KYC360 Weekly Roundup - 21st Jul 2023

Published on Jul 21, 2023

Fed fines Deutsche Bank

Welcome to this week’s AML Roundup. In our anti-money laundering news this week, the US Federal Reserve fines Deutsche Bank $186m over historic AML failings. The IMF issues a report indicating that current AML rules are insufficient to stop crypto currency tax evasion and there’s also news about the ex-President of Panama who’s been jailed for 10 years for money laundering offences.

In legislation news, the HMRC has published its draft Finance Bill 2024. There’s news on ESG investment trends and the Irish Gambling Bill. In Crypto news, the UK treasury pushes back on calls to regulate crypto as gambling. There’s also news on the fraud implications of central bank digital currencies (CDBCs) and how Chinese authorities have broken up a major crypto money laundering ring.

To complete this week’s Roundup, we provide you with further money laundering, fraud, corruption and bribery updates from around the world. In addition, the latest news from the crypto and virtual assets sector and what’s new in gaming and gambling. We wrap up with some RiskScreen news and the announcement that the former head of the International Compliance Association, Bill Howarth, has joined the company as a strategic advisor.

 

Financial_ServicesMoney Laundering, Fraud & Corruption

US Federal Reserve fines Deutsche Bank $186m over AML failings

The ‘Fed’ has levied fines against Deutsche Banks New York branch and other US affiliates over historic sanctions and anti-money laundering (AML) weaknesses and control failures.

IMF report warns AML rules are inadequate to stop tax evasion in the crypto industry

The International Monetary Fund (IMF) have released a report on how crypto currencies should be taxed. It finds existing AML policies don’t go far enough to stop tax evasion in the fast-growing world of cryptocurrencies.

Panama’s ex-President jailed for money laundering

Ricardo Martinelli, Panama’s former President has been found guilty of money laundering and sentenced to 10 years in jail. The judge also fined him $19.2m (£14.7m).

 

RequirementsLegislation, Regulation and Sustainability

HMRC publishes draft Finance Bill 2024 and requests comments

New proposals include tougher proceedings against company directors involved in tax avoidance and doubling the maximum sentence for certain forms of tax fraud. The closing date for comments is 12 September 2023.

Investment trends heading towards ESG

Institutional investors are demonstrating a growing commitment towards ESG in their investment philosophies.

Apple launches iPhone ‘Tap to Pay’ in the UK

With launch partners Revolut and NatWest, Apple has introduced ‘Tap to Pay’ to the UK where iPhones can be used directly as payment terminals.

 

Gambling_GamingGaming and Gambling

Irish Gambling Regulation Bill includes advertising ban

In the latest version of the bill just published, the proposed advertising ban remains in full.

 

Crypto-1Crypto & Virtual Assets

UK Treasury rejects call for crypto to be regulated as gambling

Back in May, we reported on calls from an all-party parliamentary committee for consumer trading in crypto to be regulated as gambling. The UK Treasury has now pushed back on those proposals arguing that such an approach would put the UK at odds with international standards.

Decentralised Finance (DeFi) protocols in the US targeted in new money laundering legislation

Against a backdrop of growing money laundering in the cryptocurrency world ($23.8b in 2022), a new bi-partisan bill in the US will enforce stricter AML regulations on DeFi protocols. Investors contributing more than $25m to their development, will have to take responsibility. Here’s the announcement from one of the senators spearheading the effort.

The fraud implications of a Digital Euro

With the rise in interest around central bank digital currencies (CDBCs), the fraud implications need to be carefully managed. This article looks into some of the challenges.

Chinese authorities arrest 21 in connection with $55m USDT crypto money laundering ring

Investigators found individuals purchasing the USDT stablecoin at a low price and then selling it at higher prices through money laundering platforms to make significant illegal profits.

Kuwait bans virtually all forms of crypto transactions

Kuwait’s Capital Markets Authority (you may want to use an online translator to read the circular) on Tuesday has banned virtually all operations involving cryptocurrencies.

 

Sanctions-1Sanctions

UK Sanctions Russians involved in forced relocation of Ukrainian children

The UK has imposed 14 further sanctions in response to Russias attempts to destroy Ukrainian national identity.

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