Top stories this week:
Senator Elizabeth Warren Urges Fed to Keep Asset Cap on Wells Fargo | UK MPs Push for Public Beneficial Ownership Registers | Swiss Regulator FINMA Highlights Rising AML Risks in Cryptocurrencies
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, Senator Elizabeth Warren urged the Fed to keep an asset cap on Wells Fargo. Also, UK MPs pushed for public beneficial ownership registers and the Swiss regulator FINMA highlighted rising AML risks in cryptocurrencies.
In the fast-paced world of sanctions, a MetLife subsidiary was fined $178k for sanctions violations involving Iran-controlled entities and the UK applied sanctions against three kleptocrats.
In the corruption space, Indian billionaire Gautam Adani was indicted in the U.S. over a $250 million bribery scheme and the Croatian health minister was arrested and fired for alleged corruption.
We round off this week’s roundup with an opportunity to view our latest blog by Stephen Platt, CEO and founder of KYC360 and Neil Martin, former Ferrari F1 Race Strategy Director, on what the banking industry can learn from F1.
KYC & AML
Senator Elizabeth Warren urges Fed to keep asset cap on Wells Fargo
Senator Elizabeth Warren has urged the Federal Reserve to keep Wells Fargo's $1.95 trillion asset cap in place until the bank demonstrates robust risk management and compliance improvements. In her letter to Fed Chair Jerome Powell and regulatory head Michael Barr, Warren highlighted past scandals and unresolved AML deficiencies.
UK MPs push for public beneficial ownership registers
The UK Foreign Office confirmed that the initiative to implement fully public beneficial ownership registers is being pursued, following a letter from 40 cross-party MPs urging action against resistance from some British Overseas Territories. A Financial Times report revealed that companies registered in Overseas Territories exported $134m of goods to Russia, in an alleged breach of UK sanctions.
Swiss regulator FINMA highlights rising AML risks in cryptocurrencies
Swiss financial regulator FINMA has warned of rising financial crime risks from stablecoins. Its annual Risk Monitoring Report highlighted the use of these digital assets in cyberattacks, dark web trading and sanctions evasion. It also flagged money laundering concerns with politically exposed persons (PEPs). FINMA stressed the importance of supervisory enhancements, including on-site inspections and revamped audit programmes.
Fifteen money laundering suspects forfeit S$1.85 billion in assets
Fifteen of the seventeen foreign suspects who were involved in the probe into the largest money laundering scandal in Singapore have surrendered assets worth S$1.85 billion. This brings the total recovered assets to S$2.8 billion. The fifteen suspects have been barred from re-entering Singapore and the case against them is now closed.
EU considers blacklisting Russia for money laundering
Financial Services Commissioner Mairead McGuinness has announced that the European Union is considering whether to blacklist Russia as a high-risk jurisdiction for money laundering and terrorist financing. This move would diverge from the FATF, which suspended Russia's membership but did not blacklist it. Before any final decision is made, the EU assessment will rely on robust evidence and legal grounding.
Sanctions
MetLife subsidiary fined $178k for sanctions violations involving Iran-controlled entities
American Life Insurance Company, a MetLife subsidiary, was fined $178,421 by the OFAC for 2,331 apparent violations of U.S. sanctions against Iran. The company issued insurance premiums to entities controlled by the Iranian government, despite these entities not appearing on restricted lists. The violation was voluntarily self-disclosed, reducing the penalty from a potential maximum of $858 million.
UK applies sanctions against three kleptocrats
The UK government has imposed sanctions on three prominent kleptocrats and their associates. These individuals have been implicated in significant corruption and embezzlement activities. The sanctions include travel bans and asset freezes.
Corruption
Indian billionaire Gautam Adani indicted in U.S. over $250 million bribery scheme
Indian billionaire Gautam Adani, who is one of the world’s richest men, has been charged in the U.S. with orchestrating a $250 million bribery scheme to secure solar energy contracts in India. The indictment alleges that Adani and associates paid bribes to Indian officials and misled U.S. investors about their anti-corruption practices.
Croatian health minister arrested and fired for alleged corruption
Croatian Prime Minister Andrej Plenković dismissed Health Minister Vili Beroš following his arrest amid a corruption investigation led by the European Public Prosecutor's Office. Beroš and two hospital directors and representatives of two companies, are accused of accepting bribes, abusing authority and money laundering related to medical equipment procurement.
KYC360 News
What the Banking Industry Can Learn from Formula 1
In Formula 1, split-second decisions and finely tuned strategies separate champions from contenders. Data-driven decisions are critical and the world of F1 has key insights for the banking industry. Stephen Platt, CEO and founder of KYC360 and Neil Martin, former Ferrari F1 Race Strategy Director, explore these lessons in their latest article. Discover how data collection, real-time analytics, predictive modelling and continuous learning help both industries stay ahead of risks.
Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.
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