Regulatory Roundup: July 2024

Welcome to the July 2024 edition of FinScan’s Regulatory Roundup. Over the last month or so, we have seen anti-money laundering (AML), artificial intelligence (AI), and data protection updates from regulators, government-led actions and enforcement on banks with deficient AML programs and systems, and expanded sanctions related to Russia’s war economy.


FinCEN issues proposed rule to strengthen and modernize financial institutions’ AML/CFT programs

While financial institutions have long maintained AML/CFT programs under existing regulations, FinCEN’s proposed rule would amend those regulations to explicitly require that such programs be effective, risk-based, and reasonably designed, enabling financial institutions to focus their resources and attention in a manner consistent with their risk profiles.

FinCEN updates FAQs for beneficial ownership

FinCEN has released further guidance regarding Corporate Transparency Act (CTA) compliance by updating and expanding the Beneficial Ownership Information (BOI) Reporting FAQs as has become regular practice. The updates provide clarity on reporting requirements for Indian Tribes and entities formed under Tribal law, as well as clarity regarding exemptions for certain public utilities and large operating companies.

Evolve Bank ordered by Fed to address AML, sanctions lapses

The Federal Reserve Board issued a Cease-and-Desist order for deficiencies in Evolve Bank’s AML program due in part to weaknesses associated in part with the bank’s “Open Banking Division.” The bank must review all fintech partners, business lines, activities, and products to ensure appropriate risk rating and inclusion in the AML program, policies, and procedures.

EGBA welcomes new EU anti-money laundering package

The European Gaming and Betting Association (EGBA) has shown support for the EU’s anti-money laundering (AML) package. The European Council approved the EU’s new AML package, finalizing the union’s new framework for combatting financial crime. The EGBA believes it will strengthen the EU’s approach to tackling money laundering.

Singapore strengthens AML measures amid evolving threats

Singapore has announced findings of its updated ML NRA, which reflects its commitment to fortifying its AML framework in response to global risks. The comprehensive review, overseen by Singapore’s Financial Intelligence Unit – the Suspicious Transaction Reporting Office (STRO) – collates insights from various supervisory bodies, law enforcement, and feedback from international counterparts and private sector entities.


US Treasury takes sweeping aim at foundational financial infrastructure and access to third country support as Russia transitions to war economy

The US Department of the Treasury is issuing sweeping new measures guided by G7 commitments to intensify the pressure on Russia for its continued cruel and unprovoked war against Ukraine. This would ratchet up the risk of secondary sanctions for foreign financial institutions that deal with Russia’s war economy; restrict the ability of Russian military-industrial base to take advantage of certain US software and IT services; and, together with the Department of State, target more than 300 individuals and entities both in Russia and outside its borders whose products and services enable Russia to sustain its war effort and evade sanctions.

Monaco, Venezuela placed on global money-laundering watch list

The FATF has censored Monaco and Venezuela for not doing enough to strengthen their anti-money-laundering and counterterrorist financing systems. The two countries were added to its “gray list” of nations requiring increased monitoring. The FATF said it would work with the two countries to address the deficiencies identified in their anti-money-laundering systems.


UK’S ICO updates guidance on AI and data protection

The ICO’s has updated its Guidance on AI and Data Protection after requests from the UK industry to clarify requirements for fairness in AI. It also delivers on a key ICO25 commitment to help organizations adopt new technologies while protecting people and vulnerable groups. This update supports the UK government’s vision of a pro-innovation approach to AI regulation and more specifically its intention to embed considerations of fairness into AI.

EDPS publishes first EDPS Orientations for EUIs using generative AI

The European Data Protection Supervisor (EDPS) has published its Orientations on “generative Artificial Intelligence and personal data protection” to provide EU institutions, bodies, offices and agencies with practical advice and instructions on the processing of personal data when using generative AI systems, to facilitate their compliance with the requirements of the data protection legal framework.

Need some help?

We will continue to monitor regulatory developments and provide updates in future editions of Regulatory Roundup. In the meantime, reach out to us if you need help navigating the evolving landscape of regulations and enforcement actions.

FinScan offers Advisory Services to assist with model risk management, data governance, policies, and procedures, and assessing your organization’s data quality, sanctions compliance program, customer and compliance risk, and AI framework, to name a few. Contact us to learn more.