Top stories this week:
MONEYVAL Gives Positive Appraisal of Jersey in Combating Money Laundering | Coinbase Fined £3.5 million for AML Failings
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, MONEYVAL gave Jersey a positive appraisal in combating money laundering, the ECB pushed Revolut to improve financial crime controls and the FCA fined Coinbase £3.5 million for AML failings.
In the fast-paced world of sanctions, Australia imposed sanctions on 7 Israeli individuals and a youth group while the EU council renewed their sanctions against Russia.
In the corruption space, the UK is set to appoint a “corruption Tsar” to recoup billions from Covid fraud and a new report finds that most Europeans believe corruption is widespread in their country.
We round off this week’s roundup with details of the Annual KYC360 Forum in Jersey.
KYC & AML
MONEYVAL gives positive appraisal of Jersey in combating money laundering
MONEYVAL praised Jersey's enhanced legal and regulatory measures to fight money laundering and terrorist financing. Its report highlighted Jersey's significant improvements since the last evaluation but noted the need for better implementation in certain areas. Jersey Minister for Financial Services, Deputy Ian Gorst, stated, "This report demonstrates Jersey’s ongoing commitment to complying with international standards.”
ECB pushes Revolut to improve financial crime controls
The European Central Bank (ECB) is urging Revolut to improve its financial crime controls after a recent review identified several shortcomings. The fintech company has been under direct EU supervision since January 2024 and it recently received its UK banking license.
Coinbase fined £3.5 million for AML failings
The £3.5 million fine was handed out by the UK's Financial Conduct Authority (FCA) to Coinbase Payments Limited (CBPL) due to inadequate anti-money laundering (AML) controls. This is the FCA’s first enforcement action against a crypto trading platform.
FCA calls for improvements in treatment of PEPs
The Financial Conduct Authority (FCA) has urged financial institutions to enhance their treatment of politically exposed persons (PEPs) and their families. Recommendations include aligning PEP definitions with legal requirements, reassessing PEP status promptly, effective communication, proportional risk assessment and better staff training.
LexisNexis releases Cost of Compliance Report
LexisNexis Risk Solutions surveyed 254 UK firms and found that financial services firms spend over £21,000 an hour on compliance.
Sanctions
Australia applies sanctions on 7 Israeli individuals and youth group
Australia has imposed sanctions on seven Israeli individuals and a youth group due to their alleged involvement in violence against Palestinians in the West Bank. The targeted sanctions are part of Australia's response to increasing settler violence.
EU Council renews sanctions against Russia
The EU Council has renewed economic sanctions against Russia for an additional six months, extending them to January 2025. These measures, first imposed in 2014, have been significantly expanded since February 2022 in response to Russia's ongoing aggression in Ukraine.
Corruption
Majority of Europeans believe corruption is widespread in their country
A Eurobarometer survey revealed that 68% of Europeans believe corruption is widespread in their country, with Greece, Portugal, Malta, and Slovenia showing the highest perceptions. Only 30% of respondents thought that government efforts to combat corruption are effective.
UK to appoint “corruption Tsar” to recoup billions from COVID-19 fraud
This initiative, led by Chancellor Rachel Reeves, aims to recoup public funds lost to fraud during the COVID-19 pandemic. The new role will focus on identifying and prosecuting fraudulent claims and it is believed that up to £2.6 billion in public funds could be recouped.
KYC360 News
Annual KYC360 Forum
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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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