AML-CFT ESCAY Project’s Post

💰 Where do digital assets fit in Australia's AML/CTF regulatory overhaul? 💵 On 2 May 2024, the Commonwealth Attorney General's Department released its second stage consultation papers on reforming Australia's AML/CTF regime. The proposals including aligning Australia's regulation of digital assets with the Financial Action Task Force's Recommendations and incorporating digital assets into a number of other reforms relating to remittance and payments. In this article, Alice Molan, Susannah Wilkinson and I discuss the impacts of the proposals on digital assets and digital asset service providers. We provide our insights on the new proposed designated services and also consider the Australian Sanctions Office's recent advisory alert to digital currency exchanges in relation to sanctions compliance. ⁉ But what is a digital asset? The second stage consultation papers propose to replace "digital currency" with "digital asset" to achieve consistency with other government consultations (e.g., the Treasury's Regulating Digital Asset Platforms paper). However, the scope of the definition in that paper is broader than the scope of the term in the AML/CTF consultation. This raises questions which will likely need to be answered following submissions. Have a read and reach out to discuss further! https://lnkd.in/gZzkXqnH #digitalassets #cryptocurrency #AML #CTF

In a noteworthy development, the European Parliament has ratified a series of laws aimed at bolstering the EU’s anti-money laundering (AML) and counter-terrorism financing efforts, bringing about significant changes for the cryptocurrency sector. https://lnkd.in/garxVcBe #AML #EURegulation #CryptocurrencyCompliance #FinancialRegulation #AntiMoneyLaundering #TerroristFinancing #FinancialIntelligenceUnits #AMLAWatchdog #ComplianceManagement #RegulatoryCompliance #EUlaw #FinancialSecurity #AMLDirective #CryptoIndustry #FinancialCrime #FinancialIntegrity #KYC #DueDiligence #FIU #AMLReporting #EUFinance #BlockchainRegulation #CryptoAML #AMLFramework

Transnational Organized Crime is a Threat to Global Prosperity and Freedom The United States Institute of Peace (USIP) recently organized a study group to examine the threat transnational organized crime based in Southeast Asia is having on global peace and security. This resulted in the below report. https://lnkd.in/gZ3qQvEy Specifically, the “study illustrates how these networks have used their power and influence to develop a web of scam compounds within the region, centered primarily in Myanmar, Cambodia, and Laos, but involving most other countries of the region in the management of their operations and fraudulent proceeds. It analyzes in detail the nature of the online scams, how the criminal groups utilize advanced technology, how they gain control over weak and corrupt governments, how they traffic labor and deploy torture to engage victims in forced criminality, how they launder stolen funds, and how they attempt to whitewash their criminal activity.“ Organized crime groups, primarily originating from China, exploit weak #governance, #lawenforcement gaps, and corruption to establish complex networks. These networks operate through a mix of legitimate and illicit businesses, including casinos and special economic zones, to perpetrate #onlinescams and #moneylaundering stealing tens of billions from victims around the world. According to Chainalysis, the annual value of #cryptocurrency transactions linked to crime in Southeast Asia has surged, reflecting the growing integration of #digitalfinance into traditional criminal enterprises. This trend underscores the need for enhanced #regulatory frameworks and international #cooperation to address the evolving threat landscape in the digital age. 2024 Crypto Crime Trends from Chainalysis (https://lnkd.in/gK9WCktp) #scam #fraud #fraudprevention #aml #lawenforcement #nationalsecurity #pigbutchering #cybercrime #digitalassets #cyberfraud #security #crypto #blockchain #crime #crimeprevention

In a surprising twist, the Islamic State (IS) group is now advocating for crypto use to support its terrorist activities as long as it follows the tenets of Sharia law, a new report has disclosed. Compiled by the UN’s Analytical Support and Sanctions Monitoring Team, the research shows that IS associates are demanding Sharia compliance checks for the digital assets they depend on progressively #Crypto #Demands #Funding #IslamicState #LawCompliant #Sharia #TerrorActivities

The European Banking Authority (EBA) issued new Guidelines on the 'travel rule,' which mandates the information that must accompany transfers of funds and certain crypto assets to combat money laundering and terrorist financing. These Guidelines specify the required information for such transfers and outline steps for payment service providers (PSPs), intermediary PSPs (IPSPs), crypto-asset service providers (CASPs), and intermediary CASPs (ICASPs) to detect and address missing or incomplete information. The Guidelines aim to create a consistent approach across the EU, enabling authorities to trace transfers effectively. This follows the enforcement of Regulation (EU) 2023/1113 in June 2023, which aligns the EU’s framework with the Financial Action Task Force (FATF) standards by extending the travel rule to CASPs. It also subjects CASPs to the same anti-money laundering and counter-terrorist financing (AML/CFT) requirements as financial institutions. Competent authorities must report compliance within two months of the Guidelines' translation into EU languages. The Guidelines take effect on 30 December 2024, replacing the previous joint guidelines from 2017. Additionally, the EBA has issued guidelines on risk-based AML/CFT supervision of CASPs, managing ML/TF risks, and internal policies for compliance with restrictive measures. The legal basis for these Guidelines is outlined in Article 36 of Regulation (EU) 2023/1113 and Article 19a(2) of Directive (EU) 2015/849. Interesting? Want to read more? Click the link Below https://lnkd.in/d9gw2nbr #eba #travelrule #cryptoregulation #aml #cft #cryptocompliance #financialsecurity #euregulation #blockchaincompliance #fintech #cryptoassets #moneylaundering #terroristfinancing #casp #psp

The European Banking Authority (EBA) issued new Guidelines on the 'travel rule,' which mandates the information that must accompany transfers of funds and certain crypto assets to combat money laundering and terrorist financing. These Guidelines specify the required information for such transfers and outline steps for payment service providers (PSPs), intermediary PSPs (IPSPs), crypto-asset service providers (CASPs), and intermediary CASPs (ICASPs) to detect and address missing or incomplete information. The Guidelines aim to create a consistent approach across the EU, enabling authorities to trace transfers effectively. This follows the enforcement of Regulation (EU) 2023/1113 in June 2023, which aligns the EU’s framework with the Financial Action Task Force (FATF) standards by extending the travel rule to CASPs. It also subjects CASPs to the same anti-money laundering and counter-terrorist financing (AML/CFT) requirements as financial institutions. Competent authorities must report compliance within two months of the Guidelines' translation into EU languages. The Guidelines take effect on 30 December 2024, replacing the previous joint guidelines from 2017. Additionally, the EBA has issued guidelines on risk-based AML/CFT supervision of CASPs, managing ML/TF risks, and internal policies for compliance with restrictive measures. The legal basis for these Guidelines is outlined in Article 36 of Regulation (EU) 2023/1113 and Article 19a(2) of Directive (EU) 2015/849. Interesting? Want to read more? Click the link Below https://lnkd.in/eDGV7gRb #eba #travelrule #cryptoregulation #aml #cft #cryptocompliance #financialsecurity #euregulation #blockchaincompliance #fintech #cryptoassets #moneylaundering #terroristfinancing #casp #psp

The European Banking Authority (EBA) issued new Guidelines on the 'travel rule,' which mandates the information that must accompany transfers of funds and certain crypto assets to combat money laundering and terrorist financing. These Guidelines specify the required information for such transfers and outline steps for payment service providers (PSPs), intermediary PSPs (IPSPs), crypto-asset service providers (CASPs), and intermediary CASPs (ICASPs) to detect and address missing or incomplete information. The Guidelines aim to create a consistent approach across the EU, enabling authorities to trace transfers effectively. This follows the enforcement of Regulation (EU) 2023/1113 in June 2023, which aligns the EU’s framework with the Financial Action Task Force (FATF) standards by extending the travel rule to CASPs. It also subjects CASPs to the same anti-money laundering and counter-terrorist financing (AML/CFT) requirements as financial institutions. Competent authorities must report compliance within two months of the Guidelines' translation into EU languages. The Guidelines take effect on 30 December 2024, replacing the previous joint guidelines from 2017. Additionally, the EBA has issued guidelines on risk-based AML/CFT supervision of CASPs, managing ML/TF risks, and internal policies for compliance with restrictive measures. The legal basis for these Guidelines is outlined in Article 36 of Regulation (EU) 2023/1113 and Article 19a(2) of Directive (EU) 2015/849. Interesting? Want to read more? Click the link Below https://lnkd.in/dD_BGvgB #eba #travelrule #cryptoregulation #aml #cft #cryptocompliance #financialsecurity #euregulation #blockchaincompliance #fintech #cryptoassets #moneylaundering #terroristfinancing #casp #psp

👁️🗨️ #article In January the #UN Office on Drugs and Crime (#UNODC) put out an excellent report about illicit activity related to gambling, human and drugs trafficking in Southeast Asia's Mekong region. Essentially organised crime groups (OCG) have built out illegal #gambling and #pigbutchering hubs there and have harnessed #crypto to automate parts of their #moneylaundering operation. This article looks into how that network has spread globally to be used not only by OCG but also by state actors and others for terrorist financing and proliferation. Takeaways: ➡ Money laundering is now run by an #algorithm (or code). ➡ #Tether (USDT) on #TRON is the #stablecoin for money launderers. ➡ OCGs collaborate globally and are no longer risk averse when it comes to state actors like Iran. 👂 #Podcast My colleague Helen H. C. and I did a podcast on this topic. Check out Helen's profile for more analysis and insight. https://lnkd.in/egRbcASJ Joby Carpenter Patrick Tan Darren Jackson

AUSTRAC just published the regulatory priorities for 2024, focusing on hardening the sectors regulated by AUSTRAC against criminal misuse. AUSTRAC aims at building resilience in these sectors against money laundering, terrorism financing and other serious crime. The regulatory priorities are: a) enduring priorities, b) increased regulatory focus, c) serious and systemic deficiencies, d) continuous improvement and e) partnerships. A couple of thoughts: ◾ Significant stride towards enhancing regulatory frameworks in response to the evolving landscape of financial technology. ◾ Critical nexus of activity, aiming to ensure adherence to rigorous anti-money laundering (AML) and counter-terrorism financing (CTF) measures. ◾ Proactive stance and forward-thinking approach in targeting digital currency exchanges, acknowledging the unique risks and opportunities they present. ◾ Comprehensive understanding of the digital finance ecosystem, putting emphasis on a strategic and anticipatory response to potential and highly-sophisticated threats. ◾ Ample room for incorporating advanced analytics, Blockchain forensics and other artificial intelligence-enabled tools to enhance detection and monitoring capabilities. ◾ Potential to set a benchmark for regulatory frameworks globally, influencing how governments address the challenges and opportunities presented by the digitalisation of financial services. #fintecheducation #fintechinnovation #austrac #regulation #regulatorypriorities

Past week, Europol in The Hague hosted the 10th Virtual Currencies Conference. During this event, I highlighted the urgent need for developing an effective international set of indicators that are broadly applicable within the financial sector and across platforms. These indicators are crucial in indentifying suspicious transactions and FIU notification in the highly challenging identification of online child sexual exploitation. Live Distance Child Abuse (LDCA) and Transnational Child Sex Offenders (TCSO) cleverly exploit financial services, enabling them to anonymously transfer funds to facilitators and abusers who orchestrate the exploitation of victims #CSE, create Child Sexual Abuse Material #CSAM at the request of predators worldwide. These borderless crimes are often difficult to detect. Developing these indicators will help identify suspicious transactions and provide significant support in tracking down international child abusers. Thank you to all participants, law enforcement, industry, cryptoanalysis specialists for your attendance and the positive reactions and offered cooperation and assistance. Only through collaboration, Public Private Partnerships and the collective insights of experts globally can we make meaningful progress in combating these heinous crimes. #APTWINS #ItTakesANetwork #EFIPPP #crypto #analysis