Xenia Compliance Consulting Pty. Ltd.

🌍 𝗞𝗲𝘆 𝗢𝘂𝘁𝗰𝗼𝗺𝗲𝘀 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝗙𝗔𝗧𝗙 𝗣𝗹𝗲𝗻𝗮𝗿𝘆 (𝟮𝟯-𝟮𝟱 𝗢𝗰𝘁𝗼𝗯𝗲𝗿 𝟮𝟬𝟮𝟰) The FATF Plenary under President Elisa de Anda Madrazo concluded with several major developments in the global fight against #financialcrime. Here’s what you need to know: 🔹 Strategic Changes: The last two assessments of FATF’s 4th evaluation cycle were completed with reports on Argentina and Oman, setting the stage for the upcoming risk-based, focused evaluations. Senegal was removed from increased monitoring due to significant progress in #AML / CTF #compliance, while Algeria, Angola, Côte d’Ivoire, and Lebanon were added. 🔹 Strengthening Inclusivity: For the first time, guest jurisdictions, Senegal and the Cayman Islands, attended as part of FATF’s commitment to diversity and inclusivity in the global fight against financial crime. 🔹 Progress on Standards: FATF approved new public consultations and revisions related to financial inclusion, cross-border payment systems, and guidance for national risk assessments. This includes projects to protect NPO activities and enhance transparency without hindering financial access. 🔹 Ongoing Suspensions and Vigilance: The suspension of the Russian Federation continues, with a call to remain vigilant against potential risk circumvention. The FATF’s focus on expanding inclusivity and strengthening anti-financial crime measures marks an impactful shift toward a more cohesive global network. 🌐 🔗 https://lnkd.in/eneMHPgn

𝗥𝗲𝗺𝗶𝘁𝘁𝗲𝗿𝘀 𝗪𝗮𝘁𝗰𝗵 𝗢𝘂𝘁: 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗶𝗻𝗴? Structuring is a tactic used in #moneylaundering where criminals intentionally split large cash transactions into smaller ones to avoid triggering reporting requirements, particularly Threshold Transaction Reports (TTRs) for amounts $10,000 or more. 🔑 𝙋𝙤𝙩𝙚𝙣𝙩𝙞𝙖𝙡 𝙍𝙚𝙙 𝙁𝙡𝙖𝙜𝙨: 🔹Multiple Transfers Under the Threshold: A customer makes several deposits or transfers just below the reporting threshold, often within a short period. 🔹Frequent Cash Deposits: Frequent cash deposits, especially under $10,000, rather than using more common methods like wire transfers, without a clear business rationale. 🔹Third-Party Depositors: Multiple individuals deposit into the same account, especially if deposits are under the threshold and occur within a limited timeframe. 🔹Multiple Accounts: The same customer uses multiple accounts, either in their name or others', to make structured deposits that ultimately end up in one account or are transferred between accounts. 🔹Geographic Dispersion: Deposits occur across different branches or regions, suggesting an effort to avoid detection at any single location. 🔑 𝙍𝙚𝙥𝙤𝙧𝙩𝙞𝙣𝙜 𝙎𝙪𝙨𝙥𝙞𝙘𝙞𝙤𝙪𝙨 𝙈𝙖𝙩𝙩𝙚𝙧𝙨: Even if individual transactions do not exceed the TTR threshold, if there are reasonable grounds to suspect that structuring is taking place, a #reportingentity may be required to submit a Suspicious Matter Report (SMR).

𝗔𝗦𝗜𝗖’𝘀 𝗬𝗲𝗮𝗿 𝗼𝗳 𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗞𝗲𝘆 𝗠𝗶𝗹𝗲𝘀𝘁𝗼𝗻𝗲𝘀 𝗶𝗻 𝟮𝟬𝟮𝟯-𝟮𝟰 🚀 ASIC’s 2023-24 Annual Report marks a major shift in how Australia’s financial regulator operates, focusing on stronger enforcement and consumer protection. 🔑 𝙆𝙚𝙮 𝙍𝙚𝙜𝙪𝙡𝙖𝙩𝙤𝙧𝙮 𝙖𝙣𝙙 𝙀𝙣𝙛𝙤𝙧𝙘𝙚𝙢𝙚𝙣𝙩 𝙁𝙞𝙧𝙨𝙩𝙨: 🔹Greenwashing Win: The first civil penalty for misleading sustainability claims, with a court ordering Mercer Superannuation to pay an $11.3M penalty. 🔹Life Insurance: ASIC issued its first stop order on a life insurance product, setting a new standard for consumer protection. 🔹ASX: The first-ever infringement notice for a market operator was issued to the ASX, demonstrating ASIC's growing oversight of market integrity. 📊 𝙎𝙩𝙧𝙤𝙣𝙜 𝘾𝙤𝙢𝙥𝙡𝙞𝙖𝙣𝙘𝙚 & 𝙀𝙣𝙛𝙤𝙧𝙘𝙚𝙢𝙚𝙣𝙩: 🔹170 new investigations (+25% from last year) 🔹32 civil proceedings (+23% from last year) 🔹$90M in penalties from civil cases 🔹18 criminal convictions protecting consumers from fraud 📊 Takeaway: ASIC's transformation shows a stronger focus on #compliance, enforcement, and consumer protection which means that now more than ever, businesses need to stay vigilant and compliant with regulations. 👉 https://lnkd.in/gwc4JC5a

𝗔𝗠𝗟 𝗨𝗽𝗱𝗮𝘁𝗲: 𝗚𝗹𝗼𝗯𝗮𝗹 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁𝘀 𝗮𝗻𝗱 𝗞𝗲𝘆 𝗧𝗿𝗲𝗻𝗱𝘀 Norton Rose Fulbright has just released their latest Anti-Money Laundering Update (October 2024), which highlights significant AML #regulatory changes across multiple jurisdictions in the past six months. 𝙆𝙚𝙮 𝙏𝙖𝙠𝙚𝙖𝙬𝙖𝙮𝙨:  🔹 𝗙𝗔𝗧𝗙 𝗙𝗼𝗰𝘂𝘀: Virtual asset service providers (VASPs) and wire transfers remain a priority, with further FATF consultation on updating Recommendation 16 for wire transfers and #compliance with Recommendation 15 for VASPs. Notably, the UAE has been removed from the FATF grey list, while Kenya and Namibia have been added. 🔹 𝗨𝗻𝗶𝘁𝗲𝗱 𝗞𝗶𝗻𝗴𝗱𝗼𝗺 & 𝗛𝗼𝗻𝗴 𝗞𝗼𝗻𝗴: Increasing scrutiny on Politically Exposed Persons (PEPs), with regulators tightening due diligence requirements. These changes are critical for organisations dealing with high-risk clients. 🔹 𝗨𝗻𝗶𝘁𝗲𝗱 𝗦𝘁𝗮𝘁𝗲𝘀: Beneficial ownership reporting requirements came into effect in 2024, with additional #AML program obligations on the horizon for investment advisers by 2026. 🔹 𝗘𝘂𝗿𝗼𝗽𝗲𝗮𝗻 𝗨𝗻𝗶𝗼𝗻: The new EU Single AML/CFT Rulebook and EU AML Authority are set to standardise compliance across member states, ushering in more harmonised regulations across the bloc. 🔹 𝗔𝘂𝘀𝘁𝗿𝗮𝗹𝗶𝗮: Australia is set for its most significant AML/CTF reforms since the regime’s inception. In September 2024, the AML/CTF Bill 2024 was tabled in Parliament, aiming to align Australia’s laws with FATF recommendations. AUSTRAC also released two national risk assessments on money laundering and terrorism financing, highlighting organised crime risks and technological challenges. 👉 Full Report: https://lnkd.in/gvdXN2Tr

𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗔𝗹𝗲𝗿𝘁: 𝗦𝘂𝗿𝗴𝗲 𝗶𝗻 𝗦𝘁𝗼𝗹𝗲𝗻 𝗦𝗵𝗮𝗿𝗲𝘀 𝗗𝘂𝗲 𝘁𝗼 𝗜𝗱𝗲𝗻𝘁𝗶𝘁𝘆 𝗧𝗵𝗲𝗳𝘁 ASIC has issued a warning about a rise in stolen shares linked to identity theft, with reports spiking since August 2024. Fraudsters are using stolen personal information to impersonate individuals, sell their shares, and pocket the proceeds without the victims’ knowledge. While this affects individual investors, it also underscores key compliance risks for professionals in financial services. 🔑 𝙃𝙤𝙬 𝙎𝙝𝙖𝙧𝙚 𝙁𝙧𝙖𝙪𝙙 𝙒𝙤𝙧𝙠𝙨: Identity thieves use stolen or fake IDs to access shareholder details and trade shares without the real owners being aware. Many victims only discover the fraud when they receive unexpected mail from share registries. 🔑 𝙆𝙚𝙮 𝙍𝙞𝙨𝙠𝙨 𝙩𝙤 𝘽𝙚 𝘼𝙬𝙖𝙧𝙚 𝙊𝙛: 𝗜𝗱𝗲𝗻𝘁𝗶𝘁𝘆 𝘁𝗵𝗲𝗳𝘁 𝗶𝗻 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝘁𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝘀: The rising sophistication of these schemes places more emphasis on robust identity verification. 𝗚𝗮𝗽𝘀 𝗶𝗻 𝗞𝗬𝗖 𝗮𝗻𝗱 𝗔𝗠𝗟 𝗰𝗼𝗻𝘁𝗿𝗼𝗹𝘀: Weak verification processes make clients vulnerable to this type of fraud, highlighting the need for enhanced due diligence. 𝗜𝗺𝗽𝗮𝗰𝘁 𝗼𝗳 𝗱𝗮𝘁𝗮 𝗯𝗿𝗲𝗮𝗰𝗵𝗲𝘀: Australians whose data has been compromised are at higher risk, calling for stronger ongoing monitoring of client accounts. 🛡️ 𝙒𝙝𝙖𝙩 𝙊𝙧𝙜𝙖𝙣𝙞𝙨𝙖𝙩𝙞𝙤𝙣𝙨 𝘾𝙖𝙣 𝘿𝙤: 1. Strengthen #KYC procedures to help ensure personal information is verified accurately and securely, especially when #onboarding or updating client details. 2. Monitor unusual transaction activity: Implement systems to flag unexpected share transfers or sales, particularly those involving high-risk clients or compromised accounts. 3. Educate clients about the importance of reviewing their portfolios and using robust security measures like multi-factor authentication to protect their accounts. Having a solid #AML / KYC framework helps protect clients and also demonstrates a firm commitment to #regulatory #compliance and risk management. 👉 https://lnkd.in/gTs4GiJQ

𝗖𝗿𝘆𝗽𝘁𝗼, 𝗕𝗡𝗣𝗟, 𝗮𝗻𝗱 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗨𝗻𝗱𝗲𝗿 𝗔𝗦𝗜𝗖 𝗦𝗽𝗼𝘁𝗹𝗶𝗴𝗵𝘁 ASIC's 2023-24 Licensing Report (REP 797) highlights the growing regulatory focus on emerging sectors like #crypto assets, Buy Now Pay Later (BNPL) services, and payments systems. 𝙆𝙚𝙮 𝙪𝙥𝙙𝙖𝙩𝙚𝙨: 🔹 𝗖𝗿𝘆𝗽𝘁𝗼 𝗮𝘀𝘀𝗲𝘁𝘀: ASIC is preparing new guidance for digital asset platforms, and many businesses involved in crypto-assets may need to apply for an AFS licence depending on how their services are categorised under the regulatory framework. Treasury's 2023 consultation paper proposed defining "digital asset facilities" as a new financial product, which would bring them under the AFS licensing regime. 🔹 𝗕𝗡𝗣𝗟 𝘀𝗲𝗿𝘃𝗶𝗰𝗲𝘀: BNPL providers will be required to hold credit licences under the National Credit Code once the Buy Now Pay Later Bill passes. Transitional arrangements will allow existing BNPL providers to continue offering services while their licence applications are being processed. 🔹 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝘀𝗲𝗿𝘃𝗶𝗰𝗲𝘀: Modernisation of the #payments system will bring previously exempt providers under the AFS licensing regime. Businesses affected will have a transition period of 18 months after the new legislation is introduced to comply with the new requirements. These reforms reflect ASIC’s ongoing efforts to bring emerging sectors in line with traditional #financialservices to enhance consumer protection and #regulatory oversight. 👉 https://lnkd.in/gzMitvmY

𝗔𝗦𝗜𝗖’𝘀 𝗡𝗲𝘄 𝗔𝗙𝗦 𝗟𝗶𝗰𝗲𝗻𝘀𝗶𝗻𝗴 𝗣𝗼𝗿𝘁𝗮𝗹 – 𝗔 𝗛𝘂𝗺𝗮𝗻-𝗖𝗲𝗻𝘁𝗲𝗿𝗲𝗱 𝗗𝗲𝘀𝗶𝗴𝗻 𝗳𝗼𝗿 𝗘𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝘆 ASIC’s 2023-24 Licensing Report (REP 797) reveals a significant upgrade to the AFS licensing process, driven by human-centered design principles. The new AFS licensing portal, set for launch in early 2025, will streamline how businesses apply for, maintain, and vary their licences, with a focus on user experience. Key benefits of the upcoming portal include: 🔹 𝗦𝘁𝗿𝗲𝗮𝗺𝗹𝗶𝗻𝗲𝗱 𝗮𝗽𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀: Known information will be pre-filled, reducing the need for applicants to repeatedly submit the same details, cutting down application time and effort. 🔹 𝗟𝗲𝘀𝘀 𝗽𝗮𝗽𝗲𝗿𝘄𝗼𝗿𝗸, 𝗳𝗮𝘀𝘁𝗲𝗿 𝗱𝗲𝗰𝗶𝘀𝗶𝗼𝗻𝘀: By collecting all necessary documents upfront, ASIC expects fewer follow-up requests, leading to quicker licensing decisions and fewer delays. 🔹 𝗧𝗮𝗶𝗹𝗼𝗿𝗲𝗱 𝘂𝘀𝗲𝗿 𝗲𝘅𝗽𝗲𝗿𝗶𝗲𝗻𝗰𝗲: Based on insights from beta testing and seven user feedback sessions, the portal has been refined to be more intuitive and efficient. Guidance has also been enhanced to make navigating the application process easier. This approach will potentially reduce administrative burdens and make the #licensing process smoother for both new applicants and existing licensees. 👉 https://lnkd.in/gzMitvmY

𝗔𝗦𝗜𝗖 𝟮𝟬𝟮𝟰 𝗟𝗶𝗰𝗲𝗻𝘀𝗶𝗻𝗴 𝗥𝗲𝗽𝗼𝗿𝘁 ASIC has just released its 2023-24 Licensing and Professional Registration Update (REP 797), featuring the upcoming launch of a new digital licensing portal set to roll out in early 2025. This portal aims to simplify the process of applying for and maintaining an AFS licence, creating a more streamlined and efficient experience for licensees. 𝙆𝙚𝙮 𝙙𝙖𝙩𝙖 𝙨𝙝𝙤𝙬𝙨:  🔹 1,531 applications for new and varied AFS and credit licences were submitted between July 2023 and June 2024. 🔹 ASIC processed 1,246 licensing applications, demonstrating the high demand for AFS and credit license. 🔹 280 new AFS licences and 143 new credit licences were granted. 🔹 ASIC has also increased its focus on #crypto assets and Buy Now Pay Later (BNPL) services, highlighting updated #compliance requirements for these growing sectors. ASIC Commissioner Alan Kirkland explained that the report helps AFS and credit licensees understand the tough decision-making processes ASIC follows for licensing and professional registration. With the introduction of a new AFS licensing portal in 2025, businesses can expect a more user-friendly and efficient licensing process. We will discuss more about this report in our upcoming posts so stay tuned. 👉 https://lnkd.in/gzMitvmY

🚨 𝗔𝘂𝘀𝘁𝗿𝗮𝗹𝗶𝗮’𝘀 𝗙𝗶𝗿𝘀𝘁 𝗦𝘁𝗮𝗻𝗱𝗮𝗹𝗼𝗻𝗲 𝗖𝘆𝗯𝗲𝗿𝘀𝗲𝗰𝘂𝗿𝗶𝘁𝘆 𝗟𝗮𝘄 𝗶𝘀 𝗛𝗲𝗿𝗲 🚨 Australia has taken a massive step forward in cyber security this week with the introduction of the Cyber Security Legislative Package. The Cyber Security Bill 2024 has been introduced to Parliament, marking the first time Australia will have a dedicated cyber security law. This legislation is a cornerstone of the 2023-2030 Australian Cyber Security Strategy and positions Australia as a global leader in #cybersecurity. 🔑 𝙆𝙚𝙮 𝙋𝙧𝙤𝙫𝙞𝙨𝙞𝙤𝙣𝙨 𝙤𝙛 𝙩𝙝𝙚 𝘽𝙞𝙡𝙡: 1️⃣ 𝗠𝗮𝗻𝗱𝗮𝘁𝗼𝗿𝘆 𝗖𝘆𝗯𝗲𝗿𝘀𝗲𝗰𝘂𝗿𝗶𝘁𝘆 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱𝘀: Internet of Things (IoT) devices like smart doorbells and watches will be required to meet minimum security standards, helping ensure that connected devices are protected. 2️⃣ 𝗥𝗮𝗻𝘀𝗼𝗺𝘄𝗮𝗿𝗲 𝗥𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗢𝗯𝗹𝗶𝗴𝗮𝘁𝗶𝗼𝗻: Certain businesses, particularly critical infrastructure providers, will be mandated to report #ransomware #payments within 72 hours to the Australian Signals Directorate and Home Affairs. 3️⃣ 𝗖𝘆𝗯𝗲𝗿 𝗜𝗻𝗰𝗶𝗱𝗲𝗻𝘁 𝗥𝗲𝘃𝗶𝗲𝘄 𝗕𝗼𝗮𝗿𝗱: A new board will be established to review significant cybersecurity incidents and provide recommendations to enhance future response efforts. Additionally, the bill strengthens Australia's Security of Critical Infrastructure Act (SOCI Act) by improving information-sharing mechanisms and enhancing government assistance for critical infrastructure during incidents. This legislation is a pivotal move towards building a more secure #digital environment in the face of increasing cyber threats. Is your business ready for these new #compliance requirements? https://lnkd.in/gvsBRjuB

🚨 𝗕𝗶𝗹𝗹𝘀 𝗗𝗶𝗴𝗲𝘀𝘁: 𝗔𝗠𝗟/𝗖𝗧𝗙 𝗔𝗺𝗲𝗻𝗱𝗺𝗲𝗻𝘁 𝗕𝗶𝗹𝗹 𝟮𝟬𝟮𝟰 🚨 The Parliamentary Library has released the Bills Digest for the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 and it offers valuable insights into the upcoming legislative changes. 🔑 𝙆𝙚𝙮 𝙃𝙞𝙜𝙝𝙡𝙞𝙜𝙝𝙩𝙨: 1️⃣ 𝗡𝗲𝘄 𝗢𝗯𝗹𝗶𝗴𝗮𝘁𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝗞𝗲𝘆 𝗣𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝘀: Real estate agents, legal professionals, and accountants will now be required to comply with #AML / CTF regulations, a major shift for industries that haven’t previously been subject to these rules. 2️⃣ 𝗩𝗶𝗿𝘁𝘂𝗮𝗹 𝗔𝘀𝘀𝗲𝘁𝘀 & 𝗧𝗿𝗮𝗻𝘀𝗳𝗲𝗿𝘀: Amendments to the Bill redefine services related to virtual assets and remittance, tightening the #compliance landscape for #crypto exchanges and digital currency businesses. 3️⃣ 𝗥𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗚𝗿𝗼𝘂𝗽 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲: The introduction of a mandatory reporting group structure brings enhanced liability for lead entities within business groups. 4️⃣ 𝗔𝗺𝗲𝗻𝗱𝗺𝗲𝗻𝘁𝘀 𝘁𝗼 '𝗧𝗶𝗽𝗽𝗶𝗻𝗴 𝗢𝗳𝗳' 𝗢𝗳𝗳𝗲𝗻𝗰𝗲: Changes to the tipping off offence and updates on who can disclose AUSTRAC information to foreign entities enhance #regulatory clarity. 💡 𝙒𝙝𝙖𝙩’𝙨 𝙉𝙚𝙭𝙩? The Bill has had its second reading debate in Parliament and is currently before the Senate Legal and Constitutional Affairs Committee, with a report expected by 13 November 2024. Keep an eye out for the final stages of debate later this year. For those affected, this is a crucial time to review your compliance frameworks and be prepared for these legislative changes. https://lnkd.in/gjqXsEwN