Top stories this week:
Trump Administration Applies Regulatory Freeze and Designates Drug Cartels as Terrorist Groups | Volksbank Fined €20 million for Weak Risk Management 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, the Trump administration applied a regulatory freeze and designated drug cartels as terrorist groups. Also, German lender Volksbank was fined €20 million for weak risk management and AML failures.
In the fast-paced world of sanctions, the UK and Canada imposed fresh sanctions against Belarus and France announced that the EU would consider lifting some sanctions against Syria.
In the corruption space, the Serbian Prime Minister stepped down amid mass anti-corruption protests.
We round off this week’s roundup with an opportunity to read our latest article, “Growth vs. Governance: AML Failures at BitMEX, Robinhood and Block Inc”.
KYC & AML
Volksbank fined €20 million for weak risk management and AML failures
De Nederlandsche Bank (DNB) has imposed two fines totaling €20 million on de Volksbank N.V. for significant regulatory breaches. A €15 million fine addresses failures in sound business operations, including inadequate risk management and internal controls between 2018 and 2023. An additional €5 million fine pertains to deficient anti-money laundering measures from 2020 to 2023, where the bank failed to monitor customer activities effectively, leading to substantial alert backlogs.
French prosecutors investigate Binance for alleged money laundering
French prosecutors have launched a judicial probe into cryptocurrency exchange Binance for alleged money laundering, tax fraud and other financial crimes. The investigation, covering the period from 2019-2024, links Binance to drug-related money laundering. Binance has denied the claims.
U.S. President Trump launches crypto task force to develop new digital asset regulations
U.S. President Donald Trump has signed an executive order establishing a cryptocurrency working group to develop new digital asset regulations and consider creating a national cryptocurrency reserve. The order mandates protection of banking services for crypto companies and prohibits the development of a U.S. central bank digital currency (CBDC). This move aligns with Trump's campaign promise to promote digital asset adoption.
Trump administration applies regulatory freeze and designates drug cartels as terrorist groups
U.S. President Donald Trump issued a memorandum instructing federal agencies to halt new or pending regulations for review by appointed officials. This freeze affects rules awaiting publication, those published but not yet effective and includes guidance documents. Meanwhile, the new administration has also designated drug cartels as foreign terrorist organisations.
German regulator calls for Payone to address AML deficiencies
Germany’s financial regulator, BaFin, has ordered fast-growing payments firm Payone GmbH to raise its capital reserves and address AML compliance deficiencies. A special AML monitor will oversee compliance and track progress. Audits from 2022 and 2023 found failures in IT monitoring and risk assessments of business relationships and transactions.
FCA fines Infinox Capital for transaction reporting failures in first MiFIR case
The FCA fined Infinox Capital £99,200 for failing to submit 46,053 transaction reports between October 2022 and March 2023, increasing the risk of undetected market abuse. Despite identifying the issue in a third-party review, Infinox failed to report it until the FCA intervened. This marks the first Markets in Financial Instruments Regulation (MiFIR) related enforcement.
BaFin warns of rising money laundering risks from virtual IBANs and cryptocurrency
Germany's financial regulator, BaFin, has raised concerns that virtual IBANs (vIBANs) and cryptocurrencies may heighten money laundering risks. vIBANs, which link multiple identifiers to a single bank account, can obscure transaction details, complicating efforts to trace payments and conduct due diligence. BaFin also highlighted that misleading country codes in vIBANs could falsely suggest accounts are regulated domestically.
Europol cracks down on €75m money laundering network,
Europol dismantled a criminal network that laundered at least €75 million across Europe between March 2023 and February 2024. The group exploited refugee protections and later utilised cryptocurrencies for illicit transactions. The operation resulted in 23 arrests and the seizure of €35.7 million in cash, bank accounts, and cryptocurrencies, along with luxury assets.
Three UK individuals charged in £120 million cryptocurrency laundering case
Three individuals from Leeds, UK have been charged with money laundering offences involving approximately £120 million in cryptocurrency. The Yorkshire and Humber Regional Organised Crime Unit led the investigation, resulting in the arrest of two men, aged 23 and 24, and a 29-year-old woman.
Sanctions
UK and Canada impose fresh sanctions against Belarus
Following Belarus's disputed presidential election and alleged human rights violations, the UK has sanctioned six individuals, including the Chairman of the Central Election Commission, along with three defence-related entities. Coordinated with Canada, these measures target those implicated in human rights abuses and organisations supporting Russia’s military actions in Ukraine.
EU to ease some sanctions on Syria following Assad’s removal
The European Union plans to lift certain sanctions on Syria, particularly in the energy and transport sectors, to aid in the country's stabilisation and reconstruction efforts. This decision, announced by France, is part of a broader strategy to support Syria's recovery.
Corruption
Serbian Prime Minister steps down amid mass anti-corruption protests.
Serbian Prime Minister Miloš Vučević has resigned amid widespread anti-corruption protests ignited by a fatal collapse at Novi Sad railway station that killed 15 people. The demonstrations, led by students and supported by various societal groups, demanded government accountability and transparency. Vučević's resignation may lead to early elections or a government reshuffle.
KYC360 News
Growth vs. Governance: AML Failures at BitMEX, Robinhood and Block Inc.
Recent multi-million dollar fines against Robinhood, BitMEX and Block Inc. should serve as a wake-up call for financial institutions. In this latest article, you can see the key regulatory failings that led to these fines and the critical takeaways for financial institutions to balance innovation with robust compliance frameworks.
Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.
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