AML Roundup: IMF recommend AML rules to help fight tax crime – Growth rate of the global AML software market – the Central Bank of Ireland’s latest Financial Stability review – Money Laundering, Fraud, Corruption, & Bribery – Legislation, Reports, Analyses, & Opinions – Gaming and Gambling – Sanctions – Crypto & Virtual Assets
09 Jun 2023

In our anti-money laundering news this week, the IMF recommends anti-money laundering (AML) rules to tax authorities to help fight tax crime. A new report this week shows just how quickly the market for anti-money laundering software is growing and there’s more on how FinTechs need to address AML challenges.

We have news on the latest Financial Stability Review published by Ireland’s Central Bank. Lord Holmes gives his views on the future of financial services regulation as the Financial Services and Markets Bill, currently in the House of Lords, began its Report Stage on Wednesday.

In our Gambling coverage this week, the debate on football and gambling continues as the football league extends its title sponsorship with Sky Bet for another five years.

To complete this week’s Roundup, we provide you with further money laundering, fraud, corruption and bribery updates from around the world, the latest on gaming and gambling regulation, news from the crypto and virtual assets sector and what’s new in global sanctions including the EU’s plans to punish countries that help Russia evade trade sanctions.

Money Laundering, Fraud, & Corruption

IMF recommend AML rules to tax authorities to improve tax compliance

Tax evasion and money laundering have historically been treated as separate issues. However, the IMF is now recommending that tax authorities adopt AML measures to fight tax crimes given that they are interrelated and that obfuscation techniques are similar too.

Global Anti-Money Laundering software market growing from $3.1bn in 2022 to $8.9bn by 2032

Spherical Insights & Consulting’s latest report shows a big rise in the size of the global AML software market. Over the forecast period, it’s expected to grow at a Compound Annual Growth Rate (CAGR) of 12.3%.

Addressing the AML Challenges for FinTechs

Digital initiatives in FinTechs are creating significant new business opportunities whilst also opening new opportunities for financial crimes including money laundering. FinTechs will need to modify their control frameworks to manage this evolving risk without negatively impacting the customer experience.

EU updates lists of third countries presenting risks in their AML regimes

Nigeria and South Africa have been added to the EU’s list of third countries that have strategic deficiencies in their anti-money laundering/countering the finance of terrorism (AML/CFT) rules. However, Cambodia and Morocco have been removed from the list.

Hong Kong Monetary Authority (HKMA) hosted its fourth AML Regtech Lab event on Wednesday

Bringing together retail banks, technology companies and industry experts, the HKMA’s latest AMLab promotes innovation in the sector to address issues such as real-time fraud monitoring and helping customers identify and take action to prevent fraud.

Legislation, Reports, Analyses, & Opinions

Central Bank of Ireland publish Financial Stability Review

Ireland’s central bank publishes its Financial Stability Review which indicates that risks facing the financial system have increased as inflation weighs on the global economy.

The future of financial services regulation

Lord Holmes of Richmond sets out his ideas for the future of regulation in the financial services sector.

UK Treasury Sub-Committee chair welcomes new proposals for mandatory fraud refunds

Harriett Baldwin MP said: “We’ve heard truly shocking and heart-breaking stories of individuals whose lives have been turned upside down by criminal fraudsters, which is why we’ve been calling for the regulator to be robust in using its powers to mandate banks to reimburse their customers.”

Gaming and Gambling

Malta Gaming Authority (MGA) meets with UK Gambling Commission (UKGC) to discuss ways to collaborate in areas including responsible gambling, sports betting integrity and anti-money laundering

The two regulators formalised their relationship through a memorandum of understanding (MoU) whilst discussing information-sharing and how best to protect players within their respective jurisdictions.

English Football League (EFL) agrees five-year extension with Sky Bet to remain as title partner

The football league (EFL) has signed a five-year extension to their title sponsorship agreement with Sky Bet. The agreement will now continue until the end of the 2028/29 season. The deal includes an understanding not to market Sky Bet’s products to young fans and to promote safer gambling messages. At the same time, Rangers football club in Glasgow have extended their shirt sponsorship with Kindred Group who are promising to eliminate all revenue they generate from harmful gambling.


EU designing ‘last resort’ measures to punish countries that help Russia avoid sanctions

EU countries hope to agree a package of measures next week to punish countries that enable sanctions evasion by enabling export of goods into Russia. By agreeing the measures, the EU hopes more countries will comply. This comes after a top sanctions official says that ‘By the start of this year, Russia was able to reimport certain key categories of electronics at about pre-war levels’.

US extends sanctions over Iran’s ballistic missile programme

The US government is sanctioning people and companies from Iran, Hong Kong and China over their alleged involvement in the development of Iran’s ballistic missile programme. Those sanctioned are denied access to any property or financial assets held in the U.S. and the sanctions prevent U.S. companies and citizens from doing business with them.

Crypto & Virtual Assets

UK’s Financial Conduct Authority (FCA) to introduce new rules on crypto advertising in October

The FCA is to introduce tough new rules for the marketing of crypto assets designed to ensure buyers understand the risks. They will include a 24-hour cooling off period for first-time buyers and clear risk warnings must be shown.

SEC Chief says the US doesn’t ‘need more digital currency’

In what’s being seen as an attack on crypto currencies, Gary Gensler, the chair of the US Securities and Exchange Commission (SEC) has said: “We don’t need more digital currency… we already have digital currency, it’s called the U.S. dollar.” Gensler continued “We have not seen, over the centuries, that economies and the public need more than one way to move value.”

European consumer organization calls on the EU to force social media companies to strengthen their crypto advertising rules

The BEUC suggests national regulators should insist social media companies tighten their policies and ban influencers from promoting crypto.


RiskScreen AML spotlight report

AML Vulnerabilities in Gaming and Gambling

Gaming and gambling companies risk getting caught in a pincer movement. On the one hand, criminal groups are eyeing the potential opportunities afforded by the industry to launder the proceeds of wrongdoing, particularly as online gambling has boomed.

On the other, regulators, alert to this danger, are increasingly cracking down on companies judged to have fallen short on anti-money laundering (AML) standards.

In this industry report, we look at:

– Where gambling and gaming companies face AML risks
– The regulatory environment
– How to ensure compliance with AML

Download this valuable compliance analysis here.

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