Hiroshi Ozaki

The Monetary Authority of Singapore (MAS) published an updated Money Laundering National Risk Assessment. The NRA presents the ML risks observed by the Singapore supervisory and law enforcement agencies and the Suspicious Transaction Reporting Office #STRO within Singapore’s Financial Intelligence Unit, alongside those communicated by private sector entities and counterpart foreign authorities. Key findings include:  ➡️ Key ML threats emerge from fraud, particularly cyber-enabled fraud, with other threats relating to foreign predicate offense including organised crime and corruption;  ➡️ The most common ML typologies include illicit funds accessing Singaporean bank accounts, the misuse of legal persons, and the placement of illicit funds of high value assets; ➡️ The banking sector presents the highest ML risks, with banks having the highest ML vulnerabilities in facilitating large volume transactions;  ➡️ Corporate service providers pose higher ML risks within the DNFBP sector; and  ➡️ Increased risks and reported cases have been identified across the digital payment token and virtual asset service provider sectors. #FIs and #DNFBPs with operations in Singapore should review the findings of the updated ML NRA as a guide for risk assessments and the implementation of effective risk-based AML measures. 💡 With many years of experience in the Asia region, Plenitude can support the risk assessments that the ML NRA will drive, as well as ensure that firms have a better understanding of any gaps between current and forthcoming obligations in order to allow the implementation of effective risk-based AML measures. ➡ For more details, please contact Mike Coates or email us at [email protected] 🔗 Read the full document here: https://lnkd.in/gtYm5CuD

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🚨 Hong Kong Monetary Authority (HKMA) has recently addressed the key risk management considerations regarding the review of banks’ proposals involving the use of distributed ledger technology (DLT).   Since the Government published its "Policy Statement on Development of Virtual Assets in Hong Kong" in 2022, the HKMA has noted growing interest from banks to explore how they can apply DLT to traditional financial market operations. The HKMA is supportive of banks adopting DLT-based solutions so long as they can adequately manage the associated risks. 💪 Looking forward to hearing more about the agile and dynamic development of the market and HKMA's role in providing the industry with additional supervisory clarity! #FTAHK #Fintech #FinTechHK #HongKong #dlt

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Taiwan Tightens Crypto Regulations, Introduces Registration Deadline and Special Law The regulations require VASPs to register with the FSC by the end of September 2025, meet capital requirements, and implement customer protection measures. Additionally, the FSC plans to introduce a special law governing cryptocurrencies. https://lnkd.in/gfupvQUF

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Following the billion-dollar money laundering scandal in Singapore, MAS released their updated Money Laundering National Risk Assessment (ML NRA), which highlights the interconnectedness of global typologies that are increasingly exploiting the nation’s advanced financial system to launder illicit funds. Key takeaways: ❗Identified key areas of concerns that drive ML in Singapore include fraud and scams, organised crime, corruption and tax crimes, and trade-based ML ❗Banking and wealth management institutions pose the highest risk due to high transaction volume, and corporate service providers are the most vulnerable among designated non-financial businesses and professionals (DNFBPs) ❗FIs and DNFBPs need to leverage the right data and technology to stay ahead of evolving threats Read more: https://lnkd.in/e47eGwSx For more information on how your organisation can ensure a robust AML environment, speak with our experts: Prasanna Venkatesan, Brandon Lobo

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✒ #Blog: 🌐 Enhancing Transaction Monitoring Systems: Insights from #HKMA Guidance 📄 We are excited to share our latest article! Dive into the comprehensive guidance recently issued by the Hong Kong Monetary Authority (HKMA) on designing, implementing, and optimizing transaction monitoring systems for anti-money laundering and counter-financing of terrorism (AML/CFT) efforts. Discover key highlights, including management oversight, risk coverage assessment, and the role of artificial intelligence in #AML and #CFT. 🔍 This insightful document offers practical insights for financial institutions to strengthen their transaction monitoring systems and effectively combat financial crimes. Learn about the integration of automation and machine learning throughout the transaction monitoring process and considerations for AI adoption. 💡 Want to learn more about how Solytics Partners can assist you in implementing these recommendations. Drop us a quick note at [email protected]. We're dedicated to supporting banks and financial institutions globally in their fight against ML/TF by providing advanced solutions and analytical support for digital transformation initiatives. 🔗 Read the full article here: https://lnkd.in/d3zxRYh9 #HKMA #AML #CFT #TransactionMonitoring #FinancialCrime #AI #MachineLearning #SolyticsPartners #FinancialInstitutions #DigitalTransformation

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Philippines: 7 Chinese nationals accused of credit card fraud, bribing NBI operatives arrested. https://lnkd.in/ewrWHAHK NBI nabs 7 Chinese nationals for credit card fraud, bribery https://lnkd.in/etGFdPGg Philippine Regulator Says Enforcing Online Casino Ban Seen Tough. Gaming outsourcing firms employ 8,000-9,000 Filipinos: Tengco. Unlicensed online casinos still around and operating illegally. https://lnkd.in/eXUWvJwV Philippines bans gambling operations catered to illicit Chinese players. https://lnkd.in/e3bYKfej

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The Asia Pacific Group on Money Laundering (APG) has released its annual typology report, a valuable resource for identifying and understanding emerging risks related to money laundering (ML) and terrorism financing (TF). This report is critical for financial institutions and other stakeholders in enhancing their risk management frameworks, particularly their enterprise-wide risk assessments, and refining anti-money laundering and counter-terrorism financing (AML/CTF) controls to address evolving threats effectively. This year’s report places significant emphasis on the misuse of legal structures, such as companies, trusts and other entities, to obscure the identity of those exercising control or ownership. The findings highlight the challenges posed by complex or opaque arrangements involving legal persons. These structures are often exploited to conceal the ultimate beneficial owners, hindering efforts by competent authorities to access accurate and reliable ownership information. Such opacity frustrates the ability to attribute accountability for criminal activities and complicates the tracing of illicit financial flows and assets. This is particularly concerning in jurisdictions where weak transparency laws or enforcement gaps allow these structures to flourish. Criminal organisations and bad actors exploit these vulnerabilities to facilitate crimes such as tax evasion, corruption and the financing of terrorism, thereby undermining financial integrity. For organisations operating in affected sectors, the report underscores the importance of implementing enhanced due diligence measures, particularly in assessing the ownership structures of clients and counterparties. It also highlights the necessity for stronger regulatory frameworks and international collaboration to ensure that beneficial ownership information is both transparent and accessible to authorities. Adopting these practices is essential for mitigating risks, safeguarding financial systems and supporting global AML/CTF initiatives. Related link: 2024 APG Typologies Report - https://lnkd.in/eA-tY-Vj

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FRTB Compliance – New Rules and Data Challenges for Global Banks https://lnkd.in/g3t9-Fuh #FRTB #BCBS #baselIII #marketrisk #regulatoryframework #riskexposure #data #tradingbook #bankingbook #ES #VAR JPMorgan Chase & Co.

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"Việt Nam has set May 2025 as the deadline for the issuance of the legal framework on VA under a national plan on preventing money laundering and combating terrorist financing and lifting Việt Nam out of the Financial Action Task Force (FATF)’s grey list. Discussing the EU’s Markets in Crypto-Assets Regulation (MiCA) and Hong Kong Blockchain and Cryptocurrency Laws and Regulations, lawyer Nguyễn Trần Minh Quân said that these two legal frameworks, considered to be advanced, aim to protect users’ rights through licensing VA service providers (VASP). They address the issue of anti-money laundering and combating the financing of terrorism (AML/CFT) policies, ensure transparency and privacy of users and set strict operational standards." - Viet Nam News Read the full article at https://lnkd.in/get9NJXU Photo: Ivan Babydov #VietnamLegalFramework #MoneyLaunderingPrevention #CounterTerroristFinancing #CryptocurrencyRegulation #UserProtection #TransparencyPrivacyStandards #VietnamLaw

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The Monetary Authority of Singapore (MAS) published a circular on the audit of AML/CFT policies, procedures, and controls in Financial Institutions #FIs. The document provides additional guidance and highlights good practice, recommending that FIs:  ➡️ Ensure their audit function maintains AML/CFT expertise proportionate to the size and nature of the business; ➡️ Regularly conduct AML/CFT risk assessments and identify changes with regulatory requirements; ➡️ Carry out audits with a frequency and intensity commensurate with the relevant ML/TF risks; and  ➡️ Integrate data analytics within the AML/CFT audit process to further improve the effectiveness of audit outcomes. Firms with operations in Singapore should review the latest publication as part of ensuring their audit processes are aligned with regulatory expectations. Learn more: https://lnkd.in/ejiWpQMS 💡 Plenitude #RegSight and its subscription newsletter keeps you informed with the evolving regulatory landscape across multiple jurisdictions. Visit our website for more information:  https://lnkd.in/euTNnhxP

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Timely surveillance of default #risk at the firm level should be a key element in macro-financial surveillance as widespread defaults in the corporate sector may distress the banking sector and pose risks to financial stability. However, it is costly and difficult to get credit risk assessments for privately-held, non-listed firms to support risk monitoring in real-time. In this working paper, colleagues from AMRO, IMF and Oxford University jointly developed a signal-knowledge transfer learning model to assess the default risk of privately held firms, using #data from publicly-traded companies and integrating market-based, aggregate distress signals. ▶️ Read the paper: bit.ly/3Sfa619

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𝐀 𝐧𝐞𝐰 𝐝𝐫𝐚𝐟𝐭 𝐃𝐞𝐜𝐫𝐞𝐞 𝐨𝐧 𝐩𝐫𝐞𝐬𝐜𝐫𝐢𝐛𝐢𝐧𝐠 𝐚𝐝𝐦𝐢𝐧𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐯𝐞 𝐬𝐚𝐧𝐜𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐟𝐢𝐞𝐥𝐝 𝐨𝐟 𝐥𝐚𝐧𝐝 𝐢𝐬 𝐢𝐧 𝐩𝐫𝐨𝐜𝐞𝐬𝐬. The Government Office recently issued Notification No. 425/TB-VPCP, summarizing a meeting chaired by Deputy Prime Minister Tran Hong Ha on the draft Decree prescribing administrative sanctions in the field of land. 𝐊𝐞𝐲 𝐩𝐨𝐢𝐧𝐭𝐬 𝐝𝐢𝐬𝐜𝐮𝐬𝐬𝐞𝐝 𝐢𝐧𝐜𝐥𝐮𝐝𝐞𝐝: - 𝑪𝒍𝒂𝒓𝒊𝒇𝒚𝒊𝒏𝒈 𝒗𝒊𝒐𝒍𝒂𝒕𝒊𝒐𝒏𝒔 𝒂𝒏𝒅 𝒑𝒆𝒏𝒂𝒍𝒕𝒊𝒆𝒔: Defining specific violations and implementing appropriate sanctions to deter future offenses. - 𝑺𝒕𝒓𝒆𝒏𝒈𝒕𝒉𝒆𝒏𝒊𝒏𝒈 𝒍𝒐𝒄𝒂𝒍 𝒆𝒏𝒇𝒐𝒓𝒄𝒆𝒎𝒆𝒏𝒕:Empowering local authorities to effectively detect, handle, and report land violations. -  𝑨𝒅𝒅𝒓𝒆𝒔𝒔𝒊𝒏𝒈 𝒉𝒊𝒔𝒕𝒐𝒓𝒊𝒄𝒂𝒍 𝒄𝒂𝒔𝒆𝒔: Providing clear guidelines for handling land-related issues that predate the current Land Law. -  𝑰𝒎𝒑𝒓𝒐𝒗𝒊𝒏𝒈 𝒓𝒆𝒔𝒕𝒐𝒓𝒂𝒕𝒊𝒐𝒏 𝒑𝒓𝒐𝒄𝒆𝒔𝒔𝒆𝒔:Establishing principles and criteria for restoring land damaged by violations. The Ministry of Natural Resources and Environment will lead the revision of the draft decree, incorporating feedback from ministries, agencies, and localities. Read the full Notification No.425/TB-VPCP as attached. #landlaw #landviolations #administrativepenalties #vietnam

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🇹🇼 Taiwan’s Financial Supervisory Commission (FSC) plans to launch a pilot program for local banks to provide #crypto custody services, according to local media. The pilot is slated for the first quarter of 2025, and aims to promote the institutional adoption of crypto. Brenda Hu (FSC’s Director General in the Department of Planning) told media that more details will be released at least 15 days prior to the application opening, and that the regulator would solicit public feedback to refine the trial framework. This follows FSC guidance late last month on access to overseas crypto ETFs for professional investors. While Taiwan is supporting responsible crypto adoption, it is also tightening enforcement on unlicensed activity. Earlier this month, the Legislative Yuan, Taiwan’s highest legislative body, passed a bill criminalizing unlicensed crypto activity in Taiwan. The law will take effect on January 1, 2025, and VASPs providing crypto products and services in Taiwan must register with the regulator by September 2025. Failure to do so may result in an imprisonment or a fine. For more news and expert analysis like this — directly on your feed or in your inbox — be sure to subscribe to The Weekly Roundup 👉 https://lnkd.in/dX_h5uP8

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US FinCen updates Beneficial Ownership Information FAQs. FinCen has updated its FAQs on Beneficial Ownership Information, amending 2 FAQs and issuing 2 new ones: FAQ C. 14, which provides that a company is still required to submit its initial report to FinCen even if it is ceases to exist before the report is due, has been updated; FAQ C. 15 has been added, addressing who may submit a report on behalf of a reporting company that no longer exists; FAQ C. 16 has been added, clarifying that a foreign company that stopped doing business in the US before reporting requirements came into effect (1 January 2024) does not need to file a report; and FAQ G. 4, which details when a reporting company needs to include historical beneficial owners in its report, has been updated. #Sanctions #Russia #EUCommission #ExportControl #TradeWar #TSECS #SanctionsUpdate #TurkishSociety #Sanctions #USA #OFAC #BIS #TradeUpdates #GlobalTrade #TradeCompliance #InternationalRelations #EconomicSanctions #TradeRegulations #TurkishExports #TradePolicy #SecurityMatters #ForeignPolicy #ComplianceNews #EconomicSecurity #CrossBorderBusiness

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Hong Kong Monetary Authority (HKMA) fines China CITIC Bank $514,000 (HKD 4 million) for money laundering failure, failing to implement correctly detection & core model rules resulting in failure to generate suspicious transactions system alerts from 2015 to 2018 and failing to examine background & purpose of transactions.  Read - https://lnkd.in/gddh9G6N follow Caproasia | Driving the future of Asia The Hong Kong Monetary Authority (HKMA) has fined China CITIC Bank$514,000 (HKD 4 million) for money laundering failure, failing to implement correctly detection & core model rules resulting in failure to generate suspicious transactions system alerts from 2015 to 2018 and failing to examine background & purpose of transactions.  HKMA (6/12/24): “The Hong Kong Monetary Authority (HKMA) announced today (6 December) that it had completed an investigation and disciplinary proceedings for China CITIC Bank International Limited (CITIC) under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Chapter 615 of the Laws of Hong Kong) (AMLO) (Note 1).  The Monetary Authority (MA) has imposed a pecuniary penalty of HK$4,000,000 against CITIC for contraventions of the AMLO. The disciplinary action (Note 2)  follows an investigation by the HKMA on CITIC’s systems and controls for compliance with the AMLO.  The deficiencies identified in the investigation were related to the incorrect implementation of detection rules and core model rules in its automated transaction monitoring system, resulting in failure to generate system alerts on suspicious transactions during the period between November 2015 and July 2018.  CITIC also failed to examine the background and purpose of the transactions of some customers and to set out its findings in writing during this period. In deciding the disciplinary action, the MA has taken into account all relevant circumstances and factors, including the following: (a) the seriousness of the investigation findings; (b) the need to send a clear deterrent message to CITIC and the industry about the importance of having effective controls and procedures to address money laundering and terrorist financing risks; (c) CITIC has taken remedial actions to address the identified deficiencies; and  (d) CITIC has no previous disciplinary record in relation to the AMLO and cooperated with the HKMA during the investigation and enforcement proceedings.” China CITIC Bank

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Singapore’s Inter-Ministerial Committee published updated recommendations to strengthen the framework on Anti-Money Laundering on Friday. With a focus on Financial Institution controls and collaboration, centralised monitoring corporate structure misuse and strengthening enforcement capabilities, it is clear that the IMC are dedicated to preventing repeats of the August 2023 #moneylaundering case. The full report is available in the below link: https://lnkd.in/d_RbDz92 Our key takeaways are: - It is vital to ensure that the AML standards continue to push higher for gatekeepers - Further education and training are needed for non-regulated sectors - Mechanisms are needed to deter the misuse of corporate structures - Inter-agency coordination needs to be swift for more effective action to be taken We are fortunate to live and work in country where the enforcement of important financial legislation is not only taken seriously but constantly evolving for the protection of individuals and companies alike. #AML #Anti-MoneyLaundering #Compliance #Singapore #IMC #CredenceConsulting

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