Top stories this week:
Swiss Regulator FINMA Confiscates CHF 12.7 million From Private Bank Mirabaud | Danske Bank Pays €6.33 Million to Settle AML Probe
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, the Swiss regulator FINMA confiscated CHF 12.7 million from private bank Mirabaud. Meanwhile, the NCA estimated that up to £100 billion in illicit funds is funnelled through the UK each year and Danske Bank paid €6.33 to settle an AML probe.
In the fast-paced world of sanctions, the UK announced the launch of the Office of Trade Sanctions Implementation and the EU considered expanding sanctions on exports to Russia.
In the corruption space, Russia charged two military officials with bribery and two former NYFD chiefs were also accused of accepting bribes.
We round off this week’s roundup with a chance to view the key takeaways from the latest MONEYVAL mutual evaluation of Jersey.
KYC & AML
Swiss regulator FINMA confiscates CHF 12.7 million from private bank Mirabaud
Swiss regulator FINMA seized CHF 12.7 million in unlawfully generated profits from Mirabaud, a private bank, following its failure to prevent serious AML violations linked to Venezuelan oil giant PDVSA. Mirabaud was accused of facilitating unlawful transactions from 2016 to 2020. FINMA determined that the bank's internal controls were severely lacking.
Danske Bank pays €6.33 million to settle AML probe
Danske Bank has agreed to pay €6.33 million to settle an AML probe in France related to suspicious transactions conducted through its Estonian branch. The French authorities investigated Danske for failing to adequately monitor and report illicit transactions from non-resident clients.
UK firms warned of infiltrating North Korean IT workers
The UK government has warned businesses that North Korean IT workers are infiltrating companies by disguising their true identities by posing as skilled freelancers or employees. These workers exploit their access to funnel illegal funds back to North Korea.
NCA estimates up to £100 billion in illicit funds is funnelled through the UK each year
The UK’s National Crime Agency (NCA) estimates that up to £100 billion in illicit funds pass through the country each year. These illicit finances come from various criminal sources, exploiting the UK's corporate structures and financial system. The ease with which money can be laundered has made the UK a global hub for money laundering, prompting calls for stronger enforcement measures.
U.S. banking regulator takes enforcement action against Wells Fargo
The U.S. Office of the Comptroller of the Currency (OCC) has issued an enforcement action against Wells Fargo. This action addresses deficiencies in the bank’s AML controls. No fine was issued, but the regulator did impose a requirement for the bank to seek permission before expanding into certain high-risk areas. Wells Fargo agreed to enhance its oversight practices as part of the settlement with the OCC.
Sanctions
FCA utilises AI tools to identify potential breaches of sanctions
The UK’s Financial Conduct Authority (FCA) has developed an artificial intelligence (AI) tool to help identify potential breaches of Russian sanctions. The regulator has focused on ensuring that banks and financial institutions comply with the stringent sanctions imposed on Russia following its invasion of Ukraine.
UK set to launch Office of Trade Sanctions Implementation
The UK government plans to launch the Office of Trade Sanctions Implementation (OTSI) in October to enforce compliance with trade sanctions. OTSI will oversee the implementation of sanctions policies, particularly those related to the Russian invasion of Ukraine, and ensure businesses adhere to reporting and enforcement requirements. The new unit aims to strengthen the UK’s response to global trade violations and to safeguard the integrity of its economic sanctions framework
EU considers expanding sanctions on exports to Russia
The European Union is considering expanding sanctions on exports to Russia, targeting financial institutions that are potentially supporting the Russian war machine via Southeast Asia. The EU also faces challenges in harmonising the implementation of the latest batch of sanctions across all 27 member states.
U.S. imposes sanctions against Georgians involved in protest crackdowns
The U.S. has imposed sanctions on Georgian officials accused of human rights abuses, including involvement in protest crackdowns and actions undermining democracy. These individuals were linked to the suppression of protests against a controversial "foreign agent" law in Georgia, viewed as a move toward authoritarianism. The sanctions aim to pressure the Georgian government to uphold democratic norms and respect human rights.
Corruption
Russia charges two military officials with bribery
Two high-ranking Russian military officials have been charged with bribery as part of an ongoing crackdown on corruption within the country’s defence ministry. The officials are accused of accepting payments in exchange for awarding lucrative defence contracts.
Two former NYFD chiefs accused of accepting bribes
Two former chiefs of the New York Fire Department (NYFD) were arrested on charges of accepting bribes in exchange for facilitating favourable treatment for contractors in the city’s real estate market. The accused allegedly received payments from contractors seeking to expedite inspections and approvals.
KYC360 News
Key Takeaways: Jersey’s Fifth Round MONEYVAL Mutual Evaluation
Stay ahead of global regulatory standards. See the critical insights from Jersey’s fifth round MONEYVAL mutual evaluation and learn about how the Island has been improving its #AML/CFT measures.
Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.
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