Financial institutions have certain compliance obligations to which they are responsible. These obligations are regulated by financial regulators. Financial institutions must comply with national and international regulations to ensure AML compliance.
FATF - The Financial Action Task Force
FATF is an intergovernmental organization established to prevent money laundering and terrorist financing. With the membership of 36 countries, FATF has strong powers all over the world. The primary objective of this organization is to set global standards to ensure AML compliance. Therefore, the FATF is a "policy-making body". FATF regularly publishes AML-CTF regulation guidance. The member states and the member financial institutions of these organizations must comply with these regulations. FATF imposes sanctions on financial institutions that do not comply with AML and CTF regulations. Also, the General Assembly of FATF meets three times a year.
The European Union
EU 5AMLD and 6AMLD
The European Union publishes directives to prevent money laundering and the financing of terrorism globally and to contribute to the integrity and growth of the financial system. Periodically published directives provide information on current money laundering, terrorist financing and criminal risks faced by financial markets. The EU's Fifth Anti-Money Laundering Directive (5AMLD) was published on 9.08.2018 and will come into effect on 10.01.2020. The 6AMLD draft was published in late 2018 and will come into effect on June 2021.
5AMLD includes instructions on cryptocurrency and crypto-wallets. It also includes new legal requirements for risky customers and PEP lists in payment transactions.
6AMLD includes the criminal liability of persons associated with money laundering. It contains provisions stating that more stringent penalties will be imposed on those convicted of money laundering.
FCA - The Financial Conduct Authority
The Financial Conduct Authority is a financial regulatory organization in the United Kingdom, which aims to protect consumers, increase market integrity and promote competition. To achieve this objective, it has the authority to regulate, supervise and authorize.
Regulation: Determination of minimum legal standards for financial products.
Supervision: To ensure that UK financial institutions operate safely and comply with specific AML regulations.
Authorization: Authorize financial institutions that fulfill the requirements
BSA - The Bank Secrecy Act
The Bank Secrecy Act (BSA) is the most important US anti-money laundering regulation. The Bank's Privacy Act is administered by the Financial Crimes Enforcement Network (Fincen). Banks and other financial institutions in the United States must comply with this regulation. BSA focuses on money laundering and terrorism financing. Within the scope of BSA, financial institutions should use the compliance program. Also, institutions should report suspicious activities and keep detailed records. Financial institutions that do not comply with BSA regulations are sanctioned.
HKMA - Hong Kong Monetary Authority
The Hong Kong Monetary Authority is responsible for the monetary policy and banking systems in Hong Kong. In addition, the HKMA fights against money laundering and the financing of terrorism. Financial institutions in Hong Kong must comply with AML and CTF policies.
MAS - Monetary Authority of Singapore
The Singapore Monetary Authority (MAS) is the central bank of the state. It also has a duty to regulate the financial sector. MAS's duties include the conducting of monetary policy and the supervision of financial institutions. It also has policies for financing terrorism and preventing money laundering. MAS imposes large fines on financial institutions that do not comply with AML policies.
AUSTRAC – The Australian Transaction Report And Analysis Center
The Australian Transaction Reports and Analysis Center (AUSTRAC) was established to fight money laundering, financing of terrorism, fraud and other financial crimes. It is the most important financial intelligence agency of the Australian government. The Anti-Money Laundering and Counter-Terrorism Financing Act have taken measures against elements that threaten the financial system. Financial institutions in Australia are required to submit reports to the AUSTRAC regarding AML / CTF. AUSTRAC imposes sanctions on persons or financial institutions that do not comply with these rules.
FCIB – The Financial Crimes Investigation Board
Financial Crimes Investigation Board of the Republic of Turkey was established by the Treasury and Ministry of Finance. Its purpose is to investigate and prevent money laundering offenses. The Financial Crimes Investigation Board is an institution that contributes to the creation of an efficient economy and safe society by combating money laundering and the financing of terrorism. Financial Crimes Investigation Board has the authority to audit. FCIB checks suspicious transactions.
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