Financial Crime World

SOUTH GEORGIA AND SOUTH SANDWICH ISLANDS SEE MAJOR UPDATES ON ANTI-FINANCIAL CRIME LAWS

Regulators in South Georgia and the South Sandwich Islands have introduced significant updates to anti-financial crime laws, aiming to strengthen the country’s defenses against money laundering, terrorist financing, and other financial crimes.

NEW REGULATIONS TO ADDRESS GROWING RISKS

The new regulations focus on several key areas:

Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) frameworks

  • Regulators will assess companies’ AML/CFT policies, procedures, and controls.
  • Companies must demonstrate effective risk management practices.

Risk Mitigants

  • Regulators expect companies to implement robust risk mitigants, such as Know Your Customer (KYC), customer due diligence, and ongoing monitoring.
  • Companies must establish clear policies and procedures for identifying and managing high-risk customers.

Robust Cybersecurity Risk Management

  • Regulators will assess companies’ cybersecurity risk management practices.
  • Companies must implement robust security measures to protect against cyber threats.

EXPANDED REGULATIONS ON SANCTIONS AND PRICE CAP COMPLIANCE

Continued geopolitical tensions will result in continued focus on sanctions and price cap compliance:

Virtual Currency Mining

  • Regulators will assess companies’ virtual currency mining activities.
  • Companies must demonstrate effective risk management practices to prevent illicit exploitation of access to the U.S. financial system.

Dark Net Markets

  • Regulators expect companies to be proactive in identifying trends, mitigating risks, and instilling a strong culture of doing the right thing.
  • Companies must prioritize customer experience while combatting fraud, money laundering, and related financial crimes on their platforms.

KEY TAKEAWAYS FOR COMPANIES

Companies operating in South Georgia and the South Sandwich Islands must be aware of these regulatory updates and take steps to ensure compliance:

Add Analytics and Automation to Client Onboarding

  • Companies must implement effective client onboarding processes.
  • Regulators expect companies to demonstrate efficient and secure client onboarding practices.

Eliminate Antiquated Technology

  • Companies must upgrade their technology infrastructure to meet regulatory requirements.
  • Regulators expect companies to maintain robust security measures.

Establish a Mature Conduct Risk Program

  • Companies must establish effective conduct risk management programs.
  • Regulators expect companies to prioritize customer experience while combatting fraud, money laundering, and related financial crimes on their platforms.

Strengthen Controls in Regulatory Focal Areas (FinCEN Priorities)

  • Companies must demonstrate effective risk management practices in areas such as consumer protection, use of account holds and freezes, model development and validation, payment sender/receiver authentication procedures, and oversight and monitoring of synthetic identity fraud.

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