Your Mid-Week Updates from AML Intelligence

From Paul O'Donoghue at AMLi

CROSSHAIRS OF FINRA: Morgan Stanley is in the crosshairs of FINRA which has asked for organizational charts and reporting lines in the firm’s AML and sanctions teams as part of a major KYC probe.

FINRA is also looking for information on foreign PEPs - and the Morgan Stanley representatives assigned to those accounts, it's been revealed.

The Wall Street bank's CDD and EDD are under scope in the probe.

WOLFSBERG GROUP UPDATES: THE APPLICATION of a risk-based approach (RBA) is critical to the effective design and maintenance of a financial institution’s (FIs) financial crime risk management (FCRM) programme, the Wolfsberg Group said.

The programme should cover the bank's risk appetite, policies, measures and controls, in an update to its members.

An RBA ought to mean that countries, competent authorities and FIs should be expected to identify, assess and understand the financial crime risks to which they are exposed, and take proportionate action that “appropriately corresponds to the level of identified risk and effectively mitigates the risks."

FINCEN POSTPONES SARS: FinCEN on Monday announced it is postponing the effective date of the final rule establishing SARs for investment advisors.

The agency also said it would revisit the scope of the so-called IA AML Rule at a future date. 

“FinCEN anticipates delaying the effective date of the IA AML Rule from January 1, 2026, until January 1, 2028,” FinCEN said. 

SymphonyAI and AML Intelligence launch the world’s most comprehensive FCC survey, ‘Fincrime Frontier 2025'

TAKE THE SURVEY: We've launched a major study with SymphonyAI to measure the state of readiness of FCC in banks, financial services and insurance companies globally.  We are inviting senior professionals working in financial and insurance institutions to take part in ‘Fincrime Frontier 2025’.

Moreover, participants are in with a chance to win one of three guest passes to 'International Anti-Financial Crime Summit (IAFCS) 2025', one of the most important events in the global AML calendar in London in October.

Don’t miss out - participate in the survey now here FinCrime Frontier 2025

NCA & FCA CLAMP DOWN: BRITAIN's National Crime Agency (NCA) and the Financial Conduct Authority (FCA) published nine economic crime priorities for the UK’s regulated sector.

The priorities by the national police agency and financial regulator include combatting cash-based money-laundering, the exploitation of money mules, and fraud associated with overseas jurisdictions. They are available here.

The NCA estimates that over £100 billion is laundered through or within the UK each year. This primarily consists of the proceeds of drugs, fraud and trafficking, as well as criminal funds linked to small boat crossings.

GENIUS ACT: U.S. President Donald Trump has signed a law to create a regulatory regime for stablecoins, a milestone that could pave the way for the digital assets to become an everyday way to make payments and move money.

Critics say loopholes in law risk making US haven for criminals

The bill, dubbed the GENIUS Act, passed in the House of Representatives by a vote of 308 to 122, with support from nearly half the Democratic members and most Republicans. It had earlier been approved by the Senate.

INSIGHT: From regulatory harmonization to a changing payments ecosystem and the role of AI, the anti-financial crime (AFC) landscape in Europe is undergoing a significant transformation, says Kieran Holland, Head of Technical Solutions for FinScan. Here are his five key themes shaping the future of anti-money laundering (AML) and financial crime prevention across the continent.

The new EU Anti-Money Laundering Authority (AMLA) is taking the first steps to becoming a fully functioning regulator. Formally enacted in April 2024 following the EU’s announcement of its landmark package of AML reforms, the AMLA is currently focusing on solidifying operational building blocks to carry out its duties.

Before assuming direct supervision at the start of 2028, the new regulator will also be working on developing a harmonized supervisory methodology and establishing its rule-making capabilities.

FINRA is also looking for information on foreign PEPs - and the Morgan Stanley representatives assigned to those accounts, it's been revealed.

The Wall Street bank's CDD and EDD are under scope in the probe.

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