Top stories this week:
Metro Bank Fined £16.7 Million for AML Failings | Spain’s Ex-Financial Crime Chief Arrested After €20 Million Found in His Home
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, Metro Bank was fined £16 for AML failings. Also, Spain’s ex-financial crime chief was arrested after €20 million was found in his home and FinCEN issued a warning over increasing AI fraud.
In the fast-paced world of sanctions, the UN security council extended sanctions against Yemen.
In the corruption space, an Argentine appeals court upheld a corruption conviction against former President Cristina Fernández de Kirchne.
We round off this week’s roundup with an exciting announcement about our partnership with LSEG Risk Intelligence.
KYC & AML
Metro Bank fined £16.7 million for AML failings
The FCA fined Metro Bank £16.7 million for inadequate financial crime monitoring controls from 2016 to 2020. Flaws in their automated monitoring system meant that the bank failed to adequately monitor over 60 million transactions worth £51 billion. Although junior staff raised concerns, effective remediation only began in 2019 and the bank implemented fixes by December 2020. Therese Chambers, joint executive director of enforcement and market oversight, said in a statement, "Metro's failings risked a gap being left in our defence against the criminal misuse of our financial system. Those failings went on for too long."
Spain’s ex-financial crime chief arrested after €20 million found in his home
Spain’s former head of the national police financial crime unit, Óscar Sánchez Gil, and his wife were arrested after police discovered €20 million hidden in their home’s walls and €1 million in his office, following Spain’s record cocaine bust. Sánchez, previously worked in anti-drug operations, allegedly aided traffickers by providing intel to bypass port checks. Charges include drug trafficking, bribery, and corruption, with the investigation also uncovering money laundering through cryptocurrency and a fleet of private vehicles.
FinCEN issues warning over rise in AI fraud
The U.S. Financial Crimes Enforcement Network (FinCEN) issued an alert highlighting fraud schemes using deepfake media crafted by generative AI (GenAI) tools targeting financial institutions. The alert provides best practices for institutions to detect deepfake documents through enhanced due diligence.
FCA to reshape controversial ‘name and shame’ proposals
The FCA is set to revise its controversial ‘name and shame’ proposals after backlash from financial institutions. In a recent session at the House of Lords, CEO Nikhil Rathi has said the proposals will be “fundamentally reshaped” and clarified that only select cases considered in the public interest will be publicised. This updated approach will also mean that companies receive 10 days' notice before a public announcement.
Luxembourg Bank BIL at centre of Azerbaijani embezzlement scandal
An Organised Crime and Corruption Reporting Project (OCCRP) investigation revealed Banque Internationale à Luxembourg’s (BIL) alleged role in moving embezzled Azerbaijani funds, first flagged by the UK's National Crime Agency (NCA). Former IBA head Jahangir Hajiyev, jailed in 2016 for money laundering, reportedly funnelled millions through Luxembourg to purchase luxury properties, aided by Khagani Bashirov’s shell companies at BIL. Between 2011 and 2015, $175 million allegedly moved through BIL accounts.
OFAC investigates Russian accounts transferred to UBS in Credit Suisse takeover
According to Reuters, the U.S. Office of Foreign Assets Control (OFAC) is investigating UBS regarding Russian clients acquired through its Credit Suisse takeover. OFAC has contacted UBS to assess how the bank handles these accounts under intensified Russia sanctions. UBS is decommissioning accounts associated with suspect funds to mitigate potential penalties.
MONEYVAL warns countries are struggling to achieve results in money laundering convictions
MONEYVAL has urged European countries to enhance the implementation of AML/CFT standards. While member states have made strides in areas like financial intelligence and risk understanding, MONEYVAL's annual report highlights gaps in prosecuting offenders, confiscating criminal assets and enforcing targeted sanctions.
Sanctions
UN security council extends Yemen sanctions
The United Nations Security Council has renewed sanctions on Yemen, extending the mandate of the Panel of Experts overseeing the situation until March 2025. The sanctions target individuals and entities undermining Yemen’s peace, security and stability.
Corruption
Argentine appeals court upholds corruption conviction for former president
An Argentine appeals court upheld a corruption conviction against former President Cristina Fernández de Kirchner, confirming a six-year prison sentence and her lifetime disqualification from public office. The case involves accusations of fraud and embezzlement related to public works contracts during her presidency. Kirchner denies the allegations and plans further appeals.
KYC360 News
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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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