Top stories this week:
Former Latvian Bank Boss Convicted for Ordering Murder of Whistleblower | Bank of America Faces AML scrutiny | Lebanon, Algeria, Angola, and Ivory Coast added to FATF grey list
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, a former Latvian bank boss was convicted for ordering the murder of a whistleblower. Also, Bank of America faced AML scrutiny and the FATF revised its grey listing.
In the fast-paced world of sanctions, the U.S. sanctioned hundreds of entities for aiding Russia’s war machine and the UK, EU and Canada applied sanctions against Myanmar’s military regime.
In the corruption space, Ukraine stepped up its campaign against corruption with payouts for whistleblowers.
We round off this week’s roundup with a chance to view the key takeaways from the record fine handed to TD Bank and the critical lessons for financial institutions.
KYC & AML
Former Latvian bank boss convicted for ordering murder of whistleblower
Mihails Ulmans, who was the former owner of LPB Bank, has been sentenced to 15 years for ordering the murder of whistleblower Mārtiņš Bunkus in 2018. Bunkus had investigated potential money laundering at the bank and was shot and killed in broad daylight. Ulmans, alongside his associate Aleksandrs Babenko, who was also sentenced to 15 years, are alleged to have offered €300,000 for the killing. The gunman, Viktor Krivoshey received a life sentence
Bank of America faces AML scrutiny
Bank of America faces increased scrutiny from U.S. regulators over potential AML compliance issues, including transaction monitoring and customer due diligence processes. The bank may enter into public enforcement agreements as part of its discussions with regulators and has already started enhancing its AML and sanctions compliance programs. While the bank does not anticipate a major financial impact, it could potentially face growth restrictions, with similar actions recently imposed on Wells Fargo.
Lebanon, Algeria, Angola and Ivory Coast added to FATF grey list
The FATF (Financial Action Task Force) has revised its grey list, adding Lebanon, Algeria, Angola, and Ivory Coast while removing Senegal. Argentina avoided grey listing, in a boost for President Javier Milei. Despite pressure from Ukraine, Russia was not added to the blacklist.
Singapore announces new AML strategy
Singapore has launched a comprehensive AML strategy aimed at enhancing regulatory oversight, particularly in cross-border transactions and bolstering asset recovery efforts. This national initiative includes risk-based approaches and revised frameworks to combat financial crime more effectively. Authorities aim to safeguard Singapore’s status as a global financial hub.
FATF considers changes to recommendations to promote financial inclusion
The FATF is considering changes to “Recommendation 1” of its 40 key recommendations. The aim is promote financial inclusion, focusing on proportionality in AML compliance. Proposed revisions target simplified measures for low-risk cases, replacing “commensurate” with “proportionate” language, and encourage non-face-to-face transactions where appropriate risk controls exist. The FATF has announced a global consultation on these changes.
Tether denies reports of AML investigation
Tether’s CEO denied reports of a U.S. investigation into the world's largest stablecoin company for alleged AML and sanctions violations, following a Wall Street Journal report suggesting that U.S. authorities were probing Tether's practices. Tether faces longstanding scrutiny due to its widespread use in criminal transactions.
European authorities dismantle criminal network accused of €113 million VAT fraud
European authorities dismantled a criminal network allegedly involved in a €113 million VAT fraud scheme utilising a Chinese underground banking system to launder funds across Europe. Led by the European Public Prosecutor’s Office (EPPO), the investigation targeted the network's activities in Italy, where funds were transferred illicitly from European businesses to Chinese accounts.
FINTRAC warns of lawyers potentially aiding money laundering
Canada’s financial intelligence agency, FINTRAC, has issued a warning about the role self-regulated lawyers may play in facilitating money laundering as the sector is exposed to high volumes of funds. Without the same compliance requirements as other sectors, these legal professionals could inadvertently enable illicit financial flows and FINTRAC has noted the role of legal professionals in money laundering schemes.
Sanctions
U.S. sanctions hundreds of entities and individuals for aiding Russia’s war machine
The U.S. has imposed sanctions on nearly 400 entities and individuals across more than a dozen countries, accusing them of aiding Russia's war efforts by providing advanced technology and circumventing restrictions. These sanctions target global networks linked to nations like China, India, and Turkey.
UK, EU and Canada apply sanctions against Myanmar’s military regime
The UK, EU, and Canada have imposed new sanctions on Myanmar’s military regime and associated entities, targeting the supply of aviation fuel and restricted goods to the military. These sanctions aim to hinder the regime's capacity for airstrikes, which have led to civilian casualties.
Corruption
Ukraine steps up campaign against corruption with payouts for whistleblowers
Ukraine has intensified its anti-corruption efforts by introducing financial rewards for whistleblowers who report corruption. This initiative incentivises individuals to disclose illicit activities within government or military structures.
KYC360 News
Key takeaways from TD Bank’s record fine for AML failures
TD Bank’s record $3 billion fine sent shockwaves across the financial industry. Analyse the bank’s specific failings and see the key lessons learned for financial institutions.
Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.
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