Elevate your Compliance and Security with Intelect Group. Our monthly round up of news items which are of particular relevance to those businesses regulated for the purposes of Anti-Money Laundering.
‘We prevent bad things happening to good people and their businesses’.
Cyber Security
Chinese Government hackers infiltrate US data
Chinese government hackers are alleged to have infiltrated sensitive information within the US Treasury Department, including the unit responsible for administering economic sanctions against foreign entities.
The breach, compromised the Office of Foreign Assets Control and the Office of Financial Research, via a third-party software contractor, giving hackers access to unclassified documents, according to US officials speaking to the Washington Post.
Note – Yet another reminder about the risks associated with third parties, you will only ever be as secure as their controls. Ensure you have a robust risk assessment process in place when working with suppliers.
Organised Crime
Could you identify a cannabis farm?
Industrial scale cannabis growing is invariably linked to organised crime gangs, it’s a lucrative criminal business that exists to make a lot of money for them. Cannabis farms are often linked to wider issues, such as human trafficking, or exploitation of the vulnerable. These operations often exist in our neighborhoods, right under our noses, prompting the police to issue some telltale signs to look out for.
- Curtains and windows closed and drawn, even in hot weather
- Strange comings and goings from the address with vehicles attending late at night
- Smells coming from the address that could indicate cannabis is being grown
- Light coming from roof spaces or leaking through the building in odd places
- Sounds of fans constantly running in the address
- Cables running to and from lampposts nearby
- Rubbish bags full of garden-related waste
- Occupants and visitors rarely seen, except at odd hours of the day
- Condensation on the windows
- Large amounts of fertiliser taken to the address at odd times
Note – You may be reading this as an estate agent, property manager or AML Compliance Officer, if that’s the case the full story is at the link below is well worth a read.
Regulatory
Charity Commission consultation
Charities are being consulted about risk of terrorist financing. The Charity Commission has opened a consultation asking the voluntary sector to better identify potential vulnerabilities, trends and threats on the risk of terrorist financing abuse.
The regulator is working in accordance with the Financial Action Task Force (FATF) to help the UK government assess its vulnerability to terrorist financing.
In November 2023 FATF revised its guidance to require countries to protect non-profit organisations (NPOs) – those that carry out charitable, religious, cultural, educational, social or fraternal work – from terrorist financing abuse through the risk-based implementation of strengthened measures.
Note – This may well open up more work for the compliance community, one to watch!
