Top stories this week:
Europol Report Finds that 86% of Criminal Networks Exploit Legal Business Structures | MENAFATF Unveils Strategic Plan to Combat Financial Crime in 2025
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, a Europol report found that 86% of criminal networks exploit legal business structures and the MENAFATF unveiled its strategic plan to combat financial crime in 2025.
In the fast-paced world of sanctions, the U.S. applied sanctions against a senior Hungarian Minister and RSF leader and the OFAC sanctions department was targeted by Chinese government hackers.
In the corruption space, Bangladeshi AML authority requested account details of UK Minister Tulip Siddiq and Ex-IMF chief Rodrigo Rato was sentenced to prison for corruption.
We round off this week’s roundup with a chance to share your views on KYC remediation and help shape the future of compliance.
KYC & AML
MENAFATF unveils strategic plan to combat financial crime in 2025
The Middle East and North Africa Financial Action Task Force (MENAFATF) convened in Jordan to activate its 2025 strategic plan, focusing on combating money laundering and terrorism financing. Key initiatives include supporting member states during Financial Action Task Force (FATF) evaluations, enhancing governance, completing FATF action plans, fostering international cooperation and addressing emerging financial crime risks.
Europol report finds that 86% of criminal networks exploit legal business structures
Europol's recent analysis highlights that 86% of the EU's most threatening criminal networks exploit legal business structures (LBS) to facilitate their operations and evade law enforcement. These groups infiltrate legitimate enterprises to launder money, conceal illicit activities and expand their influence within the economy.
Thailand tightens AML measures following UN report
Thailand's central bank and Anti-Money Laundering Office (AMLO) are tightening regulations after a UN report alleged Thai financial institutions facilitated arms purchases for Myanmar's junta. Although no evidence was found, authorities are intensifying anti-money laundering and counter-terrorism financing efforts to strengthen oversight and prevent exploitation of the financial system. These measures aim to address vulnerabilities highlighted in the international report.
Sanctions
U.S. imposes sanctions against senior Hungarian Minister and RSF leader
The U.S. has imposed sanctions on Antal Rogán, Hungarian Prime Minister Viktor Orbán's chief of staff, for allegedly orchestrating systemic corruption. It has also sanctioned Abdel Rahman Souleiman, a leader of the Rapid Support Forces (RSF) in Sudan, for human rights abuses. These sanctions freeze their U.S. assets and bar American entities from dealings with them.
OFAC sanctions department targeted by Chinese government hackers
U.S. officials stated that Chinese government hackers breached the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) and Office of Financial Research, accessing unclassified documents and workstations. The hackers were able to gain access through a compromised third-party cybersecurity service provider, BeyondTrust. China has denied any involvement.
Bermuda company fined for AML and sanctions failures
The Bermuda Monetary Authority (BMA) has fined Meritus Trust Company Limited $600,000 for failing to comply with AML and anti-terrorist financing (ATF) regulations. This marks the first sanctions-related fine issued by a British Overseas Territory in nearly a decade.
Corruption
Ex-IMF chief Rodrigo Rato sentenced to prison for corruption
Former IMF chief Rodrigo Rato has been sentenced to four years and nine months in prison by a Madrid court for corruption-related offences. This adds to his prior conviction for embezzlement during his time as chairman of Bankia.
Bangladeshi AML authority requests account details of UK Minister Tulip Siddiq
The Bangladesh Financial Intelligence Unit (BFIU) has instructed banks to provide transaction details for accounts linked to City Minister Tulip Siddiq and her family. This request follows allegations of embezzlement involving the former ruling family of Bangladesh. Siddiq, whose aunt Sheikh Hasina was ousted as Bangladesh's prime minister, denies any wrongdoing and has referred herself to the UK's adviser on ministerial standards for an independent investigation.
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