ACA Spotlight Blog

ACA Spotlight Blog

Compliance, risk, and technology insights and alerts for financial services
 

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AML and Financial Crime

 

CIMA Continues Focus on AML
December 12, 2019
The Cayman Islands Monetary Authority (“CIMA”) has made significant changes to its Anti-Money Laundering (“AML”) regulations in recent years, including updating the definition of Financial Service Provider (“FSP”) making private investment vehicles, such as hedge funds, private equity funds, and real estate funds domiciled in Cayman Islands, subject to Cayman Island’s AML regime. 
Emerging Internal Audit Risks
December 6, 2019
Regulators increasingly expect internal audit teams to continually develop and enhance their audit plans in the face of new risks. An internal audit team must be proactive to stay one step ahead of emerging risks.
Customer Due Diligence: Preparing for Focus in U.S. Regulatory Examinations
November 22, 2019
The customer due diligence (CDD) rule went into effect May 11, 2018. Now that firms have had sufficient time to make any necessary changes needed to implement the rule, it is likely that regulators will focus on CDD implementation within examinations.
Relationship of Trust: The Audit Committee and Internal Audit
October 25, 2019
The Institute of Internal Auditors (IIA) published a position paper on September 19, 2019 about the importance of Relationships of Trust - Building Better Connections Between the Audit Committee and Internal Audit. The position paper highlights the critical relationship between internal audit and the audit committee.
Robotic Process Automation for AML Compliance
October 18, 2019
Robotic Process Automation (RPA) refers to the use of software to perform repetitive, routine tasks that are considered monotonous and uninteresting to humans.In its simplest definition, RPA is:
7 Vital Components of an Internal Audit Charter
October 4, 2019
The Institute of Internal Auditors (IIA) published a new position paper on September 19, 2019 about the importance of an Internal Audit Charter and how it enhances the effectiveness of the Internal Audit function.
Data Retention Challenges During an AML System Migration
September 19, 2019
Today, many financial institutions are changing the anti-money laundering (AML) technology platform they use to perform required compliance processes, such as transaction monitoring and sanctions screening. Once the process has started, there are important considerations around data migration that must be managed correctly.
Detecting Trafficking of Fentanyl and Other Synthetic Opioids
September 5, 2019
FinCEN published an advisory to remind financial institutions of their due diligence and other Bank Secrecy Act obligations regarding the illicit financial schemes and mechanisms related to the trafficking of fentanyl or other synthetic opioid drugs. By complying with these obligations, financial institutions can help combat the opioid drug epidemic the U.S. is currently facing.
FATF-Identified Jurisdictions with AML/CFT Deficiencies
August 22, 2019
The Financial Crimes Enforcement Network issued an advisory to remind financial institutions that updates the FATF made to their list of jurisdictions that have strategic AML/CFT deficiencies may affect their obligations with respect to these jurisdictions and that they should consider the impact these updates have on the institution’s risk-based approach.
Six Ways Financial Organizations Stumble Over KYD for Financial Crime Technology
August 5, 2019
Effective AML compliance requires a data governance program to address the acquisition and management of the data – also known as “know your data” or KYD. This is a hot topic for financial institutions monitoring client transactions for money laundering, terrorist financing, or other forms of financial crime.
Exposure Draft About Revising Their Three Lines of Defense Model
July 22, 2019
On June 17, 2019, The Institute of Internal Auditors (the IIA) released an Exposure Draft (the Draft) on a study being conducted to review and modernize the Three Lines of Defense Model (3LoD). The Draft has been released for public comments from June 20, 2019 and September 19, 2019 and reflects the thoughts and analysis of a working group, chaired by Jenitha John, Vice Chairman of The IIA Global Board of Directors; and Chief Audit Executive, FirstRand Ltd.
2019 Anti-Money Laundering Regulatory Climate Update
June 11, 2019
Although there are political signals that the current U.S. administration will provide financial institutions regulatory enforcement relief in comparison to years prior, this is not the case. As evidenced by the consistent penalties enforced over the past several years, AML/BSA regulatory enforcement remains a top priority.