Global Compliance Updates: Laundering, Sanctions, Gold

1. China - New Guidelines on Money Laundering Offences

   China’s Supreme People’s Court and Supreme People’s Procuratorate issued new Guidelines for handling money laundering criminal cases. Effective 20 August 2024, the guidelines aims to provide clear legal framework for money laundering offences under Chinese law, to strengthen the legal framework and ensure the consistent application of the law.

2. Italy - Sanctions Compliance - Insurance Sector

   The Institute for the Supervision of Insurance (Istituto per la vigilanza sulle assicurazioni) published a Note, advising the sector to embed policies, procedures and controls to identify funds and economic resources that must be frozen in compliance with the EU Regulation 269/2014. In particular, the regulator stresses the importance of continuous sanctions monitoring lists.

3. New Zealand - AML/CTF Guidance for VASPs

   New Zealand’s Department of Internal Affairs (DIA) issued new AML/CTF Guidance for virtual asset service providers (VASPs), introducing new obligations related to virtual asset transfers, deposits, withdrawals and exchange.

4. Wildcat Gold Mining - Europe/Brazil - Supply Chain Due Diligence

   Illegal gold mining involving Brazil’s indigenous territories increased more than sixfold during the past ten years. More than half of the 68 tons of gold exported by Brazil last year has untraceable origins, despite the current government’s measures to crack down on illegal gold sales. Unfortunately, it is not clear whether the EU will tighten its framework with regards to supply chain due diligence associated with conflict minerals regulations.

5. IP Address Tracking - De-risking and the US Banking Sector

   Several law firms confirm that prominent US-based financial institutions de-risk their exposure to any Russia-related nexus through tracking of their client’s IP addresses. In practice, an existing client may access the bank’s mobile app or purchase an item online when physically in Moscow, thereby flagging their location through an IP address. Upon identifying such IP address in Russia, the US institution informs its client on winding down the account. There have not been any reports of now former clients attempting to counter the banks’ decisions.

I am making this newsletter for you. Feel free to ask any feedback or questions to [email protected]

Thank you for your support.

Alexey