Financial Crime Bulletin

Amended Money Laundering Regulations⁴

The Money Laundering and Terrorist Financing (Amendment) Regulations 2023, effective 10 January 2024 introduced effectively differentiating between domestic and non-domestic PEPs with Domestic PEPs / associates being considered low risk thus requiring less stringent diligence measures.

Failure to Prevent Fraud⁵

The UK government has published guidance on the new corporate criminal offence of 'failure to prevent fraud,' effective from 1 September 2025. This offence, part of the Economic Crime and Corporate Transparency Act, holds large organisations accountable if they profit from fraud committed by employees or associates. Organisations must demonstrate reasonable fraud prevention measures to avoid liability. The guidance aims to foster an anti-fraud culture, similar to the impact of anti-bribery legislation. Developed with input from multiple agencies, it underscores the urgency for corporations to enhance their fraud prevention efforts.

6th Anti-Money Laundering Directive (6AMLD)⁶

On the mechanisms to be put in place by member states for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending directives. The 6AMLD enhances mechanisms to prevent the use of the financial system for money laundering and terrorist financing. It includes stricter rules on beneficial ownership transparency and harmonizes AML measures across member states and became effective on 9 July 2024.

Harmonisation of AML Rules⁷

The EU Council and Parliament agreed on a comprehensive AML package harmonising rules across the EU, expanding coverage to most of the crypto sector and luxury goods traders, introducing enhanced due diligence and a €10,000 cash payment limit, and strengthening beneficial ownership transparency and national AML systems. Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) will be based in Frankfurt and start operations in mid-2025.

Detailed guideline for standardised test for the classification of crypto-assets⁸

The European Banking Authority released final guidelines on templates for explanations and opinions, and the standardised test for the classification of crypto-assets as per MiCAR guidelines (Article 97(1) of Regulation (EU) 2023/1114).

COSMIC Platform Launch⁹

On 1 April 2024, MAS launched COSMIC (Collaborative Sharing of Money Laundering/Terrorism Financing (ML/TF) Information & Cases), a digital platform for sharing information on potential financial crimes, with six major Singaporean banks. COSMIC helps detect and deter criminal activity by focusing on misuse of legal persons, misuse of trade finance, and proliferation financing. COSMIC allows FIs to securely share with one another, information on customers who exhibit multiple “red flags” that may indicate potential financial crime concerns, if stipulated thresholds are met. This makes it easier for FIs to detect and thereby deter criminal activity.

Payment Services Act Amendments¹⁰

On 2 April 2024, MAS introduced amendments to the Payment Services Act to expand the scope of regulated payment services and impose new requirements on digital payment token (DPT) service providers. These include custodial services for DPTs, transmission and exchange facilitation, and cross-border money transfers. MAS will enforce anti-money laundering, user protection, and financial stability measures. Transitional arrangements are provided for entities to comply with the new regulations, which include safeguarding customer assets in trust accounts.

Virtual Asset Risk Assessment Report¹¹

MAS released its first Virtual Assets Risk Assessment Report. It provides a targeted review of the money laundering (ML), terrorism financing (TF) and proliferation financing (PF) risks associated with virtual assets, and complements Singapore’s national ML, TF and PF risk assessments. The VA RA identifies the key threats and vulnerabilities Singapore is exposed to. It also outlines relevant mitigation measures that government agencies and the private sector have put in place to mitigate the ML, TF and PF risks arising from virtual assets.

National Strategy for AML/CFT¹²

On 2 September 2024, the UAE unveiled its 2024-27 National Strategy for AML/CFT/CPF, focusing on 11 strategic goals supported by legislative actions and regulatory reforms. The strategy emphasises risk-based compliance, effectiveness, and sustainability, aiming to enhance national and international coordination, supervision, and detection of illicit activities. It addresses emerging risks, including virtual assets and cybercrime, and aligns with international standards.

Collaboration between SCA and VARA (UAE) for regulating Virtual Assets and Crypto Currencies¹³

The SCA and VARA have signed a cooperation agreement to strengthen the UAE's position as a global hub for virtual assets on 2 September 2024. Under the agreement, the SCA and VARA will set forth rules and procedures for licensing and supervision VASPs and any related activities, services or associated transactions. The agreement also includes mutual supervision, information exchange, and employee training initiatives.

AML/CTF Act Amendments by AUSTRAC¹⁴

AUSTRAC passed an AML/CTF Amendment Bill 2024, which modernises and expands the AML/CTF regime to include high-risk services by lawyers, accountants, and other professionals. The bill aims to simplify compliance, reduce regulatory burdens, and enhance the detection and disruption of financial crimes. The bill's role in closing gaps and improving financial intelligence collection.