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- Singapore Parliament Passes Key AML Legislation
- Malta Regulator Revokes Licence Of Daily Payment International
- US Corporate Whistleblowers Could Cash In Under New DOJ Pilot
- Hong Kong Monetary Authority Proposes Renaming Virtual Banks
- Tough New Penalties For Illegal MSBs Go Live In Malaysia
- China, Hong Kong Sign MoU On Bilateral Linkage Of Payment Systems
- PSR Proposes Alignment With CMA On Settlement Discount Policies
- Austrian Regulator Fines Two Banks Over Compliance Failures
Singapore Parliament Passes Key AML Legislation
Lawmakers in Singapore have passed a new anti-money laundering (AML) bill that will make it easier for prosecutors to charge and convict in transnational money laundering cases.
Passage of the Anti-Money Laundering and Other Matters Bill means that new amendments will now be added to the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA).
Under the amended CDSA, prosecutors will no longer be required to show a direct link between criminal conduct and the monies allegedly laundered in Singapore.
“It will be sufficient for the prosecution to prove beyond reasonable doubt that the money launderer knew or had reasonable grounds to believe that he was dealing with criminal proceeds,” said the Ministry of Home Affairs.
“This will facilitate the prosecution of money mules in cases where the monies laundered had passed through bank accounts and intermediaries in foreign jurisdictions before entering Singapore.”
Malta Regulator Revokes Licence Of Daily Payment International
The Malta Financial Services Authority (MFSA) has revoked the licence of Daily Payment International Limited, effective as of August 5, 2024.
The decision was made in accordance with the Financial Institutions Act after the company was found to be in breach of multiple regulatory requirements.
The MFSA cited several violations, including the failure to pay supervisory fees, appoint key officers such as a money laundering reporting officer (MLRO) and a chief financial officer (CFO), and inform the authority of a change of address.
Additionally, Daily Payment International Limited failed to commence business within 12 months of receiving its licence, and did not submit annual reports and audited financial statements for the years ending 2019, 2020 and 2021.
US Corporate Whistleblowers Could Cash In Under New DOJ Pilot
The Criminal Division at the US Department of Justice (DOJ) has launched a Corporate Whistleblower Awards Pilot Program to uncover and prosecute corporate crime.
Under the pilot, a whistleblower who provides the Criminal Division with original and truthful information about corporate misconduct that results in a successful forfeiture may be eligible for an award.
The information must relate to crimes involving financial institutions; foreign corruption involving misconduct by companies; domestic corruption involving misconduct by companies; or healthcare fraud schemes involving private insurance plans.
If the information a whistleblower submits results in a successful prosecution that includes criminal or civil forfeiture, the whistleblower may be eligible to receive an award of a percentage of the forfeited assets.
Hong Kong Monetary Authority Proposes Renaming Virtual Banks
The Hong Kong Monetary Authority (HKMA) is inviting public feedback on its proposal to rename virtual banks as digital banks. This change aligns with regional practices in Singapore and Malaysia.
Currently, virtual banks have been known as such since 2000, focusing on internet and electronic channel operations, distinguishing them from conventional banks with physical branches.
However, the regulator said that with advancements in financial technologies, the HKMA believes the term "digital" better represents these banks' innovative and tech-driven nature.
Feedback on this proposal can be sent via email to HKMA by September 5, 2024.
Tough New Penalties For Illegal MSBs Go Live In Malaysia
A new law that will introduce tougher penalties for money services businesses (MSBs) in Malaysia that operate illegally is now in effect.
The Money Services Business (Amendment) Act 2024 (MSBA 2024) came into force on August 1, 2024.
Under the new rules, operators of illegal MSBs can be imprisoned for up to ten years and fined up to MYR50,000 ($11,100).
MSBA 2024 also provides greater clarity on the offence of abetting illegal MSBs and the scope of evidence that can be used to charge an illegal operator.
In-scope MSBs include money changers, remittance service operators and currency wholesalers.
China, Hong Kong Sign MoU On Bilateral Linkage Of Payment Systems
The People’s Bank of China (PBOC) and the Hong Kong Monetary Fund (HKMA) have signed a new memorandum of understanding (MoU) agreeing to work on further payment system linkages.
The key item on the agenda for the two central banks is the linkage of Hong Kong’s Faster Payment System (FPS) to the Chinese mainland.
Since May this year, Hong Kong residents have been able to use the FPS to top up an e-CNY wallet to make cross-border retail payments in mainland China.
However, Hongkongers are still unable to use the FPS to make regular transactions within mainland China.
PSR Proposes Alignment With CMA On Settlement Discount Policies
The UK’s Payment Systems Regulator (PSR) has proposed aligning its settlement discount guidance with new recommendations from the country’s Competition and Markets Authority (CMA).
The CMA is revising its policy to allow larger discounts for settlement cases, suggesting a maximum of 40 percent before a statement of objections (SO) and 25 percent afterwards. The current limits are 20 percent and 10 percent respectively.
The PSR supports this shift, arguing that consistency with the CMA's approach helps maintain neutrality and clarity for businesses regarding regulatory enforcement actions.
Stakeholders are invited to submit comments on the CMA’s proposed changes by September 13, 2024.
The PSR plans to update its Competition Act 1998 (CA98) guidance based on the CMA's final decisions and sector-specific feedback.
Austrian Regulator Fines Two Banks Over Compliance Failures
The Austrian Financial Market Authority (FMA) has announced penalties against European American Investment Bank Aktiengesellschaft (Euram Bank) for failing to submit its audited 2023 annual financial statements, which the FMA says have been overdue since July 1.
Despite previous orders on July 3 and July 16, the bank did not comply, prompting the FMA to enforce a €30,000 penalty and mandate compliance.
Additionally, flatexDEGIRO Bank AG has received a €22,480 fine for providing unclear and misleading information on its website regarding investment services, violating the Securities Supervision Act 2018 and EU regulations.
Both decisions are legally binding, the FMA has confirmed.
