Day: February 5, 2020

ITV News reported on 5 February that the Abu Dhabi Commercial Bank Jersey Branch (ADCBJ) pleaded guilty to failing to have appropriate or consistent policies and procedures in place relating to risk management and transaction monitoring for AML.  It is said that ADCBJ had not made inquiries into the behaviour of 2 customers who, between 2013 and 2018, made $1.2 million worth of over-the-counter cash withdrawals in the UAE – without the bank knowing it was going on.

https://www.itv.com/news/channel/2020-02-05/jersey-s-royal-court-fines-middle-eastern-bank-475-000/

On 5 February, a release from the European Banking Authority on Mondo Visione announced a public consultation that runs to 5 May.  The Guidelines, which are addressed to both financial institutions and supervisors, set out factors that institutions should consider when assessing the ML/TF risk associated with a business relationship or occasional transaction. In addition, they provide guidance on how financial institutions can adjust their CDD measures to mitigate the ML/TF risk they have identified. Finally, they support competent authorities’ AML/CFT supervision efforts when assessing the adequacy of firms’ risk assessments and AML/CFT policies and procedures.  They also provide more details on terrorist financing risk factors and CDD measures.  The EBA now has a new legal mandate to lead, coordinate and monitor the EU financial sector’s fight against ML/TF; and information on how the EBA will discharge its AML/CFT functions is set out in a factsheet which is available at –

https://eba.europa.eu/sites/default/documents/files/document_library/News%20and%20Press/Press%20Room/Press%20Releases/2020/EBA%20acts%20to%20improve%20AML/CFT%20supervision%20in%20Europe/AML%20CFT%20Factsheet.pdf

https://mondovisione.com/media-and-resources/news/eba-draft-guidelines-under-articles-17-and-184-of-directive-eu-2015849-on/

On 5 February, UPI reported that a Dutch court ruled Wednesday that SyRI, a government system that uses artificial intelligence to identify potential welfare fraudsters is illegal because it violates laws that shield human rights and privacy.  It was used by authorities to predict which citizens are likely to commit some form of housing or welfare fraud.

https://www.upi.com/Top_News/World-News/2020/02/05/Dutch-anti-fraud-system-violates-human-rights-court-rules/6051580914081/

On 5 February, following the publication of various recent revised AML/CFT assessment ratings, FATF has issued an updated consolidated assessment schedule.

http://www.fatf-gafi.org/media/fatf/documents/4th-Round-Ratings.pdf

URUGUAY: FATF PUBLISHES AML/CFT MUTUAL EVALUATION REPORT

On 4 February, FATF published the mutual evaluation report (already published by FATF-style regional body GAFILAT that carried out the evaluation) following the on-site visit to the country in May 2019.

http://www.fatf-gafi.org/media/fatf/documents/reports/mer-fsrb/GAFILAT-Mutual-Evaluation-Report-Uruguay-2020.pdf

 

ANDORRA: FATF PUBLISHES AML/CFT FOLLOW-UP REPORT

On 5 February, FATF published the 2^nd follow-up report following the mutual evaluation report on Andorra, already published by MONEYVAL, the FATF-style regional body that carried out the evaluation.

http://www.fatf-gafi.org/media/fatf/documents/reports/fur/Moneyval-Follow-Up%20Report%20Andorra-2019.pdf

 

HUNGARY: FATF PUBLISHES AML/CFT FOLLOW-UP REPORT

On 5 February, FATF published the 3^rd follow-up report following the mutual evaluation report on Hungary, already published by MONEYVAL, the FATF-style regional body that carried out the evaluation.

http://www.fatf-gafi.org/media/fatf/documents/reports/fur/Moneyval-Follow-Up-Report-Hungary-2019.pdf

In the latest TRACE podcast, Dr. Frank Badua, Associate Professor of Accounting and Business Law at Lamar University College of Business, describes the misconduct from the 1950s through the 1970s by a group of companies that led to widespread support for passage of the US Foreign Corrupt Practices Act.

https://traceinternational.org/resources-podcast

A Notice from HM Treasury on 5 February advised that it had followed the UN in listing Amadou KOUFA (pending his listing by the EU, which would still have automatic effect in the UK, despite Brexit).

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/863702/Notice_ISIL_UN_050220.pdf

On 4 February, Manx Radio reported that Isai Scheinberg, 73, a co-founder of Isle of Man-based online gambling giant PokerStars, has been released on bail of $1 million in New York.  He had fled the US in 2011 after an indictment was unsealed which targeted him and others, Pokerstars and rival Full Tilt Poker (as well as the smaller Absolute Poker), for violations of the Wire Act and/or the Unlawful Internet Gambling Enforcement Act.

https://www.manxradio.com/news/isle-of-man-business/pokerstars-co-founder-bailed-for-1-million/

https://www.forbes.com/sites/nathanvardi/2020/01/24/the-incredible-rise-of-pokerstars-cofounder-isai-scheinbergand-his-surrender-to-federal-agents/#10b635c04fb0

On 4 February, a briefing from DLA Piper was concerned with changes to Canada’s AML ‎regime, examines significant amendments to the record-keeping requirements under new ‎regulations‎ revealed in July 2019.  The new regulations are designed to strengthen ‎AML/CFT regime and improve compliance with the international standards set by FATF.

https://www.dlapiper.com/en/canada/insights/publications/2020/01/new-record-keeping-obligations-under-canadas-changing-aml-regime/

On 5 February, KYC 360 reported that Las Vegas residents Bing Han and Lei Zhang have pleaded guilty to the operation of unlicensed money transmitting business, the IRS has announced.  Han and Zhang both say that casino hosts would regularly introduce customers to them.  These customers were not legally allowed to convert more than $50,000 worth of Chinese Yuan each year, but wanted more money to gamble with, and the casino hosts would often receive a cut of the commission.

https://www.riskscreen.com/kyc360/news/men-who-helped-gamblers-bypass-chinese-currency-controls-plead-guilty-to-federal-charges/