Top stories this week:
FATF Sets Out New Criteria for ‘Grey Listing’ | FCA Takes Action Cgainst “Finfluencers” | UK Banks Call for Social Media Companies to do More in Fight Against Fraud
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, the FATF has set out new criteria for the ‘grey listing’ of countries. Also, the FCA has taken action against “finfluencers” and UK banks have called for social media companies to do more in the fight against fraud.
In the fast-paced world of sanctions, a Turkish bank faces U.S. prosecution over Iran sanctions charges.
In the corruption space, the ex-President of Peru was jailed for over twenty years for corruption and the ex-President of Albania was detained on corruption charges.
We round off this week’s roundup with a chance to view the key takeaways from the Annual KYC360 Forum.
KYC & AML
FATF sets out new criteria for ‘grey listing’
The Financial Action Task Force (FATF) has introduced revised grey listing criteria focused on prioritising countries that pose higher financial risks. Grey listing is a designation where a country is subject to increased monitoring and regulation as a result of AML/CFT failings. The new guidelines will mean that smaller countries will not be automatically grey listed if they fail to meet FATF criteria, unless members agree that the country poses a significant money laundering or terrorist financing risk.
FCA takes action against “finfluencers”
The UK’s Financial Conduct Authority (FCA) has launched targeted action against social media “finfluencers” suspected of promoting misleading or scam-related financial content. The initiative includes interviews with 20 influencers under caution, part of a broader crackdown on social media-based financial misinformation. The FCA aims to protect consumers from deceptive online financial advice and schemes.
UK banks call for social media companies to do more in fight against fraud
UK banks are urging social media platforms to step up efforts in combating fraud, suggesting tighter controls and improved cooperation. Banks have faced increasing pressure to protect customers, arguing that social media giants should share the burden in preventing online fraud and financial crime.
FinCEN issues alert on countering Hezbollah financing
FinCEN has issued an alert urging financial institutions to enhance efforts to detect and counter Hezbollah’s financing activities. The alert includes a detailed checklist for identifying suspicious transactions tied to Hezbollah, focusing on charitable organizations and trade-based money laundering schemes. Hezbollah is a U.S.-designated Foreign Terrorist Organisation (FTO).
UAE and Ireland sign bilateral extradition agreements
The UAE and Ireland have signed bilateral treaties focused on extradition and mutual legal assistance in criminal matters, strengthening cooperation in fighting organised crime. These landmark agreements will facilitate the exchange of suspects and enhance legal collaboration between the two countries.
FATF expected to add Lebanon to ‘grey list’
Lebanon is set to be added to the FATF’s grey list this week due to concerns over money laundering and terrorist financing. The decision reflects growing international scrutiny of Lebanon’s financial systems, as the country struggles with a deteriorating economy and political instability. The FATF’s grey listing could further strain Lebanon’s banking sector by limiting access to global financial markets.
Sanctions
Turkish bank faces prosecution over Iran sanctions charges
The U.S. Appeals Court has ruled that Turkey’s Halkbank can be prosecuted over allegations of evading U.S. sanctions on Iran. The charges stem from Halkbank’s role in a scheme to transfer billions of dollars to Iran. The ruling confirms that the case will proceed despite Halkbank’s claims of immunity as a state-owned entity, marking a significant development in the long-running legal battle.
Corruption
Ex-President of Peru jailed for over twenty years for corruption
Former Peruvian President Alejandro Toledo has been sentenced to over twenty years in prison for accepting $35 million in bribes from Brazilian construction giant Odebrecht. The bribes were connected to infrastructure projects during his presidency, as part of the broader “Car Wash” corruption scandal. Toledo’s conviction underscores Peru’s ongoing efforts to address high-level corruption in politics, following a series of prosecutions of former political leaders.
Ex-President of Albania detained on corruption charges
Former Albanian President Ilir Meta has been detained on charges of corruption and abuse of office. Meta is accused of receiving bribes and embezzling public funds during his time in office. He has denied the charges, framing the prosecution as politically motivated.
KYC360 News
Annual KYC360 Forum: Key Takeaways
Earlier this month, we welcomed experts and thought leaders to speak at the Annual KYC360 Forum. They gave unique actionable insights on how to derive the greatest benefits from AML/KYC adherence and translate these into positive operational outcomes.
Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.
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