The Week Of: October 7, 2019

This week’s news and stories of interest to the AML community. If you prefer a news roundup sent to you, subscribe to our weekly newsletter.

Bank Brexodus

At this point the implications for all versions of Brexit are well-discussed. An angle to consider is, what sort of strain and/or breakdown of the AML system could occur? In a joint report issued by the European Supervisory Authority (ESA), which includes the European Securities and Markets Authority (ESMA), the European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA), they speak about “working to minimize the adverse impact” of the UK leaving the EU in anti-money laundering (AML) terms, although they do make the point that the outcome is still unknown at present.

Furthermore, the joint report talks about risks associated with the resources of Competent Authorities (CAs) and their oversight, as well as firm’s resources

Read “Brexit Throws a Wrench Into EU’s Fight Against Money Laundering” at Bloomberg.

In Other News…

        • A chip off the old privacy protection
          The U.S. and Australia an agreement similar to last year’s U.S./UK CLOUD Act Agreement – a cross-border data access agreement to combat online criminals, including terrorists and cyber crooks.  These agreements allow law enforcement agencies in either country to demand data from tech companies based in the other country without legal barriers. Data privacy activists are ringing the alarm bells, however.
          For a better understanding of what’s changed, read “A Race to the Bottom of Privacy Protection” by Electronic Frontier Foundation
        • Pros and cons to merging bills 
          The U.S. House of Representatives is expected to merge two anti-money laundering bills once Congress returns to Washington from recess. A bill to curb the use of anonymous shell companies failed to win over Republicans on the House Financial Services Committee. Democrats will attempt to curry GOP votes by combining it with a bill that already advanced through committee by a 55-0 vote and would, among other items, beef up FinCEN staffing and update the definition of “coins and currency” to include cryptocurrencies. The combined bill would largely match a bipartisan Senate bill recently introduced and has the support of banks and law enforcement. However, like everything in Congress, there are other sides to consider and possible obstacles to any such bill becoming law.
          Read “House may join money laundering, disclosure bills to gain votes” from RollCall to get the full picture.