Gopal Sharma’s Post

The AML/CTF Act places a number of obligations on financial services and credit providers. These obligations are put in place to support deterrence and prevention of money laundering and terrorism financing.   One of the main obligations under the AML/CTF Act includes having your AML/CTF Program independently reviewed to ensure it complies with the AML/CTF Act and Rules.   To find out who can conduct the review, and how frequently you need to have a review completed, click the link below to read our recent blog post.   #financialservices #obligation #compliance https://lnkd.in/g5pkzE_4

Response of The Wolfsberg Group to FATF consultation on AML/CFT and Financial Inclusion - R1,10 and 15 The Wolfsberg Group agrees with the FATF’s goal to create an anti-money laundering/countering the financing of terrorism (“AML/CFT”) regulatory environment that reinforces the risk-based approach while also supporting financial inclusion. Requiring excessive AML/CFT measures that do not respond to the identified risks is inefficient and ineffective, while the unintended consequences of restricting under-served communities’ access to financial services decreases the reach and effectiveness of AML/CFT regimes. As noted in the Group’s original Statement on Effectiveness, an effective AML/CFT programme will “have the benefit of reducing friction on customers and helping governments with their objective of financial inclusion". Source: The Wolfsberg Group

On the 19th June 2024, the EU AML/CFT Legislative Package was published in the EU Official Journal, with the main aim of harmonising ways in addressing financial crime across the EU, improving transparency, and creating better communication channels between EU Member States and authorities. Our news item below provides comprehensive insight on the new legislative texts and rules included within the AML/CFT package.

The EU's AML/CFT Legislative Package introduces Regulations and Directives to combat money laundering and terrorist financing, harmonizing rules across Member States for improved transparency and coordination. Elaine Magri and Jonathan Camilleri explore the key elements of the legislative package in their news item below. #AML #CFT #FinancialCrime

An ever evolving regulatory landscape.

Response of The Wolfsberg Group to FATF consultation on AML/CFT and Financial Inclusion - R1,10 and 15 The Wolfsberg Group agrees with the FATF’s goal to create an anti-money laundering/countering the financing of terrorism (“AML/CFT”) regulatory environment that reinforces the risk-based approach while also supporting financial inclusion. Requiring excessive AML/CFT measures that do not respond to the identified risks is inefficient and ineffective, while the unintended consequences of restricting under-served communities’ access to financial services decreases the reach and effectiveness of AML/CFT regimes. As noted in the Group’s original Statement on Effectiveness, an effective AML/CFT programme will “have the benefit of reducing friction on customers and helping governments with their objective of financial inclusion". You can find the text of our response below and on our website (link in the comments).

Using AI and enhanced technology to promote “non face to face” financial services and interaction with FI’s. This level of innovation and collaboration with law enforcement will be simply revolutionary.

In July 2021, the EU proposed a new Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) legislative package, including the creation of an EU AML Authority ⚖️ Key elements cover outsourcing, policies, procedures, governance, and reporting requirements. The Anti-Money Laundering Authority (AMLA) will also be established this year, with new AML rules phased in by mid-2027 📑 Learn more in our latest Financial Crime & Compliance Short Read: https://pwc.to/3VIgSyu

Screening is a major cornerstone of financial institutions’ efforts to fight financial crime, helping them prevent money laundering, terrorist financing and sanctions evasion, and ensure regulatory compliance. Regulators see screening as a foundational control, imposing serious penalties for not doing enough. However, in practice even carefully designed processes can create unmanageable workloads that can obscure true risks. Meanwhile technology vendors promise game-changing solutions, which don’t always live up to reality. So how to get it right? Here you can join an event organised for industry best practices across the globe regarding Screening to be held on May 21,2024. #sanction #aml #compliance #transactionmonitoring #sanction #screening #financialcrime https://lnkd.in/dwxFxYGR

The Wolfsberg Group's feedback reflects a nuanced understanding of the tension between financial inclusion and AML/CFT compliance. Their advocacy for "alternative measures" is particularly salient, addressing the exclusionary nature of rigid compliance frameworks for underserved communities. By emphasizing proportionality and encouraging national-level support for innovative solutions like digital IDs, the Group balances inclusivity with risk management. However, FATF and national regulators must ensure that such flexibility does not inadvertently create loopholes for exploitation. Safeguards against misuse of alternative measures, combined with clear regulatory support and technological oversight, will be crucial for success. The Wolfsberg Group’s proposal fosters a pragmatic pathway to achieving AML/CFT objectives while promoting equitable access to financial services.