SRA, India’s FIU, and the ACMA Issue Non-Compliance Fines Exceeding $2 Million
The Solicitors Regulation Authority [SRA], India’s Financial Intelligence Unit [FIU], and the Australian Communications and Media Authority [ACMA] fined multiple organizations more than $2 million for Non-Compliance with AML regulations and other regulatory obligations.
ACMA has fined Optus, a telecommunication service provider, $1.5 million for breaching public safety rules. The company failed to upload clients’ personal information to the Integrated Public Number Database (IPND), affecting around 200,000 customers.
The regulatory watchdog’s crackdown against Optus is part of broader efforts to overcome the risk of IPND breaches within the Australian telecom industry. Over the past years, ACMA has taken rigid actions against five telecommunication companies for regulatory failures, resulting in more than $2 million in fines.
ACMA member Samantha Yorke said, “When emergency services are hindered, there can be very serious consequences for the safety of Australians; while we are not aware of anyone being directly harmed due to the non-compliance in this case, it’s alarming that Optus placed so many customers in this position for so long. Optus cannot outsource its obligations, even if a third party undertakes part of the process. “All telcos need to have systems in place that ensure they are meeting their obligations, including having robust oversight and assurance processes for third-party suppliers,” she said.
India’s Financial Intelligence Unit [FIU] fined Paytm Payments Bank $662,565 for its involvement in money laundering. “The money generated from these illegal operations proceeds of crime were routed and channeled through bank accounts maintained by these entities with the Paytm Payments Bank,” the country’s financial ministry said.
According to the ministry, the investigation determined the validity of the allegations against the bank. Paytm Payments Bank clarified that the fine is over an issue from a business that halted operations two years ago. The bank also responded that it had enhanced its surveillance and reporting protocols to comply with the FIU’s regulatory requirements.
In addition to FIU’s allegations, the Reserve Bank of India [RBI] also instructed the bank to stop operating by March 15 due to ongoing non-compliance with regulatory obligations. Paytm acknowledged regulatory authorities’ investigations and concerns, including the Enforcement Directorate, and pledged cooperation by providing essential information and explanations.
The Solicitors Regulation Authority has recently levied more than $59,000 in fines to law firms and individual lawyers for anti-money laundering failings. An SRA notice said: “Its conduct was a breach of its regulatory obligations, which persisted for longer than was reasonable. It demonstrated a pattern of non-compliance. The firm was responsible for its serious conduct, which could potentially cause serious harm to the public interest and confidence in the legal profession. However, as the firm had not acted dishonestly or lacked integrity, there was no material harm caused, and it had taken proactive steps to come into compliance with its AML obligations before the AML desk-based review [which led to the fine], the firm’s conduct was placed at the bottom end of this bracket.”
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https://shuftipro.com/news/uae-imposes-strict-penalties-for-aml-and-cft-failings/
