#PaymentsCompliance Notebook

Kick-start your week by catching up on six of the stories from the #paymentsindustry, across the world, that our Vixio analysts covered last week:

Singapore Parliament Passes Key AML Legislation

Lawmakers in Singapore have passed a new?#antimoneylaundering (#AML) bill that will make it easier for prosecutors to charge and convict in transnational #moneylaundering cases.

Passage of the?Anti-Money Laundering and Other Matters Bill means that new amendments will now be added to the?Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA).

Under the amended CDSA, prosecutors will no longer be required to show a direct link between criminal conduct and the monies allegedly laundered in Singapore.

“It will be sufficient for the prosecution to prove beyond reasonable doubt that the money launderer knew or had reasonable grounds to believe that he was dealing with criminal proceeds,” said the Ministry of Home Affairs.

“This will facilitate the prosecution of?money mules in cases where the monies laundered had passed through bank accounts and intermediaries in foreign jurisdictions before entering Singapore.”

Malta Regulator Revokes Licence Of Daily Payment International

The Malta Financial Services Authority (MFSA) has?revoked the licence of Daily Payment International Limited, effective as of August 5, 2024.?

The decision was made in accordance with the Financial Institutions Act after the company was found to be in breach of multiple #regulatoryrequirements.

The MFSA cited several violations, including the failure to pay supervisory fees, appoint key officers such as a #moneylaunderingreportingofficer (#MLRO) and a chief financial officer (CFO), and inform the authority of a change of address.?

Additionally, Daily Payment International Limited failed to commence business within 12 months of receiving its licence, and did not submit annual reports and audited financial statements for the years ending 2019, 2020 and 2021.

US Corporate Whistleblowers Could Cash In Under New DOJ Pilot

The Criminal Division at the US Department of Justice (DOJ) has?launched a Corporate Whistleblower Awards Pilot Program to uncover and prosecute #corporatecrime.

Under the pilot, a whistleblower who provides the Criminal Division with original and truthful information about corporate misconduct that results in a successful forfeiture may be eligible for an award.

The information must relate to crimes involving financial institutions; foreign corruption involving misconduct by companies; domestic corruption involving misconduct by companies; or healthcare fraud schemes involving private insurance plans.

If the information a whistleblower submits results in a successful prosecution that includes criminal or civil forfeiture, the whistleblower may be eligible to receive an award of a percentage of the forfeited assets.

Hong Kong Monetary Authority Proposes Renaming Virtual Banks

The Hong Kong Monetary Authority (HKMA) is inviting public feedback on its?proposal to rename #virtualbanks as #digitalbanks. This change aligns with regional practices in Singapore and Malaysia.

Currently, virtual banks have been known as such since 2000, focusing on internet and electronic channel operations, distinguishing them from conventional banks with physical branches.?

However, the regulator said that with advancements in #financialtechnologies, the HKMA believes the term "digital" better represents these banks' innovative and tech-driven nature.

Feedback on this proposal can be sent via email to HKMA by September 5, 2024.

Tough New Penalties For Illegal MSBs Go Live In Malaysia

A new law that will introduce tougher penalties for #moneyservicesbusinesses (MSBs) in Malaysia that operate illegally is now in effect.

The?Money Services Business (Amendment) Act 2024 (MSBA 2024) came into force on August 1, 2024.

Under the new rules, operators of illegal MSBs can be imprisoned for up to ten years and fined up to MYR50,000 ($11,100).

MSBA 2024 also provides greater clarity on the offence of abetting illegal MSBs and the scope of evidence that can be used to charge an illegal operator.

In-scope MSBs include #moneychangers, #remittanceserviceoperators and #currencywholesalers.

China, Hong Kong Sign MoU On Bilateral Linkage Of Payment Systems

The People’s Bank of China (PBOC) and the Hong Kong Monetary Fund (HKMA) have?signed a new memorandum of understanding (MoU) agreeing to work on further payment system linkages.

The key item on the agenda for the two central banks is the linkage of Hong Kong’s Faster Payment System (FPS) to the Chinese mainland.

Since May this year, Hong Kong residents have been able to?use the FPS to top up an e-CNY wallet to make cross-border retail payments in mainland China.

However, Hongkongers are still unable to use the FPS to make regular transactions within mainland China.