Daily Dash: EU Member States Criticised Over AML Directive Transpositions

April 30, 2024
Member states including France are in the firing line for failing to properly transpose EU-level anti-money laundering (AML) laws, while Hong Kong’s financial regulator has launched a new collaborative forum aimed at enhancing fintech adoption.

EU Calls Out France, Ireland, Latvia Over AMLD Transpositions

The European Commission has decided to open an infringement procedure by sending letters of formal notice to Ireland and France and an additional letter of formal notice to Latvia for having incorrectly transposed the 4th and 5th Anti-Money Laundering Directives.

These member states had notified a complete transposition of the amended directive. Nevertheless, the commission has identified several instances of incorrect transposition (non-conformity) of the directive into national law. 

France and Ireland’s failings are linked to beneficial ownership rules, while in the case of Latvia, incorrect transposition is affecting the functioning of its financial intelligence unit (FIU) by limiting its obligation to exchange information with other FIUs.

The three member states now have two months to respond and address the shortcomings raised by the commission, and in the absence of a satisfactory response, the commission may decide to take further action. 

Hong Kong Regulator Looks To Promote Fintech Adoption

The Hong Kong Monetary Authority (HKMA) started this week by launching its FiNETech series, gathering around 100 financial and technology firms to explore collaboration opportunities in areas such as AI and distributed ledger technology (DLT). 

FiNETech is supported by financial regulators, industry associations representing the banking and fintech ecosystem, as well as technology companies and market experts.

In the next six to 12 months, the HKMA will expand joint efforts in fintech areas through the FiNETech series. This initiative will focus on delving deeper into topics like AI, including generative AI, as well as DLT and greentech through additional FiNETech sessions. 

The objective is to drive substantial advancements in fintech adoption by banks and other financial institutions, while also facilitating the exploration of innovative use cases and best industry practices. 

Additionally, the HKMA aims to provide further practical guidance on priority themes, drawing from global developments and international experiences as appropriate. 

FCA Consults On Financial Crime Updates

The UK's Financial Conduct Authority (FCA) has opened a new consultation focused on financial crime guide updates that targets all FCA-supervised firms. 

The consultation aims to gather feedback on proposed amendments to the FCA's Financial Crime Guide, and covers areas such as sanctions, proliferation financing and transaction monitoring.

Additionally, the FCA intends to incorporate references to crypto-assets and its flagship Consumer Duty policy.

Stakeholders have until June 27 to respond and can do so via written form, email or an online form.

RBI Shuts Down Unauthorised Prepaid Wallet Provider

The Reserve Bank of India (RBI) has requested that TalkCharge Technologies discontinue its prepaid wallet service due to lack of authorisation from the central bank.

The RBI initially demanded that TalkCharge shut down its wallet within 15 days of receiving a cease and desist order, but this was extended to 45 days as per TalkCharge’s request. The RBI also demanded that all balances are returned to customers.

TalkCharge should have applied for and obtained a Prepaid Payment Instruments (PPI) licence from the RBI to offer the digital wallet product.

The central bank is urging Indian consumers to check its list of authorised providers before signing up to a new PPI service.

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