US financial services will help mainstream cryptos

Significance Yet snowballing interest outpaces crypto's use in any of the three main roles of money: a medium of exchange, unit of account or store of value. Crypto accounts for a sliver of US financial assets and retail sales. It remains overshadowed by its reputation as the currency of cybercriminals. Impacts Safeguards to prevent criminals from exploiting crypto will hinder legitimate crypto innovation. Transaction monitoring and know-your-customer due diligence will become a higher priority for crypto exchanges, reducing anonymity. Crypto's non-correlation with equity and bond price movements, an investor attraction, will lessen with broader use

THE TRANSACTION OR ACTIVITY MONITORING PROCESS: AN ANALYSIS OF THE CUSTOMER DUE DILIGENCE SYSTEMS OF THE UNITED KINGDOM AND SOUTH AFRICA

South Africa has made rigorous attempts to narrow the fissure between its antimoney laundering regulatory approach and the approaches that are found internationally. A study of the FATF Recommendations and the UK Regulations evidences the aforementioned attempts. FICA is particularly considered a landmark attempt by South Africa into controlling the scourge of money laundering. For example, FICA encourages the undertaking of the internationally accepted antimoney laundering measures. These measures are referred to as the Customer Due Diligence (CDD) or Know Your Customer (KYC) principles. The performing of themeasures is expressly enunciated in FICA. However, South Africa seems to be lagging behind on issues related to the technical application or performing of the measures. Such insulation is made apparent by the omission of the express and lucid provisions that regulate the ongoing monitoring of customer transactions or activities. This omission therefore leads financial institutions (that is, banks) to broadly examine FICA in order to carry out simulated ongoing transaction or activity monitoring processes.

Interaction effects of professional commitment, customer risk, independent pressure and money laundering risk judgment among bank analysts

Purpose This study aims to examine the direct and indirect effects of professional commitment, customer risk and independence pressure on money laundering risk judgment among bank analysts. Design/methodology/approach This study uses a within-subjects experimental research design and collects primary data via a questionnaire distributed to bank analysts in banking institutions in Malaysia. Findings Results show that professional commitment, customer risk and independence pressure significantly influence money laundering risk judgment (i.e. customer due diligence and money laundering reporting). The results also show significant interaction effects between customer risk and independence pressure in influencing money laundering risk judgment. Practical implications Professional commitment and situational factors are crucial in putting pressure on bank analysts responsible for performing a thorough check and due diligence to minimize money laundering risk to the bank. Social implications As money laundering is lifeblood of crimes, understanding the factors influencing money laundering risk judgment would assist the affected institutions to manage the risk better and contribute towards the fight against crimes. Originality/value This study focuses on money laundering risk judgment. It contributes to understanding the competency of the gatekeepers, such as bank analysts, in practicing professional commitment and dealing with situational factors.

Prinsip Customer Due Diligence Pada Layanan Pinjam Meminjam Uang Berbasis Teknologi Informasi Sebagai Upaya Pencegahan Tindak Pidana Pencucian Uang

Peer to peer lending must register in the Otoritas Jasa keuangan (OJK) for approval in POJK No. 77 of 2016. Peer to peer lending are required to approve the AML and CTF programs approved in Article 42 POJK No. 77 of 2016 which regulates further in POJK No. 12 of 2017 using the principle of customer due diligence. The application of customer due diligence is adjusted to the characteristics of peer to peer lending. Peer to peer lending made specifically for special work units who is responsible for the implementation of the APU and PPT programs. But until now since the promulgation of POJK No. 77 of 2016 and POJK No. 12 of 2019, peer to peer lending that has been registered in OJK does not have a special work unit in the company's organizational structure. This type of consenting is legal research carried out by considering regulations and asking for conceptual. Based on research, the regulations for the implementation of the AML and CTF programs have not been implemented to the maximum by peer to peer lending. Keywords: Peer to Peer Lending; Customer Due Diligence; Money Laundering.AbstrakPenyelenggara layanan pinjam meminjam uang berbasis teknologi informasi wajib melakukan pendaftaran kepada OJK sebagaimana diatur dalam POJK No. 77 Tahun 2016. Penyelenggara diwajibkan menerapkan program APU dan PPT sebagaimana diatur Pasal 42 POJK No. 77 Tahun 2016 yang diatur lebih lanjut dalam POJK No. 12 Tahun 2017 dengan menerapkan prinsip customer due diligence. Penyelenggara layanan pinjam meminjam uang berbasis teknologi informasi diwajibkan membentuk unit kerja khusus. Namun sampai saat ini sejak diundangkannya POJK No. 77 Tahun 2016 dan POJK No. 12 Tahun 2019, penyelenggara layanan pinjam meminjam uang berbasis teknologi informasi yang terdaftar di OJK tidak mempunyai unit kerja khusus dalam struktur organisasi perusahaannya. Tipe penulisan ini adalah penelitian hukum yang dilakukan dengan pendekatan peraturan perundang-undangan dan pendekatan konseptual. Berdasarkan penelitian, ketentuan kewajiban penerapan program APU dan PPT belum dilaksanakan dengan maksimal oleh penyelenggara layanan pinjam meminjam uang berbasis teknologi informasi. Kata Kunci: Layanan Pinjam Meminjam; Customer Due Diligence; Tindak Pidana Pencucian Uang.

Distance Personal Identification in the On-line Environment: Problems of Financial Institutions in the EU

Electronic financial services are of key importance in the EU. However, the actual policies adopted in the field by individual member states differ from country to country. A great deal of legal acts have been adopted by the EU to encourage FinTech development, to prevent money laundering and in particular to lay down secure procedures of personal identification. However, measures applied by individual member states frequently differ. The purpose of this article is to focuses on actual legal instruments used by EU financial institutions and FinTech agencies in the digital environment for client identification and on major problems faced by FinTech companies rendering modern financial services. Financial institutions and FinTech agencies often face the problem of client identification which is of key importance in the field. The complex legal regulation of the field has been extended to include such concepts as customer due diligence, simplified customer due diligence, enhanced customer due diligence and customer identification in physical absence. Each of the ways of identification differs in the scope of collected personal data, methods of data collection, legal regulation and the use of technological instruments.

An exploration of the current regulatory aspects of money laundering in South Africa

Purpose Money laundering activities were allegedly rampant and poorly regulated in the South African financial markets and financial institutions prior to 1998. In other words, prior to the enactment of the Prevention of Organised Crime Act 121 of 1998 as amended (POCA), there was no statute that expressly and adequately provided for the regulation of money laundering in South Africa. Consequently, the POCA was enacted to curb organised criminal activities such as money laundering in South Africa. Thereafter, the Financial Intelligence Centre Act 38 of 2001 as amended (FICA) was enacted in a bid to, inter alia, enhance financial regulation and the combating of money laundering in the South African financial institutions and financial markets. Design/methodology/approach The paper provides an overview analysis of the current legislation regulating money laundering in South Africa. In this regard, prohibited offences and measures that are used to curb money laundering under each relevant statute are discussed. The paper further discusses the regulation and use of customer due diligence measures to combat money laundering activities in South Africa. Accordingly, the regulation of customer due diligence under the FICA and the Banks Act 94 of 1990 as amended (Banks Act) is provided. Findings It is hoped that policymakers and other relevant persons will use the recommendations provided in the paper to enhance the curbing of money laundering in South Africa. Research limitations/implications The paper does not provide empirical research. Practical implications The paper is useful to all policymakers, lawyers, law students, regulatory bodies, especially, in South Africa. Social implications The paper seeks to curb money laundering in the economy and society at large, especially in the South African financial markets. Originality/value The paper is original research on the South African anti-money laundering regime.

PERLINDUNGAN HUKUM TERHADAP BANK DARI TINDAK PIDANA PENCUCIAN UANG (STUDI KASUS PUTUSAN NOMOR 81/PID.SUS/2019/PN.JPA)

Abstrak Artikel ini membahas mengenai hubungan antara kegiatan pencucian uang dengan tindak pidana narkotika yang berkaitan dengan bank sebagai sarana pencucian uang. Dalam penelitian ini juga aka membahas mengenai perlindungan hukum terhadap bank serta bagaimana pencegahan kegiatan pencucian uang. Adapun dalam penelitian ini akan menggunakan sebuah kasus dengan nomor perkara 81/Pid.Sus/2019/PN.Jpa sebagai acuan. Penelitian ini adalah penelitian normative yuridis dengan bentuk preskriptif, yang melakukan identifikasi pokok-pokok permasalahan yang hendak dibahas secara tuntas dengan norma hukum yang terdapat dalam peraturan perundang-undangan terkait. Hasil penelitian ini menemukan bahwa perlindungan hukum bagi bank yakni berasal dari tindakan preventif pihak bank sendiri dalam menerapkan prinsip Good Corporate Governance yang baik khususnya melaksaakan prinsip customer due diligence dan prinsip enhanced due diligence bagi calon nasabah maupun nasabah existing penyimpan dana. Selain itu bank harus selalu berkoordinasi dengan Pusat Pelaporan dan Analisis Transaksi Keuangan (PPATK) sebagai lembaga yang berwenang memberikan informasi atas harta kekayaan seseorang yang patut diduga adanya transaksi mencurigakan. Abstract This article convey about the relationship between money laundering and narcotics crimes and banks position as a means of money laundering. This research will also convey the legal protection of banks and how to prevent money laundering activities. In this study, we will use a case with case number 81 / Pid.Sus / 2019 / PN.Jpa as a reference. This research is a juridical normative research with prescriptive form, which identifies the main issues to be discussed thoroughly with the legal norms contained in the relevant laws and regulations. The results of this study found that legal protection for banks comes from preventive actions by the bank itself in applying the principles of good corporate governance principle, especially implementing the principles of customer due diligence and the principle of enhanced due diligence for prospective customers and existing fund depositors. In addition, banks also must always coordinate with the Financial Transaction Reports and Analysis Center (PPATK) as the institution authorized to provide information on the assets of a person who should suspect a suspicious transaction.

Selected challenges associated with the reliance on customer due diligence measures to curb money laundering in South African banks and related financial institutions

Customer due diligence is a means of ensuring that financial institutions know their customers well through know-your-customer (KYC) tools and related measures. Notably, customer due diligence measures include the identification and verification of customer identity, keeping records of transactions concluded between a customer and the financial institution, ongoing monitoring of customer account activities, reporting unusual and suspicious transactions, and risk assessment programmes. Accordingly, financial institutions should ensure that their customers are risk assessed before concluding any transactions with them. The regulation of money laundering is crucial to the economic growth of many countries, including South Africa. However, there are still numerous challenges affecting the banks and other role players’ reliance on customer due diligence measures to combat money laundering in South Africa. Therefore, a qualitative research methodology is employed in this article to unpack such challenges. The challenges include the failure to meet the identification and verification requirements by some South African citizens, onerous documentation requirements giving rise to other persons being denied access to the formal financial sector, and the lack of express provisions to regulate the informal financial sector in South Africa. Given this background, the article discusses the challenges associated with the regulation and implementation of customer due diligence measures to enhance the combating of money laundering in South African banks and related financial institutions. It is hoped that the recommendations provided in this article will be utilised by the relevant authorities to enhance customer due diligence and effectively combat money laundering activities in South African banks and related financial institutions.