Lucinity

Anti-Money Laundering Monitoring of Paramount Importance

LogoNow is the time for organizations to invest in anti-money laundering monitoring. There has never been more pressure to make this a priority, whether that is due to the way that authorities are cracking down on a lack of proactive measures when it comes to money laundering, or to avoid the potentially high fines that can be issued for businesses that fail to comply. The Anti-Money Laundering Act (2020) came into force in 2021 and marked the most significant tightening up of policy with respect to financial crime and money laundering since the USA Patriot Act (2001). Authorities now have expanded power to go after businesses with poor anti-money laundering monitoring and measures in place - in the USA and Europe too. Violations are no longer tolerated, no matter where in the world a business is based, and this is only likely to get stricter as time goes on.

Russian Sanctions Pose Compliance Risk to Banks and Fintech Firms

LogoThe wave of sanctions that has been imposed on Russia since the invasion of Ukraine have presented a very broad range of challenges - and compliance risk - to banks and fintech firms on a global level. Export controls, sanctions and blocks on providing certain corporate services have made it vital for businesses in this sector to get more efficient when it comes to know your customer checks so as to avoid dealing with unsanctioned parties in the country. For many, the compliance risk has been so high that the decision has been taken to avoid Russia entirely. But for others, there is no option to do this and so the challenge has been to navigate what many have described as the most complex economic punishment that has ever been implemented by the USA.

Treasury Confirms Changes to Anti-Money Laundering Compliance Following Regime Review

Logo2022 has been a year in which big strides have been taken where anti-money laundering compliance is concerned. In the UK, the government published the outcome of its consultation on amendments to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) over the summer. It also published a draft of the statutory instrument that would be used to implement changes to anti-money laundering compliance. The amendments that have been proposed as part of the regime review are designed to bring the existing regulations in line with FATF standards (Financial Action Taskforce, the framework of measures that countries should implement in order to help minimise the potential for money laundering). The regime changes will also fill any gaps in current regulation, especially with respect to crypto assets.

AML Solutions Concerns for Challenger Banks and Fintech Firms

LogoChallenger banks and fintech firms have made a big impact on the financial services industry in recent years. While much of this has been positive there are also concerns about how well equipped these innovative enterprises are to deal with money laundering and fraud. In fact, concerns have been so loud that the Financial Conduct Authority (FCA) carried out a review last year into this burgeoning market and found some big problems, including a lack of focus on AML solutions. The FCA also identified that while these new firms might be agile and dynamic in terms of products and service, they also had some serious issues in areas like adequate checks when onboarding new customers - sometimes income and occupation weren't checked at all, for example. AML solutions and customer risk frameworks were found to be minimal, or non-existent, in some enterprises.

Anti-Money Laundering Monitoring What It Means for Businesses

LogoWhile it may be true that anti-money laundering regulations rarely deviate in their goal to prevent financial crime, the way this is approached is constantly evolving. This is a necessary part of the process, not just to ensure that current regulations have the widest possible reach - and encompass the latest methods being used by financial criminals - but also that they take into account new platforms and technology. One obvious example of this is the way that regulations are currently evolving in order to take into account the unique situation of crypto assets businesses, which come with a whole new range of high-risk factors that mean enhanced risk mitigation and anti-money laundering compliance monitoring is a necessity. Obligations for anti-money laundering monitoring extend to every organisation, from the smallest start-ups to global companies. Investing in effective anti-money laundering solutions is vital to ensure compliance.

Financial Services Firms Face Staff Shortages in Compliance Risk

LogoFinancial services firms now face an almost-unprecedented level of regulatory change and almost three quarters expect their regulatory burden to increase in the coming year This is creating significant challenges for firms, large and small as all look for ways to process exceptionally high activity and demand. The major issue for most is the lack of headcount to help deal with the increase in regulatory activity. While most financial services companies are looking ahead at the coming year and see more changes to deal with, 61% (according to a recent Reuters survey) say that they don't believe their teams will increase in size as a result. This is even more of a challenge in the UK where 65% of firms in this sector say that they won't be recruiting additional compliance risk specialists in the next 12 months.

How Effective Will the EU Anti-Money Laundering Authority Be?

LogoEurope's Anti Money Laundering Authority (AMLA) is set to launch in 2023 and bring a new era of AML solutions to Europe. Its priority is the EU's AML and countering the financing of terrorism agenda and, by the time AMLA is fully functioning in 2026, it should be capable of achieving noticeable change. However, the extent of the change the AMLA is able to deliver is going to depend, to a significant extent, on how effective it is really able to be - will AMLA actually be able to make a tangible difference in tackling anti-money laundering across the EU?

Spring 2022 Enforcement Trends in Anti Money Laundering

LogoAML Monitoring and enforcement continues to capture headlines all over the world. Regulators have become more active since the end of the pandemic and the situation in the Ukraine continues to be a game changer. There are clear concerns about the rising risk of money laundering in the wake of the invasion by Russia. A list of red flags has been released relating to convertible virtual currency transactions that includes transactions involving IP addresses located in Russia. Increased enforcement is becoming a focus for jurisdictions on a global level and many have changed risk classification. Cryptocurrency has become a major trend in AML monitoring, which is not surprising given that cryptocurrency based crime nearly doubled in 2021. Some locations, such as the US, have not only updated policies and public statements to reflect changing positions but also increased the number and frequency of prosecutions.

Anti-Money Laundering Trends and Challenges

LogoAnti-money laundering compliance has been a key growth area throughout Europe over the past year, as more and more criminal patterns have been uncovered. Nevertheless, there was a trend towards fewer convictions and penalties between 2020 and 2021, mostly attributable to the restrictions of the pandemic. EMEA proved to be the exception to the rule with financial penalties totaling $3.4 billion, up from $1 billion the year before. Continued strengthening of Anti money laundering compliance has become the key theme for 2022, especially in the light of unprecedented events, such as the sanctions imposed on Russia in the wake of the invasion of Ukraine. Another key trend in anti-money laundering compliance has been an increase in regulation, for example the European Union continued to implement a series of anti-money laundering directives and a review of anti-money laundering compliance legislation is under way in many countries in the region, including the UK.

Anti-Money Laundering and Transaction Monitoring Trends in 2022

LogoCurrently about $1.6 trillion in laundered funds pass through banks every year. However, an increased commitment to AML transaction monitoring has started to help banks, businesses - and regulators - to make more headway. Anti-money laundering and transaction monitoring trends in 2022 continue to bolster increased enforcement tactics as the movement towards tackling money laundering - a crime that fuels crime - continues to grow. These are some of the key anti-money laundering and transaction monitoring trends that are rising to the top in 2022.