Top stories this week:
Elizabeth Warren Condemns DOJ’s Soft Stance on TD Bank Executives | UK Releases New Guidance for Fraud Prevention Measures |
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, Elizabeth Warren condemned the DOJ’s soft stance on TD Bank executives. Also, the UK released new guidance for fraud prevention measures and the FATF reported progress from South Africa in tackling its AML deficiencies.
In the fast-paced world of sanctions, the U.S. applied sanctions on the armed wing of a Mexican drug cartel and the UK applied sanctions against Russia’s military-industrial complex.
In the corruption space, French police investigated a Football League broadcasting deal.
We round off this week’s roundup with an exclusive opportunity to join Stephen Platt and Tom Devlin for a webinar that dives deep into the TD Bank scandal and the key lessons learned for financial institutions.
KYC & AML
Elizabeth Warren condemns DOJ’s soft stance on TD Bank executives
U.S. Senator Elizabeth Warren has criticised the Department of Justice (DOJ) for not prosecuting top executives of TD Bank following the bank's $3 billion settlement over significant AML failures. In a letter to Attorney General Merrick Garland, Warren argued that the DOJ's decision to charge the bank with conspiracy to launder money, rather than direct money laundering, allowed TD Bank to avoid harsher penalties.
UK releases new guidance for fraud prevention measures
The UK government has published guidance on the "failure to prevent fraud" offense, introduced under the Economic Crime and Corporate Transparency Act 2023. This offense holds large organisations criminally liable if an employee, agent, subsidiary, or associated person commits fraud intending to financially benefit the organisation. To avoid liability, organisations must demonstrate that they had reasonable fraud prevention measures in place at the time of the offence.
Wolfsberg Group appoints Ned Conway as new Executive Secretary
Ed Conway, formerly Head of Financial Crime Compliance Framework and Policies at Banco Santander, has been appointed as the new Executive Secretary of the Wolfsberg Group. Conway is a member of the ACAMS Advisory Board and his experience includes roles at the U.S. Department of Defense, PwC and Barclays. He succeeds Alan Ketley, who held the position since 2021.
South Africa makes progress in tackling AML deficiencies
The Financial Action Task Force (FATF) has acknowledged South Africa's progress in enhancing its AML and CFT measures. Since being greylisted in 2023, South Africa has addressed several technical compliance deficiencies. The country improved its ratings for Recommendations 2, 6, and 15 from partially compliant to largely compliant. As a result of this process, the country will hope to come off the FATF greylist in the next review.
Only 22% of UK law firms are fully compliant with AML rules
The Solicitors Regulation Authority (SRA) reported that only 22% of UK law firms inspected were fully compliant with AML regulations in the last year. Nearly double the previous year's firms faced enforcement actions, with common non-compliance factors including insufficient AML controls from senior executives, inadequate training, and lack of system automation for due diligence.
FCA secures convictions in £1.5 million crypto fraud case
The Financial Conduct Authority (FCA) has won a case against CCX Capital and Astaria Group in a £1.5 million crypto investment fraud scheme. Two individuals, Raymondip Bedi and Patrick Mavanga, were convicted for running a scam that falsely promised high returns on cryptocurrency investments.
Sanctions
U.S. applies sanctions on armed wing of Mexican drug cartel
The U.S. has sanctioned five Mexican nationals and two Mexico-based entities linked to La Línea, the armed wing of the Juárez Cartel. La Línea is responsible for trafficking fentanyl and other deadly drugs into the United States. This action, coordinated with the Drug Enforcement Administration and Mexico's Financial Intelligence Unit, aims to disrupt La Línea's operations and financial networks.
UK applies sanctions against Russia’s military-industrial complex
The UK has imposed a significant sanctions package against Russia’s military-industrial network and three Kremlin-linked mercenary groups operating in Africa. The 56 sanctioned entities and individuals support Russia’s war efforts, supplying vital equipment, including drone and microelectronics components. The sanctions aim to counter Russia’s influence and human rights abuses in Libya, Mali and the Central African Republic.
Corruption
French police investigate Football League broadcasting deal in corruption probe
French police raided the offices of the French Football League (LFP) and CVC Capital Partners as part of a corruption investigation concerning their broadcasting rights deal. The investigation examines allegations of corruption and embezzlement linked to CVC's €1.5 billion investment for a 13% stake in the LFP’s media rights subsidiary.
KYC360 News
Webinar: Lessons From TD Bank and How to Avoid Billion Dollar Fines
Join Stephen Platt, founder and CEO at KYC360 and Tom Devlin, co-founder and CCO at KYC360, as they deep dive into the $3 billion fine imposed on TD Bank for major AML compliance failures. Stephen is a renowned authority in financial crime prevention and he will share key insights on the lessons learned from this case and the broader industry implications.
📅 Date: 25th November 2024
🕒 Time: 3:00pm - 4:00pm (UK Time/GMT)
Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.
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