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  • BDO's AML Watch - June 30th, 2023

BDO's AML Watch

30 June 2023

Richard Carty, Director, RAS |

Caribbean AML/FCP

Cayman Islands Moves One Step Closer to FATF Delisting

  • The decision is subject to successful completion of an on-site visit by the FATF, whose assessors will meet local stakeholders to examine the operation of Cayman's action plan in practice and its sustainability. An on-site visit report will be presented at the next FATF plenary, scheduled for October, at which the Cayman Islands will learn whether it will be delisted. Minister of Financial Services and Commerce André Ebanks stated, "Satisfying all of the 63 recommended actions is a major step towards the Cayman Islands being delisted but, as is the case for other listed countries that met this milestone, there is one more step to complete, and all relevant stakeholders need to remain focused.”

The International Monetary Fund Reported on the Regulation and Use of Digital Currencies in Latin America and the Caribbean.

  • In a June 22 report on Latin America and the Caribbean, the IMF pointed to various approaches taken by local governments in addressing the adoption of cryptocurrencies and central bank digital currencies, or CBDCs. The IMF said Brazil, Argentina, Colombia and Ecuador — whose governments’ regulation of crypto was “in progress” — ranked among the highest countries in the world for the adoption of digital assets in an effort to help the unbanked, send faster and cheaper payments, and more. “If well designed, CBDCs can strengthen the usability, resilience, and efficiency of payment systems and increase financial inclusion in [Latin America and the Caribbean],” said the IMF.


Global AML/FCP

FATF Warns Several Jurisdictions Not to Miss Further AML Deadlines

  • The Financial Action Task Force’s (FATF) latest plenary meeting has noted that several jurisdictions (Barbados, Burkina Faso, Gibraltar, Jamaica, the Philippines, Senegal, South Sudan, Turkey and Uganda) have not yet met the agreed deadlines for tightening their anti-money laundering (AML) regulations in accordance with FATF's recommendations. Other conclusions reached at the plenary meeting included adding Croatia, Cameroon and Vietnam to FATF's list of jurisdictions that are subject to increased monitoring as they resolve any AML deficiencies identified.

UK Estate Agents Fined for Breaching Anti-Money Laundering Rules

  • Estate agents dominate the latest list of UK businesses that have not complied with the AML regulations (2022 to 2023). While many of the property firms are being fined thousands of pounds, they also risk the loss of their license to operate. HMRC’s (His Majesty's Revenue and Customs) work with other agencies to tackle economic crime and crack down on breaches is working to drive non-compliant firms out of business.

FINRA Slaps $900k Penalty on Credit Suisse's US Subsidiary

  • The Financial Industry Regulatory Authority (FINRA) has slammed a censure and fine of $900,000 on Credit Suisse for reporting more than 9,000 late trades and hundreds of thousands of inaccurate TRACE reports. The newest ruling covers the period from November 2015 to March 2023.  Furthermore, the firm neglected to provide timely notice for roughly 190 new issue offerings in TRACE-reportable securities. The supervisory system established by Credit Suisse to review the accuracy and timeliness of TRACE reporting was deemed to be unreasonable.


Industry Updates

  • Google Launches ‘Anti Money Laundering AI’ in Collaboration With Banking Giant HSBC

    According to a new statement by Google Cloud, the firm is launching a new system to help global financial institutions more efficiently detect money laundering. Google announced, “AI-powered transaction monitoring replaces the manually defined, rules-based approach and harnesses the power of financial institutions’ own data to train advanced machine learning (ML) models to provide a comprehensive view of risk scores. Tapping into a holistic view of your data, the model directs you to the highest money laundering risks by examining transaction, account, customer relationship, company, and Know Your Customer (KYC) data to identify patterns, instances, groups, anomalies, and networks for retail and commercial banks."