Month: November 2023

Ladbrokes and Coral owner to pay £585m to settle HMRC bribery inquiry

Bribery, Corruption
The owner of Ladbrokes and Coral has agreed to pay almost £600m to settle an investigation into alleged bribery at a business it owned in Turkey. Entain said it had reached an agreement with HM Revenue and Customs which will make the gambling giant pay a total of £585m in the form of a financial penalty and a “disgorgement of profits”. Under the terms of the agreement, the penalty, which includes an extra £20m charitable donation and a contribution of £10m towards the costs incurred by HMRC and the Crown Prosecution Service (CPS), will be paid in instalments over four…

SFO recovers £250,000 tennis club debenture from convicted fraudster

Asset Seizure
Today at Southwark Crown Court, the Serious Fraud Office (SFO) confiscated £250,000 from Achilleas Kallakis, one of the convicted fraudsters behind the UK’s largest ever mortgage fraud, held at the prestigious West London sports club, The Queen’s Club. SFO investigators identified the £250,000 debenture by tracing the funds through a complex chain of offshore accounts, including a purported family trust, to his £740 million fraud. Mr Kallakis’s name was displayed prominently alongside other notable members on the Debenture Board in the club’s reception in return for the debenture that he purchased in 2007. He also received club membership and access…

The EBA consults on new Guidelines on preventing the abuse of funds and certain crypto-assets transfers for money laundering and terrorist financing purposes

Digital Currencies
The European Banking Authority (EBA) today launched a public consultation on new Guidelines on preventing the abuse of funds and certain crypto-assets transfers for money laundering and terrorist financing purposes. These ‘travel rule’ Guidelines specify the steps that Payment Service Providers (PSPs), Intermediary PSPs (IPSPs), crypto-asset service providers (CASPs) and Intermediary CASPs (ICASPs) should take to detect missing or incomplete information that accompanies a transfer of funds or crypto-assets. They also detail the procedures all these providers should put in place to manage a transfer of funds or a transfer of crypto-assets that lacks the required information. These Guidelines aim…

Lawmakers call for EU crackdown after ICIJ’s Cyprus Confidential revelations

Corruption
European Union lawmakers have criticized Cyprus for its lax enforcement of sanctions against Russia and called for loopholes in anti-money laundering systems to be closed in the wake of revelations from the Cyprus Confidential investigation. During a European Parliament session in the French city of Strasbourg, the officials also debated over the need to speed up ongoing negotiations to better coordinate criminal penalties for sanction evasion across the bloc. The parliamentary session was called in direct response to the latest investigation by the International Consortium of Investigative Journalists, in partnership with Paper Trail Media and 67 media outlets. The project,…

Modern Slavery and Human Trafficking: An Expanding UK Market

Human Trafficking
This is the second in a series of articles on the top 10 serious and organised crime threats to the UK and their evolution over a decade. This article traces the journey of the threat posed by modern slavery and human trafficking, which has risen rapidly up the policy agenda over a decade. Across the globe, supply chains of every description are tainted by exploited labour. The UK is no exception: here as elsewhere, labour is often the greatest cost to business. Reducing this cost offers the fastest route to increased margins. For some businesses, they will use whatever means…

British Reinsurance Brokers Resolve Bribery Investigations

Bribery, Corruption
Tysers Insurance Brokers Limited (Tysers) and H.W. Wood Limited (H.W. Wood), two U.K.-based reinsurance brokers, have agreed to resolve investigations by the Justice Department into violations of the Foreign Corrupt Practices Act (FCPA) arising from Tysers’ and H.W. Wood’s participation in a corrupt scheme to pay bribes to Ecuadorian government officials. Tysers and H.W. Wood each entered into a three-year deferred prosecution agreement (DPA) with the department in connection with a criminal information filed in the Southern District of Florida charging both companies with conspiracy to violate the anti-bribery provisions of the FCPA. “Tysers and H.W. Wood have admitted to…

U.S. Treasury Announces Largest Settlements in History with World’s Largest Virtual Currency Exchange Binance for Violations of U.S. Anti-Money Laundering and Sanctions Laws

Digital Currencies, Money Laundering
WASHINGTON — The U.S. Department of the Treasury, through the Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC), and IRS Criminal Investigation (CI), has taken unprecedented action to hold Binance Holdings Ltd. and its affiliates (collectively, Binance) accountable for violations of the U.S. anti-money laundering (AML) and sanctions laws that protect American national security and the integrity of the international financial system. Binance is the world’s largest virtual currency exchange, responsible for an estimated 60% of centralized virtual currency spot trading. Today, Binance settled with FinCEN and OFAC for violations of the Bank Secrecy Act (BSA)…

SFO secures conviction of solicitor for tipping off client about money laundering investigation

Money Laundering
Today at the Old Bailey the Serious Fraud Office (SFO) secured the conviction of William Osmond, a solicitor, who disclosed confidential details about an investigation and forged a legal document in an attempt to mislead investigators. Osmond, co-founder of a London-based commercial and property law firm Osmond & Osmond Solicitors Ltd, is the first ever solicitor the SFO has prosecuted with “tipping off” a client. Solicitors are legally obliged not to share details of money laundering investigations into their clients. Osmond was also the acting Money Laundering Reporting Officer for the firm, meaning he was expected to report any suspicions…

Leading firm fined £101,000 for anti-money laundering failures

Money Laundering
A leading South-West law firm has been fined £101,357 for failing to act over money laundering red flags on three property transactions, two of which may have involved a sanctioned entity. The Solicitors Regulation Authority (SRA) said both the fee-earner and the compliance team at Exeter-based Ashfords missed, did not adequately act on or sufficiently record the red flags, demonstrating “a failure in the firm’s client onboarding and ongoing monitoring processes”. This resulted in the firm receiving “significant sums into its client account in the absence of source of funds evidence”. Ashfords accepted the fine in a regulatory settlement agreement…

Binance chief Changpeng Zhao pleads guilty to money laundering charges

Money Laundering
The Binance chief executive, Changpeng Zhao, has resigned after pleading guilty to money laundering violations. “I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself”, he said in a post on X. The Justice Department said it was requiring Binance, the largest crypto-exchange in the world, to pay $4.3bn (£3.4bn) in penalties and forfeitures. It said Binance had helped users bypass sanctions across the world. “Binance enabled nearly $900 million in transactions between US and Iranian users, and facilitated millions of dollars in transactions between US users and users in Syria,…

UK cracks down on gold and oil networks propping up Russia’s war economy

Sanctions
Foreign Secretary announces 29 new UK sanctions targeting individuals and entities operating in and supporting Russia’s gold, oil and strategic sectors. new UK sanctions target 29 individuals and entities operating in and supporting Russia’s gold, oil and strategic sectorsthose sanctioned include Russia’s largest gold refiner and international networks propping up Russia’s gold, oil and finance industriesto date the UK has sanctioned over 1,800 individuals, companies, and groups under our Russia sanctions regimeTwenty nine individuals and entities operating in and supporting Russia’s gold and oil sectors have been sanctioned by the UK today [8 November]. New listings include both Russian oligarchs…

United States and United Kingdom Take Coordinated Action Against Hamas Leaders and Financiers

Sanctions
WASHINGTON — Today, U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed its third round of sanctions targeting Hamas-affiliated individuals and entities since the October 7 Hamas terrorist attacks on Israel. This action designates key Hamas officials and the mechanisms by which Iran provides support to Hamas and Palestinian Islamic Jihad (PIJ). Today’s designations are coordinated with action by the U.K. and are aimed at protecting the international financial system from abuse by Hamas and their enablers. The U.S. Department of State is concurrently designating a leader of PIJ’s military wing. “The United States will continue to…

Taiwanese authorities seize $320M in country’s largest crypto laundering scheme

Digital Currencies, Money Laundering
The case has surpassed all previous records of money laundering investigated by the Criminal Investigation Bureau in Taiwan Taiwan authorities have arrested an individual suspected of laundering a record 10.4 billion Taiwanese dollars ($320 million) via digital assets. This marks the largest single case of crypto-related money laundering in the island nation’s history. Identified only by the surname Qiu, the suspect was arrested in June upon his return from a trip to Southeast Asia, according to Taichung’s Criminal Investigation Bureau and local media. The case emerged from an investigation initiated last year into a fake securities trading app. A probe…

US Regulators Agree to Ramp Up Oversight of Systemically Risky Non-Banks

Regulation
In a significant policy shift, U.S. regulators have cleared the path for an increased oversight of asset managers, hedge funds, and other non-bank financial institutions that are perceived to pose potential risks to the country’s financial system. This move marks the revival of a robust regulatory framework that had been sidelined during the previous administration of President Donald Trump. The Financial Stability Oversight Council (FSOC), led by the Treasury Department and composed of other major federal agencies, has also introduced a new framework aimed at identifying impending risks within the financial system. This decision is an integral part of the…

France demands EU corruption-busting watchdog with teeth

Corruption
France wants the European Union to create an independent watchdog authority to fight corruption in the EU institutions, which have been rattled by ongoing scandals in recent months. France’s President Emmanuel Macron and French Secretary of State for European Affairs Laurence Boone are proposing an independent anti-corruption body that would have powers to check officials’ income and spot conflicts of interest, Boone told POLITICO’s Brussels Playbook. And now they’re pushing for other EU countries to endorse the plan. Earlier this year, the European Commission proposed the creation of an ethics body with lofty goals but no enforcement power to impose…

ADGM introduces the worlds first DLT Foundations Regime

Digital Currencies, Regulation
The Registration Authority (RA) of Abu Dhabi Global Market (ADGM) officially released the Distributed Ledger Technology (DLT) Foundations Regulations 2023, marking a significant milestone in the evolution of digital assets regulatory frameworks across the region and at an international level. This newly implemented legislative structure is designed to provide a comprehensive framework for DLT Foundations and Decentralised Autonomous Organisations (DAOs), enabling them to operate and issue tokens recognising the unique needs of the Blockchain industry. This new regime comes in line with ADGM’s strategy to foster initiatives in the broader blockchain and digital asset realm. By setting a global benchmark…

Singapore’s DBS Takes a Hit from Money-Laundering Affair

Money Laundering
Singapore’s largest bank, DBS, is grappling with financial exposure of approximately S$100 million (US$73.8 million) in connection with a recent money-laundering scandal that has rocked the city-state, according to the bank’s chief executive, Piyush Gupta. He made this revelation during a press briefing on Monday, shedding light on the bank’s involvement in the ongoing investigation. Gupta disclosed that DBS had provided financing for property purchases involving individuals or companies currently under investigation by Singaporean authorities. In August, the local police made headlines when they arrested 10 foreign nationals on charges that include fraud and money laundering, sending shockwaves throughout the…

Cyprus Wing of Auditing Giant PwC May Have Breached Sanctions in Work for Oligarch

Sanctions
As Russian tanks rolled into Ukraine in late February 2022, staff at the Cypriot wing of international auditing giant PwC were rushing to tie up the sale of hundreds of millions of dollars’ worth of assets owned by Russian oligarch Alexey Mordashov. Like other pro-Kremlin billionaires, Mordashov — described by Forbes as Russia’s richest person in 2021 — was at risk of having his European assets frozen if authorities sanctioned him in response to the invasion. At PwC Cyprus, staff exchanged documents marked “URGENT” and “PLEASE APPROVE” as they prepared paperwork to sell Mordashov’s stake in German travel company TUI…

Portugal’s corruption scandal spells trouble for EU’s critical minerals hunt

Corruption
BRUSSELS — The European Union’s hunt for raw materials is running into new roadblocks — at home and abroad. Portuguese Prime Minister António Costa’s recent resignation over a corruption probe in connection with lithium mining concessions in the north of the country has just dealt another blow to Brussels’ ambitions to diversify its supply of raw materials needed for green and digital technologies. Currently, the EU relies on imports to satisfy its rapidly growing hunger for lithium, a key ingredient in the batteries that power electric vehicles, with China accounting for 60 percent of global battery cell production. Brussels is…

Following Investigations by Tether, OKX, and the U.S. Department of Justice, Tether Voluntarily Freezes 225M in Stolen USDT Linked to International Crime Syndicate

Fraud
20 November 2023 — Tether, the largest company in the cryptocurrency ecosystem, and leading global crypto exchange and Web3 technology company OKX, today announced that they have assisted the United States Department of Justice (DOJ) in an investigation that led to Tether proactively and voluntarily freezing approximately 225 million in USDT tokens in external self-custodied wallets linked to an international human trafficking syndicate in Southeast Asia responsible for a global “pig butchering” romance scam. The joint investigation was conducted using tools from blockchain analysis firm Chainalysis, and the action by Tether represents the largest-ever freeze of USDT in history. During…

Ukraine unveils corruption probes into reconstruction schemes

Corruption
KYIV, Nov 21 (Reuters) – Ukrainian authorities on Tuesday announced investigations into two lawmakers on suspicion of involvement in attempts to bribe top reconstruction officials, part of a closely watched campaign to stamp out high-level corruption. Kyiv has stepped up efforts to fight graft as it pursues membership of the European Union and prepares to receive billions of dollars in Western aid to rebuild from Russia’s ongoing full-scale invasion. The National Anti-Corruption Bureau of Ukraine (NABU) said it had caught one of the lawmakers, a member of parliament’s anti-corruption committee, allegedly offering the country’s first-ever documented bribe in bitcoin. Investigators…