Top stories this week:
Barclays Under Investigation for Potential Deficiencies in AML Controls | U.S. President Trump Asserts Control Over Independent Regulatory Agencies
Welcome to this week's edition of the KYC Roundup, your gateway to the most impactful developments in the world of Anti-Money Laundering and financial crime. In the AML arena, Barclays is under investigation for potential deficiencies in AML controls and U.S. President Trump asserts control over independent regulatory agencies.
In the fast-paced world of sanctions, the EU adopts its 16th sanctions package against Russia and is set to ease Syria sanctions on energy and transport.
In the corruption space, the 2024 Corruption Perceptions Index (CPI) reveals that global corruption levels remain alarmingly high.
We round off this week's roundup with an opportunity to register for our upcoming webinar, “The Future of KYC Remediation – Challenges and Priorities.”
KYC & AML
Barclays under investigation for potential deficiencies in AML controls
Barclays is under investigation by the UK's Financial Conduct Authority (FCA) for potential deficiencies in its AML controls. The investigation focuses on the historical oversight and management of high-risk clients.
U.S. President Trump asserts control over independent regulatory agencies
U.S. President Donald Trump has signed an executive order increasing White House control over independent regulators, including the Securities and Exchange Commission (SEC), Federal Trade Commission (FTC) and Federal Communications Commission (FCC). Agencies must submit draft regulations for review and follow new performance standards. The Federal Reserve’s supervisory role is included, though monetary policy remains exempt. Critics argue the move undermines regulatory independence, while supporters claim it ensures accountability.
Austria investigates large campaign donation to Germany's AfD
Austrian authorities are investigating a €2.35 million donation to Germany's far-right Alternative for Germany (AfD) party. The funds which reportedly were sent by former Austrian Freedom Party official Gerhard Dingler, are suspected to have originated from German-Swiss billionaire Henning Conle. The party denies any wrongdoing and faces a €7 million fine if the donation is found to violate rules.
FinCEN extends BOI reporting deadline
Following a federal court decision reinstating the Corporate Transparency Act, the Financial Crimes Enforcement Network (FinCEN) has extended the Beneficial Ownership Information (BOI) reporting deadline by 30 days from February 19, 2025, with the new deadline on March 21, 2025. FinCEN has stated it may revise the rule to reduce burdens for low-risk entities.
UK Gambling Commission highlights AML deficiencies
The UK Gambling Commission has identified significant shortcomings in AML practices within the gambling industry. Operators often fail to adequately assess customer data, relying heavily on self-reported information and insufficient verification methods. Additionally, the rise of AI-generated fake identification documents and increased cryptocurrency transactions pose new challenges.
Heathrow passenger charged after £400,000 cash discovery
Austrian national Broomand Nasab, 41, was arrested at Heathrow Airport after authorities discovered £400,000 in cash concealed within his suitcase
FCA fines Mako £1.66 million for financial crime controls failures
The FCA has fined Mako Financial Markets Partnership LLP £1.66 million for inadequate financial crime controls related to cum-ex trading. Between December 2013 and November 2015, Mako executed over-the-counter equity trades totalling approximately £92 billion in Danish and Belgian stocks for clients of the Solo Group. The FCA identified these circular trades as highly suggestive of financial crime.
Sanctions
EU adopts 16th sanctions package against Russia
The European Union has approved its 16th sanctions package against Russia, coinciding with the third anniversary of Russia's invasion of Ukraine. This package includes a ban on primary aluminium imports, restrictions on 73 vessels in Russia's "shadow fleet," and the disconnection of 13 Russian banks from the SWIFT system.
EU plans to ease Syria sanctions on energy and transport
The European Union plans to suspend sanctions on Syria's energy and transport sectors. This move follows the ousting of President Bashar al-Assad in December. EU foreign ministers are set to discuss the proposal on February 24.
Corruption
2024 Corruption Perceptions Index highlights global challenges
Transparency International's 2024 Corruption Perceptions Index (CPI) reveals that global corruption levels remain alarmingly high. Denmark, Finland and Singapore top the list as the least corrupt nations, while South Sudan, Somalia and Venezuela rank the lowest.
KYC360 News
Webinar: The Future of KYC Remediation
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📅 Date: 27th February 2025
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