The key challenges of AML compliance in Latin America and the Caribbean

Whether conducting risk assessments or reviewing client due diligence, it is vital to understand the risks and responsibilities of money laundering challenges for different jurisdictions.

In this article, VinciWorks considers the key AML challenges and laws in Antigua and Barbuda, and what organisations should consider when assessing customer, geographic or matter risk.

For more on the key AML risks and challenges in Latin America and the Caribbean, download our free guide to compliance.

Click here to download a free copy.

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This week we surveyed a wide range of UK law firms on their approach to AML. The survey explored firms’ biggest AML challenges, different approaches to risk assessments, ongoing monitoring, AML audits and more.

Key findings:

  • The biggest AML challenge is identifying the source of funds/wealth
  • Matter risk assessments are a struggle for 50% of firms
  • 58% of firms carry out independent audits through an external firm
  • 28% of firms feel they wouldn’t be prepared if they received a notification of an SRA visit
  • 64% of firms don’t believe the SRA and Law Society provide enough guidance to help firms stay AML compliant

Download results and summary

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The Economic Crime (Transparency and Enforcement) Act came into force on 15 March 2022. This act was passed in the wake of the Russian invasion of Ukraine. This law represents a significant shift in disclosure requirements for foreign companies who hold property interests in the UK, along with significant changes to sanctions law, including ‘strict liability’ for sanctions breaches.

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The Russian invasion of Ukraine, which began in February 2022, crystalised the role of anti-money laundering in the fight against Russian aggression. Sanctions compliance may have been at the forefront of international efforts to constrain the Russian economy, but money laundering is the vital, long-term compliance programme to ensure those sanctions stick.

Efforts by sanctioned entities or individuals to circumvent legal restrictions or find other ways to use frozen assets, shifts from the realm of sanctions to money laundering. Breaching sanctions is an offence, and thus any funds or economic resources which are a result of breached sanctions become money laundering.

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New requirements for money laundering regulated entities

Legislative background

A series of amendments to the UK Money Laundering Regulations 2017 came into force 1 September 2022. The Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022 include an obligation for regulated entities to identify, assess and mitigate the risk of proliferation financing (PF). We have further detailed guidance on these amendments here.

Regulated entities have the flexibility to create a new risk assessment on PF, or to incorporate proliferation financing into their existing money laundering and terrorist financing risk assessments.

The Treasury will conduct a national risk assessment in relation to proliferation financing, and regulated persons will also be required to take appropriate steps to identify and assess the risks to which their business is subject, and to establish and maintain policies, controls and procedures to mitigate and manage these effectively.

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Part 6: Upcoming changes to the UK’s anti-money laundering regime

In July 2021, HM Treasury launched a new AML consultation entitled ‘Amendments to the Money Laundering Terrorist Financing and Transfer of Funds Regulations 2017’. This consultation outlined ways in which the government intended to amend the UK’s money laundering regulations (MLRs) with several time-sensitive updates. The planned updates are required to ensure that the UK continues to meet international AML standards, whilst also clarifying how the UK’s anti-money laundering and counter-terrorist financing (AML/CTF) regime works. 

The changes to the MLRs have been made through draft secondary legislation entitled ‘the Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022’. Most of the measures in this SI will come into force on 1 September 2022, subject to parliamentary approval

In this series of blog posts, we take a closer look at what these changes will mean for anti-money laundering compliance.

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Part 5: Upcoming changes to the UK’s anti-money laundering regime

In July 2021, HM Treasury launched a new AML consultation entitled ‘Amendments to the Money Laundering Terrorist Financing and Transfer of Funds Regulations 2017’. This consultation outlined ways in which the government intended to amend the UK’s money laundering regulations (MLRs) with several time-sensitive updates. The planned updates are required to ensure that the UK continues to meet international AML standards, whilst also clarifying how the UK’s anti-money laundering and counter-terrorist financing (AML/CTF) regime works. 

The changes to the MLRs have been made through draft secondary legislation entitled ‘the Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022’. Most of the measures in this SI will come into force on 1 September 2022, subject to parliamentary approval

In this series of blog posts, we take a closer look at what these changes will mean for anti-money laundering compliance.

Continue reading

The latest updates to the UK’s high-risk jurisdictions for money laundering

The UK periodically updates its list of high-risk countries or jurisdictions for AML, meaning that regulated businesses must apply enhanced customer due diligence measures and enhanced ongoing monitoring in any business relationship with a person in any of these jurisdictions. A high-risk third country is defined for the purposes of the MLRs as a country specified in Schedule 3ZA.

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Part 4: Upcoming changes to the UK’s anti-money laundering regime

In July 2021, HM Treasury launched a new AML consultation entitled ‘Amendments to the Money Laundering Terrorist Financing and Transfer of Funds Regulations 2017’. This consultation outlined ways in which the government intended to amend the UK’s money laundering regulations (MLRs) with several time-sensitive updates. The planned updates are required to ensure that the UK continues to meet international AML standards, whilst also clarifying how the UK’s anti-money laundering and counter-terrorist financing (AML/CTF) regime works. 

The changes to the MLRs have been made through draft secondary legislation entitled ‘the Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022’. Most of the measures in this SI will come into force on 1 September 2022, subject to parliamentary approval

In this series of blog posts, we take a closer look at what these changes will mean for anti-money laundering compliance.

Continue reading