KYC360 Weekly Roundup

Published on Mar 31, 2023

Banking crisis - Week 3

Following the purchase of Credit Suisse by UBS resulting in a bank twice the size of Switzerland’s economy, concerns about a wider banking crisis seem to be abating although central bankers remain on high alert.

Turbulence continues in the Gambling sector with news that William Hill has received the largest fine ever imposed by the UK Gambling regulator – £19.2m for widespread failures to protect players and prevent money laundering. There is growing alarm about systemic AML weaknesses in the gaming sector prompting comparisons with the financial services industry of old. Stephen Platt discusses the issues in a new RiskScreen Webinar.

As if life couldn’t get any worse for Sam Bankman-Fried ex Boss of failed crypto business FTX, he is charged in the US with bribing a Chinese official with crypto.

There are updates on sanctions and the world of crypto and to complete this week’s Roundup, we deliver a selection of items covering money laundering, corruption, and fraud.

Following the acquisition of Credit Suisse by UBS, concerns about a broader banking crisis appear to be decreasing. However, central bankers remain on high alert. Bank of England Governor, Andrew Bailey, has played down the risk of a financial crisis, but Joe Biden, the President of the United States, has indicated that the White House response to the banking crisis is not yet exhausted, and a legislative response may be required. The BBC has analysed whether social media has quickened the pace of the most recent banking crisis. Four Swiss bankers have been convicted for inadequate due diligence on source of funds for a friend of Putin. Additionally, Bloomberg has reported on the dangers of hidden leverage in the banking system, raising echoes of the 1980s.

 

Financial_ServicesMoney Laundering, Fraud & Corruption

The Republic of Ireland, along with nine other countries, is bidding to host the new AMLA Authority. The UK government has released a new plan to combat economic crime. Sam Bankman-Fried, the former boss of the failed crypto business FTX, has been charged in the US with bribing a Chinese official with crypto. In a significant investigation into tax fraud, 150 investigators raided five banks in Paris. Something fishy! An Irish company is being investigated in connection with a corruption case involving an African president. Furthermore, a fraud warning has been issued in connection with the takeover of WhatsApp accounts.

It is essential to stay updated on the latest developments in AML to prevent financial crimes such as money laundering, bribery, fraud, and corruption. The links provided in the article can provide more in-depth information on each subject.

 

Gambling_GamingGaming and Gambling

William Hill, a UK-based gambling company, has received a record fine of £19.2m from the UK Gambling regulator for widespread failures to protect players and prevent money laundering. The company allowed a player to bet £23k in just 20 minutes. The gaming industry is also facing growing concerns about systemic AML weaknesses. In a RiskScreen webinar, Stephen Platt discussed the AML issues in the gaming industry, describing it as a gathering storm. Link here.

 

Crypto-1Crypto & Virtual Assets

According to the Financial Times, crypto groups are focusing on Hong Kong to take advantage of the growing demand from China. In a recent webinar, Stephen Platt discussed Coinbase’s $100m AML failings. Link here.

 

Sanctions-1Sanctions

The United States has imposed sanctions on relatives of Assad with links to narco-trafficking. The European Union has threatened to impose more sanctions on Russia over concerns that it may locate nuclear weapons in Belarus. Meanwhile, the Moscow Times reports that Russian oil exports to India have surged 22x since the invasion of Ukraine. Finally – Germany is working to develop a new overarching AML Authority to realign its fight against money laundering.

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