SARB Issues Guidelines for Effective AML/CFT Controls for Cryptoassets
The South African Reserve Bank (SARB) published the supervisory guidelines for matters related to the prevention of banks or controlling companies being used for any money laundering, terrorist financing, or other unlawful activity. The guidelines are intended to inform banks and controlling companies about practices for effective implementation of adequate anti-money laundering and counter-financing of terrorism (AML/CFT) controls in relation to crypto assets and crypto asset service providers.
Regulation 36 (17) of the Regulations for Banks (the Regulations) requires that every bank and controlling company shall have in place board approved policies and comprehensive risk-management processes and procedures with for keeping in check the AML/CFT activities with respect to crypto-assets and related service providers. These policies, processes, and procedures include comprehensive and robust know-your-customer standards that include robust customer identification, verification, and acceptance requirements throughout the banking group, contribute to the safety and soundness of the reporting bank or controlling company, and prevent the bank or controlling company from being used for any money laundering or other unlawful activity.
Further to this, Regulations 36(17)(b)(ii), 47, and 50 impose high-level requirements for banks’ corporate governance, risk management, internal controls, policies, processes, and procedures to ensure ongoing compliance with best practices on matters such as AML/CFT, reportable offences and to guard against the bank being used for purposes of financial crimes, such as financing of terrorist activities and money laundering. Regulation 38(4) of the Regulations for Banks sets out that when the Prudential Authority is of the opinion that a bank’s policies, processes, and procedures relating to its risk assessment are inadequate or its internal control systems are inadequate, the Prudential Authority may, among other things, require the bank to strengthen its risk management policies, processes or procedures, or to strengthen the internal control systems of a bank. The Guidance Note seeks to provide guidelines on certain aspects linked to the treatment of crypto-assets and crypto-asset service providers, based on the application of a thorough risk-based approach.
Related Links
Keywords: Middle East And Africa, South Africa, Banking, AML CFT, Regtech, ML TF Risk, Crypto-Assets, Internal Controls, Governance, SARB
Previous Article
ECB Consults on Guide on Qualifying Holding Procedures for BanksRelated Articles
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
