Claire Shelemay, BFP FCA

🚨 Important Update from #CySEC 🚨 The Cyprus Securities and Exchange Commission (CySEC) has issued Circular #C655 addressing compliance obligations for regulated entities. Key points include: 📌 Annual assessment of Compliance Officers' and Internal Audit Reports. 📌 Identification of common weaknesses and deficiencies. 📌 Requirement for immediate corrective actions on identified issues. 📌 Thorough and detailed Compliance and Internal Audit Reports are crucial for regulatory adherence. CySEC emphasizes the critical need for strict adherence to regulatory requirements and warns of rigorous compliance checks and strict administrative sanctions for non-compliance. 🛡️ Don’t risk non-compliance and potential sanctions. Contact CJ Solutions Ltd. today to ensure your business meets all regulatory standards. [email protected] and www.cjsolutionsltd.com #cjsolutionsltd #regulatorycompliance #AML #CFT

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NEW BLOG ALERT! Understand how virtual currencies, tax law and virtual asset forfeiture work in Israel. Written by Amit Levin for O2K.tech's website. Enjoy here: https://lnkd.in/eS8AAB_W #Cryptocurrency #CryptoRegulations #TaxBenefits #cryptocompliance #O2K.tech #CryptoTaxation

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Cayman FSPs: Strengthen Your AML Compliance with Provenance 💼 As a financial services provider (FSP) in the Cayman Islands, having robust anti-money laundering (AML) policies and procedures is critical to mitigate risks and ensure compliance with evolving regulations. Effective AML/CFT/CPF measures are not just a legal requirement, but an essential tool to protect your business and the reputation of the Cayman Islands as a whole. Why You Need AML Policies and Procedures 📝 ✅ Ensure compliance with Cayman Islands AML regulations ✅ Protect your business from financial and reputational risks ✅ Demonstrate a commitment to transparency and integrity ✅ Stay ahead of evolving regulatory requirements How Provenance Compliance Can Help 🆘🤝 Provenance Compliance offers specialized services to help Cayman FSPs build comprehensive and effective AML compliance programs tailored to their unique needs: ☑ Outsourced AMLCO, MLRO and DMLRO services to fulfil key AML roles ☑ AML policy and procedure development aligned with the risk-based approach ☑ AML training Our team of compliance experts 👩‍💻👨‍💻 has deep experience in the financial services industry and digital assets space. Contact us today to learn how Provenance Compliance can strengthen your AML compliance and support your business growth in the Cayman Islands. 📩💪 #policiesandprocedures #aml #cayman

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🚨 HUGE update for Principal Firms & Regulatory Hosts 🚨 Since the Financial Conduct Authority set out new rules and expectations for Principal Firms around enhancing oversight across their AR network in December 2022, they have since tested the implementation of these new rules across 270 firms (10% of the Principal population). Here's what they found... In general 👇 - 96% of Principals said they were very confident they were effectively implementing the new rules and guidance, but "there is likely some over-confidence in how well firms are implementing the rules." Self-assessments 👇 - Self-assessments should ensure that Principals are proactively assessing, monitoring and documenting their compliance with the FCA's rules. - 83% of Principals had completed their self-assessments, but only half of these were considered good quality! This was due to a poor audit trails, insufficient record-keeping or the review not covering all matters required. Annual reviews 👇 - Principals are required to review all relevant information about their ARs' activities at least every 12 months. - 82% of Principals completed their annual reviews, but only 43% of these were good quality! Monitoring, oversight and acting out of scope 👇 - Principals are required to have adequate controls over an AR’s regulated activities for which they have accepted responsibility, and resources to monitor and enforce an AR’s compliance with the FCA's requirements. - One third of Principals still do not use data and management information to monitor their ARs' activities to ensure they are not acting out of scope. - Some Principals still do not have sufficient resources to monitor and oversee their ARs. What are the main issues we hear from this publication? 🤔 A lack of audit trails and recordkeeping that demonstrate compliance with these new rules is really hurting Principals. The FCA is still finding that some firms do not have sufficient resources to monitor their AR network, evidenced by a lack of data and management information. The solution? ✅ Using effective RegTech and automation could be the first step towards combatting these issues. Look for a system that gives complete oversight across your AR network, tracks AR activity and includes automated reporting tools to evidence your compliance team's ongoing monitoring efforts. Fingerprint's communications compliance platform can do all of this and more. Get in touch if you need help evidencing compliance with the FCA's communication regulations across your AR network 📱 Read the publication here: https://zurl.co/WDum #FCA #compliance #regtech #regulatoryhost #principalfirm #complianceoversight #communicationscompliance

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Regulators, law enforcement, and AFC specialists across Europe are in a race against time, grappling with sanctions evasion and terrorist financing. From the rise of OTC brokers to the use of "unhosted" wallets and virtual IBANs, the challenges are manifold. Shockingly, even platforms like Spotify have been exploited for money laundering. Our esteemed panelists, including our very own Adam McLaughlin, will bring you up to date on these emerging concerns and provide strategies to combat them. 🔍 Don't miss out on vital insights to combat suspicious behavior. 📅 Mark you claendars: May 7-8 (10 am GMT) #Finance #FinancialSecurity #AI #TheAssemblySEurope

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The EBA Opinion from April this year says "Security requirements for a single EU-wide platform for information sharing .... as regards fraud transaction monitoring and the fraud data sharing amongst PSPs envisaged in Art. 83 of the PSR proposal, the EBA advises the EU co-legislators and the EU Commission to consider further strengthening Art. 83 of the PSR proposal with a requirement to have a single EU-wide platform, to be maintained and run by PSPs, for the sharing of fraud data amongst PSPs, in order to fully capture the benefits of the measure". The UK has several POCs and trials but we need a single platform to combat APP fraud - who should operate it?

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🗞️ I read the HMRC's AML/CFT Supervision Report so you don't have to 🗞️ (or would you even want to?) With all the talk on if supervisory bodies will continue to be responsible for AML compliance, this seemed to be eluded to with the announcement of the Effectiveness Framework. The framework outlines metrics to measure non-compliance through, 🍎 education content and education engagement 📉 declining AML compliance and continued non-compliance 💸volume of fines issued 💻 and number of desk-based reviews and onsite visits conducted by supervisory bodies. This is in an effort to measure accounting bodies (PBS's) effectiveness in reducing money laundering and from this framework, I would gather the current status quo would remain. Where non-compliance was uncovered, areas that this appeared were, 🚫 Lack of firm-wide risk assessments and client risk assessments in addition to inadequate documentation of them, 🚫 Poor enhanced due diligence (EDD) processes leaving vulnerabilities in adequate identification controls 🚫 Lack of measures to ensure operational effectiveness and quality assurance 🚫 Lack of documented AML policies and procedures These findings are also reflected in the Firmcheck AML Maturity Report 👀 https://lnkd.in/emkfAUHN In regards to formal and informal action against AML non-compliance 😬 HMRC took formal action against 100% of firms who were found to be non-compliant. Formal action increased from 20 firms in 2021-2022 to 261 firms in 2022-2023. This reiterates David's moto of not relying on HMRC to be your supervisory body. 🤔 FCA took formal action on 4% of firms found to be non-compliant, where 16% found to be generally compliant were given informal action. 🥴 PBS'S took informal action on 39% of firms who received an onsite visit and formal action against 19% When it comes to fines for non-compliance, the average fine was 💰£201,000 BUT this was driven by heavy handed FCA HMRC and PBS's fines averaged 💰£4000 and £7000 So whats the point? What I've gathered is that there is ongoing recognition of weaknesses in AML processes from an HMRC perspective. From a personal one, I believe that the pudding lies in education. Ensuring all individuals that undertake AML processes understand the why behind money laundering regulations. I've seen that when they do, the responsibility they feel is greater and the 'headache' of AML is reduced. But thats just my ramblings, I'll bring in some friends, David Winch, Lucy Brown and Mike Jardine (Calathea Solutions Ltd) to comment 👀

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#AML & #Sanctions - Are you unsure if your staff are following your Policies & Procedures? Can you prove it? The SRA is keen on firms having an Independent AML Audit carried out. https://lnkd.in/dQrXiiAF For info. We have helped many firms with this, so feel free to give us a shout. We're also able to do this with Sanctions compliance, to train and to assist with bringing your existing policies into compliance. We also help firms through an SRA AML or Sanctions Audit. #compliance #SRA #moneylaundering

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The Israel Securities Authority has issued a significant staff legal position regarding licensing requirements for businesses operating under the "Buy and Sell" or "Reseller" model in online marketplaces. This position clarifies when companies using the "Reseller" model will be exempt from obtaining a license under the Payment Services and Payment Initiation Regulation Law. To read our update in this matter, please click here>>> https://lnkd.in/dccA2R23 Anat Even-Chen Ori Rodriguez

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The British Virgin Islands Beneficial Ownership Secure Search System Act has been amended by the Beneficial Ownership Secure Search System (Amendment) Act, 2024, which was published in the Gazette on 24 July 2024. To understand the implications of these changes on economic substance reporting requirements, along with other modifications, read this blog post from Partner Josh Mangeot: https://lnkd.in/dEHkxAZE Also catch up on our other recent posts: ✒️ Luxembourg introduces comprehensive tax reforms for 2025 - https://lnkd.in/d2gPmAhh ✒️ Updates to OFSI’s FAQs on Russian trust services sanctions - https://lnkd.in/dP9GKetp ✒️ FATF's increased monitoring update - https://lnkd.in/d8uKD2_x ✒️ FATF releases call for action on its members and other jurisdictions to apply countermeasures in respect of “black listed” high-risk jurisdictions - https://lnkd.in/d83sD2We ✒️ New Advocate General opinion in case C-768/21: Data subjects' rights and supervisory obligations in data breach cases - https://lnkd.in/dZAjrawu Don't want to miss out on our posts? Sign up to our newsletter: https://lnkd.in/eshfpYCr

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Breaking news on Friday afternoon: AML/CFT Guidance for VASPs How the NZ AML/CFT regime applies to virtual asset service providers ("VASPs" - eg crypto issuers, wallet providers, payment networks and exchanges) has been a topic of debate for many years, and the ambiguity continued despite the recent VASP regulations. Today, the Department of Internal Affairs (DIA) released guidance (Guidance) for virtual asset service providers (VASPs) on the stage 2 amendment regulations under the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009 (Act). The Guidance gives direction to VASPs in understanding how to approach virtual assets, their quasi-money treatment, and the nature of transfers involving them. It also makes clear the consequences of virtual assets being pulled into the wire transfer regime – that short change of definitions actually represents what is likely the most substantive impact for VASPs, but may not have been understood by all from what is on the regulations’ pages. Many thanks to Sam Short and Darlene Hu for your help putting the note together! And to Jeremy Muir who is buried in the Reserve Bank's CBDC working group today - noting that digital representations of fiat are carved out from virtual assets!

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After the introduction of 'virtual assets' in the AML/CFT regime, the DIA has issued guidance on virtual asset service providers (VASPs). Here are the key takeaways. 🌟Effective 1 June 2024, a virtual asset to virtual asset transfer and a virtual asset to fiat currency transfer (or vice-versa) are to be considered wire transfers. This definition includes a transfer of the same type of virtual asset from one wallet to another, but it does not apply if the transfer of a virtual asset is to a non-hosted/self-hosted wallet without any other VASP involved. 🌟As a VASP, you will be an ordering institution when you receive or hold fiat currency or virtual asset for a customer, and on instructions of that customer, transfer the fiat currency or virtual asset to a beneficiary/payee at another reporting entity. You would be a beneficiary institution when you are a VASP who receives funds and then makes those funds available to a person (the payee) by crediting it to an account held by the payee or paying it to the payee. You would rarely be an intermediary institution. 🌟You may need to comply with two sets of wire transfer requirements in relation to the same dealings with a customer. For example, you receive a virtual asset from a customer in a wallet, alongside an instruction from the customer to exchange this for a different type of virtual asset and transfer it to a wallet hosted by another VASP. You would be a beneficiary institution of the inbound transfer of virtual assets and an ordering institution of the subsequent transfer of the different virtual assets to the wallet. 🌟A PTR must be submitted for an international wire transfer of $1,000 or more, i.e., for a transfer where either your customer, any other party to the transaction (i.e. the payer/originator or beneficiary/payee) and any other financial institution or VASP are outside of New Zealand. You should have procedures, policies, and controls in place to determine the circumstances in which you can be satisfied that all parties are in New Zealand and record such assessment. If in doubt, the wire transfer should be treated as an international wire transfer. 🔗Link to the guidance: https://lnkd.in/gJxN47Ei 📲 Get in touch if you want to talk about your AML/CFT obligations. 

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🚨 Important Update regarding ALEX Hack and Loss of User Funds. At Velar, our commitment to security and transparency is paramount. The Velar AMM (DEX) is fully decentralized and ensures transactions cannot be blocked or censored. Our bridge supporting $VELAR SIP-010 <> $VELAR ERC-20 operates in a semi-permissionless manner. We're actively collaborating with ALEX to monitor transactions passing through our bridge, ensuring any stolen funds are halted. For now, we are halting the bridge to support the Stacks ecosystem and to support ALEX in recovering the lost funds. We are setting up a real time monitoring tool to block hacker addresses even when they update their wallets. All pending bridge transactions will be processed as usual once this is set up. Our community's trust is invaluable, and we're working tirelessly to maintain it. Together, we stand strong and remain hopeful that ALEX will make the Stacks community whole again. Rest assured, we're dedicated to protecting our users and maintaining the integrity of the ecosystem. Stay safe and vigilant.

The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has published Consultation Paper No. 7 of 2024 containing proposals to enhance its regulatory framework to allow the issuance of Fiat-Referenced Tokens (FRTs) from the ADGM and invites public feedback and comments on the proposals. FRTs are a category of stablecoins that are backed by high-quality, liquid assets denominated in the same currency as the FRT and that can be liquidated rapidly with minimal adverse price effect. FRTs are intended to be used as a means of payment and share certain characteristics with Stored Value

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The European Parliament has voted to adopt a package of laws to strengthen the EU’s AML and terrorist financing toolkit, with a particular impact on the cryptocurrency industry. The regulation reports to create enhanced due diligence measures and checks on customer’s identity. Obliged entities, such as banks or cryptocurrency asset managers, have to report any suspicious activities to Financial Intelligence Units (FIUs) or other competent authorities. This is an increased level of due diligence on the cryptocurrency industry. The Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) will be established in Frankfurt to supervise these new rules. The AMLA will supervise the “riskiest” financial entities, intervene in cases of supervisory failures, act as a central hub for supervisors and mediate disputes between them. AMLA will also supervise the implementation of targeted financial sanctions. #regulation #AML #Crypto

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THE WEEK IN FINANCIAL CRIME The UK’s Payment Systems Regulator (PSR) has proposed a new reimbursement cap for victims of APP fraud to enhance consumer protection and incentivize financial institutions to “implement enhanced fraud prevention tools.” The proposed cap would be reduced from £415,000 to align with the Financial Services Compensation Scheme limit of £85,000. After considering responses to the consultation, the regulator plans to finalize the approach by the end of September, with the implementation date for the protections remaining unchanged on October 7. The Ministry of Home Affairs (MHA) in Singapore has proposed a new bill allowing the police to instruct banks to limit the accounts of individuals suspected of being targeted by scams. This comes in response to the city-state seeing a 50% increase in scam and cybercrime cases in 2023, with job scams, e-commerce scams, fake friend call scams, phishing scams, and investment scams being the top concerns. Under the Protection from Scams Bill, the police would have the authority to issue Restriction Orders (ROs) to banks to temporarily prevent people from sending money to scammers. The MHA has announced the bill will soon become law and has called for public feedback by September 30. On August 28, FinCEN issued a final rule imposing AML and KYC obligations on registered investment advisers (RIAs) and exempt reporting advisers (ERAs). The rule aims to help safeguard the investment adviser sector from illicit finance activity. It follows a February 2024 risk assessment highlighting numerous cases where sanctioned persons, corrupt officials, fraudsters, and other criminals have exploited the investment adviser industry to access the US financial system and launder funds. The deadline for compliance with this rule has been extended from the date originally set out in the NPRM to January 1, 2026.

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Anti-Money Laundering enforcement trends in Israel: Click to read Anat Shubat and Shir Rozenzweig's article on the 9 steps every business should follow to avoid exposures. #AML #Enforcement #BarneaJaffaLande  

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