??June 10-14, 2024 ??Top KYC/AML/CFT Headlines
1?? OFAC extended secondary sanctions imposed on foreign financial institutions, banned the provision of IT services and designated new persons in connection with Russia as follows : ?? issued a new determination?? , effective September 12, 2024, under EO 14071 prohibiting the provision IT consulting & services; ?? broadened the definition of Russia’s military-industrial?? base to include all persons blocked pursuant to Executive Order (E.O.) 14024. ? This means that foreign financial institutions risk being sanctioned for conducting or facilitating significant transactions, or providing any service, involving any person blocked pursuant to E.O. 14024, including designated Russian banks such as VTB and Sberbank; ?? designated 34 persons and 346 entities (?from the following countries: Russia, Belarus, China, Hong Kong, UAE, Turkey, Liechtenstein, Moldova, Cyprus, Bulgaria, BVI, Kazakhstan, Kyrgyzstan, Serbia, Singapore, Thailand, South Africa, Ukraine) facilitating sanctions evasion and/or operating in the financial, defense, manufacturing, technology, energy or transport sectors??; ?? issued 8 new, Russia-related FAQs 1181 - 1188?? and amended FAQs 976, 1040, 1068, 1122, 1128, 1146, 1147, 1148, 1151, 1152 ??.
2?? OFAC has updated its "Guidance for Foreign Financial Institutions on OFAC Sanctions Authorities Targeting Support to Russia’s Military-Industrial Base"?? which recommends strengthening precautionary measures and implementing strict KYC/AML controls to identify and reduce the risks associated with transactions involving Russia's military-industrial base. ?? Mitigation measures include ① checks against sanctions lists, ② conducting risk-based customer analysis, and ③ using open-source information for proactive investigations of possible sanctions evasion attempts. ?? OFAC recommends that financial institutions take concrete steps, such as ① obtaining certifications from high-risk customers, ② applying enhanced trade finance controls, ③ incorporating sanctions-related risks into customer-level and ④ performing the business-wide risk assessments. ? Institutions should communicate compliance expectations to customers and assess their exposure to sectors and entities related to Russia's military-industrial base.
3?? RUSI published "Weaponisation of the FATF Standards: A Guide for Global Civil Society"?? which examines the misuse of the Financial Action Task Force standards by authoritarian regimes to target and suppress civil society actors. ??The paper identifies the categories most likely to be targeted and describes five major types of abuse.
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4?? Europol has shut down 13 websites used by terrorist organizations to recruit, radicalize and mobilize recruiters online following the seizure of four servers in Romania, Ukraine and Iceland in an operation targeting terrorist propaganda??