Trump is back – what will his administration’s AML and sanctions policies be as Treasury and DOJ prepare for big change

From Paul O'Donoghue at AMLi

THE BIG NEWS was out of the United States this morning with the election of Donald Trump as the 47th US President. All eyes will now be on what fincrime and sanctions policies the new administration will follow.

The Trump presidency will oversee appointments at the Departments of Treasury and Justice which overwhelmingly determine the outlook at agencies such as FinCEN and OFAC. Will the US continue to be the world’s police officer when it comes to AML violations and sanctions evasions? The short answer of course is yes. But nuance will be very important. Will there be the same determination and zeal? That remains to be seen. Will for example Treasury pursue Russia sanctions evasion to the same extent? Will foreign banks feel the long arm of the agencies ahead of domestic banks – something that is already in place it could be argued. It remains to be seen but nonetheless it’s time to prepare.

Of course, there are also opportunities here – particularly for the European Union. The birth of the new Anti-Money Laundering (AMLA) provides Europe with the opportunity to show leadership and influence on a global scale. We will be looking at this and more on ‘AML Intelligence’ over the next few days and weeks. Are you or your organization members or Corporate Members of ‘AML Intelligence’ yet?

SPEAKING OF EUROPE: Maria Luís Albuquerque has so far been something of an enigma to EU observers.

She’s so far given away little about the policy charges she would like to lead as the bloc’s financial services commissioner - something that will change today.

Albuquerque is the latest top figure who will be grilled by MEPs as part of the hearings of the Commissioners-designate.

The former Portuguese finance minister will attend a three-hour hearing, starting with a 15-minute presentation of her plans.

Then there will be an evaluation by the leaders of different political groups to decide whether to approve the nominee.

While it’s rare for Commissioners-designate to be outright rejected, it has happened in the past, and Albuquerque will be aiming to be at the top of her game.

SOUTH AFRICA: Since being added to the FATF ‘grey list’ last year, South Africa has been in a desperate rush to get off it.

A new review from the Financial Action Task Force was good news for the nation, finding that it is now just ‘Partially Compliant’ with two of the organization’s 40 key AML recommendations.

In 2023, South Africa was rated as either ‘Partially Compliant’ or ‘Non Compliant’ with more than half of these recommendations, which led to it getting placed on the ‘grey list’ in the first place.

Initially, many analysts said the nation would likely keep the designation until at least 2026.

But South Africa’s Central Bank governor has said the aim is to get off the list after the country’s next major FATF review in 2025. This latest update is a positive sign that it has a decent chance of doing just that.

The European Anti-Financial Crime Summit will take place on May 7th of next year in Dublin, Ireland. This in-person event is set to be the stand-out Anti-Financial Crime Summit event of 2025. This unmissable conference takes place at the RDS Convention Centre near central Dublin and will feature regulators, policymakers, industry leaders and law enforcement chiefs. Leading speakers, panellists and sponsor partners will be announced soon. Secure your place today. (EARLY BIRD RATES AVAILABLE)

BANKING

WOLFSBERG: Congratulations are in order for Ned Conway, who has been appointed as the new Executive Secretary of the Wolfsberg Group.

The group, an association of 12 global banks which aims to develop financial crime frameworks and guidance for other lenders, confirmed that the move was effective as of November 1.

J. Edward Conway replaces Alan Ketley , who confirmed in August that he was stepping down from the position of executive secretary.

Conway was most recently Group Head of Financial Crime Compliance Framework and Policies at Santander.

CHINA: China is considering major updates to its AML laws, which could include changing how financial institutions deal with data privacy.

The country’s AML Law, which was first enacted in 2007, will set out the circumstances where AML institutions and their staff handle and collect data.

The revision would also define conditions under which financial institutions can apply AML risk management measures.

The update comes after the Chinese government said in August that updates would also ensure that “virtual asset” transactions are covered by AML rules.

ART ‘N’ AML

ART: While law enforcement may cheer AML crackdowns, London’s art scene has cried foul.

Industry figures worry that well-heeled buyers are being put off by more stringent AML rules in the UK, which don’t apply in other major markets such as New York and Hong Kong.

The UK’s AML laws mandate art market participants to register with HM Revenue & Customs and conduct due diligence for transactions over €10,000.

These measures, which include verifying the identities of buyers, have been enforced more aggressively in the past year.

USMANOV: Finally, German prosecutors in Frankfurt have dropped a money laundering investigation against Russian-Uzbek billionaire Alisher Usmanov.

The business mogul will pay €4 million to settle the probe, which will be split between charities and the state.

The German prosecutor's office said the outcome does not imply any guilt, something which Usmanov’s lawyers were quick to point out.

Usmanov, who made his wealth through metal and mining operations after the collapse of the Soviet Union, was last year listed as one of the world’s 100 richest people.

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Have a great Wednesday 👋

Stephen and the team at AMlintelligence.