Mauritius Compliance News
The Bank of Mauritius, in collaboration with the Financial Crimes Commission, hosts a Presentation on the Financial Crimes Commission Act
The Bank of Mauritius (‘Bank’) has, on 28 June 2024, in collaboration with the Financial Crimes Commission, organised a half-day presentation on the Financial Crimes Commission Act for the benefit of the Banking Sector.
Gathering some 150 participants, the outreach session saw the active participation of staff members of the Bank as well as its licensees. Representatives of the Financial Services Commission also participated in the outreach session.
Mrs Hemlata Sadhna Sewraj-Gopal, Second Deputy Governor of the Bank, in her welcoming remarks, highlighted, amongst other things, that AML/CFT ranks high on the agenda of the Bank and that the Bank is committed to maintain the effectiveness and sustainability of progress achieved in the Banking Sector on the AML/CFT front. She further impressed on the need for coordinated efforts to hamper the growth of financial crime in Mauritius and promote financial integrity.
UAE Compliance News
UAE’s Central Bank Sets New Standards with Open Finance Regulation
This regulation aims to ensure the soundness and efficiency of open finance services, promote innovation, enhance competitiveness and bolster the UAE’s status as a financial technology hub.
The new regulation mandates that all financial institutions supervised by the CBUAE must participate in the open finance framework concerning their products as well as services.
Licensed financial institutions (LFIs), as data holders and service owners, must provide access to customer data and the ability to initiate transactions, contingent on the express consent of users. This provision also aims to align services with consumer needs.
Link: https://thefintechtimes.com/uaes-central-bank-sets-new-standards-with-open-finance-regulation/
Dubai’s DFSA completes record number of inspections to ensure audit quality at DIFC
The DFSA recorded its highest number of authorizations, licensing over 100 new firms in 2022-2023. Over the past two years, the Dubai Financial Services Authority (DFSA) has completed a record number of inspections to ensure that audit quality within the Dubai International Financial Center (DIFC) remains rigorous and reflective of global best practices.
In its latest Audit Monitoring Report, the DFSA reveals that it has completed 33 inspections, registered 66 audit principles and 17 auditors to provide audit services to DFSA-regulated entities. Moreover, it recorded its highest number of authorizations, licensing over 100 new firms.
CBUAE explores solutions and initiatives to achieve’Zero Bureaucracy’ in financial sector
The Central Bank of the United Arab Emirates (CBUAE) has launched its “Zero Bureaucracy” initiative in the financial sector, aligning with the vision and objectives of the UAE Government’s wider programme “Zero Government Bureaucracy”.
The initiative aims to take a significant step in government procedures, simplifying people’s lives and reducing unnecessary burdens on businesses and individuals in terms of time, effort, and resources. The CBUAE, in cooperation with the Prime Minister’s Office, organised a workshop to discuss the mechanisms for implementing the Zero Government Bureaucracy programme. The programme aims to eliminate at least 2,000 government procedures, minimise procedure times by at least 50 percent, and remove all unnecessary processes and requirements.
ADGM publishes whistleblowing regulations
On July 10, 2024, the Abu Dhabi Global Market (ADGM) announced that it had published its whistleblowing regulations. The regulations set out protections for whistleblowers who make protected disclosures and outline obligations for organizations with regard to whistleblowing.
What disclosures are protected?
The regulations provide protections to any person who makes a ‘protected disclosure,’ which is defined as information relating to knowledge or reasonable suspicion that an ADGM establishment, its officer, employee, or agent has:
contravened, or is likely to contravene, any provision of any ADGM regulations, rules, or legislation administered by any ADGM authority; or engaged, or is likely to engage, in money laundering, fraud, or any other financial crime.
For a disclosure to be protected, the regulations require that the information must be reported either internally within an organization, for example to a person designated to receive such disclosures, or externally to specified ADGM or UAE authorities. For a disclosure to be protected, the regulations require that the information must be reported either internally within an organization, for example to a person designated to receive such disclosures, or externally to specified ADGM or UAE authorities.
What protections are available to whistleblowers?
The regulations also allow protected disclosures to be made anonymously and require all ADGM establishments to implement policies and procedures to protect a whistleblower’s identity. Further, the regulations protect whistleblowers from any form of retaliation or detriment by their employer as a consequence of making a protected disclosure.
Obligations for organizations
Under the regulations, all ADGM establishments are required to, among other things:
implement mechanisms to facilitate protected disclosures, escalate them where necessary, and protect the identity of whistleblowers;
have written whistleblowing policies and procedures unless the entity is considered a small company; and maintain records related to a protected disclosure for at least six years from the date that the determination of all matters relevant to the protected disclosure are completed and closed.
Entities have until May 31, 2025, to comply with the regulations.
Link: https://www.dataguidance.com/news/adgm-adgm-publishes-whistleblowing-regulations
CBUAE and the CBS sign MoUs
Abu Dhabi: His Excellency Khaled Mohamed Balama, Governor of the Central Bank of the UAE (CBUAE), and Ms. Caroline Abel, Governor of the Central Bank of Seychelles (CBS), signed today in Abu Dhabi two Memorandums of Understanding (MoU) regarding enhancing the use of local currencies in settling cross-border financial and commercial transactions, and interlinking payment and messaging systems between the two countries.
The first MoU aims to establish a framework to promote the use of local currencies in settling bilateral commercial transactions, developing the exchange market and to facilitate bilateral trade and direct investment, remittance settlement, and financial market development. The MoU includes a number of elements to facilitate the settlement of commercial transactions in the UAE dirham and the Seychellois rupee, in accordance with the laws and legislation in each country.
Link: https://www.zawya.com/en/press-release/companies-news/cbuae-and-the-cbs-sign-mous-rwsrq13c
CBUAE Payment Token Services Regulation
The UAE Central Bank (the CBUAE) has issued its Payment Token Services Regulation (the PTSR) for regulating stablecoins-related services in the UAE. The PTSR applies across the UAE except in the Dubai International Financial Centre (the DIFC) and the Abu Dhabi Global Market (the ADGM). We note that the PTSR also applies to entities licensed by the Virtual Asset Regulatory Authority (the VARA).
Under the new PTSR a “Payment Token” is defined to include stablecoins whose value references a fiat currency or other stablecoins that are denominated in the same fiat currency.
Link: https://weetracker.com/2024/07/29/south-africa-crypto-payments/
Global Compliance News
The Bahamas Introduces Transformative Digital Asset Legislation: The DARE Act 2024
The Securities Commission of The Bahamas (the Securities Commission) today announced the Digital Assets and Registered Exchanges Act, 2024 (DARE 2024) has been passed into law by the Parliament of The Bahamas, in a pacesetting move that solidifies the country’s position as a leader in digital asset regulation. Building upon the foundation laid by the DARE Act, 2020, the legislation introduces comprehensive reforms designed to address the evolving landscape of digital assets and cryptocurrency markets.
The EBA issues ‘travel rule’ guidance to tackle money laundering and terrorist financing in transfers of funds and crypto assets
The European Banking Authority (EBA) issued today new Guidelines on the so-called ‘travel rule’, i.e. the information that should accompany transfers of funds and certain crypto assets. This rule will help tackle the abuse of such transfers for money laundering and terrorist financing purposes.
The Guidelines specify which information should accompany a transfer of funds or crypto assets and also list the steps that payment service providers (PSPs), intermediary PSPs (IPSPs), crypto-asset service providers (CASPs) and intermediary CASPs (ICASPs) should take to detect missing or incomplete information, and what they should do if a transfer of funds or a transfer of crypto-assets lacks the required information.
The objective is to establish a consistent and effective approach to implementing the travel rule across the EU that allows relevant authorities to fully trace such transfers where this is necessary to prevent, detect or investigate money laundering and terrorist financing.
Yellen announces new effort to prevent Amazon basin illicit finance; threat of sanctions on environmental criminals
AMAZON: “Globally, nature crimes are estimated to generate proceeds in the hundreds of billions of dollars annually and often entail misusing and abusing the U.S. financial system,” Treasury Secretary Janet Yellen said this weekend, adding that such trafficking is upsetting the ecological balance of the Amazon rainforest, the livelihoods of local communities, and national economies in the region. Our file photo shows an aerial view of a natural lake fed by a spring in the Amazon River basin near Manaus, Brazil.
South Africa Compliance News
SA continues work to exit grey list
National Treasury says that whilst South Africa is on track to address all the outstanding Action Items to exit grey listing, it remains a tough challenge to address all 14 of the remaining Action Items by February 2025.
This assertion comes after the Financial Action Task Force (FATF) published the latest update on South Africa’s progress in addressing the Action Items in its Action Plan on 28 June 2024, following the conclusion of the June 2024 FATF Plenary meetings in Singapore.
Link: https://www.sanews.gov.za/south-africa/sa-continues-work-exit-grey-list
Individual Taxpayers to report ‘beneficial ownership’ information in 2024 tax returns
As the 2024 Personal Income Tax Filing Season approaches, the South African Revenue Service (SARS) has implemented significant updates aimed at simplifying tax compliance.
Recently, SARS has increased its focus on the reporting of beneficial ownership information by company and trust taxpayers. Now, individual taxpayers are also subject to this requirement and must disclose Beneficial Ownership information to SARS.
On June 27, 2024, SARS announced updates for the 2024 Filing Season that require individual taxpayers engaged in partnerships to disclose Beneficial Ownership details on their 2024 personal income tax returns. This requirement extends to all partners involved in their business activities.