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Authority Cracks Down on Financial Crimes: AML Principles and SPUEP Take Center Stage

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In a bid to combat financial crimes, the [Authority] has implemented stringent measures to ensure compliance with anti-money laundering (AML) and anti-terrorist financing (ATF) regulations.

The Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement Act 2008

The Authority’s decision-making process now hinges on the Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement Act 2008 (AML Principles), which sets out the minimum standards for digital asset businesses (DABs).

Compliance with Licensing Criteria

Under the AML Principles, the Authority will scrutinize DABs’ compliance with licensing criteria outlined in Schedule 1 of the Act. This includes monitoring ongoing adherence to internal policies and procedures, as well as external regulatory obligations such as:

The Proceeds of Crime Act 1997

Addressing Concerns

In instances where concerns arise regarding senior representatives or companies, the Authority will assess appropriate measures to address the issue. Initially, persuasion and encouragement may be sought, but stronger measures may be considered if necessary.

Principles and Guidance Documents

The AML Principles incorporate references to policy and guidance documents issued by the Authority, which are accessible on its website. These include:

Section III: Interpretation of each licensing criterion
Section IV: Considerations relevant to the Authority’s discretion in granting a license

Supervisory Powers Under Enforcement Procedures (SPUEP)

The SPUEP outline interpretations of grounds for initiating enforcement actions, with assessments made on a case-by-case basis.

License Restriction and Revocation

The Authority may exercise its powers to restrict or revoke a license in cases where a DAB fails to meet licensing criteria. These powers may also be utilized in supervisory contexts, such as:

Imposing additional reporting requirements
Cases where an institution ceases operations or conducts limited scope business

Ongoing Supervision and Regulation

Before granting a license, the Authority must ensure that all criteria outlined in Schedule 1 of the Act are either being met or are capable of being fulfilled by the applicant. Once licensed, DABs remain under continuous supervision and regulation, including ongoing compliance with licensing criteria.

The Authority’s supervision involves:

Reviewing periodic reports submitted by DABs
Conducting prudential discussions with senior management as needed
Conducting regular compliance visits to enhance its understanding of their operations

Breaches and Potential Breaches

DABs are expected to promptly alert the Authority of any breaches or potential breaches, allowing for swift remedial actions. Similarly, they must inform the Authority of proposed significant changes to business operations.

Conclusion

In a bid to combat financial crimes, the [Authority] is cracking down on non-compliance with AML regulations. With the AML Principles and SPUEP taking center stage, DABs can expect increased scrutiny from regulators. It’s essential for these businesses to ensure they meet licensing criteria and maintain compliance with regulatory obligations.

Proceeds of Crime Act 1997
Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement Act 2008 (AML Principles)
SPUEP (Supervisory Powers Under Enforcement Procedures)

Contact Information

For more information on the AML Principles, SPUEP, or licensing requirements for digital asset businesses, please visit [Authority’s website] or contact us at [email address].