Top stories this week:
Klarna Fined $46 million for AML Failings | Australia Set to Restrict Public Access to Incoming Beneficial Ownership Registry
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, Klarna was fined $46 million for AML failings. Also, Australia announced it will restrict public access to its incoming beneficial ownership registry and the Exchange Bank of Canada was fined $2.46 million for failing to report suspicious transactions.
In the fast-paced world of sanctions, the EU imposed sanctions on Russia’s ‘shadow fleet’ of oil tankers and the UN set out its conditions for removing the terrorist designation from Syrian rebel group HTS.
In the corruption space, Israeli Prime Minister Benjamin Netanyahu testified for the first time in his corruption trial.
We round off this week’s roundup with a chance to watch the full replay of our latest webinar, “How Financial Institutions Can Comply and Outperform: Lessons from F1.”
KYC & AML
Klarna fined $46 million for AML failings
The BNPL (Buy Now Play Later) provider was fined by the Swedish regulator for lacking risk assessments into how its services could be used for money laundering or terrorist financing. It also failed to have comprehensive procedures and guidelines in place for when due diligence measures should be taken for customers using Klarna’s services.
Australia set to restrict public access to incoming beneficial ownership registry
Australia is introducing new beneficial ownership reporting requirements as part of an AML regime overhaul. These reforms, led by AUSTRAC, aim to enhance compliance and oversight of high-risk sectors like real estate, law and accounting. Businesses must identify and verify beneficial owners, defined as individuals with at least 25% ownership or control. Public access to the register will be limited to law enforcement agencies, regulators, journalists and academics.
Exchange Bank of Canada fined $2.46 million for failure to report suspicious transactions
Canada's financial watchdog FINTRAC, cited AML violations by Exchange Bank of Canada, including failure to submit suspicious transaction reports, inadequate monitoring of business relationships, and not reporting large cash transactions. The bank has appealed the decision.
Ex-EU justice commissioner Didier Reynders accused of money laundering through lottery scam
Former EU Justice Commissioner Didier Reynders is under investigation by Belgian authorities for alleged money laundering through the National Lottery. He reportedly purchased large amounts of lottery tickets with cash over a decade, with winnings transferred to his personal accounts. Police searches of his properties uncovered thousands of euros in cash. Reynders denies the allegations.
FBI warns of rising AI-driven financial fraud schemes
The FBI has warned that criminals are increasingly exploiting generative AI to enhance financial fraud schemes, making them more convincing and widespread. Tactics include using AI-generated text for phishing emails and fake social media profiles, creating realistic images for fraudulent identification and using voice cloning to impersonate trusted individuals.
Sanctions
EU imposes sanctions on Russia’s ‘shadow fleet’ of oil tankers
The EU has approved its 15th sanctions package against Russia, targeting approximately 50 vessels in the "shadow fleet" used to circumvent oil transport restrictions. These measures aim to disrupt Russia's oil trade and include sanctions on individuals and entities aiding Russia's military capabilities.
UN could remove terrorist designation from Syrian rebel group HTS
The United Nations is considering removing Hayat Tahrir al-Sham (HTS) from its terrorist list, contingent upon the group forming an inclusive transitional government in Syria. UN Special Envoy Geir Pedersen emphasised that HTS cannot govern Syria as it did in Idlib and must demonstrate inclusivity toward all Syrian communities.
Corruption
Benjamin Netanyahu testifies for the first time in corruption trial
Israeli Prime Minister Benjamin Netanyahu has testified for the first time in his ongoing corruption trial. He faces charges of bribery, fraud and breach of trust. He dismissed the allegations as an "ocean of absurdity" and criticised the media and investigators. The trial has been delayed multiple times due to security concerns and the ongoing conflict in Gaza.
KYC360 News
Webinar Replay: How Financial Institutions Can Comply and Outperform
Missed our recent webinar? The full replay is now available to watch on-demand. Gain insights from Stephen Platt, Founder of KYC360 and Tom Devlin, CCO at KYC360, on what financial institutions can learn from F1 to improve risk management and outperform.
Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.
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