May 2023 Recap: The Latest Global Regulatory Updates

Technological advancements have paved the way for scammers to perpetrate various financial crimes with a larger arsenal of tools.  2022 has witnessed a 50% surge in AML fines across the globe, causing havoc on businesses.  Not only do illicit activities cost enterprises hefty penalties, but they also damage their reputation worldwide. This urges regulatory bodies to implement stringent measures to clamp down on money mules and other criminals. 

The Latest Regulatory Updates Across the Globe

Businesses are urged to keep themselves updated in this continuously evolving regulatory landscape. Let’s dive deeper into the latest regulatory updates worldwide.

Australia to Ban Credit Cards for Online Gambling to Prevent Payment Fraud

The Australian government announced that online gambling cannot be paid using credit cards. The government will soon introduce amended laws prohibiting this payment method’s usage.

Speaking on behalf of the Alliance for Gambling Reform, Carol Bennett said that this is a huge step in reducing the damages caused by internet betting. Bennett added that they know that many people suffer significant harm from gambling and that these individuals are far more likely to use credit cards for cash advances. These are those who can hardly afford to use the money.

Despite praising the concept, Financial Counselling Australia (FCA) claimed there was a flaw as lotteries were excluded. The “credit-card ban” has not been mentioned in relation to lottery services, even those run by charities, claims the government because they pose a low risk of gambling damage.

President Biden’s Administration Unveils National Standards Strategy

The Biden administration revealed a national standards strategy identifying eight areas wherein standards development will be prioritised in the US on May 4th. A few high-priority domains increasingly affected by these advancements are distributed ledger technologies and digitised recognition infrastructure.

The government and the cryptocurrency sector have yet to agree on privacy concerns considering how closely they relate to digital identity. According to the White House, this approach intends to safeguard US consumers and allow the country to participate more actively in creating international standards. This plan calls for increasing funding for pre-standardization research in the identified essential areas, encouraging scholars and the private sector to participate, investing in training, and ensuring the research is inclusive and ethical.

Singapore Passes Stringent Regulations to Clamp Down on Money Mules

Singapore has enacted strict laws to crack down on money mules and those who give control of their Singpass and bank accounts. The amendments to the Computer Misuse Bill and the Corruption, Drug Trafficking, and Other Serious Crimes Bill make it easier to prosecute people who sell their Singpass and payment accounts. However, the revisions added negligent and rash money laundering, exposing Singpass’s credentials to commit crimes. 

The disclosure of Singpass credentials whilst knowing or having a suspicion that they might be used to commit a crime will be illegal under the new laws. Individuals who give up their credentials and are discovered to have earned financial benefits will face legal action for deliberately aiding in money-laundering schemes and money-mule scams. Additionally, the user may be liable if they cannot identify and locate the person to whom they disclosed the information. The maximum term for anyone found guilty of this Singpass infraction is three years, with a  financial penalty of $10,000. 

Josephine Teo, Singapore’s second minister for home affairs, stated the bills will take effect in six months so that the public would have time to become familiar with the changes.

EU Plans for New AML Agency

The European Union (EU) has revealed its detailed plans for the Anti-money Laundering Agency (AMLA). The agency is anticipated to begin operations with 150 people in its first year, gradually grow to 300–350 staff members in the subsequent year, and may eventually reach 400 employees over time. Discussions amongst the European Parliament, European Commission, and EU member states will decide the agency’s duties by the end of 2023. 

The AMLA may monitor cryptocurrencies and Non-Fungible Tokens (NFTs), enforce EU financial penalties, and prevent money laundering. A necessity for geographic balance was also listed in the EU Commission’s communication, along with additional considerations when choosing the agency’s site, such as closeness to transport and schools with multiple languages and spouses’ access to local job opportunities. The Financial Action Task Force (FATF)’s assessment of national anti-money laundering systems may impact the attractiveness of nations like Austria and Luxembourg, which have a reputation as hotspots for money laundering. The EU’s emphasis on creating a strong AML organisation demonstrates its commitment to combat the rising issue of money laundering effectively.

Singapore Mandates Developers to Comply With Latest AML and CTF Regulations

The Singaporean government has announced to put into effect a fresh Anti-money Laundering (AML) and countering Terrorist Financing (CTF) policy on June 28. According to the new regulation, developers must evaluate risks, conduct due diligence with clients, report suspicious transactions, and maintain records for at least five years after the transaction.  Since developers must comply with the new rules, their compliance costs will probably increase. 

How Can Shufti Help?

Shufti is a globally trusted IDV solution provider, helping thriving businesses offer greater security. Shufti offers an IDV suite to 230+ countries and territories and supports 150+ languages to combat identity theft in the digital age. Not only does our solution keep scammers away, but it also helps firms remain compliant with global KYC and AML regulations.

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