Newsletter (10 Feb – 16 Feb 2025)
Welcome to this week’s edition of the Global AML News Weekly Digest. Here are the top stories making headlines around the world:
1. Belgium Strengthens Anti-Money Laundering Measures with UBO Register
Since its introduction in 2018, Belgium’s Ultimate Beneficial Ownership (UBO) register has significantly improved the country’s anti-money laundering (AML) system. The register was designed in response to a European directive aimed at combating the challenges of identifying the true owners behind shell companies. As of January 2025, nearly 50,000 companies and non-profit organizations have been deregistered, with 75% of those being non-profits.
The Belgian government has also issued more than 17,500 fines totaling €8.5 million for failure to comply with UBO registration requirements. The fines range from €250 to €50,000, with the majority falling at the lower end of the scale. This marks a significant step forward in enhancing transparency and accountability, making it more difficult for illicit actors to hide behind complex company structures.
2. UAE Strengthens Global Anti-Money Laundering Efforts
The United Arab Emirates (UAE) is stepping up its efforts to combat money laundering and financial crimes, holding high-level talks with the European Union and other global partners. As part of its ongoing commitment to international cooperation, the UAE has engaged with the US and France to develop a global strategy to tackle financial crime.
The UAE is also actively working to ensure that its financial institutions and private sector play an integral role in fighting financial crime. Since 2023, the country has submitted over 8,000 questionnaires as part of a national anti-money laundering risk-assessment strategy. This proactive approach, combined with the UAE’s role as the vice chair of the Middle East and North Africa Financial Action Task Force, highlights the country’s growing influence in shaping global financial stability.
3. AUSTRAC Cracks Down on Crypto Money Laundering
The Australian Transaction Reports and Analysis Centre (AUSTRAC) continues to focus on the digital currency exchange (DCE) sector, with an increasing number of fines and penalties being imposed. In a bid to mitigate the risks of money laundering and terrorism financing within the rapidly growing cryptocurrency market, AUSTRAC has issued reminders to 106 entities about their obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act. This includes a series of actions against non-compliant providers, such as the suspension, cancellation, or imposition of conditions on registrations. With the growing use of cryptocurrency in financial crimes, AUSTRAC’s measures are crucial in maintaining the integrity of Australia’s financial system.
4. FCA Investigates Barclays Over AML Controls
The UK’s Financial Conduct Authority (FCA) has launched a civil enforcement investigation into Barclays, focusing on the bank’s anti-money laundering (AML) and financial crime controls. The investigation is examining Barclays’ oversight and management of high-risk customers, particularly within its retail banking arm and its global financial services operations. The FCA’s probe highlights the growing regulatory scrutiny on financial institutions to ensure they meet international standards for combating financial crime. This investigation is part of a broader trend of increased oversight on major banks, which are increasingly held accountable for lapses in their financial crime prevention measures.
5. Belize Takes Steps Toward Stronger AML Framework
Belize has made significant progress in improving its anti-money laundering (AML) and counter-terrorist financing (CFT) framework, as shown in the Fourth Round Mutual Evaluation Report (MER) by the Caribbean Financial Action Task Force (CFATF). The country has strengthened its legal and institutional frameworks, aligning more closely with the Financial Action Task Force (FATF) recommendations. Key reforms have included revisions to the Money Laundering Terrorist Prevention Act and the Belize Companies Act, enhancing customer due diligence and beneficial ownership transparency.
Despite these improvements, Belize still faces challenges in the effectiveness of its AML/CFT supervision and prosecutions, especially in areas such as money laundering convictions and asset recovery. Moving forward, Belize must focus on enhancing the use of financial intelligence, improving supervision of non-financial businesses, and modernizing cross-border currency controls to address emerging financial crime risks.
6.FATF Tackles Money Laundering in India’s Online Gaming Industry
The Finance Ministry, alongside officials from the Financial Action Task Force (FATF), recently met with real-money gaming (RMG) federations to discuss money laundering risks posed by online gaming platforms. While RMG operators were excluded from the discussion, FATF officials focused on curbing illegal offshore gambling and betting activities operating in India, which are linked to money laundering and terror financing.
The FATF intends to crackdown on these unregulated platforms and will likely meet RMG operators soon to outline strategies for tackling financial crimes in the industry. Despite predictions that online gaming could create significant jobs and attract foreign investment, the sector is struggling under the new GST regime, with many companies facing employment challenges and a sharp decline in Foreign Direct Investment (FDI), contrasting with the $1.7 billion FDI received in 2021.
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- #Belize
- #AML
- #FinancialCrime
- #FATF
- #MoneyLaundering
- #UBORegister
- #Barclays
- #UAE
- #AUSTRAC
- #CryptoExchanges