Top stories this week:
UK Proposes Updates to AML Regulations | Luxembourg Regulator Fines Alipay for AML Failures | Australia Expands AML Oversight to 80,000 New Businesses
Welcome to this week's edition of the KYC Roundup, your gateway to the most impactful developments in the world of anti-money laundering (AML) and financial crime. In the AML arena, we have details of proposed updates to AML regulations from the UK Treasury. The UK and UAE strengthen collaboration against illicit finance, and the Luxembourg regulator fines Alipay for significant AML failures.
In the fast-paced world of sanctions, OFAC sanctioned a China-based chemical company for fentanyl trafficking and the US Treasury sanctioned a network for illegally smuggling Iranian oil.
In the corruption arena, FATF launched a new toolkit to combat financial crime risks, highlighting crypto and corruption.
We round off with details of a face-to-face workshop we are hosting in Jersey.
KYC & AML
UK Treasury Proposes Significant Updates to AML Regulations
The UK government has published draft legislation to amend AML regulations, aiming to make the regime more effective. Key changes address crypto asset firms, trust registration, and ownership reporting. The proposed regulations are open for public consultation until September 30, 2025.
UK and UAE Strengthen Collaboration Against Illicit Finance
The United Kingdom and the United Arab Emirates held a high-level meeting to reinforce their strategic partnership in combating financial crime. The bilateral talks underscored a mutual commitment to disrupting illicit financial networks through improved intelligence sharing and joint enforcement efforts.
Luxembourg Regulator Fines Alipay for Significant AML Failures
Luxembourg's financial regulator, the CSSF, has fined Chinese payments giant Alipay €214,000 for "important" breaches of AML rules. The fine follows an inspection that found issues with transaction monitoring, slow alert processing, missing customer documents, and insufficient oversight of outsourced compliance functions, including a failure to file suspicious transaction reports.
UK Money Laundering Prosecutions See 36% Increase, While Fraud Cases Surge
A UK government report reveals that money laundering prosecutions in England and Wales surged by 36% in 2024, reaching 6,845 cases. While convictions also rose, the report also highlights a significant 31% increase in fraud cases, with over 4 million incidents recorded, though total financial losses remained stable.
Australian Regulator Fines Revolut for AML Reporting Delays
Australian financial watchdog AUSTRAC has fined Revolut Australia A$187,800 for failing to submit AML reports on time. The penalty follows Revolut's self-disclosure of delays in reporting international funds transfers, which AUSTRAC says are critical for preventing financial crime and supporting law enforcement investigations.
Australia Expands AML Oversight to 80,000 New Businesses
Australia's financial intelligence unit, AUSTRAC, has published new AML rules that will bring over 80,000 "tranche 2" businesses, including lawyers, accountants, and real estate agents, under its regulation. This marks a significant expansion of the country's AML regime, with the new rules taking effect from July 1, 2026.
Sanctions
OFAC Sanctions Chinese Chemical Company for Fentanyl Trafficking
The U.S. Treasury's OFAC sanctioned a China-based chemical company and its representatives for their role in manufacturing and selling synthetic opioids to the United States. This action is part of a U.S. strategy to combat the fentanyl crisis by targeting illicit financial networks.
US Treasury Sanctions Network for Illegally Smuggling Iranian Oil
The U.S. Treasury Department has sanctioned a shipping network led by an Iraqi-Kittitian businessman for smuggling Iranian oil. The network allegedly blended Iranian crude with Iraqi oil to evade sanctions. The action is part of the U.S. effort to curb Iran's oil revenue amid stalled nuclear talks.
Corruption
FATF Launches New Toolkit to Combat Financial Crime Risks, Highlighting Crypto and Corruption
The FATF has launched a new National Risk Assessment toolkit to help countries identify and combat money laundering risks. The toolkit, which is designed for use by governments and the private sector, specifically focuses on four key areas: corruption, virtual assets like crypto, legal entities, and the informal economy.
KYC360 News
[Event] Face-to-Face Workshop in Jersey: Analysing AML Failures
Join us for a free, interactive and thought-provoking workshop that delves into the high-profile cases of AML compliance failures, including those at TD Bank, Danske Bank and Monzo.
Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.
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