Top stories this week:
Robinhood Fined $45 Million by SEC for Regulatory Breaches | BitMEX Fined $100 Million for KYC and AML failures
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, Robinhood was fined $45 million by the SEC for regulatory breaches. Major fines were also handed to BitMEX and Block Inc for AML failings.
In the fast-paced world of sanctions, the U.S. tightened sanctions against Russia’s energy sector and imposed sanctions against Sudanese leader Burhan for human rights violations.
In the corruption space, UK Treasury Minister Tulip Siddiq announced her resignation amid scrutiny over Bangladeshi financial links.
We round off this week’s roundup with an invitation to register for our exclusive workshop in Grand Cayman that provides key lessons and insights from high-profile AML failures.
KYC & AML
Robinhood fined $45 million by SEC for regulatory breaches
Trading platform Robinhood has agreed to pay a $45 million settlement to the U.S. Securities and Exchange Commission (SEC) for various violations, including inadequate AML procedures, failure to protect customer data and record-keeping deficiencies. The SEC found that Robinhood did not promptly review and report suspicious activities.
BitMEX fined $100 million for KYC and AML failures
Cryptocurrency exchange BitMEX has been hit with an additional $100 million fine by a U.S. federal court for violations of the Bank Secrecy Act, adding to previous penalties. The fine addresses failures in AML and KYC compliance and allowing illicit trading on its platform between 2015 and 2020. BitMEX has acknowledged the issues and taken steps to strengthen compliance.
Block Inc fined $80 million for inadequate AML controls
Block Inc. was fined $80 million by U.S. state regulators for inadequate AML controls in its Cash App platform. The settlement mandates an independent review of Block’s Bank Secrecy Act compliance and AML programme. The company acknowledged prior shortcomings but has since increased investments in compliance and risk management.
MONEYVAL publishes updates on Estonia and Slovakia’s AML progress
MONEYVAL published progress reports on Estonia and Slovakia regarding compliance with Financial Action Task Force (FATF) recommendations on AML/CTF financing. Estonia improved targeted financial sanctions but remains partially compliant on several recommendations. Slovakia addressed deficiencies in non-profit organisations and virtual assets but made limited progress overall. Both countries remain under enhanced follow-up procedures.
Interpol launches Silver Notice to trace and recover criminal assets globally
Interpol has launched its first "Silver Notice" which aims to trace criminal assets linked to transnational organised crime and enhance police collaboration. Part of a pilot involving 52 countries, Silver Notices facilitate asset recovery efforts globally, covering various crimes like fraud and corruption.
Sanctions
U.S. tightens sanctions against Russia’s energy sector
The U.S. has intensified sanctions on Russian oil, targeting major companies, tankers and service providers to disrupt exports. Key actions include sanctions against Gazprom Neft and PJSC Surgutneftegas, coordinated with the UK. These measures aim to reduce Russia’s oil revenue while tightening restrictions on its energy sector.
U.S. sanctions Sudanese leader Burhan for human rights violations
The U.S. imposed sanctions against Sudanese military leader Abdel Fattah al-Burhan due to his alleged role in human rights violations and undermining Sudan’s democratic transition. These measures aim to pressure the Sudanese government to cease violence and engage in political reforms.
Corruption
UK Treasury Minister Tulip Siddiq resigns amid scrutiny over Bangladeshi financial links
Tulip Siddiq has resigned as UK Treasury Minister amid scrutiny over her connections to properties linked to her aunt, former Bangladeshi Prime Minister Sheikh Hasina. An investigation found no rule breaches but noted potential reputational risks due to her family ties.
KYC360 News
Training Event: Analysing AML Failures
Join us in Grand Cayman for a free, interactive workshop exploring the lessons behind some of the most significant AML compliance failures in recent history.
📅 Date: 6th February 2025
⏰ Time: 08:30 – 12:30 (Breakfast followed by the workshop)
📍 Venue: George Town Yacht Club, Grand Cayman
Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.
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