On 24 January, HMRC and HM Treasury have launched a detailed technical consultation on extending the Trust Registration Service to include the draft legislation and proposals on the types of express trusts that will be required to register, data collection and sharing, and penalties. This followed a consultation seeking views on generally transposing the Fifth Money Laundering Directive into UK law. The consultation closes on 21 February. The TRS was created following the 4th AML Directive and is used to register taxpaying trusts and estates. It is important to note that trusts required to register under the 4th AML Directive, such as for trustees to submit a trust tax return, will continue to do so on the existing TRS system.
Day: January 24, 2020
MONEYVAL: FURTHER AML/CFT ASSESSMENT FOLLOW-UP REPORTS ON ANDORRA, HUNGARY, SERBIA AND SLOVENIA
On 24 January, MONEYVAL, the FATF-style regional body under the Council of Europe announced that a number of follow-up reports had been released. In addition to the already published reports on Latvia and Albania, further follow-up reports have been published on Andorra, Hungary, Serbia and Slovenia.
ANDORRA
MONEYVAL has re-rated the country on 3 FATF originally rated as “partially compliant”. Like many other (most) places, it was placed in an enhanced follow-up process, following the adoption of its mutual evaluation report, and the follow-up report analyses Andorra’s progress in addressing the technical compliance deficiencies (n.b. not effectiveness) identified in the mutual evaluation report. MONEYVAL has re-rated Andorra on Recommendations 25 (transparency and beneficial ownership of legal arrangements), 26 (regulation and supervision of financial institutions) and 28 (regulation and supervision of DNFBP). These Recommendations are now re-rated as “largely compliant”. The report also looks at progress made in the implementation of new requirements relating to Recommendation 2 (national cooperation and coordination) which has changed since Andorra’s last follow-up report was adopted. The rating for Recommendation 2 (rated as “largely compliant”) remains “compliant”. Andorra is now “compliant” on 10 of the 40 FATF Recommendations and “largely compliant” on 27. It remains “partially compliant” on 3 of the 40 FATF Recommendations. MONEYVAL decided that Andorra will remain in the enhanced follow-up process and will continue to report back to MONEYVAL on further progress to strengthen its implementation of AML/CFT measures.
https://rm.coe.int/anti-money-laundering-and-counter-terrorist-financing-measures-andorra/1680998aab
HUNGARY
Due to its progress, MONEYVAL has re-rated the country with 1 FATF Recommendation originally rated as “partially compliant”. Hungary was placed in an enhanced follow-up process, following the adoption of its mutual evaluation report in 2016. MONEYVAL has re-rated Hungary on Recommendation 33 (statistics), which is now re-rated as “largely compliant”. The report also looks at progress made in the implementation of new requirements relating to Recommendation 2 (national cooperation and coordination) which has changed since Hungary’s last follow-up report was adopted. The rating for Recommendation 2 (rated as “largely compliant”) remains unchanged. Hungary remains “compliant” on 6 of the 40 FATF Recommendations and “largely compliant” on 28. It remains “partially compliant” on 6 of the 40 FATF Recommendations. MONEYVAL decided that Hungary will remain in the enhanced follow-up process and will continue to report back to MONEYVAL on further progress to strengthen its implementation of AML/CFT measures.
https://rm.coe.int/anti-money-laundering-and-counter-terrorist-financing-measures-hungary/1680998aaa
SERBIA
MONEYVAL has re-rated the country with 3 FATF Recommendations originally rated as “partially compliant” in the 2016 mutual evaluation report, when Serbia was placed in the enhanced follow-up process. MONEYVAL has re-rated Serbia on Recommendations 6 (targeted financial sanctions related to terrorism and terrorist financing) and 8 (non-profit organisations) as “largely compliant” and Recommendation 18 (internal controls and foreign branches and subsidiaries) as “compliant”. The report also looks at progress made in the implementation of new requirements relating to Recommendation 2 (national cooperation and coordination) which has changed since Serbia’s last follow-up report was adopted. The rating for Recommendation 2 (rated as “largely compliant”) remains unchanged. Serbia is now “compliant” on 5 of the 40 FATF Recommendations and “largely compliant” on 31. It remains “partially compliant” on 4 of the 40 FATF Recommendations. MONEYVAL decided that Serbia will remain in the enhanced follow-up process and will continue to report back to MONEYVAL.
https://rm.coe.int/anti-money-laundering-and-counter-terrorist-financing-measures-serbia-/1680998aa8
SLOVENIA
Slovenia was placed in an enhanced follow-up process, following the adoption of its mutual evaluation report in 2017. MONEYVAL has assessed the compliance of the country with the new FATF Recommendations requirements. The follow-up report looks at progress made in the implementation of new requirements relating to Recommendation 2 (national cooperation and coordination) which has changed since Slovenia’s last follow-up report was adopted. The rating for Recommendation 2 (rated as “largely compliant”) remains unchanged. Slovenia remains “compliant” on 11 of the 40 FATF Recommendations and “largely compliant” on 19. It remains “partially compliant” on 10 of the 40 FATF Recommendations. MONEYVAL decided that Slovenia will remain in the enhanced follow-up process and will continue to report back to MONEYVAL.
https://rm.coe.int/anti-money-laundering-and-counter-terrorist-financing-measures-sloveni/1680998aa9
IRAQ ALLEGEDLY HELPING IRAN SKIRT US SANCTIONS
On 24 January, the Jerusalem Post reported allegations that the Iraqi Central Bank has been pushing private banks in Iraq, whom have Iranian board members, to open credit accounts in US dollars, this according to a report released by the Saudi news outlet Al-Arabiya. The purpose of the credit accounts is said to be for importing oil derivatives to meet local needs, and it is said that the boards of these private entities include individuals connected to Iran, such as businessman who have ties to the Islamic Republic.
https://www.jpost.com/International/Report-Iraq-allegedly-helping-Iran-skirt-US-sanctions-615248
COMPLEX POST-BREXIT CHECKS FOR NORTHERN IRISH TRADERS
On 24 January, the Guardian carried an article saying that the “straightforward” document that Northern Irish businesses will need to complete to send goods to Great Britain after Brexit is a complex form that includes 31 data elements. Only 2 of these are optional, meaning 29 data elements are mandatory. The exit and entry forms are mandatory and are the 2 parts of what is known as a safety and security certificate. It is reported that security certificates were not required on goods between Switzerland and the EU but that is because there was alignment on EU rules, something that the UK Chancellor has ruled out. Businesses sending goods from Great Britain to Northern Ireland will face a form involving up to 45 elements – only 3 of these are optional.
VATICAN CITY RESTORED TO MEMBERSHIP OF EGMONT GROUP OF FIU
On 23 January, the Wall Street Journal reported that the Vatican has said it has regained active membership following its suspension over what the network called security concerns. This is described as a boost to the Vatican’s financial credibility, which has suffered several blows in recent months. Egmont suspended the Vatican’s access in November, saying its handling of confidential information posed “an evident security threat to our organisation.
US SIGNALS CRACKDOWN ON COUNTERFEIT GOODS SOLD ONLINE
On 24 January, the Wall Street Journal reported that the Trump administration is moving to curb the sale of imported counterfeit goods over the internet, warning electronic commerce platforms and warehouse operators of greater scrutiny and penalties if they don’t help ferret out fakes. A Department of Homeland Security report outlines its immediate actions and longer-term goals for enlisting e-commerce players to combat counterfeit products that officials say undermine US technology and manufacturing. It is said DHS will treat domestic U.S. warehouses and fulfilment centres, such as Amazon’s, as the ultimate consignee for goods that have not been sold to consumers, which will give officials the power to scrutinise shipments even after they have cleared the border and gone on to regional warehouses.
https://www.wsj.com/articles/u-s-signals-crackdown-on-counterfeit-goods-sold-online-11579820400
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