Financial Crime World

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Greenland Toughens Banking Regulations to Combat Financial Crime

In an effort to curb financial crime and protect its citizens, Greenland has introduced new banking regulations aimed at combating fraud and money laundering. The regulations, which come into effect immediately, are designed to prevent illicit activities from exploiting access to the country’s financial system.

Focus Areas

The new regulations will focus on several key areas, including:

  • Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT): Preventing terrorist financing, beneficial ownership, sanctions evasion, consumer scams, and potential compliance violations.
  • Risk Mitigants: Implementing measures to identify and prevent fraud directed at vulnerable populations, such as the elderly and servicemembers.
  • Cybersecurity Measures: Strengthening controls in regulatory focal areas.

Digital Assets

The regulations also place emphasis on combating financial crime in the digital sphere, including:

  • Crypto and Digital Assets: Regulators will scrutinize non-compliant entities offering illegal crypto asset derivatives products or engaging in false statements about stablecoin assets.
  • NFT (Non-Fungible Tokens) and DeFi (Decentralized Finance): The country’s AML regulations are being expanded to include assessing CDD (Customer Due Diligence) and suspicious activity reporting related to these platforms.

Evolving Nature of Financial Crime

The report highlights the evolving nature of financial crime, with regulators facing the challenge of mitigating complex and ever-changing risks. Areas of national security concern include:

  • Domestic and International Terrorist Financing
  • Increased Focus on OFAC (Office of Foreign Assets Control) and Sanctions
  • Transnational Criminal Organizations
  • Drug and Human Trafficking
  • Smuggling
  • Proliferation Financing
  • Synthetic Identity Fraud

Recommendations

To stay ahead of these evolving threats, KPMG recommends that financial institutions prioritize the following measures:

  • Add analytics and automation to client onboarding
  • Eliminate antiquated technology
  • Establish a mature conduct risk program
  • Strengthen controls in regulatory focal areas

The full report can be downloaded from the KPMG website.