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Today's FATF Plenary concluded with these implications for the transaction banking community: - Addition of Bulgaria to the FATF list of high-risk countries; - Removal of Albania, Cayman Islands, Jordan and Panama from the list of high-risk countries. The latter were attested "significant progress in addressing the strategic AML/CFT deficiencies previously identified" and will no longer be subject to the FATF's increased monitoring process. Inclusion in a FATF list means more stringent control of cross-border payment transactions, enhanced due diligence by correspondent banks and potential delays in payment processing and settlement. FATF press release: https://lnkd.in/eq_rnRFJ Reuters writeup: https://lnkd.in/eNeWE9Q2 #AML #antimoneylaundering #amlcompliance #banking #Bulgaria #Caymanislands #Compliance #FATF #FINMA #Jordan #Panama #transactionbanking #transactionmonitoring https://lnkd.in/e7_-J4w2

Case Study on non compliance of Anti-Money Laundering procedures: Deutsche Bank pays $186 Millions to Fed for Failure to Address AML Issues. Now lets understand what are AML issues which are not addressed by Deutsche Bank . The Federal Reserve on Wednesday imposed a consent order and a $186 million penalty on Deutsche Bank for failing to make sufficient progress in addressing anti-money laundering and sanctions compliance lapses identified in 2015 and 2017. Following a series of examinations, the Fed concluded that the German lender had made insufficient progress to address flaws in its customer due diligence, transaction-monitoring and suspicious-activity-reporting processes as well as other aspects of its compliance program, the July 13 order states. The compliance violations stemmed from Deutsche Bank’s ties with the Estonian branch of Danske Bank, which in 2018 admitted handling hundreds of billions of euros for offshore entities tied to Russia and other former Soviet states. Deutsche Bank terminated its correspondent relationship with the Danish lender in October 2015. The order mandates Deutsche Bank to prioritize completing remedial work on its transaction monitoring systems, particularly in relation to high-risk business lines, and make significant improvements to its customer due diligence processes. The Fed separately issued a written agreement ordering Deutsche Bank to improve its governance processes, risk controls and data management procedures. #casestudy #amlcompliance #amltraining #LinkedIn #compliance

Registration with #AML (Anti Money Laundering) The purpose of the AML is to detect and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation. AML have two types of reporting which detects and prevents the money from laundering. ·        The 1st is Currency Transaction Reporting (CTR), in which any amount which is equivalent or more than the #2_million rupees is required to report with AML. ·        The 2nd is Suspicious Transaction Reporting (STR), in which any transaction which you consider suspicious or which source of income is not clear is required to report with AML. For the registration with FMU/AML link is cited below: https://lnkd.in/gviX9FmM #taxation #taxes #pakistantax

AML COSTS: ANZ's chief Shayne Elliott has suggested it might be possible for banks in the #Pacific region to standardise #AFC processes services to cut costs. "Could we share, to lower the cost, the way we run things like #AML and #KYC?" he asked. Elliott said it should be possible to do so without relaxing risk protocols. Also in the region today Brendan Thomas, CEO of AUSTRAC launched Australia national risk assessments on AML/CFT with the Attorney General at the National Press Club today. He said the assessments involved "extensive analysis of our and our partners data and intelligence and will set the basis of our fight against organised crime." Plus we have commentary on #FATF's new report which scores #Australia, #China and the #US lowest (with a score of zero each) for oversight of #AML processes in #lawyers #accountants #realtors #preciousmetals. The rankings are technical with #Luxembourg, #Turkey and #Singapore amongst those with the highest scores. Has #FATF risked becoming dragged into geo-politics, our correspondent asks? We report on all these stories for 'AML Intelligence' Members on the homepage now. Are you an 'AML Intelligence' Member yet? Don't miss out. Join today here: https://lnkd.in/eMbkm6p #followthemoney #compliance #banks #banking #fintech #finreg #regtech #regulators #watchdog Stephen Rae James Treacy Alisha H. Paul O'Donoghue Tom Downes

“In the dynamic world of international trade, the GCC region stands as a critical hub. The significant movement of funds associated with trade demands the implementation of strong AML (Anti-Money Laundering) measures to deter unauthorized financial transactions." Dive into the comprehensive insights of Minosh SALAM, Director of Business Strategy at BANKiQ! 📚 📈 Read our latest blog detailing the AML landscape in the Middle East region for essential understanding and actionable strategies to navigate regulatory challenges effectively. https://lnkd.in/gQrUKuhc BANKiQ - Safeguarding Payments and Simplifying Compliance! #BANKiQ #AML #AntiMoneyLaundering #AMLCompliance #Strategies #FinancialTransactions #FinancialFraud #FinTech

How many chances would a person or non-bank entity get to comply with AML/KYC/FINCEN regulations? Not this many. From Fed press release: "The Federal Reserve Board on Wednesday announced two enforcement actions against Deutsche Bank AG, its New York branch, and other U.S. affiliates. First, the Board issued a consent order and a $186 million fine based on unsafe and unsound practices and violations of the Board's 2015 and 2017 consent orders with Deutsche Bank relating to sanctions compliance and anti-money laundering controls. The Board found that Deutsche Bank made insufficient remedial progress under the 2015 and 2017 consent orders and had deficient anti-money laundering internal controls and governance processes relating to its prior relationship with the Estonian branch of Danske Bank. This consent order requires Deutsche Bank to prioritize completion of several critical requirements of the Board's prior orders. Separately, the Board announced a Written Agreement to address other general deficiencies relating to Deutsche Bank's governance, risk management, and controls." #AML #amlcompliance #KYC #OFAC #fincen #TBTF #TBTJ #GSIB #treasurydepartment #DOJ #bankinglaw #bankingregulation #ruleoflaw #equalprotection https://lnkd.in/eihy4Ezb No rights claimed or asserted to image.

The current anti-money laundering (AML) regulations face challenges that allow for a facade arrangement of policies and procedures that serve as a checklist for passing international bodies’ assessments but may be ineffective in tackling the problem at the necessary level and scale. Financial institutions may implement AML policies and procedures merely to meet regulatory requirements and pass assessments by international bodies like the Financial Action Task Force (FATF). These policies, although appearing comprehensive on paper, may lack depth and muscle in combating money laundering and terrorist financing effectively. Financial institutions often find themselves in a dilemma where applying stringent rules designed to curb and virtually eliminate money laundering and terrorist financing globally could impact their profitability. If they were to implement all stringent AML rules, they would hinder themselves from making the profits they currently generate. Stringent regulations may require significant investments in compliance measures, technology, training, and resources, which impact operational efficiency and profitability. As a result, some financial institutions may prioritize meeting minimum regulatory requirements rather than going above and beyond to address the root causes of money laundering effectively. The impact of the stance taken by financial institutions does not only impact on national financial system, it extends to global markets where money launderers pick countries or regions where more lenient regulations are applied, influencing the economies of entire countries. It is a fine line and a delicate balance between compliance with AML regulations and maintaining profitability and sustainable business operations. FI conform to the minimum requirements for passing the mark but the real world tells another story, which is visible in financial markets and in import-export balances. #aml #moneylaundering #terroristfinancing #financialcrimes

Switzerland's Financial Market Supervisory Authority (FINMA) disclosed that a considerable number of Swiss banks are failing to meet fundamental anti-money laundering (AML) risk assessment criteria. These banks often overlooked essential exclusions for specific countries, client segments, and services or products. Furthermore, many failed to establish proper methods for allowing exceptions in their AML policies. As we recently discussed, the European Banking Authority (EBA) reported advancements in the functioning of AML and Countering the Financing of Terrorism (CFT) colleges. These multi-national supervisory frameworks are designed to enhance cross-border cooperation among various authorities, making them crucial in combating financial crimes. Swiss banks, among others, could gain significantly from international cooperative frameworks to address their AML shortcomings. https://lnkd.in/gcTVZrvT #Compliance #KYC #CDD #AML #Pascal #RegTech #FinTech #Vartion