Top stories this week:
Revolut Fined €3.5 Million for AML Deficiencies | FinCEN Flags $1.4 Billion in Financial Transactions Related to Fentanyl in 2024
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, Revolut is fined €3.5 million for AML deficiencies and FinCEN flags $1.4 billion in financial transactions related to Fentanyl in 2024.
In the fast-paced world of sanctions, the U.S. imposes fresh sanctions against Iran and the UK secures its first convictions for breaches of sanctions against Russia.
In the corruption space, a Huawei executive faces corruption charges.
We round off this week’s roundup with a chance to view our KYC Remediation Checklist, which features the essential questions to ask before beginning a remediation exercise.
KYC & AML
Revolut fined €3.5 million for AML deficiencies
Revolut has been fined €3.5 million by the Lithuanian central bank over alleged deficiencies in its AML controls. Regulatory authorities found that the neobank failed to implement adequate controls to prevent money laundering and related financial crime.
Romanian authorities dismantle money mule network
Romanian authorities, in close collaboration with France and the UK, dismantled an extensive money mule network that facilitated illicit cross-border payments. Hundreds of money mules were recruited by the network. Authorities seized evidence and initiated further investigations into organised crime links.
FinCEN flags $1.4 billion in financial transactions related to Fentanyl in 2024
Between January and December 2024, The Financial Crimes Enforcement Network (FinCEN) identified approximately $1.4 billion in suspicious financial transactions linked to the fentanyl trade.
Rabobank faces court case after failed settlement talks with regulators over AML breaches
Dutch lender Rabobank is facing a court case after unsuccessful settlement talks with Dutch regulators over alleged violations of AML laws.
U.S. disbands national cryptocurrency enforcement team
The U.S. Department of Justice has disbanded its national cryptocurrency enforcement team (NCET) as part of a strategic shift. Officials stated that the move reflects a narrowing focus on the most critical threats in financial crime rather than enforcement across all crypto activities. Critics warn the decision may reduce oversight in digital asset markets.
Allianz fined €283k for AML failures
Allianz Global Investors' Luxembourg branch has been fined €283,000 by the Luxembourg financial regulator for failing to adhere to AML/CTF regulations. The penalty was imposed following an inspection that revealed significant compliance gaps and inadequate internal controls.
Rothschild bank settles money laundering case with €25m penalty
Private bank Edmond de Rothschild Europe has reached a settlement in a high-profile money laundering case related to its involvement in the 1MDB scandal. The settlement, which involves a substantial financial penalty, underscores the bank’s efforts to address regulatory concerns and restore trust.
UK Companies House begins to verify identities
UK Companies House has initiated a verification programme to confirm the identities of company directors and beneficial owners. The measure aims to enhance corporate transparency and combat financial crime by ensuring accurate registration information. There is a voluntary period of 12 months before identity verification becomes a legal requirement.
Sanctions
U.S. imposes fresh sanctions against Iran
The U.S. has applied fresh sanctions against Iran, targeting its nuclear programme. The measures focus on restricting Iran’s access to critical technology, including centrifuge components and aim to curtail its nuclear ambitions.
First convictions handed out for breaching UK sanctions
Dmitrii Ovsiannikov, the former Russia-appointed Governor of Sevastopol, became the first person convicted for violating UK sanctions imposed following Russia’s annexation of Crimea. Ovsiannikov, who was sanctioned by the EU and the UK, was found guilty of money laundering and circumventing sanctions after receiving £76,000 from his wife and a Mercedes from his brother, Alexei Owsjanikow.
Corruption
Huawei executive faces corruption charges
A Huawei top executive has been charged in Belgium with corruption following an investigation into alleged bribery and illicit practices. Authorities claim the executive bribed to secure contracts, contributing to market distortions.
KYC360 News
The Essential KYC Remediation Checklist
Many KYC remediation projects fail to meet deadlines or objectives because of poor planning and a lack of a clear scope. In this essential checklist, you can see the key questions to clarify before starting a project.
Learn:
- Why KYC data remediation exercises tend to be complex
- The most common reason for project delays and missed objectives
- The role of technology in reducing manual effort and improving outcomes
- Best practices for meeting regulatory expectations
Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.
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