Top stories this week:
FDIC Acting Chairman Urges FinCEN to Ease Customer Onboarding Rules | MONEYVAL Assesses Guernsey's AML Measures in New Report
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, FDIC Acting Chairman urged FinCEN to ease customer onboarding rules, while MONEYVAL released its latest AML assessment of Guernsey.
In the fast-paced world of sanctions, the OFSI warned of Russian sanctions evasion in the financial services sector and the U.S. imposed sanctions against an Iranian oil network.
In the corruption space, U.S. President Trump suspended enforcement of U.S. foreign bribery law and Syria's new leadership began to target Assad-linked business elites.
We round off this week's roundup with our latest article, "Trump 2.0: Assessing the Impact on the Regulatory Landscape.”
KYC & AML
FDIC Acting Chairman urges FinCEN to ease customer onboarding rules
Acting FDIC Chairman Travis Hill has urged FinCEN to revise its Customer Identification Program (CIP) rules, allowing banks to collect only part of a customer's Social Security number (SSN) when opening accounts. He argued that fintech firms already use similar verification methods with third-party validation and that aligning bank regulations with modern onboarding processes is overdue
MONEYVAL assesses Guernsey's AML measures in new report
MONEYVAL has praised Guernsey's efforts in combating money laundering and terrorist financing but urged enhancements in enforcement. The report acknowledged Guernsey's strong risk awareness and use of targeted financial sanctions but identified gaps in money laundering prosecutions and law enforcement's use of financial intelligence. The Guernsey Financial Services Commission welcomed the findings, emphasising its commitment to further strengthening the jurisdiction's financial crime framework.
The Wolfsberg Group elects new co-chair
Emma Molvidson, Global Head of Financial Crime Prevention at UBS, has been elected as the new co-chair of The Wolfsberg Group. She succeeds Joseph Salama of Deutsche Bank. Co-chair Jennifer Shasky Calvery welcomed her leadership, highlighting her legal and investment banking expertise. The Wolfsberg Group is an association of global banks that develops financial crime compliance standards and guidance to combat money laundering and illicit finance.
Mastercard launches AI-driven AML tool to combat financial crime
Mastercard has launched TRACE, an AI-powered AML solution aimed at enhancing transaction monitoring and risk detection in the Asia-Pacific region. The tool leverages advanced analytics to help financial institutions identify illicit fund flows more effectively.
Sanctions
OFSI warns of Russian sanctions evasion in financial services sector
The UK's Office of Financial Sanctions Implementation (OFSI) has identified significant threats to financial sanctions compliance in its new Financial Services Threat Assessment. The report finds Russian designated persons are increasingly relying on both professional and non-professional enablers to circumvent UK sanctions, often through alternative payment methods like cryptoassets.
U.S. imposes sanctions against Iranian oil network
The U.S. has sanctioned a global network facilitating Iranian oil sales worth hundreds of millions of dollars, benefiting Iran's Armed Forces General Staff and its front company, Sepehr Energy. The shipments, directed to China, were enabled by entities in the UAE and India. Treasury officials stressed that Iran uses oil revenues to support its nuclear program, missile production, and terror groups.
Corruption
U.S. President Trump suspends enforcement of U.S. foreign bribery law
President Trump has issued an executive order pausing enforcement of the Foreign Corrupt Practices Act (FCPA), which prohibits U.S. companies from bribing foreign officials. The administration argues the law puts American businesses at a disadvantage globally. Critics warn the move could weaken anti-corruption efforts and embolden corporate misconduct. The suspension marks a major shift in U.S. policy.
Syria's new leadership targets Assad-linked business elites
Syria's new leadership is increasing pressure on business figures linked to President Bashar al-Assad. Reports suggest officials are scrutinising key figures who have long benefited from state-backed monopolies and illicit financial networks.
KYC360 News
Trump 2.0: Assessing the Impact on the Regulatory Landscape
How will Donald Trump's second term impact the regulatory landscape? From shifting priorities in AML enforcement to a more crypto-friendly stance, financial institutions face growing uncertainty. In our latest blog, discover what's changing and how to stay ahead in this evolving environment.
Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.
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