KYC360 Weekly Roundup - 12th July 2024

Published on Jul 12, 2024

Top stories this week: 

Citigroup Fined $136m for Failure to Fix Compliance Issues | ANZ Calls for Standardisation of Processes for Banks in the Pacific Region

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 top stories feature Citigroup being handed a $136m fine for failing to fix compliance issues, ANZ calling for a standardisation of processes for banks in the Pacific region and BNP Paribas receiving a €3 million fine from the Luxembourg regulator for AML breaches.  

In the fast-paced world of sanctions, Switzerland announces fresh sanctions against Russia.  

In the corruption space, Indonesia sentences former agriculture minister to 10 years for corruption. 

We round off this week’s roundup with an opportunity to view key takeaways from our latest “Comply and Outperform” webinar. 

Financial_ServicesKYC & AML

Citigroup fined $136m for failure to fix compliance issues  
The fine was handed out by U.S. regulators for failing to address compliance issues and it represents a major setback for CEO Jane Fraser who has been working on an overhaul of the bank's controls. The bank has failed to improve significant deficiencies in their risk management and internal controls which were first identified in 2020. 

ANZ calls for standardisation of processes for banks in the Pacific region  
ANZ Bank CEO Shayne Elliott has called for standardised banking regulations across the Pacific region to reduce operational risks and costs. Addressing the Pacific Banking Forum, Elliott emphasized that consistent regulations would make the region more attractive for banking providers and support economic growth. 

BNP Paribas receives €3 million fine from Luxembourg regulator for AML breaches
The fine follows a 2021 inspection revealing significant breaches, including inadequate due diligence and failure to report suspicious transactions. BGL BNP Paribas cooperated with the investigation and has implemented corrective measures to address these issues. 

Chief compliance officer leaves TD Bank
TD Bank's Chief Compliance Officer, Monica Kowal, has departed amidst a major AML probe. Kowal, who joined in 2017, is succeeded by Erin Morrow, former Deputy Chief Compliance Officer. This change occurs as TD faces scrutiny from U.S. regulators and the Justice Department and works to remedy its AML deficiencies.  

Hong Kong fines DBS HK$10 million for AML breaches 
The violations included failing to continuously monitor business relationships and conduct enhanced due diligence in high-risk situations over a seven-year period. DBS acknowledged the issues were historical and stated it has since implemented improvements to its AML control.

U.S. Treasury Secretary Yellen pushes back on calls to extend beneficial ownership deadline
U.S. Treasury Secretary Janet Yellen rejected calls to delay the deadline for businesses to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). Despite concerns from Republican lawmakers about the burdensome nature of the new requirements, Yellen emphasised the importance of compliance to combat financial crimes. 

Crypto firm Payeer fined €9.3 million by Lithuania for sanctions breaches
The fine was imposed after Payeer was found to have facilitated transactions for sanctioned individuals and entities.

SanctionsSanctions

Switzerland announces fresh sanctions against Russia 
The measures align with the EU's recent package of sanctions and include an advertising ban on certain Russian media outlets. 

CryptoCorruption

Indonesia sentences former agriculture minister to 10 years for corruption  
Former Indonesian Agriculture Minister Syahrul Yasin Limpo was sentenced to 10 years in prison for corruption, including extortion, abuse of power, and bribery involving ministry contracts.  

Resources

KYC360 News

Mastering High Risk Relationships Effectively to Outperform: Key Takeaways 
See the key takeaways from our latest webinar with Stephen Platt, Founder of KYC360, Tom Devlin, CCO at KYC360, and Nick Lewis, Managing Director, High Risk Client Unit at Standard Chartered Bank. Learn how managing high risk relationships effectively becomes a competitive advantage allowing you to do more, better business faster. 
Read more

 

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