AML Watcher’s Post

🔍 Unveiling the Secrets: Navigating the Landscape of High-Risk Third Countries (HRTCs) 🌍🚩 Ever wondered about the subtle art of cognitive dominion in the realm of AML? 🤔 Brace yourselves as I unravel the latest update - UK Money Laundering Advisory Notice on High-Risk Third Countries (HRTCs) 🚨 👁🗨 Knowledge: Understanding the Basics What's the buzz all about? Dive into the world of Enhanced Due Diligence (EDD) in the context of high-risk third countries. How? Stay tuned. 🔗 🔍 How to Spot a High-Risk Jurisdiction? Sources matter! Explore the FATF Black & Grey List, Basel AML Index, Transparency International Corruption Perception Index, and more. Knowledge is power. 💪 High-Risk Jurisdiction - How do I know? What sources of information can I use? 🚩 FATF – Black & Grey List https://lnkd.in/eZKytGV5 🚩 Basel AML Index – Money Laundering Risk https://lnkd.in/eh4Xx-nP 🚩 Transparency International – Corruption Perception Index https://lnkd.in/eKXtpbE9 🚩 Know your country – Report (Paid) but adequate information available freely for initial information https://lnkd.in/eaExr3i3 🤔 Understanding the Change: A Deeper Dive What's new? Say goodbye to Schedule 3ZA from MLR 2017. But what does it mean? Let's break it down. 🌐 Understanding HRTCs: Connect the Dots Now that we've trimmed down our list, High-Risk Third Countries are those named by FATF in the Call for Action or under Increased Monitoring. Simple, isn't it? 🔗 Application: Where Does It Fit? Geographical Risk - the compass for your Client Risk Assessment (CRA). Assessing your client's ties to countries on the higher-risk spectrum is key. 🔍 Analysis and Evaluation: The Impact Game Let's play the Impact on Business game. Failure to implement - what's at stake? Judgment calls in complex situations with no right or wrong answer. That's where the magic happens. 🌱 Synthesis: Creating Something New Crafting policies, procedures, and staff training materials. It's about sharpening our saws and circling back to where it all started - knowledge. 📅 Stay Tuned: Regular Updates Incoming Mark your calendars for February, June, and October. Plus, catch up on the latest from EBA and FCA on PEPs. The learning never stops! 📚 🔗 Follow for More Insights Ready to elevate your AML game? Follow for more updates, insights, and a sprinkle of free knowledge sharing. Because together, we grow! 🌱🌐 https://lnkd.in/d3p6YyHE https://lnkd.in/drw75vPy #AML #HighRisk #Jurisdiction #KnowledgeSharing #PEP #ComplianceMatters #LearningJourney

Did you know that not all politically exposed persons (PEPs) are created equal? When it comes to assessing risks, foreign PEPs take the spotlight. Here's why: Foreign PEPs often hold positions of power in their home countries and have connections across borders. Their potential impact on international affairs raises the stakes. Not only that, dealing with foreign PEPs means dealing with complex legal and compliance landscapes, differing cultural norms, and varying levels of transparency. It requires a more diligent approach. The distance between foreign PEPs and local authorities leaves room for questionable activities, making them more susceptible to corruption or illicit practices. But don't worry! We've got your back! Here are a few essential measures you can take Using AML Watcher’s PEP Screening tool: Rigorous Due Diligence: AML Watcher’s PEP Screening allows you to conduct due diligence with its risk management system. Create your own rules or use predefined industry standards when assigning risk to PEP of different countries.  Realtime Monitoring: Keep a close eye on every major political event occurring throughout the world by using AML Watcher’s real-time ongoing monitoring feature that will inform you of any changes that occur in the status of your foreign customers. Customizable AML Measures: Implement strong AML policies and procedures specific to your industry by customizing the lists and rules according to your industry standards. By adopting these measures, you can confidently navigate the complexities associated with foreign PEPs while protecting your business from unnecessary risks. To learn more about AML Watcher’s PEP Screening: https://lnkd.in/ddUn2tmY #Compliance #AMLWatcher #fraudPrevention #AML #PEPScreening

✨ KnowYourCountry, the world’s leader in AML Country Risk Reporting ✨ Established in 2006, KnowYourCountry (KYC) has become the go-to provider of country risk reporting, trusted by multinationals and regulators themselves. Written into the guidelines of more than 17 global regulators, KYC’s comprehensive reports focus on key elements of country risk, enabling businesses to analyse their jurisdiction specific threats for a regulator-advised risk-based approach to AML. 🚨 For regulated businesses, complying with AML is a legal requirement, and to which country risk reporting is fundamental. Too many businesses rely on flawed, or fundamentally lacking processes, leaving them exposed to AML threats. 🔒 KYC provide the critical knowledge to mitigate AML risks such as corruption, fraud, or money-laundering to protect businesses, not only from regulatory scrutiny, but also reputational damage if caught up in AML failures. 👮 Regulators and governments are clamping down on businesses failing to implement sufficient processes, imposing sanctions, and significant fines on non-compliant businesses. 𝗗𝗼𝗻’𝘁 𝗯𝗲 𝗰𝗼𝗺𝗽𝗹𝗮𝗰𝗲𝗻𝘁 𝘄𝗶𝘁𝗵 𝗔𝗠𝗟, 𝘁𝗵𝗲 𝗶𝗻𝘁𝗲𝗿𝗰𝗼𝗻𝗻𝗲𝗰𝘁𝗲𝗱 𝗴𝗹𝗼𝗯𝗮𝗹 𝗻𝗮𝘁𝘂𝗿𝗲 𝗼𝗳 𝗱𝗼𝗶𝗻𝗴 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗺𝗲𝗮𝗻𝘀 𝘆𝗼𝘂’𝗿𝗲 𝗻𝗲𝘃𝗲𝗿 𝘁𝗼𝗼 𝗳𝗮𝗿 𝗮𝘄𝗮𝘆 𝗳𝗿𝗼𝗺 𝗯𝗮𝗱 𝗮𝗰𝘁𝗼𝗿𝘀. ✨ 𝗥𝗲𝗮𝗰𝗵 𝗼𝘂𝘁 𝘁𝗼 𝗞𝗻𝗼𝘄𝗬𝗼𝘂𝗿𝗖𝗼𝘂𝗻𝘁𝗿𝘆 𝘁𝗼𝗱𝗮𝘆! ✨ 🔗 Book a demo via our website - https://lnkd.in/exUktXQv #KnowYourCountry #AML #Compliance #CountryRisk

Quick tips on completing your AML/CTF annual compliance report Welcome to the new year! Many of you have hit the ground running and are completing your AML/CTF annual compliance reports. Some quick tips when filling out your reports: 1. Your responses apply to activities undertaken in the previous calendar year. Ensure your responses relate to activities you undertook in 2023. 2. There are some new questions, but nothing too complex. For example, if you acquired or amalgamated with another entity in 2023 you will need to note that in your report. 3. You need to ensure your responses are accurate and informed. Significant penalties apply if you knowingly provide false or misleading information or intentionally omit information which could be misleading. 4. If you are unsure about the right answer to provide to a question, check your AML/CTF Program or speak to staff involved in implementation. Don't try to guess your way through the report. You can find more information about completing the annual compliance report and about the report questions on AUSTRAC's webpage here - https://lnkd.in/gPsrYqNK Reach out if you have any questions or need help completing your compliance annual compliance report. #antimoneylaundering #compliance #report

Let's kick off the week with a peek into our latest creation which will be launched VERY soon – a downloadable PDF manual on AML procedures that's as informative and designed to protect your business! 𝗖𝗢𝗠𝗜𝗡𝗚 𝗦𝗢𝗢𝗡 Today, we're talking about something super important, yet often overlooked: Firm-Wide Risk Assessment. Why Risk Assessments Can Be Your Best Friend: Think of a Firm-Wide Risk Assessment as your trusty sidekick in the world of AML. This new addition to our range of products at Intelect Group guides you through the maze of AML compliance with ease, with the ability to spot and stop issues before they arise, (as recommended by OFSI). No more juggling hundreds of (sometimes outdated) documents! Our guide shows you how to integrate sanctions risks into your existing assessments, making your life much easier. Curious about turning AML compliance into an engaging experience? Keep following Intelect Group for more information and watch this space! #FunWithCompliance #AMLAdventure #RiskAssessmentFun #IntelectGroup #ComplianceWithATwist #AMLCompliance

AML guidance and expectations have changed considerably in recent months. Discover the implications of these changes and how technology can enhance your compliance at our upcoming webinar! 💻 📅 When? Tuesday, 2 April at 12:00 PM 🔎 We'll be joined by Tracy Thompson, from Tracy Thompson Associates who will walk us through important updates relating to all SRA publicised guidance since July 2023, including: 🔹SRA sectoral risk assessment updates brought about during March 2023. 🔹Significant changes in the SRA's tone in relation to their expectations from regulated practices. 🔹The SRA AML Thematic Review Report, which contained the SRA Warning Notice in relation to client/matter risk assessments. 🔹Introduction to the SRA's client/matter risk assessment template, setting the benchmark for Regulation 28 obligations under the Money Laundering Regulations 2017. Plus, we’ll look at how technology can support and improve compliance, with dynamic tools and solutions available through InfoTrack. 💡 Ensure your firm is equipped with the knowledge to stay ahead of the curve. Book your spot now! 🎫https://lnkd.in/egREJ52g

A new shift from regulatory compliance to AML compliance is on the way! As GCC countries strive to open their markets to foreign investors and become global financial hubs, new Licensees will need to meet local requirements. This generally means replacing current detailed requirements with more generic ones by the regulator. Given this shift, the onboarding of new Licensees and the move to a more open market will require both regulators and Licensees to closely monitor AML requirements, as vulnerabilities may increase with the new generic requirements. AML must strike a critical balance between proactive and reactive measures. Proactive measures will need to be continuous and evolve with new legislation and changes introduced to the market. Reactive measures will follow, given the market's openness and the potential for some individuals to exploit the generic requirements to move illicit funds in and out of the country. This shift will require current and new Licensees to focus more on their compliance and AML departments, either by offering more training, hiring additional personnel, or branching out the departments to distribute focus. All of these measures will be needed to navigate the forthcoming changes effectively, which are expected to happen very soon.

🔎 👨🏼⚖️ Once a #PEP, always a PEP? 🤔 PEPs, their close relatives, and associates represent significant risks because of their authority, influence, and access to public funds. However, is it reasonable to assume that becoming a PEP permanently defines someone, even after they have left public office? 👉🏻 Although the Financial Action Task Force (FATF) is not opposed to the "once a PEP, always a PEP" approach, it is critical to acknowledge that the conditions surrounding PEPs and former PEPs might change over time. 🌎 Certain countries take different approaches to distinct types of PEPs. For example, in some countries, "foreign PEPs" may be consistently classified as high-risk, whereas "domestic" or "international organisations" PEPs may be subject to #riskassessment. 💡 When assessing PEP categories, FATF emphasises "risk assessment based on individual circumstances rather than prescribed time limits". 🇪🇺 The #EU AML directives make no distinction between domestic, international, and foreign PEPs. Many EU countries classify all PEPs as high-risk. 🎯 Effective risk management requires regular reassessment. Regulated entities with comprehensive risk assessment systems can constantly assess the ML/TF risks associated with PEPs, both current and former. 🎲 This enables appropriate revisions to due diligence processes, enabling optimal resource allocation and relieving the burden of ongoing high-risk classification on persons who no longer occupy influential roles. 🚀 Finally, whether to employ the "once a PEP, always a PEP" approach is determined by country AML laws and regulatory guidance. Adherence to national requirements for treating PEPs and former PEPs is critical to the efficacy of #AntiMoneyLaundering measures and assures #compliance with applicable rules. Taking an informed and attentive stance on PEPs and previous PEPs is critical to protecting the financial system's integrity and sustaining public trust. 🕵🏼♀️

Paper 5 outlines proposed measures aimed at simplifying the AML/CTF regime for both current and new reporting entities. The reforms aim to replace the existing prescriptive AML/CTF program and Customer Due Diligence (CDD) requirements with clear, risk-based, and outcomes-focused obligations.

🔎 The role of the Change Management function in #AMLCTF Compliance ▶ Typically, the ability to monitor #regulatory change and sustain an updated regulatory framework, are critical to existing #risk and #compliance programs for large Financial Institutions. Change management (as a rule, within the Compliance Function), is very often working along the rest of the assurance units of the organization and is composed from different sub-divisions like Regulatory change management, #data privacy, #corporate governance or #IT Compliance. ⏩ As a result, summarizing the main tasks of the change management these shall include: 1️⃣ Highlighting upcoming changes within the organizations' regulatory framework, 2️⃣ Sorting out the changes and determining their implementation time framework, 3️⃣ Mapping the regulatory requirements towards the organizations’ #Units or #Functions, ▶ Here, let’s focus on the tasks and duties of the change management in Anti-Money Laundering (#AML) and Counter-Terrorism Financing (#CTF), which plays a crucial role particularly in ensuring that organizations remain compliant with evolving anti-financial crime (#AFC) regulations and operational updates: ▶ Adapting to Regulatory Changes Change management ensures that an organization can swiftly and effectively adapt to these regulatory changes. This involves: 📍 Updating #Policies and #Procedures: Change management facilitates the timely update of internal #policies and #procedures to comply with new regulations. Simultaneously, it’s also necessary to map the policies and procedures to the new regulatory requirements and then to proceed by implementing them on operational level. 📍 Regulatory #Mapping and #Monitoring: assign the relevant regulatory updates to the competent functions and units within the organization, usually focus on the business line (#1LoD) and apply an on-going #assurance monitoring for the units’ adherence towards the assigned regulatory updates and impacted risk and control framework. 📍 Reporting and Record Keeping: Changes in regulations often require updates to reporting mechanisms, which change management helps implement. ⚠ Maintain records or #inventories of regulatory changes is also essential. 📍 Assess the #risk of new products/services: The change management should conduct prior the introduce of the new products and services, a thorough #riskassessment in regards of the AML/CTF or #Sanctions risk the organization will be exposed, collaborating with other Units (e.g. #Legal or Risk) and present the results of the afore-said risk assessment before the #AuditCommittee for approval. 📍 Embedding Changes: Making sure that changes are not just introduced in operational level, but also embedded into the organizational #Compliance culture and practices. Create workflow tasks for new or changed requirements and update process or perform #impact and risk assessments.