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Hungary Sees Surge In Instant Credit Transfers In Q2 2024
The total value of instant credit transfers in Hungary increased 28.4 percent year-on-year in Q2 2024, according to data released by the country’s central bank, Magyar Nemzeti Bank.
The proportion of household accounts initiating mobile credit transfers also rose sharply, with 38 percent of accounts using this method during the quarter. And more than 5,000 new card acceptance points came online, contributing to a 4.6 percent increase in POS terminals.
Although the number of cash withdrawals dropped by 4 percent, their total value fell by 12.1 percent, signalling a shift towards digital payments, especially as payment service providers' revenues grew by 11.1 percent.
The number of card-related fraud incidents fell by 8.9 percent from the previous quarter, although the total value of fraud increased by 2 percent.
Phishing, psychological manipulation and unauthorised access to payment methods were the most common fraud tactics. Fraud in non-card transactions also decreased in value by 6 percent, as providers enhanced fraud prevention measures.
Chinese-Language Money Service Business Hit By AML Fine In Canada
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has fined Canada Changjiang Management, a money service business that caters to Chinese-speaking clients, C$315,000 ($230,000) due to anti-money laundering (AML) failures.
In a statement, the regulator said the fine relates to conduct observed in 2022.
Following a compliance examination, Canada Changjiang Management was found to have failed to submit suspicious transaction reports where there were “reasonable grounds” to suspect money laundering or terrorist financing activity.
The company also failed to report large cash transactions and electronic funds transfers of C$10,000 ($7,350) or more, and failed to maintain written compliance policies and procedures.
FINTRAC noted that the administrative penalty has been paid and the proceedings have now ended.
OCC Takes Enforcement Action Against Wells Fargo Over AML Deficiencies
The Office of the Comptroller of the Currency (OCC) has come to a formal agreement with Wells Fargo Bank, having uncovered significant deficiencies in the bank’s anti-money laundering (AML) controls and financial crime risk management practices.
The enforcement action highlights issues in areas such as suspicious activity and currency transaction reporting, customer due diligence and the bank’s customer identification and beneficial ownership programs.
Wells Fargo, which is one of the US’ largest financial institutions, has committed to take corrective actions to enhance its compliance with the Bank Secrecy Act and AML and sanctions rules.
Cypriot Authorities Issue New Digital Onboarding Guidelines
The Cyprus Securities and Exchange Commission (CySEC) has released a new policy statement aimed at enhancing non-face-to-face (NFTF) customer onboarding using electronic methods.
Published on September 6, 2024, the policy targets entities such as crypto-asset service providers (CASPs) and aims to ensure compliance with anti-money laundering (AML) regulations under the Prevention and Suppression of Money Laundering Activities Law of 2007.
The policy outlines how firms should implement the suggestions from the earlier consultation paper (CP-02-2020), particularly regarding remote customer onboarding solutions (RCOS).
It mandates a comprehensive risk assessment before adopting specific technologies and provides guidelines to ensure that onboarding processes meet regulatory standards, while also aligning with the European Banking Authority’s guidelines.
Entities must notify CySEC before employing these methods, although prior authorisation to do so is not required.
