ECOVIS ProventusLaw welcomes you to its monthly newsletter on Anti-Money Laundering and Counter-Terrorist Financing. It is dedicated to everyone who wants to understand the latest trends and developments, get tips from our experts, and deepen their knowledge.
EBA Launches New EU Anti-Money Laundering Framework
The European Banking Authority (EBA) has announced a new EU framework to combat money laundering and terrorist financing, including the creation of the Anti-Money Laundering and Counter-Terrorist Financing Authority (AMLA). The EBA will oversee AML/CFT efforts until December 2025, after which it will collaborate with AMLA to ensure a seamless transition and maintain robust defenses against financial crime. Read more.
Financial Institutions Embrace AI to Enhance AML Compliance
Financial institutions are increasingly adopting AI technologies to improve Anti-Money Laundering (AML) compliance, utilizing real-time data analysis and pattern identification to reduce false positives and enhance operational efficiency. This shift towards AI-driven transaction monitoring and risk assessments marks a significant advancement in fortifying defenses against financial crimes amidst tightening regulatory demands. More – https://fintech.global/2024/06/26/the-transformative-power-of-ai-in-fighting-financial-crime/
Bank of Lithuania Adopts Guidelines to Enhance Financial Inclusion
The Bank of Lithuania’s Board has approved new guidelines to increase access to financial services and enhance financial inclusion, effective January 1, 2025. These guidelines require financial institutions to manage money laundering and terrorist financing risks effectively, ensuring customers are not unjustifiably excluded from financial services, and include detailed requirements for customer screening, information storage, and risk-based monitoring. Read more.
Bank of Lithuania Sets Criteria to Identify Unacceptable Risks for Payment Systems
To ensure the stability and efficiency of its payment systems, the Bank of Lithuania has established criteria for identifying unacceptable risks associated with potential and existing addressee BIC holders. These include connections to sanctioned entities, significant negative information affecting reputation, non-compliance with regulatory positions, links to high-risk jurisdictions, provision of services to high-risk clients, and deficiencies in legal compliance, risk assessments, and risk management procedures. Read more.
PHOENIX PAYMENTS Fined Nearly €1 Million for AML and CTF Violations
The Bank of Lithuania has fined PHOENIX PAYMENTS UAB €970,000 for significant breaches in anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. The inspection revealed inadequate internal controls, deficiencies in customer identification, and insufficient monitoring of transactions and customer relationships. The institution relied on partners for AML/CTF measures, which were found to be ineffective, especially for high-risk clients and international correspondent relationships. Despite cooperating and preparing a remediation plan, PHOENIX PAYMENTS must resolve all breaches by July 31 and temporarily suspend new high-risk client services. Read more.
Bank of Lithuania Fines UAB Maneuver LT for AML and CTF Violations
UAB Maneuver LT was fined €80,000 by the Bank of Lithuania for inadequate KYC procedures and deficient monitoring of customer transactions, failing to meet AML and CTF regulations. The institution has submitted an action plan to address the identified deficiencies by September 31. Details here.
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