European Commission announces new counter-terrorist financing action plan, OFAC updates Magnitsky and Kingpin lists, Global Witness reports on abuse of anonymous companies in the US, and more
A lot has transpired over the last few weeks. Here's your latest compliance roundup.
- In response to recent events, the European Commission announced it will propose amendments to the Fourth Anti-Money Laundering Directive (4AMLD) to strengthen the EU’s fight against terrorist-financing. These will increase the requirements to perform Enhanced Due Diligence (EDD) for high-risk countries and extend the regulation’s scope to virtual currency exchanges and prepaid monetary instruments. Member states are also encouraged to speed up implementation of the 4AMLD.
- OFAC updated the Specially Designated Nationals List, adding five individuals to the Magnitsky List, and removed several Kingpin and Zimbabwe designations.
- The American Gaming Association published a report on the status quo of compliance in the industry. According to the study, companies have increased their spending on patron due diligence by nearly 100%, and on AML by 68% over the last five years.
- British building consultancy Sweett Group is closingtheir Middle East operations following an investigation by the UK Serious Fraud Office (SFO) that ended in the company’s conviction over the failure to prevent corruption under the UK Bribery Act.
And finally, international anti-corruption NGO Global Witness published a report on how American lawyers advise their clients to use anonymous companies to launder money and introduce the suspect funds into the US financial system. The advocacy group approached 13 New York City law firms and all but one of them gave assistance to conceal ownership and sources of funds. The report and hidden camera reporting received widespread media attention and was accompanied by the program “Anonymous, Inc.” , which aired
on CBS. Following the investigation, US Congress introduced a bipartisan bill to increase corporate transparency by requiring the declaration of natural persons owning shares in a company.
Source of the week: The Ukrainian National Commission for State Regulation of Financial Services Markets publishes the State Register of Financial Institutions. Details available include the name of the organisation, the full address and director name.