corporations to prepare for these changes is by looking at how similar registries operate in other jurisdictions. Canada has been criticized for having a relatively weak AML regime. Experts indicate that casinos, real estate, and shell … Continue Reading

“Follow the (AML) Leader” – Canada Fast-Tracks its Beneficial Ownership Registry, Part 1

The Canadian federal government is bolstering Canada’s anti money laundering (AML) regime by bringing forward plans to introduce a beneficial ownership registry in 2023. A beneficial ownership registry would require corporations to register and verify the identity of companies’ beneficial owners, making it more difficult to use shell companies to conceal criminal activity. The need … Continue Reading

FATF public statement on revisions to Recommendation 24

On 7 March 2022, the Financial Action Task Force (FATF) issued a public statement regarding amendments it had adopted to Recommendation 24 and its Interpretative Notes on 4 March 2022. The Recommendation requires countries to prevent the misuse of legal persons for money laundering or terrorist financing and to ensure that there is adequate, accurate … Continue Reading

Research shows huge increase in use of DeFi protocols for money laundering

Blockchain analytics firm Chainalysis have recently published the results of research showing that there has been a huge increase in the use of decentralised finance (DeFi) protocols to launder money over the last year. DeFi is an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies. In 2021, there was … Continue Reading

Cross Border Payments – Survey Results on Implementation of the FATF

On 22 October 2021, the Financial Action Task Force (FATF) published the results of its survey that was designed to identify key areas of divergence in the implementation of its AML/CFT requirements across different states, which create frictions for cross-border payments and their potential solutions. The survey results highlight, among others, that lack of a … Continue Reading

Special Q&A report for Financier Worldwide Magazine: AML and sustainable compliance

AML as a focus area and point of discussion for many companies will never fade. If anything, the increasing pressure on companies and the  expanding list of companies which are caught or impacted by global legislative AML changes means that many will need to continually assess if their AML frameworks are not only adequate but … Continue Reading

Global AML watchdog issues virtual assets red flag indicators

The Financial Action Task Force (FATF), a global intergovernmental organization that sets standards and policies for anti-money laundering and counter-terrorist financing (AML/CFT) recently issued a report on Virtual Assets Red Flag Indicators of Money Laundering and Terrorist Financing (the Report). According to the FATF, a virtual asset is a digital representation of value that can … Continue Reading

FATF report – virtual assets red flag indicators of money laundering and terrorist financing

On 14 September 2020, the Financial Action Task Force (FATF) published a report, Virtual Assets – Red Flag Indicators of Money Laundering and Terrorist Financing. The report is based on more than 100 case studies and is designed to help national authorities and financial institutions identify potential money laundering and terrorist financing activity involving virtual … Continue Reading

Data Breaches and Anti-Money Laundering Consequences – An Overview

When an entity (Affected Entity) experiences a data breach incident (Breach Incident), it is instantly faced with a number of issues that it must address with urgency. Among such, an Affected Entity must manage crucial regulatory compliance obligations that may be triggered by the Breach Incident. The most obvious of these obligations arise under the … Continue Reading

New anti-money laundering rules in Canada – further updates released

The Department of Finance Canada recently released the final amending regulations that amend the existing Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Regulations). Our previous update on other aspects of the amendments can be found here. The Regulations attempt to bring Canada’s anti-money laundering and anti-terrorist … Continue Reading

FINTRAC revises expectations for reporting entities amid pandemic

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) recently provided guidance (the Guidance) to reporting entities in connection with their continuing obligations during the COVID-19 pandemic. In the Guidance, FINTRAC acknowledged that reporting entities may have to reassign and reprioritize their internal resources in response to the pandemic, which may in turn affect … Continue Reading

Liability concerns in the eSports and video gaming industry

The eSports industry is on track to surpass $1 billion in revenue this year. Titans in this industry use different product-control strategies for eSports tournaments. For example, a category of publishers vertically integrate with their premier eSports titles and maintain complete licensing control. Another category gives third parties complete freedom to organize eSports tournaments with … Continue Reading

Developments in Canada’s AML regime – Brief highlights of 2019 and what 2020 holds

Happy New Year to all our readers! The past year saw a marked shift in regulatory expectations for the anti-money laundering (AML) and anti-terrorist financing (ATF) regime in Canada. In this blog post, we provide a quick recap of the key regulatory developments in the Canadian AML/ATF regime over the past year. We also look … Continue Reading