Mauritius Compliance News
Appointment of Dr. Roshan Boodhoo as Chief Executive
Pursuant to Section 9 (1) (b) of the Financial Services Act 2007, the Board of the Financial
Services Commission has, with the concurrence of the Minister of Financial Services and
Good Governance, appointed Dr. Roshan Boodhoo as the Chief Executive of the Financial
Services Commission, with effect from 26 June 2024.
Link: https://www.fscmauritius.org/media/181132/appointment-communique-website.pdf
UAE Compliance News
ADGM Releases Consultation Paper on Revamp of Real Property Regulations
Abu Dhabi Global Market (ADGM), the International Financial Centre of the UAE’s capital, has released a Consultation Paper in order to seek views on its proposals on the comprehensive revamp of its real property regulatory framework.
This regulatory revamp addresses market needs and “ensures we stay aligned with market developments, ultimately positioning ADGM Real Property regulation as best-in-class support the growth of the real estate sector.”
Link: ADGM Releases Consultation Paper On Revamp Of Real Property Regulations | Crowdfund Insider
Dubai Financial Services Authority Updates Regulatory Framework for Crypto Tokens
The Dubai Financial Services Authority (DFSA) announced amendments to its crypto token regime on Monday, enhancing the regulatory environment for crypto tokens in the Dubai International Financial Centre (DIFC), a special economic zone. The amendments address investment in recognized and unrecognized crypto tokens, custody and staking of crypto tokens, compliance with financial crime regulations including the “travel rule,” transaction monitoring, and recognition criteria for fiat crypto tokens (stablecoins). These updates reflect market developments and international standards, such as recommendations from the International Organization of Securities Commissions (IOSCO) and the Basel Committee. DFSA Chief Executive Ian Johnston emphasized fostering innovation responsibly while maintaining regulatory standards.
Fines up to Dh150,000: UAE implements strict new telemarketing rules
Abu Dhabi: Effective from mid-August 2024, the Ministry of Economy and the Telecommunications and Digital Government Regulatory Authority (TDRA) announced a new resolution regulating marketing through phone calls, with measures aimed at curbing the intrusive nature of telemarketing and ensuring privacy for consumers. The newly introduced regulations stipulate severe penalties for violations, including fines up to Dh150,000, warnings, and even the possibility of partial or total suspension of activities. These sanctions extend to the cancellation of licenses and the denial of telecommunication services within the UAE for up to one year.
Global Compliance News
European Union: New EU rules have been adopted to combat money-laundering and terrorist financing
The European Parliament has adopted the new AML/CFT legislative package, which aims to comprehensively strengthen the EU rules to fight money-laundering and terrorist financing, including the establishing of a New EU Authority to directly supervise the riskiest entities, an EU limit on large cash payments up to EUR 10,000, and more detailed, directly applicable rules regarding customer due diligence and beneficial ownership.
Guyana to amend laws to facilitate easy extradition to US
Attorney General Anil Nandlall has told the Caribbean Financial Action Task Force (CFATF) that Guyana would next week amend its extradition laws to allow for “easy” extradition of persons to and from the United States (US).
“Next week we will enact a slew of amendments to our extradition laws which will make it easier for extraditions to take place from and to Guyana and in particular to and from the United States,” he told the CFATF 58th Plenary and Working Group Meetings in Trinidad.
Link: Guyana to amend laws to facilitate easy extradition to US – Demerara Waves Online News- Guyana
Nigeria Makes Strides in Global Fight Against Money Laundering and Terrorism Financing
Nigeria has made significant strides in improving its Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) framework, according to recent reports from the Financial Action Task Force (FATF). The country’s efforts had been commended by FATF officials, who praised Nigeria’s progress during a meeting in Paris, France, in December 2023. Nigeria’s 2nd progress report was adopted, with upgrades against six FATF criteria and compliance or largely compliance with 32 of the 40 FATF recommendations. This marks a significant improvement from its placement on the grey list in February 2023, where it was expected to make significant improvements in 15 areas
Federal Court of Australia approves SkyCity-Austrac civil penalty agreement
Last month, SkyCity agreed with Austrac that it would pay a total civil penalty of AU$67.0m (£35.0m/€41.1m/US$44.7m). This is in relation to historical anti-money laundering (AML) and counter-terrorism financing (CTF) failings at its land-based casino in Adelaide.
SkyCity and Austrac put forward separate submissions for approval at a hearing that took place earlier today (7 June). Here, the court approved the agreed penalty fee and also ordered SkyCity to pay Austrac’s costs of $3.0m.
Link: Federal Court of Australia approves SkyCity-Austrac penalty deal (igamingbusiness.com)
Secretary Yellen Announces Sanctions Against Top Leaders of Mexico’s La Nueva Familia Michoacana Drug Cartel, New Fentanyl Advisory
WASHINGTON — Today, alongside law enforcement leaders in Atlanta, Georgia, Secretary Yellen announced that the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned eight Mexico-based targets affiliated with La Nueva Familia Michoacana drug cartel for trafficking fentanyl, cocaine, and methamphetamine into the United States. In addition to narcotics trafficking, La Nueva Familia Michoacana smuggles migrants from Mexico into the United States. La Nueva Familia Michoacana is one of the most powerful and violent cartels in Mexico and has become a priority focus of the Mexican government in recent years.
India financial watchdog imposes $2.25 million penalty on crypto exchange Binance
MUMBAI (Reuters) -India’s Financial Intelligence Unit (FIU) has imposed a fine of 188.2 million rupees ($2.25 million) on the world’s largest crypto exchange, Binance, for operating in the country in violation of local anti-money laundering regulations.
India requires virtual digital asset service providers like crypto exchanges to be registered with the FIU as a reporting entity and comply with its anti-money laundering rules.
Binance did not immediately respond to an email seeking comment.
Link: India financial watchdog imposes $2.25 million penalty on crypto exchange Binance (yahoo.com)
BSP issues beneficial ownership due diligence rules
The Bangko Sentral ng Pilipinas (BSP) has issued the guidelines on beneficial ownership (BO) due diligence to strengthen the country’s anti-money laundering (AML), terrorist financing (TF), and proliferation financing (PF) risk management rules.
The Anti-Money Laundering Council (AMLC), in identifying a BO refers to this as any natural person who: ultimately owns or controls the customer and/or on whose behalf a transaction or activity is being conducted; or as someone who has ultimate effective control over a legal person or arrangement.
Link: https://mb.com.ph/2024/6/23/article-2426
Fighting sophisticated crime – Further anti-money laundering legal developments in Singapore
The Singapore Ministry of Finance (MOF) and the Accounting and Corporate Regulatory Authority of Singapore (ACRA) have jointly proposed two bills: the first, designed to strengthen the regulatory regime for corporate service providers (CSPs) in Singapore; the second, designed to strengthen corporate transparency standards more broadly. The two bills were recently introduced in the Singapore Parliament for their first reading. Whilst the final contents of both bills remain subject to change, the principles they set out show a further constructive development in Singapore’s ongoing efforts to address the complex problem of money laundering.
The two bills presented were issued for consultation in March 2024, and were introduced in Parliament for their first reading in May 2024. Together, these bills represent a continuation of efforts made by ACRA since 2022 to strengthen standards of corporate transparency.
Link: https://www.lexology.com/library/detail.aspx?g=b4af0b40-3aa1-462a-ac47-b7bea1e7d338
UAE Legislative Update Strengthening Security: Enhanced Anti-Terrorism Legislation
The United Arab Emirates has recently strengthened its approach to combatting terrorism through the implementation of comprehensive legislative reforms. These initiatives are designed to rigorously address the promotion of terrorism and related activities, underscoring the nation’s dedication to preserving security and stability. The amendment of Federal Law No. 7 of 2014 on combatting terrorism offences, alongside amendments to Federal Decree Law No. 34 of 2021 signals a definitive stance: any endorsement or support of terrorism within the UAE will incur severe penalties.
Link: https://www.clydeco.com/en/insights/2024/06/uae-legislative-update-strengthening-security-enha
US sanctions Hong Kong, UAE firms for dealing with Russian gold
LONDON, June 12 (Reuters) – The United States imposed sanctions on Wednesday on several Hong Kong firms, including VPower Finance Security, for aiding trade in gold produced by an already sanctioned Russian miner, the U.S. Department of the Treasury said.
In a new sanctions list, Washington sought to raise the pressure on Moscow over its war against Ukraine and targeted Russia’s access to support from third countries. The Treasury said foreign firms helping Russia’s war economy now “face greater risk of sanctions”.
FIU fines Axis Bank Rs 1.66 cr for failing to detect fraud NSG account
The Financial Intelligence Unit has slapped a fine of more than Rs 1.66 crore on Axis Bank for “failing” to put in place a mechanism to detect and report suspicious transactions carried out at one of its branches by creating a “fraud” account in the name of counter-terrorist commando force NSG.
The federal agency has issued an order on June 3 under Section 13 of the Prevention of Money Laundering Act (PMLA) that empowers its Director to impose a monetary penalty on a reporting entity (like Axis Bank) if the agency finds that its designated director on the board or any of its employees failed to comply with the obligations mandated under the said law.
FATF Jurisdictions under Increased Monitoring – June 2024
Jurisdictions under increased monitoring are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring. This list is often externally referred to as the “grey list”.
Fighting sophisticated crime – Further anti-money laundering legal developments in Singapore
The Singapore Ministry of Finance (MOF) and the Accounting and Corporate Regulatory Authority of Singapore (ACRA) have jointly proposed two bills: the first, designed to strengthen the regulatory regime for corporate service providers (CSPs) in Singapore; the second, designed to strengthen corporate transparency standards more broadly. The two bills were recently introduced in the Singapore Parliament for their first reading. Whilst the final contents of both bills remain subject to change, the principles they set out show a further constructive development in Singapore’s ongoing efforts to address the complex problem of money laundering.
The two bills presented were issued for consultation in March 2024, and were introduced in Parliament for their first reading in May 2024. Together, these bills represent a continuation of efforts made by ACRA since 2022 to strengthen standards of corporate transparency.
Link: https://www.lexology.com/library/detail.aspx?g=b4af0b40-3aa1-462a-ac47-b7bea1e7d338
UAE Legislative Update Strengthening Security: Enhanced Anti-Terrorism Legislation
The United Arab Emirates has recently strengthened its approach to combatting terrorism through the implementation of comprehensive legislative reforms. These initiatives are designed to rigorously address the promotion of terrorism and related activities, underscoring the nation’s dedication to preserving security and stability. The amendment of Federal Law No. 7 of 2014 on combatting terrorism offences, alongside amendments to Federal Decree Law No. 34 of 2021 signals a definitive stance: any endorsement or support of terrorism within the UAE will incur severe penalties.
Link: https://www.clydeco.com/en/insights/2024/06/uae-legislative-update-strengthening-security-enha
US sanctions Hong Kong, UAE firms for dealing with Russian gold
LONDON, June 12 (Reuters) – The United States imposed sanctions on Wednesday on several Hong Kong firms, including VPower Finance Security, for aiding trade in gold produced by an already sanctioned Russian miner, the U.S. Department of the Treasury said.
In a new sanctions list, Washington sought to raise the pressure on Moscow over its war against Ukraine and targeted Russia’s access to support from third countries. The Treasury said foreign firms helping Russia’s war economy now “face greater risk of sanctions”.
FIU fines Axis Bank Rs 1.66 cr for failing to detect fraud NSG account
The Financial Intelligence Unit has slapped a fine of more than Rs 1.66 crore on Axis Bank for “failing” to put in place a mechanism to detect and report suspicious transactions carried out at one of its branches by creating a “fraud” account in the name of counter-terrorist commando force NSG.
The federal agency has issued an order on June 3 under Section 13 of the Prevention of Money Laundering Act (PMLA) that empowers its Director to impose a monetary penalty on a reporting entity (like Axis Bank) if the agency finds that its designated director on the board or any of its employees failed to comply with the obligations mandated under the said law.
FATF Jurisdictions under Increased Monitoring – June 2024
Jurisdictions under increased monitoring are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring. This list is often externally referred to as the “grey list”.
South Africa Compliance News
FSCA warns the public against individuals or entities impersonating financial
services providers
The Financial Sector Conduct Authority (FSCA) warns the public against doing financial services related business with individuals or entities (impersonators) who are fraudulently soliciting investments from members of the public, by impersonating authorised financial institutions or claiming that they are associated with such. There has been an increase in the unlawful impersonation of authorised financial institutions by persons unlawfully soliciting investments from the public. There has also been an increase in persons claiming to be associated with an authorised financial institution. The FSCA suspects that this is being done to lend a false sense of legitimacy to the operations of the impersonators. These impersonators are not authorised to conduct financial services business. It is a criminal offence to conduct unauthorised business and against the law to impersonate other businesses or make false claims of association.
Compliance about much more than dodging a FIC fine
Compliance and control officers who do not enjoy full buy-in from the business will end up fighting a losing battle. This no-nonsense prediction set the scene for an insightful discussion on Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulatory framework, and South Africa’s progress towards getting removed from the Financial Action Task Force (FATF) grey list.