PIMFA - Personal Investment Management & Financial Advice Association’s Post

"The right word is always a power, and communicates its definiteness to our action." George Eliot The Financial Action Task Force (FATF) is considering revisions to FATF Recommendation 1 (risk based approach), to support and promote financial inclusion - a key priority under the FATF Presidency of Elisa de Anda Madrazo. At a glance, the revisions to Rec 1 and related interpretive notes may seem modest, but they could actually be transformative. For example, "...may decide to allow simplified measures...", is proposed to be replaced with, "should allow and encourage simplified measures...". Eliot's wisdom rings true here - by choosing this language, the FATF is signaling not just permission but expectation. Feedback on the proposed revisions is invited by *Friday 6 December 2024*. https://lnkd.in/d6WeMkTZ #AML #CFT #FATF #standards #riskbasedapproach #consultation #financialinclusion #CDD #RBA #DNFBP #followthemoney

🌍 The Financial Action Task Force (FATF) has introduced major reforms to its criteria for assessing countries on its watch lists, aiming to streamline efforts and concentrate on jurisdictions that pose the greatest threat to the global financial system. 🔍 Key Changes: 1. FATF reviews will now focus on its member countries and high-income jurisdictions with substantial financial sectors. 2. Lower-income nations will only be prioritized if they present a significant risk in terms of #MoneyLaundering or #TerroristFinancing activities. 3. In the next assessment cycle, the number of low-capacity countries on the list is expected to decrease by 50%. These updates seek to allocate resources more effectively, shifting attention toward high-risk areas while providing greater support for countries with limited capacity. #FinancialCrime #FATFReforms #Compliance #GlobalSecurity

Financial Action Task Force (FATF) places certain jurisdictions in the grey list (subject to enhanced monitoring). What may be the key reasons and criteria adopted by #FATF for a jurisdiction to be subject to enhanced monitoring? What actions an institution may need to consider if they have exposure to clients based in (or exposed to) the jurisdictions subject to the enhanced monitoring? Which jurisdictions may fall into the grey list, so organisations can plan in advance the necessary measures to manage the risks on a risk based approach? Sigma Risk® can offer assistance through our subject matter expert faculty members holding substantial professional experience in conducting national mutual evaluations on behalf of the #FATF, development of country level compliance frameworks and supporting organisations like UNODC, The World Bank, International Compliance Association and several regulators, intelligence agencies, law enforcement authorities, central banks, commercial financial institutions and international corporates around the world. Email us on info@sigmarisk.uk for a confidential chat and to organise a meeting for us to explore how Sigma Risk® can assist you and your firm in meeting your regulatory requirements. #SIGMARISK Andrew Clarke FICA Ross Savage Adeola Azeez Dayanath Jayasuriya Owen Baldacchino Leigh-Anne Moore Nader Meamary Yeva Gazazyan, PhD, CFA, FICA, MSc Law Anna-Kay Brown, MSc Law (GRC), FICA, Prof. PgDip (GRC), LLB Pradeep Taneja

📢 NEWSFLASH - Update of CSSF Circular 12/552: Key governance obligations clarified for the banking sector On 29 August 2024, the Commission de Surveillance du Secteur Financier (the “CSSF”) issued Circular 24/860 ( “CSSF Circular 24/860”) clarifying certain key provisions of its CSSF Circular 12/552 on central administration, internal governance and risk management, as amended (“CSSF Circular 12/552”). CSSF Circular 12/552 applies, inter alia, to Luxembourg credit institutions (including their branches), Luxembourg branches of credit institutions established in another Member State1 and Luxembourg branches of third-country credit institutions.  Read the full article here 👉 https://lnkd.in/eWi54x_j #ElvingerHossPrussen #LuxembourgLaw #CSSF

The Australian Prudential Regulation Authority's CPS 230 is the latest addition to the ever-growing list of global operational risk and resilience-related requirements. 🏦 Australian financial institutions have until July 2025 to comply: 🚨 https://bit.ly/4cm6ToH #APRA230 #Resilience #RiskManagement

Financial Action Task Force (FATF) places certain jurisdictions in the grey list (subject to enhanced monitoring). What may be the key reasons and criteria adopted by #FATF for a jurisdiction to be subject to enhanced monitoring? What actions an institution may need to consider if they have exposure to clients based in (or exposed to) the jurisdictions subject to the enhanced monitoring? Which jurisdictions may fall into the grey list, so organisations can plan in advance the necessary measures to manage the risks on a risk based approach? Sigma Risk® can offer assistance through our subject matter expert faculty members holding substantial professional experience in conducting national mutual evaluations on behalf of the #FATF, development of country level compliance frameworks and supporting organisations like UNODC, The World Bank, International Compliance Association and several regulators, intelligence agencies, law enforcement authorities, central banks, commercial financial institutions and international corporates around the world. Email us on info@sigmarisk.uk for a confidential chat and to organise a meeting for us to explore how Sigma Risk® can assist you and your firm in meeting your regulatory requirements. #SIGMARISK Andrew Clarke FICA Ross Savage Adeola Azeez Dayanath Jayasuriya Owen Baldacchino Leigh-Anne Moore Nader Meamary Yeva Gazazyan, PhD, CFA, FICA, MSc Law Anna-Kay Brown, MSc Law (GRC), FICA, Prof. PgDip (GRC), LLB Pradeep Taneja

Thank you Aamar Ahmad This is very useful for jurisdictional risk assessment. The Grey list provides an input on the traditional Low-Medium-High approach, but risk assessment has become more sophisticated, particularly given the opportunities in using AI. Maybe the countries you have highlighted at risk of grey listing could be considered as some sort of ‘light grey’ list = Medium High on a progressive increase system?

The EMA has submitted a response to FATF's Public Consultation on updates to their National Risk Assessment Guidance, emphasising the value contributed by the private sector, civil society, and academia. These sectors provide insights on emerging risks, facilitate effective communication with authorities, and offer frontline experience in the fight against financial crime. Furthermore, the EMA advocates for countries to engage the private sector in NRAs through public consultations and workshops, enabling comprehensive input, discussion of business models, risks, and mitigation measures, and the formation of public-private partnership groups to promote regular knowledge exchange and mutual understanding. https://lnkd.in/dkkzDGtT