Top stories this week:
DOJ introduces whistleblower programme to combat financial fraud | UK government announces measures to tackle global financial corruption | U.S. and EU set to apply fresh sanctions against Iran but unlikely to cut oil lifeline
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 the DOJ introducing a whistleblower programme to combat financial fraud, TikTok being referred to Australian AML authorities and 20 arrests in clampdown on drug trafficking and money laundering networks.
In the fast-paced world of sanctions, Israel demands further sanctions against Iran, with the U.S. and EU set to apply sanctions but stop short of cutting off Iran's oil lifeline.
In the corruption space, the UK government announces measures to tackle global financial corruption, and the frontrunner to lead the Spanish football federation faces corruption charges.
We round off this week’s roundup with an opportunity to view our latest blog, “Safer Gambling Spotlight”.
KYC & AML
DOJ introduces whistleblower programme to combat financial fraud
The U.S. Department of Justice (DOJ) has introduced a pilot whistleblower programme that offers incentives to those who can offer information about financial fraud. The programme is expected to launch within the next few months. It is hoped that this will mirror the success of similar programmes at the SEC and CFTC.
TikTok referred to Australian AML authorities
The social platform is accused of lying to Irish regulators about gaps in its payments screening. In 2022, local authorities in Turkey discovered millions of dollars being transferred to terrorist groups through TikTok’s payment system.
U.S. Treasury warns of terror groups expanding their use of crypto
The U.S. Treasury Department has called for Congress to approve new regulatory tools such as secondary sanctions against foreign digital asset providers, or they fear terrorist groups such as Hamas and Al Qaeda and state actors like Russia and North Korea could increase their use of virtual assets to acquire and launder funds.
U.S. and Chinese officials hold meetings with Economic and Financial Working Groups
The U.S. Treasury Secretary Janet Yellen has stated that these talks will focus on AML measures and supporting balanced growth. Additionally, the U.S. will continue to push for reforms at the World Bank to support developing countries with challenges that pose risks to global growth.
Sam Bankman-Fried Appeals 25 Year Sentence
The former crypto mogul was convicted for defrauding customers of over $8billion through cryptocurrency exchange FTX. The conviction was one of the largest financial frauds in the history of the U.S. The appeal is set to take years before conclusion.
Four individuals arrested in the UK on suspicion of smuggling cash
Around £200,000 was seized by UK police at Dover from a man’s vehicle. The National Crime Agency (NCA) officers believe the funds were going to be smuggled into Albania.
20 arrests in clampdown on drug trafficking and money laundering network
A joint operation by Portugal and Spain led to the arrests, with the suspects accused of laundering over EUR 10 million using stolen identities. The investigation was supported by Europol from 2021. The operation is ongoing, and further arrests could be on the horizon.
Sanctions
U.S and UK introduce prohibitions on metals imported from Russia
The joint action aims to reduce Russian revenue from metals, including aluminium, copper and nickel. Metal exchanges will be prohibited from accepting new Russian supplies. The country is one of the largest producers of the three metals.
Israel demands further sanctions against Iran
Israel spoke at the U.N. urging the council to take action and “reimpose crippling sanctions” on Iran. Israel called an emergency meeting after a direct attack on its territory that included 170 armed drones, 120 ballistic missiles, and 30 cruise missiles.
U.S. and EU set to apply fresh sanctions against Iran but unlikely to cut oil lifeline
The U.S. and EU are expected to apply further sanctions against Iran, but analysts suggest that Biden will not apply dramatic sanctions on oil imports due to fears over increased oil prices. Fresh sanctions are expected to target the country’s drone and missile production and any entities supporting it.
Corruption
UK government announces measures to tackle global financial corruption
The government will work with other countries and organisations to tackle global corruption by calling for increased transparency of company ownership. This will be supported by £2 million in funding to tackle corruption, money laundering and illicit finance. These funds will help low-income countries to set up registers of company ownership.
Frontrunner to lead Spanish football federation charged with corruption
The government has pledged to rectify the current situation in Spanish football after Pedro Roches was declared a suspect in an ongoing corruption probe that involves former head of Spanish football, Luis Rubiales.
Nigeria recovers millions in corruption probe
An ongoing corruption probe into a government agency has recovered almost $30 million. Funds have been retrieved from former and suspended ministry officials.
Gaming and Gambling
Netherlands Gaming Association sends warning over slots and advertising ban
The Netherlands Online Gambling Association (NOGA) warned that the recent government vote to ban online slots and advertising would drive players to unregulated and illegal markets.
KYC360 News
Safer Gambling Spotlight
Stay updated on the latest developments in safer gambling regulations, including recent implementations of player protection measures in the UK that regulators and operators worldwide are closely observing.
Read more.
Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.
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