Top stories this week:
Former Swedbank CEO Jailed for 15 months | U.S. Banks Report $688 million in Cheque Fraud Over Six Months | UK Prosecutes Individual for Running Unlicensed Crypto ATMs
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 former Swedbank CEO was jailed for 15 months, while U.S. banks reported $688 million in cheque fraud over six months and the UK prosecuted an individual for running unlicensed crypto ATMs.
In the fast-paced world of sanctions, Western countries applied fresh sanctions against Iran.
In the corruption space, former Glencore executives pleaded non-guilty to bribery charges and a UK corruption review identified red flags in over 130 Covid contracts.
We round off this week’s roundup with details of how KYC360 enabled VEON, a global digital operator that provides converged connectivity and digital services to nearly 160 million customers, to transform its screening and onboarding processes.
KYC & AML
Former Swedbank CEO jailed for 15 months
Birgitte Bonnesen, former CEO of Swedbank, has been sentenced to 15 months in prison for her role in a major money laundering scandal. Swedish courts found her guilty of misleading the public and regulators regarding the bank’s involvement in laundering billions through its Baltic operations. Her sentencing follows a lengthy investigation. Bonnesen continues to deny any wrongdoing in the case.
U.S. banks report $688 million in cheque fraud over six months
U.S. banks have reported $688 million in cheque fraud during a six-month period in 2023, according to a new report by FinCEN. The rise in fraudulent activity is linked to an increase in mail thefts used to forge and alter cheques.
FBI reports cryptocurrency scams surged by 45% in 2023
Cryptocurrency-related scams resulted in $5.6 billion of losses in 2023, representing a 45% increase from the previous year. Fraudsters primarily used investment schemes, phishing attacks and romance scams to exploit victims. The rise in cryptocurrency scams reflects the growing complexity and sophistication of cybercriminals in targeting digital assets, leading to significant financial losses for both individual investors and companies.
Klarna faces potential AML probe
Swedish fintech giant Klarna faces scrutiny from the Swedish Financial Supervisory Authority (FSA) over its AML measures. The regulator criticised Klarna for failing to mitigate risks related to money laundering and terrorist financing as the company prepares for its initial public offering (IPO). The FSA's concerns could lead to a formal investigation, potentially affecting Klarna’s regulatory standing and future market ambitions.
UK prosecutes individual for running unlicensed crypto ATMs
In a landmark case, the UK has prosecuted an individual for operating unregistered cryptocurrency ATMs, marking the first charges for this type of offence. The Financial Conduct Authority (FCA) led the investigation, which uncovered illegal ATMs that facilitated unregulated crypto transactions. The case signals the UK’s growing crackdown on crypto-related crimes as it seeks to regulate the industry and prevent money laundering.
Australia unveils new AML legislation
Australia has introduced new anti-money laundering (AML) legislation targeting lawyers, accountants, TSCPs and real estate agents. The move aims to close regulatory gaps that have allowed money laundering activities to flourish. The new laws are part of a broader effort by the Australian government to strengthen financial crime controls and bring the country’s regulations in line with international standards, particularly following criticism from global watchdogs.
Sanctions
Western countries apply fresh sanctions against Iran
The UK, France, Germany and the U.S. have imposed new sanctions on Iran in response to its transfer of ballistic missiles to Russia. These sanctions target individuals and entities involved in Iran’s missile program and its support of Russia’s military efforts. The coordinated move by Western nations aims to curb Iran’s military capabilities and pressure Tehran to halt its cooperation with Moscow in the conflict against Ukraine.
Corruption
Former Glencore executives plead non-guilty to bribery charge
Several former executives from commodity trading giant Glencore have pleaded not guilty to bribery charges in a UK court. The executives are accused of paying bribes to secure oil contracts in various countries. This case is part of a broader investigation into Glencore’s activities, which has already led to substantial fines and settlements for the company in other jurisdictions.
UK corruption review identifies red flags in over 130 Covid contracts
A UK corruption review has revealed red flags in over 130 government contracts awarded during the Covid-19 pandemic, with a combined value of £15 billion. These contracts, which are mostly related to personal protective equipment (PPE) and other medical supplies, have raised concerns about procurement practices and potential conflicts of interest. Campaigners are calling for further investigations into the contracts, which may have involved improper political connections and fast-track approvals.
KYC360 News
How KYC360 transformed onboarding and screening processes for VEON
VEON, a global provider of connectivity and digital services in emerging markets, partnered with KYC360 to revolutionise its approach to third-party risk management, transforming its compliance practices into enablers of growth. See how our no-code platform freed up staff from manual rekeying of data, allowing them to focus on strategic objectives.
Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.
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