Top stories this week:
FATF Considers Blacklisting Russia | TD Bank Staff Openly Joked About Lack of Adequate Compliance Controls
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, the FATF is considering blacklisting Russia. Also, TD Bank staff openly joked about a lack of adequate compliance controls, while a new report revealed that Citigroup is struggling to train staff in compliance, risk and data roles.
In the fast-paced world of sanctions, the UK announced sanctions against Russian oil tankers and LNG vessels and the EU applied fresh sanctions against Iran for supplying missiles to Russia.
In the corruption space, the heads of two Italian tech firms face a corruption investigation and an Israeli billionaire was arrested in Greece over corruption charges.
We round off this week’s roundup with an opportunity to register for our exclusive complimentary breakfast event in the Cayman Islands, where you can learn more about the role of integrated digital KYC in remediation and data cleansing.
KYC & AML
FATF considers blacklisting Russia
The Financial Action Task Force (FATF) is considering blacklisting Russia in response to Ukraine’s push to increase economic pressure. Following Russia’s suspension from FATF after the invasion of Ukraine, concerns have emerged over its potential involvement in facilitating arms transfers. The decision would further isolate Russia’s financial system and require all jurisdictions to conduct enhanced due diligence when dealing with Russia. Only four countries in the world have this designation.
TD Bank staff openly joked about lack of adequate compliance controls
TD Bank is under fire after internal communications revealed employees joking about the institution’s insufficient AML controls. The lack of adequate controls eventually led to its record $3 billion fine from U.S regulators. Messages like “You guys really need to shut this down LOL,” in response to compliance failures were circulated among staff, raising serious concerns about the bank’s culture of compliance.
Citigroup struggles to adequately train staff in risk, compliance and data roles
A report from Reuters has revealed Citigroup’s internal shortcomings in adequately training staff in critical risk, compliance and data roles. Regulatory reviews have flagged a lack of essential skills among employees, which is hampering Citi’s compliance efforts. This has drawn additional regulatory scrutiny as the bank works to overhaul its internal processes.
ECB challenges Serbian bank takeover due to AML concerns
The European Central Bank (ECB) has objected to a Serbian bank’s attempted acquisition of an Austrian financial institution due to concerns over the Serbian bank’s AML practices. The ECB has demanded that the lender Alta Pay strengthen its AML compliance measures before the takeover of Austria’s Addiko Bank can proceed.
Former Monaco bankers convicted of money laundering
Five former Monaco bankers have been convicted for their role in laundering funds linked to Italian clients, including individuals with ties to organised crime. The case involved significant sums laundered through complex financial networks, leading to fines and suspended sentences for the bankers. The CEO of Havilland Monaco Bank was cleared of wrongdoing.
Sanctions
UK announces sanctions against Russian oil tankers and LNG vessels
The UK has implemented sanctions targeting Russian oil tankers and LNG vessels as part of efforts to curtail funding for Russia’s war in Ukraine. The new measures restrict UK services from supporting the transport of Russian oil and liquefied natural gas and they specifically target a key source of Russian revenue.
EU applies fresh sanctions against Iran for supplying missiles to Russia
The EU has imposed sanctions on seven individuals and seven entities in Iran for their involvement in supplying ballistic missiles, drones and related technology to Russia.
Corruption
Heads of two Italian tech firms face corruption investigation
Reuters reports that Italian authorities are investigating the heads of Digital Value and Olidata for alleged corruption relating to public procurement contracts.
Israeli billionaire arrested in Greece over corruption charges
Israeli billionaire Beny Steinmetz was arrested in Greece following a Romanian-issued international warrant for his 2020 corruption conviction. Steinmetz was convicted in Romania for illicit land deals and sentenced to five years in prison, though he has denied the charges and appealed the ruling. After his arrest, Steinmetz was granted bail by Greek authorities.
KYC360 News
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Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.
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