Month: February 2024

Dawn crackdown on suspected money launderers across Greater Manchester

Money Laundering
Six people suspected of being part of an organised crime group involved in a large-scale drugs supply and money laundering conspiracy have been arrested. This morning (Thursday 29 February) specialist detectives from GMP Serious Organised Crime Group and Economic Crime Unit, supported by district resources and colleagues from neighbouring forces, executed thirteen simultaneous warrants at properties and residences across Bury, Bolton, Salford, and Rossendale.Three women aged between 35 to 40, and three men aged between 38 to 41, have been arrested on suspicion of money laundering. They remain in police custody for questioning.A 38-year-old man was also arrested on suspicion…

Bribery, fraud and anti-money laundering | UK Regulatory Outlook February 2024

Bribery, Corruption, Regulation
The Environment Agency has established a new Economic Crime Unit to combat money laundering and conduct financial investigations in the waste sector, made up of accredited financial investigators and financial intelligence officers and financial crime analysts. The unit comprises two teams: the Asset Denial Team, focusing on account freezing orders, cash seizures, pre-charge restraints and confiscations; and the Money Laundering Investigations team, responsible for conducting money laundering investigations targeting environmental offences. Businesses within the waste sector should ensure they are adhering to proper financial practices and reporting any suspicious activities. It is crucial that should the Economic Crime Unit launch…

New report finds AML compliance failures are rife in the UK

Money Laundering
AN ANALYSIS of more than 1,600 ‘anti-money laundering (AML) events’ recorded across the UK in the last decade shows money laundering is the most prevalent issue (27.5%), a new report has revealed. In its 2024 Money Laundering and Financial Crime Stats Report, SmartSearch inspected 1,664 AML events in the UK alone and found that while just over a quarter of the UK’s crimes and issues pertain to money laundering (27.5%), this was closely followed by AML compliance failures (23.9%) – which beat drug trafficking (19.8%) and financial fraud (13.4%) to the top spot. AML events include recorded crimes or issues…

Bank fined £1m by Isle of Man regulator

Regulatory Fines
Royal Bank of Scotland International has been fined £1m by the Isle of Man’s financial regulator for breaching its anti-money laundering and countering the financing of terrorism code.The firm was fined by the island’s Financial Services Authority (FSA) for failing to adequately carry out customer risk assessments in line with the code between 2015 and 2018.It followed an inspection reviewing elements of the bank’s Isle of Man non-personal customer book between June and July 2021.A spokesman for the bank said it had “already updated and improved our controls and procedures to ensure this cannot happen again”.A total of 2,239 non-personal…

UK art market feeling the heat as anti-money laundering legislation ramped up

Art Market, Regulation
HMRC has been issuing more regular fines and putting into force intensive checks, making art-related businesses sweatRiah Pryor19 February 2024ShareUnder the AML broiler: HMRC fined at least 31 UK art market participants from January 2021 to March 2023 © M4OS Photos/Alamy Stock PhotoUnder the AML broiler: HMRC fined at least 31 UK art market participants from January 2021 to March 2023© M4OS Photos/Alamy Stock Photo The British art market is under mounting pressure from anti-money laundering (AML) legislation. HMRC, the UK’s tax authority, fined at least 31 art market participants from 10 January 2021, when it began supervising the art…

New York Attorney General Files Lawsuit Against Citibank Over Fraud Protection Failures

Fraud, Prosecutions
New York Attorney General Letitia James has initiated legal action against Citibank, N.A. (Citi), accusing the banking giant of neglecting to protect customers and refusing reimbursement to victims of fraud. The lawsuit alleges a range of misconduct, including the failure to implement robust online security measures, misleading account holders about their rights following unauthorized access, and illegal denial of reimbursement to victims of fraud. Alleged Misconduct by Citibank: Inadequate Security Measures: The lawsuit contends that Citibank’s lax approach to online security, insufficient monitoring systems, and failure to respond promptly and effectively to fraudulent activities have enabled scammers to steal millions…

Treasury Publishes 2024 National Risk Assessments for Money Laundering, Terrorist Financing, and Proliferation Financing

Counter Terrorist Financing, Money Laundering
WASHINGTON – Today, the U.S. Department of the Treasury published the 2024 National Risk Assessments on Money Laundering, Terrorist Financing, and Proliferation Financing. These reports highlight the most significant illicit finance threats, vulnerabilities, and risks facing the United States. The reports detail recent, significant updates to the U.S. anti-money laundering/counter-financing of terrorism framework and explain changes to the illicit finance risk environment. These include the ongoing fentanyl crisis, foreign and domestic terrorist attacks and related financing, increased potency of ransomware attacks, the growth of professional money laundering, and continued digitization of payments and financial services. These assessments also address how…

UN to investigate claims of corruption in Iraq aid project

Corruption
The UN Development Programme (UNDP) is dispatching a team to Iraq to assess allegations of corruption in its $1.5bn (£1.2bn) construction programme following a Guardian investigation. According to an internal document obtained by the Guardian, the UNDP’s administrator, Achim Steiner, has “commissioned a management review and assessment of the allegations” after revelations its staff were allegedly taking kickbacks in return for helping business people obtain lucrative construction contracts. The six-page document, sent to donors on 25 January, aimed to reassure western capitals that the UNDP could hold itself to account through internal oversight mechanisms. At a subsequent meeting, several donors…

Frankfurt Chosen as Host for EU Anti-Money Laundering Authority

Money Laundering, Regulation
Frankfurt has been selected as the headquarters for the European Union’s Anti-Money Laundering and Countering the Financing of Terrorism Authority (AMLA). The decision was made through a joint vote on Thursday by Members of the European Parliament (MEPs) and EU ambassadors. Out of nine candidate cities that applied to host AMLA and presented their cases in public hearings, Frankfurt emerged victorious in the first round of voting, securing a majority of validly cast votes. The co-rapporteurs for AMLA, Emil Radev of the European People’s Party (EPP) from Bulgaria and Eva Maria Poptcheva of Renew from Spain, expressed their confidence in…

EU told Slovakia that its reforms risked ‘irreparable damage’ to rule of law

Financial Crime
Brussels told Slovakia it risked doing “irreparable damage” to the rule of law, it has emerged, before the country’s MPs approved legal reforms that critics say are aimed at protecting the prime minister’s political and business allies. The Slovakian news outlet SME reported on Wednesday that the European commissioner for justice, Didier Reynders, had written last week to Robert Fico’s government urging it not to fast-track the legislative package through parliament. The request was ignored and the changes – including scrapping a special prosecutor’s office dealing with high-level corruption, lowering penalties for financial crimes and cutting the statute of limitations…

UAE Removed from FATF ‘Grey List’ as Kenya and Namibia Face Increased Monitoring

Money Laundering
The Financial Action Task Force (FATF), an international crime watchdog, announced the removal of the United Arab Emirates (UAE) from its ‘grey list.’ Simultaneously, Kenya and Namibia have been added to the list, subjecting them to heightened scrutiny due to concerns over inadequate measures against money laundering and terrorism financing. The decision came during the FATF Plenary, where the organization stated, “At this Plenary, the FATF added Kenya and Namibia to the list of jurisdictions subject to increased monitoring.” Kenya’s Treasury had already disclosed the news earlier in the day, emphasizing its full commitment to implementing the FATF’s action plan.…

Hezbollah-linked Picasso and Warhol stash raises red flag to art world

Art Market, Money Laundering
When police swooped on a high-security warehouse near London’s Heathrow airport, officers took away nearly two dozen works of art belonging to alleged Hezbollah financier Nazem Ahmad. At the same time, at an auction house in central London, they seized art that Mr Ahmad, a Beirut art gallery owner who the US wants to put on trial, had hoped to sell. The seized works included Picasso’s 1962 linocut Nature morte a la pasteque (Still Life with a Watermelon) and several by Andy Warhol, including Details of Renaissance Paintings (Leonardo da Vinci, The Annunciation, 1472). A Stanley Whitney painting, Sing All…

Germany’s BaFin warns Deutsche Bank of potential fines if it doesn’t improve money laundering controls

Money Laundering
The Federal Financial Supervisory Authority of Germany, BaFin, has “threatened to impose penalty payments” on Deutsche Bank, the country’s largest lender, if it doesn’t fix what it refers to as “defects” concerning its money laundering controls. Deutsche Bank fintech newsBaFin extends monitoring of Deutsche BankThe regulator has extended the stay of its special representative at Deutsche Bank until 30 October 2024 to report on and assess the progress of the bank’s implementation of safeguards against money laundering and terrorist financing. The representative was first instated by BaFin in 2018. BaFin says: “On November 21, 2023, BaFin ordered Deutsche Bank AG…

EU proposes sanctions on Chinese firms aiding Russian war effort

Sanctions
The EU is proposing to sanction companies in mainland China for the first time as part of its latest measures aimed at shutting down loopholes that allow Russia to route military technology via third countries to its weapons factories. Three companies in mainland China, as well as four in Hong Kong and one in India, are on a 91-page document of companies and individuals who EU member states want to add to a growing sanctions list before the second anniversary of Russia’s invasion of Ukraine. As the EU, the UK and US representatives prepare to meet in Brussels on Wednesday,…

Lloyds to face AML controls investigation

Money Laundering, Regulation
The Financial Conduct Authority (FCA) of the UK has initiated an investigation into Lloyds Banking Group’s Anti-Money Laundering (AML) controls. As detailed in the lender’s annual report, Lloyds underlined that the investigation is related to its compliance with the money laundering regulations in the UK and the Financial Conduct Authority’s rules and principles of business, focusing on its controls framework. The report mentions that the bank has been cooperating with the investigation and cannot estimate the potential financial impact or if there would be any. At the time of the announcement, Lloyds declined to comment on the matter. The Financial…