ChainCatcher message, the Hong Kong Securities and Futures Commission has issued a circular to licensed corporations, virtual asset service providers, and associated entities regarding the fight against money laundering/terrorist financing, which points out that the United Nations Security Council (UNSC) committee responsible for managing the sanctions regime against the Islamic State (ISIS) and Al-Qaeda removed an individual from its sanctions list on August 23, 2024 (New York time).Licensed corporations, licensed virtual asset service providers, and associated entities should update their screening databases regarding the aforementioned changes made by the UNSC sanctions committee to conduct sanctions screening on customers and payments.

ChainCatcher news, according to Cointelegraph, Cypriot regulators are calling on accounting and auditing professionals to help identify and prevent terrorist financing activities, with a particular emphasis on five methods of fund transfer, including cryptocurrencies. The Institute of Certified Public Accountants of Cyprus (ICPAC) is the regulatory body for the accounting industry on the island, and it has issued a "Terrorist Financing Alert" to combat this crime.While law enforcement primarily deals with financial crimes such as money laundering and terrorist financing, ICPAC hopes to involve accounting professionals in oversight. According to ICPAC, terrorist organizations use five methods to transfer funds, which include donations through non-governmental organizations (NGOs), cash, bank transfers and gift cards, cryptocurrencies, and shell companies.

ChainCatcher news, the Hong Kong Securities and Futures Commission (SFC) today published the "2023-24 Annual Report," which mentions the addition of a new chapter to the "Anti-Money Laundering and Counter-Terrorist Financing Ordinance." This chapter aims to assist the industry in addressing the money laundering and terrorist financing risks arising from the unique characteristics of virtual assets when engaging in virtual asset-related businesses, ensuring compliance with relevant statutory and regulatory requirements.In addition, in November 2023, the Hong Kong SFC held two anti-money laundering/counter-terrorist financing webinars, providing nearly 1,800 management and compliance personnel from licensed institutions with the latest information on key regulatory developments and recent observations in regulation. External speakers shared the latest trends in scams and provided insights on suspicious transaction reporting, outlining the situation regarding the proliferation financing risks in Hong Kong.

ChainCatcher news, according to Cryptoslate, Circle denies allegations of terrorist financing and its relationship with Justin Sun. Circle stated that it has not directly or indirectly funded illegal actors such as Hamas and emphasized that it complies with necessary financial laws.Circle's Chief Strategy Officer and Global Policy Head, Dante Disparte, stated in a letter to Senators Sherrod Brown and Elizabeth Warren that the Campaign for Accountability (CfA) claims that the stablecoin company's USDC is involved in cryptocurrency terrorist financing, "which is filled with errors, omissions, and misleading information."Circle explicitly stated that it does not have bank accounts associated with Justin Sun and his companies (including HTX and Tron Foundation). Although the U.S. government has not specifically designated accounts related to Justin Sun, it had already terminated those accounts as early as February.

ChainCatcher news, according to Coindesk, U.S. Deputy Treasury Secretary Wally Adeyemo delivered a speech at a Blockchain Association event in Washington, issuing a broad warning about illegal financing in the crypto industry. Wally Adeyemo stated, "We cannot allow dollar-backed stablecoin providers outside of the United States to have the privilege of using our currency without the responsibility to implement procedures to prevent terrorists from abusing their platforms."

ChainCatcher News, U.S. Senator and cryptocurrency supporter Cynthia Lummis has called on the U.S. Department of Justice to consider charges against the cryptocurrency exchange Binance following the attacks on Israel by the terrorist organization Hamas.In a letter dated October 26 to U.S. Attorney General Merrick Garland, Lummis and Arkansas Representative French Hill urged Justice Department officials to "make a decision on charges against Binance" and to "swiftly conclude" the investigation into alleged illegal activities involving Tether. The remarks from the two lawmakers came after Hamas launched a coordinated attack on Israel on October 7, which they stated was partly motivated by the belief that illegal crypto transactions "provided significant financing for terrorism."Lummis and Hill stated, "We urge the Department of Justice to carefully assess the extent to which Binance and Tether provide material support and resources for terrorism by violating applicable sanctions laws and the Bank Secrecy Act." "To this end, we strongly support the Department of Justice taking swift action against Binance and Tether to cut off the funding sources currently available to terrorists targeting Israel."

ChainCatcher news, Fox reporter Eleanor Terrett posted on the X platform that the U.S. House Financial Services Committee (HFSC) subcommittee will hold a hearing on October 26 local time, titled "Funding Transfers: Understanding How the Iranian Regime Obtains Funds Worldwide and How It Uses These Funds to Support Terrorism." The role of cryptocurrency in this regard is expected to be a key topic.Previously, 86 U.S. lawmakers pressured the Biden administration to provide details on plans to prevent extremist organizations from using cryptocurrency to finance terrorism.

ChainCatcher news, the crypto analysis company Chainalysis published a blog post titled "Correction: The Methods for Estimating the Role of Cryptocurrency in Terrorism Financing Are Inaccurate." The article mentions that after the Israel-Palestine conflict, there were many reports regarding how terrorist organizations might use cryptocurrency, but some reports on the assumed uses may have exaggerated the metrics and employed "flawed analysis."Chainalysis believes that there are two key components to analyzing the quantity and flow of terrorism-related funds: quantifying the funds directly controlled by terrorist organizations and identifying the service providers that facilitate the flow of funds related to terrorism financing. However, these totals include amounts that are not clearly related to terrorism financing.

ChainCatcher news, the Financial Action Task Force (FATF) third plenary meeting pointed out that four years after strengthening standards for virtual assets and virtual asset service providers (VASP), the global implementation of these measures remains relatively poor. Nearly three-quarters of jurisdictions only partially comply or do not comply with FATF's requirements. Many jurisdictions have yet to implement basic requirements, and more than half of the respondents have taken no action to implement the "Travel Rule." This rule is a key requirement proposed by FATF to prevent funds from being transferred to sanctioned individuals or entities. FATF calls on all countries to apply anti-money laundering / counter-terrorism financing rules to virtual asset service providers without further delay.On June 27, FATF will release a report urging countries to swiftly implement FATF's recommendations regarding virtual assets and VASP, including the Travel Rule, to address these vulnerabilities. The report also highlights emerging risks, including illegal virtual asset-related activities used by North Korea to fund its weapons of mass destruction programs, as well as risks from DeFi and peer-to-peer trading. In addition, FATF stated it will continue to promote global compliance and will publish a table in the first half of 2024 showing what measures FATF member jurisdictions and other jurisdictions with significant virtual asset trading activities have taken to implement Recommendation 15. (source link)

ChainCatcher news, the Hong Kong Securities and Futures Commission (SFC) has updated its frequently asked questions (FAQs) regarding the fight against money laundering and terrorist financing, listing 2 common questions and answers related to virtual assets, reminding financial institutions to pay attention to compliance when transferring virtual assets. The "Anti-Money Laundering Guidelines" state that for virtual asset transfers involving no less than HKD 8,000, remittance institutions must obtain and record the information of both the remitter and the payee, and securely submit the relevant information to the payee institution before the transfer. These guidelines will take effect on January 1, 2024. The FAQ states that before the guidelines take effect, if financial institutions are unable to immediately submit the required information to the payee institution, they should submit the required information as soon as practicable after the virtual asset transfer, within a feasible range.The Hong Kong SFC also reminds that financial institutions relying solely on customer self-declarations is insufficient to assist them in determining the ownership or control of accounts or non-custodial wallets. It reiterates that reference should be made to the examples of verification methods listed in section 12.10.6 of the "Anti-Money Laundering Guidelines," such as micropayment testing and message signing testing. (source link)