Top stories this week:
Luxembourg Bank Fined €25 million in 1MDB scandal | UAE Central Bank Imposes Fines on Foreign Bank Branches
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 Luxembourg bank is fined €25 million for its involvement in the 1MDB scandal and the UAE central bank imposes fines on two foreign bank branches.
In the fast-paced world of sanctions, the EU lifts economic sanctions against Syria.
In the corruption space, the Slovak central bank governor is convicted of bribery.
We round off this week’s roundup with our Spotlight Report which highlights the key AML and KYC vulnerabilities for Trust and Corporate Service Providers (TCSPs).
KYC & AML
Luxembourg bank fined €25 million in 1MDB scandal
Edmond de Rothschild Europe has become the first Luxembourg bank convicted of money laundering, agreeing to a €25 million fine. The case relates to the Malaysian 1MDB fund, where the bank was implicated in processing illicit funds.
UAE central bank imposes fines on foreign bank branches
The UAE Central Bank has fined two foreign bank branches a total of Dh18.1 million (approximately £3.66 million) for violating AML regulations. The penalties, amounting to Dh10.6 million and Dh7.5 million, were imposed for violations and failures to comply with AML regulations. The banks were not named.
Turkey detains fintech executives in illegal betting and laundering probe
Turkish authorities have detained 13 individuals, including the founder of fintech firm Papara, over allegations of facilitating illegal online betting and money laundering. Investigators claim that over 26,000 accounts processed transactions totalling 12.9 billion Turkish lira.
UK experiences surge in fraud cases and losses
UK Finance reported a 12% increase in fraud cases in 2024, totalling 3.31 million incidents. Losses from unauthorised fraud reached £722 million, while authorised push payment fraud accounted for over £450 million.
French minister suggests eliminating cash to combat drug trade
French Justice Minister Gérald Darmanin has proposed phasing out cash transactions to hinder drug dealing operations, suggesting that digital payments would make illicit activities more traceable. However, the proposal has faced criticism and concerns over feasibility.
Report calls for overhaul of UK fraud policing
A report by the Police Foundation revealed that UK police forces are under-resourced and lack the necessary skills to effectively tackle fraud, which now constitutes 43% of all crimes. The report recommends establishing a national crime prevention agency and mandating data sharing between private companies and law enforcement.
Sanctions
EU lifts sanctions against Syria
The European Union announced the lifting of most economic sanctions on Syria to support the country’s political transition and reconstruction efforts.
Corruption
Slovak central bank governor convicted of bribery
Peter Kažimír, Slovakia’s central bank governor and European Central Bank policymaker, was convicted of bribery and fined €200,000. The conviction relates to a €48,000 bribe paid during his tenure as Minister of Finance. Kažimír denies the charges and plans to appeal.
KYC360 News
Spotlight Report: Trust & Corporate Service Providers
Trust and Corporate Service Providers (TCSPs) face increasing pressure as money laundering risks evolve and regulatory expectations tighten. Our latest spotlight report explores where TCSPs are most vulnerable and how firms can strengthen their KYC and AML frameworks.
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Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.
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