KYC360 Weekly Roundup - 17th May 2024

Published on May 17, 2024

Top stories this week: 

Almost 40% of Dirty Money is Laundered in London and Crown Constituencies | U.S. Financial Watchdogs Propose New AML Rules for Fund Advisors | Canada Fines Binance C$6 million for AML Violations

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 top stories feature a report that almost 40% of dirty money is laundered in London and Crown Constituencies, U.S. financial watchdogs propose new AML rules for fund advisors and FATF, INTERPOL and UNODC issue a joint call to fight money laundering.  

In the fast-paced world of sanctions, the U.S. imposes fresh sanctions against Russian companies involved in an evasion scheme and France and the Netherlands push for EU sanctions against any financial institutions aiding Russia’s military. 

In the corruption space, questions arise over FIFA’s reforms against corruption and the government corruption scandal widens in Russia with the arrest of a senior official.  

We round off this week’s roundup with an opportunity to watch the full replay of our latest webinar, “Mastering Regulatory Complexity in Gaming and Gambling.”  

Financial_ServicesKYC & AML

Almost 40% of dirty money is laundered in London and Crown Constituencies  
UK deputy foreign secretary Andrew Mitchell stated that “According to estimates 40% of money laundering around the world – this is money often stolen from Africa and Africans by corrupt businessmen, bent politicians and war lords and so on – 40% of that money comes through London and overseas territories and crown dependencies.” 

Canada fines Binance C$6 million for AML violations 
Canada’s financial watchdog, FINTRAC, stated that the fine handed out to the world’s biggest cryptocurrency exchange was due to violations of money laundering and terrorist financing laws. The exchange had already accepted a $4.32 billion fine for AML violations in the U.S.  

U.S. financial watchdogs propose new AML rules for fund advisors  
The U.S. Securities and Exchange Commission and the Financial Crimes Enforcement Network (FinCEN) have jointly proposed new rules that would require fund advisors to document customer identification. These measures are part of a broader aim to curb money laundering in the investment industry.  

FATF, INTERPOL and UNODC Issue Joint Call to Fight Money Laundering
Reuters The heads of these bodies issued an urgent warning for countries to clamp down on illicit financial networks that are operating globally. FATF President T. Raja Kumar stated that, “Global financial integrity is critical for financial stability, inclusion, and for peace and security." 

North Korea laundered $147.5 million through cryptocurrency platform Tornando Cash 
Reuters has reported that the U.N. is investigating numerous cyberattacks conducted by North Korea against cryptocurrency exchanges between 2017 and 2024. One of the prominent attacks on cryptocurrency exchange HTX led to $147.5 million being stolen and then laundered through Tornado Cash, which was sanctioned by the U.S. in 2022.  

ID-Pal launches new AI fraud detection tool  
The new tool, “ID-Detect”, enables enhanced document identification that provides greater confidence that a physical document is present rather than a fraudulent duplication. The rise of AI-powered fraud means that it is vital for businesses to ensure their document verification processes are suitably robust.  


U.S. sanctions Russian companies involved in evasion scheme 
The sanctions were imposed after a recently aborted bid to purchase an industrial stake with links to a Russian tycoon. A “web of companies” linked to the $1.6 billion sale have been sanctioned by the U.S. Treasury.  

France and the Netherlands push for EU sanctions against financial institutions aiding Russia’s military 
Reuters reports that the two EU-member states are pushing for sanctions against any financial institution that aids Russia’s military. The proposal will be discussed as part of the incoming 14th package of EU sanctions against Russia.  


Senior Russian official arrested on corruption charges 
Yuri Kuznetsov, the head personnel of Russia’s Defence Ministry, is accused of accepting bribes after goods and cash worth over $1 million were found at his property. The arrest is part of an ongoing government corruption scandal.  

FIFA reforms under scrutiny  
The 2015 FIFA corruption scandal led to many reforms and rule changes. They claimed this governance overhaul had the backing of the U.S. Justice Department, however those claims have now been denied and questions remain over the enactment of the reforms.  

Ex-Pakistan PM Imran Khan handed bail in corruption case but remains in jail  
Imran Khan was granted bail on land corruption charges but will remain in jail to serve two other cases.  

Gambling_GamingGaming and Gambling

Nordic operator Paf reduces loss limits for 20-24 year olds  
Players aged 20-24 years old will have loss limits of €8,000 per year. CEO Christer Fahlstedt noted that the measures are "an important continuation of the responsible gaming direction we are striving towards at Paf.”  


KYC360 News

Mastering Regulatory Complexity in Gaming and Gambling: Full Webinar Replay 
Gain insights from Stephen Platt, Founder of KYC360 and Ian Penrose, Board Advisor, on how gambling firms can adapt compliance processes and successfully thrive in a fast-changing landscape. 

Watch now


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