Top stories this week:
Thirdfort Reveals Top AML Red Flags | OFSI Launches 2026-2029 Strategy
Welcome to this week's edition of the KYC Roundup. In the AML arena, new data has identified savings discrepancies as the leading red flag in property transactions, while the FCA has moved to simplify short-selling rules.
In the fast-paced world of sanctions, the UK’s OFSI has unveiled an ambitious three-year strategy to bolster enforcement through 2029, and OTSI has expanded its licensing remit.
In the corruption space, OLAF has led a major international operation against illegal trade and fraud, while the Australian NACC has released its latest findings on procurement bribery.
We round off this week's roundup with an invitation to our upcoming webinar on Uncovering UBO: How to Navigate Global Regulations and Complex Structures.
KYC & AML
Savings discrepancies identified as top AML red flag
Analysis of over 415,000 Source of Funds (SoF) checks by Thirdfort has revealed that a mismatch between declared savings and bank statements is the most frequent red flag in AML checks, appearing in 43% of suspicious cases. Other high-risk indicators included gifted funds (17%) and mortgage-free purchases (16%).
FCA finalises simpler short-selling regime
The Financial Conduct Authority (FCA) has introduced new rules to reduce the reporting burden on firms. Under the updated regime, the FCA will publish aggregated data on net short positions rather than identifying individual short sellers, aiming for a more proportionate regulatory approach.
FCA publishes Open Finance Roadmap
The regulator has set out its vision for "Open Finance" through 2030, seeking to increase competition and innovation by facilitating broader access to smart data. The roadmap includes plans for TechSprints and a "PRISM" taskforce to assess consumer outcomes.
Sanctions
OFSI unveils 2026-2029 Strategy
The UK Office of Financial Sanctions Implementation (OFSI) has published its strategy for the next three years. The plan focuses on three core pillars: enhancing threat understanding through data, improving licensing and enforcement support, and strengthening international partnerships to counter evolving circumvention tactics.
OTSI expands licensing remit for sanctioned goods
The Office of Trade Sanctions Implementation (OTSI) confirmed that from 27 April 2026, it will take over responsibility for licensing sanctioned goods and ancillary services for export to sanctioned destinations, a role previously managed by the ECJU for specific categories.
OFAC issues new guidance on "Sham Transactions"
The US Treasury’s Office of Foreign Assets Control (OFAC) has issued guidance clarifying that while the "50% Rule" remains a baseline, firms must look beyond legal formalities to "practical and economic realities" to avoid sanctions evasion.
Corruption
OLAF cracks down on illegal e-cigarette trade
The European Anti-Fraud Office (OLAF), in collaboration with international customs authorities, has concluded "JCO VAPE," an operation targeting the illegal trade of e-cigarettes. The move is part of a broader effort to protect EU financial interests and investigate misconduct involving EU funds.
NACC finds "Serious Corrupt Conduct" in airport tender
The Australian National Anti-Corruption Commission (NACC) has published its report on "Operation Pelican," identifying that a staff member at Western Sydney Airport abused his office to solicit a bribe during a tender process. The individual has since been sentenced to two years' imprisonment. Read more at NACC.
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KYC360 News
Webinar: Uncovering UBO: How to Navigate Global Regulations and Complex Structures
Join Shilo Grayson, Regulatory Strategy Specialist at KYC360, for a practical session on identifying ultimate beneficial owners, navigating complex ownership structures and keeping pace with fast-moving global regulation.
Knowing who ultimately controls a legal entity is vital for effective AML compliance. But UBO identification is getting more challenging. Registers are less accessible following the 2022 CJEU ruling and the EU’s new AML Regulation raises the verification bar. Meanwhile, the US has moved in the opposite direction entirely, creating asymmetry for firms operating across jurisdictions.
This webinar cuts through the complexity, covering what is changing, what it means operationally, and how technology can bring efficiency to manual processes that break down at volume.
Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.
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