Compliance Clarified – a podcast by Thomson Reuters Regulatory Intelligence

Series 12, Episode 5: Luxury Sector Scrutinized for Financial Crime and Sanctions Risk

Oct 17, 2024

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INSIGHT

Luxury Goods and AML Risks

High-value luxury goods like cars, jewelry, and yachts are attractive for money laundering and terrorist financing.
New EU AML Directive 6 will enforce stricter reporting for cash transactions over 10,000 euros involving these goods.

INSIGHT

Asia's Parallel Luxury Markets

Parallel imports and resale of luxury goods in Asia facilitate trade-based money laundering.
These items' resale value and opaque ownership complicate tracing illicit funds.

INSIGHT

Risks in Luxury Hospitality

Luxury hospitality investments in high-risk, often sanctioned, jurisdictions pose severe AML and sanctions risks.
These regions, like Albania and Myanmar, have high corruption, militant control, and trafficking concerns.

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In this episode, Helen Chan, regulatory intelligence expert and Rachel Wolcott, senior editor discuss financial crime compliance risks in luxury hospitality and the luxury goods
sectors. They run through recent developments and sanctions compliance in high-risk geographies and what that means for multinational luxury groups.

Rachel shares an overview of regulatory requirements implemented in the U.S. and anticipated reforms applicable to businesses in the luxury sector in Europe and the United Kingdom. Rachel and Helen highlight compliance takeaways for financial institutions, luxury groups and dealers of high value assets such as art and real estate.

Links:
Displays of wealth on social media draw scrutiny:
https://regintel-content.thomsonreuters.com/document/ICBBF93E0701C11EFB351F8E4C03DB09C/COMMENTARY:-Displays-of-wealth-on-social-media-draw-regulatory-scrutiny--11-09-
2024

Kim Jong Un drives Putin during state visit to North Korea (Korea Central Television)
https://www.youtube.com/watch?v=DNHHtFVibK8

Factsheet: FinCEN issues final rule to increase transparency in residential real estate
transfers: https://www.fincen.gov/sites/default/files/shared/RREFactSheet.pdf

Lafarge pleads guilty to conspiring to provide material support for terrorist organizations: https://www.justice.gov/opa/pr/lafarge-pleads-guilty-conspiring-provide-material-support-
foreign-terrorist-organizations

Contact us:
Helen.chan@thomsonreuers.com
Rachel.wolcott@thomsonreuters.com

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer. Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.