Top stories this week:
Law Firm Herbert Smith Freehills Fined £465k for Russian Sanctions Breaches | Former Credit Suisse Executive Fined for Role in Mozambique Scandal
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, a former Credit Suisse executive was fined for her role in a Mozambique scandal and Europol warned of the growing threat from AI fraud.
In the fast-paced world of sanctions, law firm Herbert Smith Freehills was fined £465k for Russian sanctions breaches and the U.S. applied sanctions targeting Iranian oil exports.
In the corruption space, the UK, France and Switzerland launched an anti-corruption alliance and former UK minister Tulip Siddiq attacked ‘baseless’ corruption allegations.
We round off this week's roundup with an opportunity to register for an upcoming workshop in Grand Cayman on how financial institutions can mitigate human-driven risks.
KYC & AML
Former Credit Suisse executive fined for role in Mozambique scandal
Swiss authorities have fined Lara Warner, former Chief Compliance Officer of Credit Suisse, 100,000 Swiss francs for failing to report a suspicious $8 million transaction in 2016 linked to Mozambique’s “tuna bond” scandal. This scandal involved over $1.5 billion in loans to state-owned companies, leading to a financial crisis in the country. Warner is challenging the fine.
AML Bitcoin founder convicted of fraud and money laundering
Rowland Marcus Andrade, founder of AML Bitcoin, has been convicted of wire fraud and money laundering related to a 2017-2018 initial coin offering (ICO). He falsely assured investors that AML Bitcoin tokens would convert into a functional cryptocurrency and made misleading claims about the technology behind it. Investor funds were instead spent on personal expenses.
EBA consults on new AML/CFT rules
The European Banking Authority (EBA) has launched a consultation on new rules related to the upcoming AML/CFT package. The proposals aim to establish technical standards for risk assessments, supervisory cooperation and compliance measures across EU financial institutions. Stakeholders have until June 26, 2025 to submit feedback.
Europol warns of growing threat from AI fraud
Europol has warned that organised crime networks are increasingly exploiting AI to enhance fraudulent activities. Criminals are using AI to automate cyber-attacks, create convincing synthetic media and produce undetectable child abuse content.
South Africa aims to exit FATF grey list by October 2025
South Africa is working towards removal from the Financial Action Task Force’s (FATF) grey list by October 2025. National Treasury official Ismail Momoniat highlighted that only two action items remain, which are increasing prosecutions for complex money laundering and enhancing efforts against terrorist financing.
Sanctions
Law firm Herbert Smith Freehills fined £465k for Russian sanctions breaches
The Office of Financial Sanctions Implementation (OFSI) has fined Herbert Smith Freehills CIS LLP (HSF Moscow) £465,000 for violating UK sanctions against Russia. Between May 5 and May 13, 2022, HSF Moscow made six payments totalling £3.9 million to sanctioned Russian banks.
U.S. applies sanctions targeting Iranian oil exports
The U.S. has intensified its sanctions against Iran’s oil sector, targeting Chinese independent refineries and associated shipping networks. The Treasury Department sanctioned a Chinese “teapot” refinery for purchasing Iranian crude. Additionally, 19 entities and vessels linked to Iran’s “shadow fleet” were designated for transporting Iranian oil.
Corruption
UK, France and Switzerland launch alliance to tackle corruption
The UK’s Serious Fraud Office, France’s Parquet National Financier, and Switzerland’s Office of the Attorney General have established the International Anti-Corruption Prosecutorial Taskforce to enhance collaboration against global bribery and corruption. This alliance aims to strengthen case cooperation, share best practices and invite other agencies to join efforts in tackling complex international corruption cases.
Tulip Siddiq attacks ‘false’ corruption campaign
Former UK Treasury minister Tulip Siddiq has strongly denied corruption allegations made by Bangladesh’s Anti-Corruption Commission (ACC). The ACC accuses Siddiq of using a falsified legal document to transfer a Dhaka property to her sister and benefiting from misappropriated funds linked to her aunt, former Bangladesh Prime Minister Sheikh Hasina.
KYC360 News
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