KYC360 Weekly Roundup - 29th Mar 2024

Published on Mar 29, 2024

Top stories this week: 

KuCoin Crypto Exchange Charged with AML Failures | Swiss Regulator Identifies Significant Breach at Banque Audi (Suisse) SA | Indian opposition leader Arvind Kejriwal arrested in bribery case | UK and U.S. Accuse China of Cyber Attacks 

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 KuCoin being charged with AML failures, the Swiss regulator identifying a major breach at Banque Audi (Suisse) SA and Jair Bolsonaro's son being charged in a money laundering probe.  

In the fast-paced world of sanctions, the U.S. and UK applied fresh sanctions to terrorist networks aligned with Hamas and acted against Chinese hackers. Meanwhile, South Korea and the U.S. sanctioned financers of North Korean weapons of mass destruction. 

In the corruption space, Indian opposition leader Arvind Kejriwal was arrested in a bribery case and insider leaks implicated Hungarian government officials with corruption.  

We round off this week’s roundup with an opportunity to listen to our recent podcast, "Comply and Outperform - Lessons from Formula 1". Hear from Stephen Platt, Founder of KYC360 and Neil Martin, former Head of Race Strategy at Ferrari F1 discuss how to turn compliance from being a brake into an accelerator. 

Financial_ServicesKYC & AML

KuCoin crypto exchange charged with AML failures  
The exchange, which is one of the world’s largest, has been charged by the U.S. with violations related to the failure to vet customers causing the transfer of billions of dollars in illegal funds. They are accused of failing to verify client identities as required by U.S. law.  

Swiss regulator identifies significant breach at Banque Audi (Suisse) SA 
Banque Audi (Suisse) SA, a subsidiary of a prominent Lebanese banking conglomerate, has been found to have failed in its duties to prevent money laundering and has committed severe violations of financial market regulations, according to Swiss financial regulator FINMA. The regulator mandated the repayment of profits amounting to 3.9 million Swiss francs ($4.34 million) and imposed a capital surcharge of 19 million francs.  

Jair Bolsonaro's son charged in money laundering probe  
O Globo reports that Brazilian prosecutors have filed charges against Jair Renan Bolsonaro, the son of former President Jair Bolsonaro, for alleged money laundering offences and fabricating documents for a bank loan. This development comes after the former president was officially accused by federal police of falsifying his vaccination records, potentially paving the way for criminal charges.  

Cyprus to get additional U.S. support to combat money laundering  
The United States and Cyprus have announced plans to strengthen their collaboration in enhancing Cypriot capabilities to combat and prosecute illicit financial operations. Despite efforts to tighten oversight and close loopholes over the past decade, Cyprus has maintained an undesirable reputation as a channel for illicit money flows. 



U.S. sanctions financial facilitators and drug traffickers linked to Syrian regime  
The Office of Foreign Assets Control (OFAC) has imposed sanctions on 11 individuals and entities for their involvement in supporting the regime of Syrian President Bashar Al-Assad. Their activities include facilitating illicit financial transactions, trafficking illegal drugs, and participating in the extraction and export of Syrian commodities. 

UK and U.S. accuse China of cyber attacks
The U.S. and UK have announced significant measures against hackers supported by the Chinese government, accusing them of conducting extensive cyber attacks targeting entities in Washington and Westminster. The US indicted seven Chinese nationals allegedly affiliated with APT31, a hacking group based in Wuhan linked to China's main spy service. The UK also attributed two cyber campaigns to Chinese hackers, targeting Britain's elections watchdog and politicians, and in response they announced sanctions including asset freezes and travel bans in response.  

UK and U.S. sanctions terrorist network aligned with Hamas 
The Office of Foreign Assets Control (OFAC) has designated two individuals and three entities as significant financial facilitators involved in fundraising for Hamas. This action is part of a coordinated effort with the United Kingdom's Office of Financial Sanctions Implementation. 

South Korea and U.S. impose sanctions on financers of North Korean weapons of mass destruction
The U.S. and the Republic of Korea (ROK) imposed sanctions on six individuals and two entities located in Russia, China, and the United Arab Emirates. These entities are involved in generating revenue and facilitating financial transactions for the Democratic People's Republic of Korea (DPRK). The funds generated by these actors are used to support the DPRK's weapons of mass destruction (WMD) programs. 



Indian opposition leader Arvind Kejriwal arrested in bribery case  
Kejriwal, the current Chief Minister of New Delhi and the national convener for the Aam Aadmi Party has been accused of alleged financial misconduct, including the acceptance of bribes totalling 1 billion rupees ($12 million) from liquor contractors. This arrest coincides with upcoming general elections in India, scheduled to commence in April. 

Former Mongolian PM allegedly purchased New York City apartments with embezzled mining funds 
Federal prosecutors in Brooklyn are looking to forfeit two midtown apartments which they say former Prime Minister Sukhbaatar Batbold and his family bought for a total of $14 million in 2012 and 2015 with illicit funds. The move is part of a wider crackdown on money laundering in high-end real estate.  

Insider leaks recording implicating Hungary government officials in corruption  
Protests broke out in Hungary over a leaked recording released by Peter Magyar, a former government insider. The recording alleges that close associates of the government tampered with documents involved in a major corruption trial

Gambling_GamingGaming and Gambling

UK Gambling Commission to mandate quarter regulatory returns 
All licensed operators must now submit regulatory returns every quarter. Previously they were required to submit these annually. Respondents in favour of the change believe it will lead to clearer and more timely insights on gambling harm.  


KYC360 News

Catch up on our latest podcast, Lessons from F1
Hear from Stephen Platt, Founder of KYC360 and Neil Martin, former Head of Race Strategy at Ferrari F1, on how compliance no longer needs to be a brake on your business and can be an accelerator allowing you to do more, better business faster. 
Listen now.


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