The Stakes Are High
According to the Sanction Scanner, the $140 million
fine USAA Bank received for inadequate compliance
was among the largest of 2022. The $53 million
penalty levied on Bittrex for various AML and
sanctions violations was among the highest for crypto
exchanges.
New regulations aren’t just boosting costs; they’re
expanding liability. In the EU, criminal offenses defined
in the Sixth Anti-Money Laundering Directive now
include entities or people failing to take action against
a criminal activity. Similarly, the U.K. has introduced
“failure to prevent” as a corporate criminal offense as
part of its AML regulations.
Regulatory Spotlight:
Foreign Exchange
• Foreign exchange (Forex) platforms
are often regulated by a country’s
securities watchdog. In Australia, it’s
the Australian Securities & Investments
Commission. In the U.S., it’s the National
Futures Association and others, while
U.K. forex brokers answer to the U.K.
Financial Services Authority. The rules
are consistent with KYC and AML
requirements for financial institutions.
• In Japan, Forex brokers are regulated
under the Act of Prevention of Transfer
on Criminal Proceeds, which requires risk
assessment, KYC data and document
collection, and customer due diligence.
The financial cost of compliance
violations is significant.
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Trulioo — White Paper