The recently released annual report also emphasises the agency’s efforts to engage with issues around AML

The Law Society of Scotland just released its annual anti-money laundering (AML) report and the agency notes that it is an indicator of the “breadth and depth of its AML work undertaken in the public interest.”

The agency acknowledges that its goal is to build a Scottish legal sector effectively engaged with the issues around AML and which understands its risks and obligations. The hope is that this will compel its members to implement compliant policies, controls and procedures (PCPs) which will lead to a reduction in financial crime in Scotland.

Among the report’s key findings are areas that require improvement in understanding and underlying compliance.

The former CEO has been jailed for three years

In a landmark ruling, Lycamobile’s French companies have been fined a total of €10m by a Paris court for their involvement in money laundering and VAT fraud. The case also saw the group’s former CEO, Christopher Tooley, receiving a prison sentence and a substantial fine for his role in the VAT fraud scheme.

Panama removed and UAE makes progress

On 27 October 2023, the Financial Action Task Force (FATF) met in Paris and added EU member state Bulgaria to the grey list. This has been described as a shock to many, but the country has been mired in political corruption scandals in recent years. The UAE was also commended for its progress in improving its AML deficiencies, and seems set to be removed from the grey list at the next plenary in February 2024.

Wie die Einrichtung eines Bundesamts zur Bekämpfung von Finanzkriminalität die Compliance im Bereich Geldwäsche revolutionieren könnte

Die Bundesrepublik Deutschland, die einst als Oase für Geldwäscher galt, hat bedeutende Schritte in Richtung einer potenziellen Revolution im Kampf gegen Geldwäsche eingeleitet.

Die Financial Action Task Force (FATF) hat Deutschland in der Vergangenheit für den vorherrschenden Gebrauch von Bargeld und die mangelnde Kooperation zwischen nationalen Antigeldwäsche-Aufsichten kritisiert, und wer seit der COVID-Pandemie in Deutschland war, zeigte sich vermutlich überrascht vom ungebrochenen Gebrauch von Papiergeld. Bis zu 75 % aller Transaktionen in Deutschland werden mit Bargeld abgewickelt und die Meldung dieser Bartransaktionen ist nicht verpflichtend. So überrascht es kaum, dass die FATF Deutschland in ihrem Beurteilungsbericht des Jahres 2022 ein schlechtes Zeugnis ausstellte.

Data from the SRA shows less than a third of law firms are fully compliant

The SRA’s annual report highlighted a sobering statistic that less than a third of law firms inspected, 30%, are fully compliant with the anti-money laundering regime, with just over half, 51% partially compliant. Nearly a fifth, 19%, were actually found to be non-compliant.

The compliance failures at firms which fell foul range from a lack of proper policies and procedures, failing to undertake robust risk assessments on the client or matter, and deficiencies with source of funds checks.

The criminal trial of Sam Bankman-Fried, founder of failed cryptocurrency FTX, opens and it could determine the fate of crypto

In what is likely to become a referendum on the cryptocurrency industry, Sam Bankman-Fried’s criminal trial got underway in federal court in New York City. Bankman-Fried, the founder of FTX, the cryptocurrency that collapsed spectacularly last year, is charged by the Department of Justice with 13 felonies including using $10 billion in FTX’s customers’ funds for his personal use – investments, political donations and luxury real estate purchases.

How the establishment of a new AML super agency could change the game for AML compliance

Once considered a haven for money launderers, the Federal Republic of Germany has taken some significant steps to potentially revolutionise the fight against money laundering.

FATF had previously criticised Germany for the prevalent use of cash payments – anyone who has been to Germany since COVID might be astounded at the continuing use of paper money – along with sufficient cooperation between national AML supervisors. Up to 75% of transactions in Germany take place in cash, and it does not require any reporting from obligated entities of cash transactions. German financial institutions like Deutsche Bank have faced multi-million dollar fines across the world for their money laundering failings. Unsurprisingly, the FATF gave Germany poor marks in its 2022 evaluation report.

Lack of risk assessments and outdated policies contributed to failings

ADM Investor Services International Limited, a commodities services broker, have been hit with a significant £6.47 million fine by the Financial Conduct Authority (FCA) for inadequate anti-money laundering systems and controls.