Financial Crime World

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Banking Industry Responds to Financial Crime in Anguilla

The island nation of Anguilla has continued to strengthen its efforts to combat financial crime, with a focus on maintaining international standards and best practices. The Anguilla Financial Services Commission (AFSC) has been at the forefront of these efforts, working closely with regulatory bodies and stakeholders both locally and internationally.

Global Threats to Financial Services

Technological Applications for Financial Crimes

The global economy has faced significant challenges in recent years, including increased use of technological applications to carry out financial crimes. Regulators around the world have responded by issuing warnings and fraud alerts, as well as embracing technological solutions to fight financial crime.

  • Examples of technological threats include:
    • Cyber attacks: Malicious activities that compromise financial institutions’ systems and data.
    • Cryptocurrency-based scams: Schemes that use cryptocurrencies to facilitate money laundering or other illicit activities.
    • Social engineering tactics: Manipulation techniques used to trick individuals into divulging sensitive information.

Regulatory Responses

Regulators around the world have responded to these threats by:

  • Issuing warnings and fraud alerts
  • Embracing technological solutions to fight financial crime
  • Up-skilling their staff to stay ahead of emerging threats
  • Engaging with international standard setters to ensure global financial stability

Anguilla’s Response

Preparations for FATF Mutual Evaluation

The AFSC has continued preparations for its 4th round Mutual Evaluation under the Financial Action Task Force (FATF) Recommendations. Despite the impact of hurricanes Irma and Maria, which temporarily impaired normal operations, work on the Mutual Evaluation was continued in earnest.

  • Key highlights:
    • The evaluation was rescheduled from 2021 to 2022.
    • The Commission worked closely with domestic Competent Authorities to complete Anguilla’s National Risk Assessment.

Regional Cooperation

Anguilla has strengthened its regional cooperation through the signing of two Multilateral Memoranda of Understanding (MMOUs). One MMOU was signed with the Caribbean Association of Insurance Regulators (CAIR) to enhance supervision of insurance companies and intermediaries, while another was signed with the Eastern Caribbean Central Bank (ECCB) to strengthen collaboration on Anti-Money Laundering and Combatting the Financing of Terrorism (AML/CFT).

Legislative Reform

The AFSC has continued to demonstrate its willingness to collaborate and innovate in the development of legislation. Several pieces of legislation were enacted in 2018, including:

  • The Anguilla Utility Token Offering Act (AUTO Act)
  • The Anguilla Utility Token Offering Regulations (AUTO Regulations)

Independence and Impact

As a regulatory body positioned to meet international standards, the AFSC remains an independent body. This independence ensures that Anguilla can continue to collaborate and cooperate with its counterparts around the world, contributing to the development of the island nation’s financial services industry.

The Commission’s impact continued in 2018, contributing to timely issues such as:

  • The EU Economic Substance Initiative
  • Modern insurance legislation
  • Opportunities for the insurance sector