Top stories this week:
TD Bank Fined $3 Billion for AML Failings | FATF Updates ‘Grey Listing’ Criteria for Low-Income Countries
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, TD Bank was fined $3 billion for AML failings. Meanwhile, the FATF (Financial Action Task Force) has updated the ‘grey listing’ criteria for low-income countries and identified major deficiencies in Kuwait’s understanding of terrorism financing risks.
In the fast-paced world of sanctions, the UK applied sanctions on Russian soldiers accused of chemical weapons use and the EU introduced a new sanctions framework targeted at Russia.
In the corruption space, the Serious Fraud Office recovered a further £295,000 from a convicted fraudster and experts warned of corruption risks from Trump’s fundraising efforts.
We round off this week’s roundup with a chance to see how KYC360 enabled a major global bank to remediate 150,000 customers in three months.
KYC & AML
TD Bank fined $3 Billion for AML failings
TD Bank has been fined $3 billion and had an asset limit imposed on its growth to settle with U.S regulators. The investigation relates to a failure in AML controls that allowed drug traffickers to launder hundreds of millions of dollars. Officials stated that staff at the bank openly joked about the lack of compliance controls.
FATF reveals change to ‘grey listing’ countries
The FATF president, Elisa de Anda Madrazo, recently spoke at the International Anti-Financial Crime Summit 2024 and announced changes in grey listing for lower income countries. She stated, “If you’re a low-income jurisdiction as defined by the IMF – if your income is below $10 billion – you won’t go into identification.” She added there would be an exception if other jurisdictions determined by consensus that it was high-risk.
FATF identifies major deficiencies in Kuwait’s understanding of terrorism financing risks
In the latest mutual evaluation of Kuwati, the FATF stated that Kuwait had an “adequate legal and supervisory framework to address illicit finance, but has serious shortcomings delivering effective outcomes, including its understanding, investigation and prosecution of money laundering and terrorist financing.”
TSB Bank fined £10.9 million by FCA for unfair treatment of customers in arrears
The FCA (Financial Conduct Authority) stated that the bank lacked suitable systems and controls to ensure fair outcomes for customers in arrears and it exposed them to the risk of harm. The FCA added that the bank has spent £105 million to address these deficiencies.
Germany, Italy and France call for watered down banking regulations
In a letter to the European commission, the heads of Treasury at Germany, Italy and France called for watering down of incoming banking regulations to boost the bloc’s ability to compete internationally. They wrote, “The more competitive our banking systems, including national champions, the better equipped they will be to finance key European goals."
Canadian banking regulator says AML risks have risen
The Office of the Superintendent of Financial Institutions (OSFI) has reported that AML risks have “risen in prominence”. Superintendent Peter Routledge commented that “In the last year, to be clear, the incidence of anti-money-laundering issues has caused us to elevate that risk.”
Sanctions
UK sanctions Russian soldiers accused of chemical weapons use
The UK has applied sanctions against Russia’s Radiological Chemical and Biological Defence troops and their commander Lt Gen Igor Kirillov amid accusations of deploying chemical weapons on the battlefield. Defence Secretary John Healey stated, "Our message to Putin and his regime is clear: you cannot break international law without facing the consequences.”
EU establishes new sanctions framework against Russia
The European Council has implemented a new framework that will allow member states to target individuals and entities that undermine EU values and address a variety of hybrid threats from Russia including, “undermining electoral processes and the functioning of democratic institutions; threats against and sabotage of economic activities, services of public interest or critical infrastructure; the use of coordinated disinformation, foreign information manipulation and interference (FIMI); malicious cyber activities, the instrumentalisation of migrants, and other destabilizing activities.”
Corruption
New Serious Fraud Office recovers further £295,000 from convicted fraudster
The UK Serious Fraud Office recovered the funds from Virendra Rastogi, who was convicted for his involvement in a metal trading scam. Director of the Serious Fraud Office, Nick Ephgrave QPM, commented on the case, “We proactively seek out and pursue the proceeds of crime in whatever form they take, from pension pots to luxury watches, to ensure criminals like Rastogi don’t benefit from their crimes.”
Trump fundraising efforts raise corruption concerns
Campaign finance watchdogs have warned of corruption risks as Donald Trump pledges regulatory changes and other policies aimed at boosting the business of mega-donors and allied Super PACs.
KYC360 News
How we helped a global bank remediate over 150,000 customers in three months
After acquiring a specialist fund administrator, a major global bank needed to quickly align investor KYC records with global standards while meeting heightened regulatory expectations. The KYC360 platform with LSEG Identity Verification Solutions, enabled rapid, large-scale customer remediation—highlighting the platform’s ability to manage high-volume KYC requirements efficiently.
Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.
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