The FATF reviews DNFBP compliance, AUSTRAC launches risk assessments, and global elections need near real-time PEP data updates

Following its June plenary, the FATF has published a review assessing gatekeepers’ compliance with AML/CFT measures, including lawyers, accountants, and real estate agents. Each member country was rated on whether certain preventative measures were in place, including requirements related to tipping-off, PEPs, record-keeping, and STR reporting. The horizontal review revealed positive overall compliance but highlighted concerns about seven FATF members who scored below 50 percent, with the United States, China, and Australia all scoring zero percent. The review also emphasized the need for improvements relating to CDD and internal controls to address corruption vulnerabilities. As a result, the FATF has called for urgent action to ensure compliance with its recommendations and strengthen the global financial system’s integrity.

AUSTRAC has released two national risk assessments (NRAs) on money laundering and terrorism financing. The assessments provide insights into the prevalence of financial crime in Australia and emphasize the significant challenges of money laundering methods. Key findings include:

• Despite the emergence of new channels, money launderers still prefer using traditional methods such as cash, banks, luxury goods, real estate, and casinos.
• However, the use of digital currencies for illegal activities is rising.
• Retail banking, remittance, and cash exchanges are still the preferred ways to move illicit funds.

Firms updating their business-wide risk assessments should review these findings to understand financial crime risks in their relevant sectors and calibrate their AML systems accordingly.

In a year when more than half of the world’s population is heading to the polls, it has never been more critical to have comprehensive global PEP data delivered in near real-time. I want to take a moment to highlight the work our data teams are doing to serve customers in this area. At 05:04 on July 5, the BBC called the UK general election result a win for Labour. Less than 12 hours later, ComplyAdvantage was serving its customers with fresh PEP intelligence reflecting the 644 declared constituencies, including re-elected and newly elected MPs. Similarly, a few days later, France held the final round of its legislative elections on July 7. The results started coming in on the same day, and the final results were announced in the early hours of July 8. Following the election’s outcome, ComplyAdvantage promptly updated its PEP data, making it available to its clients within hours. Read more about these updates from our Chief Product Officer, Oliver Furniss, and see how firms are benefitting from leveraging the latest FinCrime intelligence here.

Until next week,

Andrew Davies, Global Head of Regulatory Affairs.

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