Top stories this week:
FCA Urges Brokers to Tighten Money Laundering Safeguards | Vietnam Dismantles $1.2 Billion Money Laundering Network
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 UK’s Financial Conduct Authority (FCA) urged brokers to tighten their money laundering safeguards. Also, Vietnam dismantled a $1.2 billion money laundering network and U.S. President Trump launched a crypto task force to develop new digital asset regulations.
In the fast-paced world of sanctions, U.S. President Trump threatened fresh sanctions against Russia.
In the corruption space, Ukraine's top military psychiatrist was arrested in a $1 million corruption scandal.
We round off this week’s roundup with an opportunity to view our guide to effective Politically Exposed Person (PEP) Screening.
KYC & AML
FCA urges brokers to tighten money laundering safeguards
The FCA has urged wholesale brokers to strengthen their AML measures after a recent review revealed that firms often underestimate their exposure to money laundering risks. The review also found that firms overly rely on others in the transaction chain for due diligence and lack sufficient information sharing. The FCA emphasised the necessity for firms to regularly assess and enhance their controls to effectively combat financial crime
Vietnam dismantles $1.2 billion money laundering network
Vietnamese police in Da Nang dismantled a money laundering ring that had processed over $1.2 billion through online gambling platforms. The operation involved a criminal group that facilitated illegal transfers from abroad into Vietnam and established 187 shell companies and 600 corporate bank accounts. Authorities seized numerous assets, including luxury vehicles and significant cash.
U.S. President Trump launches crypto task force to develop new digital asset regulations
U.S. President Donald Trump has signed an executive order establishing a cryptocurrency working group to develop new digital asset regulations and consider creating a national cryptocurrency reserve. The order mandates protection of banking services for crypto companies and prohibits the development of a U.S. central bank digital currency (CBDC). This move aligns with Trump's campaign promise to promote digital asset adoption.
FCA highlights gaps in real-time fraud checks among UK financial firms
The FCA reviewed 13 firms’ use of the National Fraud Database (NFD) to detect money mule accounts. It revealed that only one firm conducted real-time customer checks after onboarding. The FCA has urged payment services and account providers to reassess their systems and controls to better detect and prevent fraud through proactive monitoring.
FinCEN leads international summit to tackle environmental crime
The U.S. Financial Crimes Enforcement Network (FinCEN) hosted a virtual summit with financial intelligence units (FIUs) from Brazil, Colombia, Ecuador, Guyana, Peru and Suriname to combat transnational criminal organisations profiting from environmental crimes in the Amazon. Discussions covered illegal deforestation, mining, wildlife trafficking and related illicit financial activities.
Singaporean man charged for falsifying documents in S$3 billion money laundering case
Wang Junjie, a naturalised Singaporean has been charged for aiding a S$3 billion money laundering scheme. He faces 15 charges, including forging documents and falsifying accounts to help foreigners in Singapore's largest money laundering case. This follows earlier charges against two ex-bankers in August 2024.
Sanctions
U.S. President Trump threatens fresh sanctions against Russia
U.S. President Donald Trump warned Russia of impending sanctions and tariffs if a peace agreement to end the Ukraine conflict isn't reached promptly. He emphasised Russia's economic struggles and urged President Vladimir Putin to negotiate.
Corruption
Ukraine's top military psychiatrist arrested in $1 million corruption scandal
Ukrainian authorities arrested its army's chief psychiatrist, Oleh Druz, for allegedly accepting $1 million in bribes to issue false military exemptions since the start of Russia’s invasion. Druz is accused of concealing assets, including multiple properties and luxury cars. A raid on his home uncovered substantial cash holdings.
KYC360 News
Guide: Politically Exposed Person Screening
Our latest article dives into the challenges of identifying PEPs, the consequences of non-compliance and how automated technology is transforming PEP screening.
Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.
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