FATF’s October 2024 Grey List Updates
The Financial Action Task Force (FATF) issued an update in October 2024 concerning countries under its increased monitoring, or “grey list.” Among notable changes, Senegal was removed from the grey list after demonstrating sufficient progress in addressing identified deficiencies, while Lebanon, Algeria, Angola, and Côte d’Ivoire were added due to ongoing gaps in their anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks.
UAE’s National Assessment on Proliferation Financing Risks (2022-2024)
The UAE National Risk Assessment (NRA) on Proliferation Financing (PF) 2022–2024 addressed the risks associated with the financing of weapons of mass destruction (WMD) proliferation. It aligns with the Financial Action Task Force (FATF) standards that mainly focus on identifying, assessing, and mitigating PF risks. The assessment examines vulnerabilities across financial, non-financial, trade, export, and free zone sectors, emphasizing a risk-based approach to prioritize actions.
Hong Kong Monetary Authority (HKMA) fined Fubon Bank
The Hong Kong Monetary Authority (HKMA) fined Fubon Bank HK$4 million (approximately USD 510,000) for failures catering to anti-money laundering (AML) compliance. The HKMA also emphasized the importance of robust compliance measures to detect potential money laundering activities. The penalty serves as a deterrent, reinforcing the need for banks to have effective oversight and procedures in place to maintain the integrity of the financial system in Hong Kong
The 7th EU-UAE Structural Dialogue on AML/CFT
The 7th EU-UAE Structural Dialogue on Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) was held in Abu Dhabi. This high-level meeting emphasized the advancing commitment and collaboration between the United Arab Emirates and the European Union in combating financial crimes and upgrading and enriching international cooperation.
Italy’s Bruna Szego Appointed Chair of EU Anti-Money Laundering Authority
Bruna Szego, an Italian financial expert with decades of experience in financial farsightedness, governance, and compliance, has been appointed as the first chair of the European Union’s newly established Anti-Money Laundering Authority (AMLA). The decision marks a pivotal step in the EU’s efforts to bolster its defenses against financial crimes, including money laundering and terrorist financing, across the bloc.
US Lawmakers Voice Concerns Over Financial Crime in Hong Kong
An autonomous group of U.S. lawmakers has raised concerns about Hong Kong’s evolving role as a hub for financial crime, including money laundering and sanctions evasion. In a letter to Treasury Secretary Janet Yellen, the lawmakers highlighted allegations of the city facilitating violations of U.S. trade controls, such as enabling the transfer of restricted technology to Russia and creating front companies to purchase Iranian oil. In response, Hong Kong’s government strongly rejected these claims, calling them baseless and politically motivated. Officials emphasized that Hong Kong adheres to international anti-money laundering standards and complies with United Nations sanctions, though it does not enforce solitary sanctions imposed by other nations.
Credit Suisse Acquitted in High-Profile Money Laundering Case
In a significant legal reversal, Switzerland’s top court acquitted Credit Suisse, now part of UBS, of a 2022 conviction for failing to prevent money laundering tied to a Bulgarian cocaine trafficking gang. The Federal Criminal Court had previously penalized the bank approximately $2 million, deeming it negligent in preventing the laundering of criminal proceeds. However, the Swiss appeals court overturned this ruling, citing insufficient evidence to sustain the earlier judgment.
U.S. Regulators Escalate Focus on Financial Crime Compliance
U.S. regulators are growing and intensifying efforts to combat financial crime, reflecting the evolving complexity of illicit activities. The Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and Federal Reserve have highlighted the importance of strengthening compliance mechanisms to address risks such as money laundering, terrorist financing, and fraud within financial institutions. This heightened vigilance aligns with broader initiatives from the U.S. Treasury’s 2024 National Illicit Finance Strategy, which emphasizes addressing loopholes in beneficial ownership reporting and the rising risks posed by digital assets.
2024 AI & ML Trends in UK Financial Services
The Bank of England and Financial Conduct Authority (FCA) have released their third joint report on the use of Artificial Intelligence (AI) and Machine Learning (ML) within the UK financial services sector. This 2024 survey provides a renovated and updated view on AI/ML adoption, traversing its transformative potential, crucial, and associated risks. The report highlights that AI and ML applications are now widely integrated across banking, insurance, and capital markets, with fraud detection, anti-money laundering (AML), and credit risk management being prominent use cases. While these technologies enhance efficiency and decision-making, their growing complexity demands strict governance frameworks. Notably, larger firms dominate adoption, leveraging advanced infrastructure and datasets, while smaller firms lag behind due to resource constraints.
