Top stories this week:
Nordea Bank Pays $35m Fine for Inadequate AML Controls | More Countries Join EU Sanctions Against Belarus | South African Government Investigates $7 Billion Corruption 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, Nordea Bank pays $35m fine for inadequate AML controls, the Danish regulator ends RBB Bancorp investigation and Deutsche Bank agrees to settle the majority of Postbank shareholder claims.
In the fast-paced world of sanctions, more countries join EU sanctions against Belarus and the US imposes stricter export controls to hinder Russian procurement.
In the corruption space, a powerful Chilean lawyer has been arrested on corruption charges, a billionaire has been charged in a West African corruption scandal and in South Africa, the Government is investigating a $7 Billion corruption scandal.
We round off this week’s roundup with a chance to read “The Definitive Guide to KYC Remediation” to learn more about the challenges of remediation and how you can deploy best practices for success.
KYC & AML
TD's Next CEO Hinges on AML Remediation
TD Bank Group needs to clean up an AML mess by the end of the year before a new CEO is put in place. Some of the specific deficiencies include inadequate CDD, high-risk banking partners, and Panama Papers links.
German regulator seizes €25 million in major AML crackdown
Authorities targeted illegal crypto ATMs operating without proper licenses across the country. The crackdown is part of a broader effort to combat money laundering activities linked to digital currencies.
Student Money Mules Caught in £55m Money Laundering Scheme
London police dismantles a complex Chinese underground bank that laundered over £55 million using student money mules to bypass currency controls. The investigation exposed the money laundering operation's scale and techniques.
Nordea Bank Pays $35m Fine for Inadequate AML Controls
Nordea Bank was fined $35 million by New York State for failing to properly vet its clients and doing business with high-risk partners. These shortcomings were exposed in the Panama Papers leak.
Chinese OCGs Behind Gift Card Fraud Surge
Gift card fraud is on the rise and being exploited by Chinese organized crime groups (OCGs). This fraud harms consumers, retailers, and even poses a national security threat. Homeland Security is fighting back with an initiative, Project Red Hook, to educate people on how to identify and avoid these scams.
Danish Regulator Ends RBB Bancorp Investigation
RBB Bancorp says a consent order was terminated by U.S. regulators. This was due to the successful resolution of deficiencies in RBB’s Anti-Money Laundering and Countering the Financing of Terrorism program. Additionally, the Danish Financial Supervisory Authority has carried out a thematic investigation focusing on a number of financial institutions’ internal audit plans in the area of money laundering.
Deutsche Bank Agrees to Settle Majority of Postbank Shareholder Claims
The ongoing acquisition of Postbank by Deutsche Bank has many challenges in reaching a settlement. Recent developments, include the agreement on payment terms for most shareholders and the remaining holdouts. Additionally, the impact on Deutsche Bank's share prices and the reduction in funds set aside for future payouts are mentioned.
Sanctions
More Countries Join EU Sanctions Against Belarus
Non-EU countries are aligning with the EU's restrictive measures against Belarus. The countries that have added individuals to their list include North Macedonia, Montenegro, Albania, Ukraine, and Bosnia and Herzegovina, as well as the EFTA countries Iceland, Liechtenstein and Norway.
US Imposes Stricter Export Controls to Hinder Russian Procurement
The US is tightening export controls to make it harder for Russia to get goods. The Bureau of Industry and Security (BIS) is taking action to restrict US goods from reaching Russia and Belarus. They are expanding the restrictions on who can buy these goods and adding more licensing requirements.
Corruption
Powerful Chilean Lawyer Arrested on Corruption Charges
A powerful lawyer in Chile has been detained on charges of money laundering and tax fraud. The lawyer denies the charges but does not dispute the authenticity of a recording that appears to show him discussing bribes. The scandal has also implicated judges, politicians, and businessmen.
Billionaire Charged in West African Corruption Scandal
The UK's Serious Fraud Office has accused Glencore's former oil trading head, billionaire Alex Beard, of bribery. Beard, along with other ex-Glencore executives, faces charges related to securing oil contracts in West Africa. The investigation, which began in 2019, alleges that these executives engaged in corrupt practices to benefit the company.
South African Government Investigates $7 Billion Corruption Scandal
South Africa is grappling with a massive corruption scandal. Allegations involve billions of dollars (USD 7 billion) potentially misappropriated from state-owned companies. The government is under investigation to determine if funds were misused or stolen. This scandal could have a significant impact on the country's already struggling economy.
KYC360 News
The Definitive Guide to KYC Remediation
Remediation is crucial for firms to be fully compliant with fast-evolving AML/CTF standards. A customer may initially be onboarded as low risk, but this status can easily change over time, so firms must be able to quickly identify changes in behaviours and levels of risk. Read our latest guide to learn more about the challenges of remediation and how you can deploy best practices for success.
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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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