HKTA warns against trust fraud, offers tips for investors

Private equity funds and their portfolio companies need to pay close attention to the UK Economic Crime and Corporate Transparency Act 2023 (ECCTA), which brings a strict liability “failure to prevent fraud” offence into force. Our article highlights the key provisions of the ECCTA, the risks for private equity funds, and the practical steps managers can take to mitigate exposure, including implementing robust fraud prevention procedures. With the focus on transparency and compliance, understanding these provisions is essential for fund managers and directors alike. Read the article here: https://lnkd.in/eNUXhYcJ

🔎 Red Flag of the Week: Unclear Source of Funds One of the most common — and most overlooked — warning signs in financial crime risk management is when a client cannot clearly demonstrate where their money is coming from. 💡 Why it matters: 🎯 Lack of transparency can indicate money laundering, fraud, or other illicit activity. 🎯 It exposes businesses to regulatory, reputational, and financial risk. 🎯 Regulators in Malta expect firms to challenge and verify sources of wealth and funds. ✅ What to do: 1️⃣ Request supporting documentation. 2️⃣ Assess whether the explanation matches the client profile. 3️⃣ Escalate and apply enhanced due diligence if red flags persist. Remember: If the source of funds isn’t clear, neither is the risk. Contact us on enquiries.complyassist@gmail.com to assist you in managing the red flags. #RedFlagOfTheWeek #FinancialCrime #AML #Compliance #RiskManagement #DueDiligence #FraudPrevention #MaltaFinance #FinancialIntegrity

Understanding the Stages of Money Laundering Money laundering is a serious financial crime involving the process of making illegally-gained proceeds appear legal. It typically occurs in three key stages: 1. Placement – Introducing illicit funds into the financial system. 2. Layering – Concealing the source of the money through complex transactions. 3. Integration – Reintroducing the laundered money into the economy as legitimate funds. Awareness of these stages is crucial for professionals in finance, compliance, and risk management to detect and prevent financial crime. #MoneyLaundering #AML #FinancialCrime #Compliance

Delighted to listen the ACAMS Malta Chapter webinar “Professional Money Launderers: Methods, Trends & Detection” today! #ACAMSMaltaChapterOver 300 professionals joined us, showing just how critical anti-financial crime work is becoming for our AML community, with rising participation each year—a great sign for our shared future. Huge thanks to our outstanding speakers: Andrew Mackay CAMS CCI, moderating the panel, Inspector Oriana Spiteri, @Brian Ludlow, and Dr. Arda Akartuna for their engaging and eye-opening presentations. We explored how professional money launderers rely on “professional enablers”—individuals or firms whose professional skills allow criminality to flourish, often through deliberate, reckless, or negligent conduct. Professional enablers might include lawyers, accountants, estate agents, company service providers, or bank officials, among others. Some real-world examples: assisting clients to obscure asset ownership with complex structures, failing to ask questions about suspicious clients or transactions, or advising on disguising the origins of illicit funds. Their role can range from passive complicity to active facilitation in money laundering and tax evasion. Presentation content covered impressive recent cases, some highly complex, and the feedback from attendees was fantastic. The journey doesn’t stop here—ACAMS Malta Chapter has more insightful events planned, so stay tuned and connect with us for updates, ideas and feedback! #ACAMSMaltaChapter #AML #FinancialCrime

What is the result of an increased awareness of the potential for gatekeepers to assist in money laundering in recent years? A. The IMF has raised the profile of gatekeepers, requiring that countries regulate them B. Lawyers who represent money launderers can more easily be prosecuted C. Accountants are no longer considered gatekeepers, since they are not permitted to set up companies or trusts Answer:

SEC launches global crackdown on cross-border fraud. A new Cross-Border Task Force is now live to protect U.S. investors from fraud tied to foreign companies. https://lnkd.in/giKKhTxc What to know: • The task force will investigate violations by foreign-based companies, especially market manipulation schemes like “pump-and-dump” and “ramp-and-dump.” • Gatekeepers (auditors, underwriters) will face heightened scrutiny: their role in enabling access to U.S. capital markets is under the microscope. • Particular focus on companies in jurisdictions with governmental control or opacity, such as China, where investor risk is elevated. What firms should do now: review your cross-border disclosures, tighten due diligence for foreign issuers, check your engagement with gatekeepers. Follow ICS for critical updates and compliance strategies in this evolving enforcement landscape. #compliance #RIACompliance #BrokerDealerCompliance #CrossBorderCompliance #SEC #FraudPrevention This is general information, not legal advice.

Longer than a sprint, but not quite a marathon: the CFTC recently concluded its Enforcement Sprint initiative settling a total of six enforcement actions and receiving a combined $8,325,000 in civil monetary penalties. These settlements did not involve fraud, market abuse and other alleged wrongdoing that harms derivatives customers. Read our article, which discusses some of the high-level takeaways from CFTC Acting Chairman Caroline Pham’s efforts to clean up the agency’s overall enforcement docket. Zach Schmitz, Matt Kluchenek, Chris Kemnitz and Mitchell Caminer https://lnkd.in/e65w_TyU

According to the Australian Competition and Consumer Commission, scams cost Australians over $2 billion in 2021 alone, with 56% of those who lost money unable to recover any of it, a statistic that underscores the pervasive challenge of asset recovery in a landscape riddled with evasion tactics. Effective asset recovery depends on a multi-faceted investigative process, leveraging forensic accounting, open-source intelligence, and legal tools to identify relationships and reconstruct the true flow of value. In this article for Raising the Bar, Senior Director Angela Clancy and Manager Rachel Lieu outline a practical roadmap for funds tracing in fraud and asset dissipation matters. Read the full article here: https://okt.to/LjX3iR #AMon #DisputesandInvestigations #ForensicAccounting #AssetRecovery

It’s been a month since the introduction of the new Failure to Prevent Fraud legislation. Under this new legislation, organisations that fail to prevent fraud face: 👩⚖️ Unlimited fines, with penalties reflecting the seriousness of the offence. 👩⚖️ Reputational damage - undermining stakeholder trust, attracting investor concern, and inviting greater regulatory scrutiny. It’s not too late to ensure your staff are up-to-date on their Fraud Awareness, and avoid hefty damage to the finances and the reputation of your company. Find out more about Fraud Awareness Training on our website: https://lnkd.in/e2tb5r6T #FtPF #ECCTA #BusinessEssentials #PreventingFraud #Training #ProfessionalDevelopment #Compliance #Praxis42

Financial crime risks are evolving, and BSP-supervised institutions in the Philippines need real-time oversight to stay ahead. Our AFASA Compliance Brochure highlights how real-time Fraud Management Systems (FMS) help institutions detect and mitigate emerging threats while meeting regulatory expectations. Download the brochure >> https://bit.ly/4pMkCMg #AML #FraudPrevention #FinancialCrime #RegTech