KYC/AML/CTF information for 15/November-14/December/2022
Here is the most relevant KYC/AML/CTF information for the period 15/November - 14/December/2022.
👉1/ [22/November/2022] The main findings and conclusions of the Romania ML/TF National Risk Assessment was published🔗 on the FIU internet page. This is the first risk assessment of Romania at the National level that started in 2019 based on data from the period 2018-2020. Romania is a country with relatively limited attractiveness for money laundering, due to specific regulations, as well as a relatively low degree of financial secrecy. The financing of terrorism remains at a very low level, it has a conjunctural character, depending on developments from abroad. Romania is not facing a domestic terrorist phenomenon and there are no terrorist organizations or cells operating on the national territory. No networks established for the purpose of obtaining, collecting or transmitting funds abroad, for the benefit of terrorist organizations or persons involved in activities qualified as acts of terrorism, have been identified. The extensive use of cash is the main method of money laundering. Cash intensive businesses are constructions, real estate development, agriculture, waste industry, exchange houses and gambling. The Romanian version is available here🔗.
👉2/ [22/November/2022] Guidelines on the use of Remote Customer Onboarding Solutions (EBA/GL/2022/15 ) was published🔗 by EBA. These Guidelines set out the steps credit and financial institutions should take to ensure safe and effective remote customer onboarding practices in line with applicable anti-money laundering and countering the financing of terrorism (AML/CFT) legislation and the EU’s data protection framework. The Guidelines apply to all credit and financial institutions that are within the scope of the Anti-money Laundering Directive (AMLD). These Guidelines establish common EU standards on the development and implementation of sound, risk-sensitive initial customer due diligence policies and processes in the remote customer onboarding context. They set out the steps financial institutions should take when choosing remote customer onboarding tools and when assessing the adequacy and reliability of such tools, in order to comply effectively with their AML/CFT obligations. The Guidelines are technologically neutral and do not prioritise the use of one tool over another.
👉3/ [22/November/2022] The European Court of Justice issued🔗 a press release regarding UBO transparency. The provision of the anti-money-laundering directive whereby Member States must ensure that the information on the beneficial ownership of corporate and other legal entities incorporated within their territory is accessible in all cases to any member of the general public is invalid. The general public’s access to information on beneficial ownership constitutes a serious interference with the fundamental rights to respect for private life and to the protection of personal data. The information disclosed enables a potentially unlimited number of persons to find out about the material and financial situation of a beneficial owner. Furthermore, the potential consequences for the data subjects resulting from possible abuse of their personal data are exacerbated by the fact that, once those data have been made available to the general public, they can not only be freely consulted, but also retained and disseminated. Austria, Belgium, Luxembourg, Malta, Netherlands restrict access to BOR.
👉4/ [23/November/2022] UN human rights experts published🔗 a statement on the ineffectiveness, structural weaknesses and superficiality of financial sanctions measures. While acknowledging efforts by sanctioning countries to provide for humanitarian carve-outs or exemptions in unilateral sanctions regimes, UN human rights experts have called on the international community to pay heed to their ineffectiveness, structural weaknesses and superficial character in relation to the multifaceted negative impact of unilateral coercive measures on the lives and rights of millions of people. Humanitarian actors, as well as donors and financial institutions, often do not have the expertise or the financial and human resources to navigate the complex and interlinked sanctions regimes, and the current humanitarian carve-outs are often too technical and open to various interpretations, exacerbating existing uncertainties and fear for unintended transgressions, and thus leading to instances of over-compliance and de-risking. De-risking policies by banks, producers and donors vis-à-vis humanitarian actors may not be waived by proof of an approved humanitarian exemption license. Thus the otherwise authorized financial transactions may still be refused due to generalized fear of potential sanctions violations.
✍4/update [09/December/2022] The UN adopted resolution 2664 (2022)🔗 which stipulates that the provision, processing or payment of funds, other financial assets or economic resources or the provision of goods and services necessary to ensure the timely delivery of humanitarian assistance or to support other activities that support the needs basic human rights are permitted and do not constitute a violation of asset freezes imposed by that body or its sanctions committees.
👉5/ [28/November/2022] EU Council adds🔗 the violation of restrictive measures to the list of EU crimes. The Council unanimously adopted a decision (CD2022/2332) to add the violation of restrictive measures (sanctions) to the list of ‘EU crimes’ included in the Treaty on the Functioning of the EU. The inclusion of the violation of restrictive measures in the list of ‘EU crimes’ is the first of two steps to ensure a similar degree of sanctions enforcement throughout the EU and to dissuade attempts to circumvent or violate EU measures. Following the adoption of this decision, the European Commission will present a proposal for a directive containing minimum rules concerning the definition of criminal offences and penalties for the violation of EU restrictive measures. This draft directive will then need to be discussed and adopted by the Council and the European Parliament.
✍5/update [02/December/2022] European Commission has submitted🔗 a proposal to harmonize offenses and sanctions for breaching EU restrictive measures. The proposed list of criminal offences which violate EU sanctions: i) making funds or economic resources available to, or for the benefit of, a designated person, entity or body; ii) failing to freeze these funds; iii) enabling the entry of designated people into the territory of a Member State or their transit through the territory of a Member State; iv) entering into transactions with third countries, which are prohibited or restricted by EU restrictive measures; v) trading in goods or services whose import, export, sale, purchase, transfer, transit or transport is prohibited or restricted; vi) providing financial activities which are prohibited or restricted; vii) providing other services which are prohibited or restricted, such as legal advisory services, trust services and tax consulting services.
👉6/ [01/December/2022] Wolfsberg Group issued🔗 "Principles for Using Artificial Intelligence and Machine Learning in Financial Crime Compliance". The Wolfsberg Group supports the leveraging of AI/ML by Financial Institutions to detect, investigate, and manage the risk of financial crime, as long as appropriate data ethics principles inform the use of these technologies to ensure fair, effective, and explainable outcomes. The document identifies five elements that support an ethical and responsible use of AI/ML: i) Legitimate Purpose; ii) Proportionate Use; iii) Design and Technical Expertise; iv) Accountability and Oversight; v) Openness and Transparency.
Recommended by LinkedIn
👉7/ [06/December/2022] EBA has launched on a public consultation🔗 on new Guidelines on the effective management of money laundering and terrorist financing risks when providing access to financial services (EBA/CP/2022/13). The EBA aims is to ensure that the most vulnerable clients are not denied access to financial services without good reason. Through this initiative, the EBA Guidelines on ML/TF risk factors (EBA/GL/2021/02) are updating in order to tackle the issue of de-risking. This consultation runs until 06/February/2023.
👉8/ [07/December/2022] European Council agreed🔗 on the framework of AML regulation and a new AMLD6 in order to enlarge the scope of the existing regulatory framework and to close possible loopholes. The new EU AML/CFT rules will be extended to the entire crypto sector; third-party financing intermediaries, (persons trading in precious metals, precious stones and cultural goods) will be subject to the obligations of the regulation; an EU-wide maximum limit of €10.000 is set for cash payments; the FATF “black list” and a “grey list” will be adopted/taken as such; the beneficial ownership rules will be more transparent and harmonized.
👉9/ [13/December/2022] The US Securities and Exchange Commission charged🔗 Samuel Bankman-Fried with orchestrating a scheme to defraud equity investors in FTX Trading Ltd. (FTX), the crypto trading platform of which he was the CEO and co-founder. Defendant concealed his diversion of FTX customers’ funds to crypto trading firm Alameda Research while raising more than $1.8 billion from investors.
👉10/[13December/2022] Danske Bank pleaded guilty and agreed to forfeit $2 billion to resolve the United States’ investigation. According to court documents🔗, Danske Bank defrauded U.S. banks regarding Danske Bank Estonia’s customers and anti-money laundering controls to facilitate access to the U.S. financial system for Danske Bank Estonia’s high-risk customers, who resided outside of Estonia – including in Russia.
💡 In the attached file🔗 find more information (132 records) organized by all categories of information (including mass-media) required for risk assessment at company level (EWRA) in accordance with EBA/GL/2021/02 .
Romanian version/ Limba Romana 👇