Anti Money Laundering Blog

On February 24, 2010, Pakistan’s Senate standing committee on finance unanimously approved the Anti-Money Laundering and Combating Terrorism Financing Bill 2009. The approved legislation is aimed at effectively checking suspicious business transactions used for terrorist financing.

The committee which, under the chairmanship of Ahmed Ali, gave formal approval of the bill linked the approval of the Bill with a condition that the Ministry of Finance and committee would together prepare proposed amendments in the Anti-Money Laundering and Combating Terrorism Financing Act within a year.

The Anti-Money Laundering and Combating Terrorism Financing Ordinance is to expire on March 26, 2010, therefore, due to the urgency of the issue, the proposed bill should have been passed by the Senate as soon as possible. As the Bill has been approved by the Senate, it will be sent to Prime Minister to obtain necessary approval to have a status of a law.

According to the announcement made by Abdulrahim Mohammed Al Awadi, Assistant Executive Director and Head of the Anti-money Laundering and Suspicious Cases Unit (AMLSCU) of the UAE, on February 19, 2010, the Central bank of the UAE signed a memorandum of understanding (MoU) on anti-money laundering with Finland.

The document was signed by Abdulrahim Mohammed Al Awadi and Marku-Aho, Head of National Bureau of Investigation/Financial Intelligence Unit of Finland. The agreement was signed on the sidelines of the joint FATF-MENAFATF plenary meeting that was held at the Central Bank of UAE premises in Abu Dhabi.

The memorandum of understanding included mutual co-operation in different areas of interest to both parties. The agreement regarded financial information related to money laundering and terrorism financing with a view to support, enhance and strengthen policies of fighting money laundering and tourism financing.

This signing shows the UAE’s commitment to share financial information with its global partners in order to coordinate the efforts against money laundering and other financial crimes.

Director of Kuwait’s Money Laundering Department at the Ministry of Commerce and Industry Sheikh Nemir Fahad Al-Sabah said that the economy of Kuwait is secured against money laundering and has all the necessary tools to this crime.

When addressing a ceremony in honor of working committees of the Anti-Money Laundering on December 21, Al-Sabah said that the economy is open to money laundering and terrorism fighting instruments.

The country’s legislations aimed at combating money laundering are clear and capable to face the challenges of this phenomenon. According to Al-Sabah, the department is adopting a plan that should enhance national economy.

Israeli banks will no longer accept deposit checks drawn on Palestinian banks if the details of account holder are not printed on the checks using Latin characters.

This is a move that the Bank of Israel makes towards tightening its anti-money laundering regulations and bank customers identification procedures. It should be noted that the Bank for the first time is setting binding rules for financial activity with banks in the Palestinian Authority.

Supervisor of Banks Rony Hizkiyahu sent to a letter to the banks’ CEOs. He wrote that “there is a gap between international standards and Israel’s current guidelines concerning the prevention of money laundering”. He suggested that proper “know your customer” (KYC) policies and guidelines for regular monitoring of their activities are essential for the stability of the banking system.

CNP Assurances, the leading provider of personal insurance in France and listed on the SBF 120 index, has chosen Norkom for its software suite that is aimed to fight against money laundering and terrorist financing.

Implementing this software suite provides integration of developments related to the recent transposition into French law of the 3rd European anti-money laundering directive, as applicable to the insurance industry in Europe. As a result, Norkom has become the leading supplier of anti-money laundering solutions in the European insurance sector. Its integrated solutions – “Anti-Money Laundering” (AML), “Sanctions and PEP Screening” and “Customer Due Diligence/Know Your Customer” (CDD/KYC) – are to be implemented at all the insurance companies in the CNP Assurances group.

It should be noted that the transposition of the 3rd European anti-money laundering directive into French law in January 2009 has been controversial. It tightens the regulations that is applicable to financial institutions offering IARD insurance products, life insurance and annuities, which means that these will have to reinforce controls.

The United Arab Emirates has introduced new measures in order to prevent and fight with money laundering in the insurance sector.

Deputy director general of the National Insurance Authority, Fatima Mohammed Ishaq Al Awadhi, said that the issuance of the measures is expected to curb future money laundering activities in this industry. Also, Al Awadhi noted that these new measures would be applicable on all insurance companies, including foreign insurance companies operating in the jurisdiction. She emphasized that the insurance companies and the insurance-related professions would be held accountable in case a money laundering crime is committed either in their name or in the name of their companies or accounts intentionally.

On November 10, HM Treasury issued a notice that contains advice about risks posed by unsatisfactory money laundering controls in different jurisdictions. According to the Money Laundering Regulations 2007, firms are required to put in place policies, procedures or systems with a view to  prevent money laundering or terrorist financing. Regulated businesses are obliged to apply enhanced customer due diligence and enhanced ongoing monitoring on a risk-sensitive basis in certain defined situations.

On October 16, 2009, the Financial Action Task Force (FATF) issued a further statement that drew attention to deficiencies in several jurisdictions. The United Kingdom fully supported the FATF on these issues and agreed with its assessments.

Additionally, the United Kingdom supported the public statements of MONEYVAL (a FATF style regional body under the auspices of the Council of Europe) in respect of Azerbaijan in December 2008, March 2009 and September 2009.

The government of the United Kingdom has said that it will not relax the country’s anti-money laundering reporting regime, however a House of Lords committee has asked to do so.

In July, the home affairs subcommittee of the House of Lords select committee on the EU made an inquiry into money laundering and the financing of terrorism legislation. It said that the legislation should be amended in order not to prosecute failure to report a suspicious transaction based on a minor criminal offence.

The government responded that it prefers so-called “the all-crimes approach” and that, if the House of Lords’ proposal was made law, some valuable intelligence opportunities might be missed.

According to the UK’s government, individuals who submit a suspicious activity report (SAR) to the Serious Organised Crime Agency (SOCA) for the 1st time will be given one-to-one guidance on how to do this. Their SAR will be examined by SOCA, and feedback will be provided.

On October 28, several Malaysian parliamentarians called on the government to amend the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 in order to limit the powers of agencies and enforcement officers. Their powers are should be limited with a view to prevent the possibility of power misuse and power abuse.

When debating the 2010 Supply Bill, Datuk Ismail Kasim said that there was a possibility that the act could be used for maltreating people and could be used unfairly.

Several other parliamentarians, including Datuk Bung Moktar Radin, supported his view that, in accordance with the policy of ‘grounds for suspicion’, different assumptions could be made that make it possible for criminal element and maltreatment of the person suspected.

New Zealand’s MPs have passed into law new measures aimed at countering money laundering by criminal gangs and organised crime.

According to Justice Minister Simon Power, the Anti-Money Laundering and Counter-Terrorism Financing Act will provide police with the instruments needed to follow the illegal money trail through financial systems. Also, the banking system will better deal with customers and clients intending to launder money through bank accounts in New Zealand. The new law will allow casinos to implement measures to check their customers’ identities as well as to detect suspicious activity.

Power said that it is crucial for New Zealand to maintain international reputation by means of strengthening the relevant laws. So, the new changes bring Nthe country into line with international standards.