Top stories this week:
Epoch Times Accused of Money Laundering by DOJ | Janet Yellen Says AI Can Help Tackle Money Laundering but Warns of Significant Risks
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 an investigation into money laundering at Epoch Times, Janet Yellen speaking about the role of AI in combatting money laundering and a former TD bank employee facing accusations of falsifying documents and taking bribes.
In the fast-paced world of sanctions, the U.S. seeks EU sanctions guarantees before approving new finances and the U.S. House votes to sanction the International Criminal Court (ICC).
In the corruption space, four individuals are arrested in Moldova for alleged involvement in a corruption scheme.
We round off this week’s roundup with an opportunity to learn more about KYC360’s recent recognition as a category leader in the Chartis RiskTech Watchlist Monitoring Report.
KYC & AML
Former TD Bank Employee accused of falsifying documents and taking bribes
The ongoing investigation into AML failures at TD Bank has uncovered accusations that an employee accepted bribes to move cash across borders and opened accounts using falsified documents.
Epoch Times accused of money laundering by DOJ
The U.S. media company's CFO, Weidong 'Bill' Guan, was arrested and accused of laundering $67 million in a scheme involving cryptocurrency to purchase illicit funds.
Janet Yellen says AI can help tackle money laundering but warns of significant risks
U.S. Treasury Secretary Janet Yellen stated, "Specific vulnerabilities may arise from the complexity and opacity of AI models, inadequate risk management frameworks to account for AI risks and interconnections that emerge as many market participants rely on the same data and models." She added that the Treasury is talking with financial regulators about harnessing AI to mitigate illicit finance risks.
Australian regulator warns of international students being used as money mules
AUSTRAC has warned that gangs are paying international students and temporary residents up to AUS $500 to move illicit funds. It has released new guidance to tackle and identify the use of money mules.
AML investigation into Monzo bank dropped by FCA
The FCA ended its 2-year investigation into the challenger bank and found no criminal wrongdoing. However, the regulator is continuing to probe potential AML breaches as a civil matter.
Independent ATMs at risk of money laundering
An investigation by Netherlands media company Zembia found that independent ATMs, defined as those not linked to a bank, can be set up by anyone and are not subject to regulations. This means they can easily be used by criminals to launder money.
Sanctions
U.S. seeks EU sanctions guarantees before approving new finances
A report from The Financial Times has suggested the U.S. is looking for the EU to indefinitely extend sanctions against Russia before they lead a $50 billion loan. Currently, the sanctions expire every 6 months unless renewed with consent from all member states.
U.S. House votes to sanction International Criminal Court
The U.S. House of Representatives have voted to sanction the International Criminal Court (ICC) after they requested arrest warrants against Israeli officials. The sanctions are not expected to become law as they are unlikely to pass in the U.S. Senate.
EU set to sanction Sudanese military figures
The conflict in Sudan has led to over 9 million people fleeing their homes and one of the world’s worst humanitarian crises. Six individuals who are fighting for control of Darfur would be subject to asset freezes and travel bans.
Corruption
Four individuals arrested in Moldova for alleged involvement in corruption scheme
They are accused of helping wanted criminals bypass INTERPOL’s red notice by bribing officials in Moldova and elsewhere. Paul Foster, NCA Director of Threat Leadership, said: “These corrupt officials abused their positions to provide a service that enabled some of the world’s most serious criminals to attempt to operate, travel freely and evade detection by law enforcement.
KYC360 News
KYC360 recognised as a category leader in Chartis RiskTech Watchlist Monitoring Report
KYC360 is proud to be featured in the prestigious 2024 Chartis RiskTech report, gaining recognition as a category leader for Adverse Media Monitoring Solutions and Name and Transaction Screening Solutions.
Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.
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