Month: October 2024

TD Bank Pleads Guilty to $1.8 Billion in Criminal Penalties, Totaling Over $3 Billion in Regulatory & Civil Penalties

Money Laundering, Prosecutions
TD Bank, one of the largest financial institutions in North America, has pleaded guilty to multiple felonies and agreed to pay a staggering $1.8 billion in criminal penalties, in a resolution that also involves civil enforcement actions totaling over $3 billion. This marks the largest penalty ever imposed under the Bank Secrecy Act (BSA) and signals a significant shift in how U.S. regulators are addressing persistent compliance failures in the banking industry. In an unprecedented move, the U.S. Department of Justice (DOJ) applied the Bank Secrecy Act’s daily fine provision—$500,000 per day for violations—making it the first-ever daily fine levied…

Alleged Hong Kong Crypto Swindler Tied to Singapore Money Laundering Syndicate

Digital Currencies, Prosecutions
A Chinese national accused of stealing millions from investors after the collapse of a cryptocurrency exchange also owned companies with businessmen linked to major money laundering investigations in Southeast Asia — including one who has been convicted, and another suspect on the run. Hong Kong police have called Su Weiyi the “mastermind” behind Atom Asset Exchange (AAX), which had more than two million users before collapsing in 2022. Su Weiyi allegedly absconded with investors’ money, but returned to Hong Kong where he was arrested on July 18 and charged with theft. The charges have not been proven in court and…

Citigroup Ordered to Strengthen AML Compliance Amid Federal Scrutiny

Money Laundering
Citigroup Inc., one of the largest banking institutions in the United States, has been ordered to significantly overhaul its anti-money laundering (AML) compliance programs following deficiencies uncovered by federal regulators. A consent order, issued jointly by the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC), requires Citigroup to implement sweeping reforms across its subsidiaries to address critical lapses in its oversight and governance. Citigroup’s global operations, including its ownership of Citibank, N.A. in South Dakota and Banamex USA in California, are governed by stringent U.S. anti-money laundering laws. The Bank…

Popular golf course to be sold after fraud scandal

Fraud
A popular English championship golf course is set to be sold after becoming embroiled in a high-profile fraud scandal. Mill Ride Golf Club in Berkshire was one of a number of assets forfeited by the wife of a jailed banker following a six-year National Crime Agency (NCA) investigation into fraudulent acquisitions. Zamira Hajiyeva was forced to give up the Berkshire course – as well as a £14million Knightsbridge House – after the NCA concluded it was obtained as a “direct result of large-scale fraud and embezzlement, false accounting and money laundering.” Her husband Jahangir is the former chairman of the…

Raytheon to Pay Over $950 Million in DOJ Settlement for Defective Pricing, Foreign Bribery, & Export Control Violations

Bribery, Prosecutions
Raytheon Company, a defense giant and subsidiary of RTX, has agreed to pay over $950 million to settle criminal and civil investigations by the Department of Justice (DOJ). The hefty settlement addresses the company’s involvement in fraudulent pricing schemes, violations of the Foreign Corrupt Practices Act (FCPA), and breaches of export control regulations under the Arms Export Control Act (AECA). The DOJ has outlined two significant schemes. The first relates to Raytheon’s fraudulent pricing practices on U.S. Department of Defense (DOD) contracts, while the second involves foreign bribery in Qatar and the company’s failure to properly disclose such conduct in…

Kuwait’s measures to combat money laundering and terrorist financing

Counter Terrorist Financing, Money Laundering
Kuwait has an adequate legal and supervisory framework to address illicit finance, but has serious shortcomings delivering effective outcomes, including its understanding, investigation and prosecution of money laundering and terrorist financing. The FATF/MENAFATF mutual evaluation report of Kuwait assessed the effectiveness of Kuwait’s measures to combat money laundering, terrorist financing and proliferation financing, and their level of compliance with the FATF Recommendations. Kuwait is a high-income country with low levels of violent crime but that nevertheless faces money laundering risks from crimes that include fraud, corruption, forgery and offences committed abroad. The country is exposed to terrorist financing risks from…

Justice Department Unveils Comprehensive Strategy to Combat AI-Enabled Cybercrime, Emphasizes International Cooperation

Cyber Crime
The Department of Justice’s Criminal Division unveiled today a sweeping new framework for addressing cybercrime and artificial intelligence-enabled criminal activities, signaling a major evolution in the federal government’s approach to technology-enabled threats. Principal Deputy Assistant Attorney General Nicole M. Argentieri, speaking at the Computer Crime and Intellectual Property Section’s Symposium hosted by the Center for Strategic and International Studies in Washington, DC, detailed the division’s ambitious strategy to combat increasingly sophisticated digital threats while safeguarding civil liberties and promoting responsible innovation. The newly released Strategic Approach to Countering Cybercrime marks the Justice Department’s most comprehensive response yet to the challenges…

UK sanctions Russian troops deploying chemical weapons on the battlefield

Sanctions
Russian troops involved in the abhorrent use of inhumane chemical weapons on the battlefield in Ukraine have been targeted by new UK sanctions. Russia’s Radiological Chemical and Biological Defence (CBR) troops and their commander have been sanctioned for the deployment of barbaric chemical weapons in UkraineUK calls out Russia’s flagrant violation of the Chemical Weapons Convention (CWC) and urges Russia to immediately cease all such activityaction continues the Foreign Secretary’s personal mission to target the full spectrum of the Kremlin’s malign activity through our arsenal of sanctionsRussian forces have openly admitted to using hazardous chemical weapons on the battlefield, with…

OCC Cracks Down: October Enforcement Actions Highlight BSA/AML Failures & Insider Threats

Money Laundering, Prosecutions
The Office of the Comptroller of the Currency (OCC) has unveiled its latest round of enforcement actions for October 2024, cracking down on banks and individuals for a variety of compliance failures. This month’s actions cover a wide spectrum of issues, from severe violations in Bank Secrecy Act/Anti-Money Laundering (BSA/AML) programs to internal fraud by individual employees. The most significant penalty on the list goes to TD Bank, which received a hefty $450 million civil money penalty, coupled with a cease-and-desist order, for BSA/AML compliance deficiencies. This penalty continues to send shockwaves through the financial sector. It highlights that when…

Billion-dollar cyberfraud industry expands in Southeast Asia as criminals adopt new technologies

Fraud
A new report launched today has found that Asian crime syndicates have integrated new service-based business models and technologies including malware, generative artificial intelligence (AI), and deepfakes into their operations while establishing new underground markets and cryptocurrency solutions for their money laundering needs.The report, titled Transnational Organized Crime and the Convergence of Cyber-Enabled Fraud, Underground Banking, and Technological Innovation: A Shifting Threat Landscape, is the second in a series of ongoing threat analyses produced by the UN Office on Drugs and Crime (UNODC).“Organized crime groups are converging and exploiting vulnerabilities, and the evolving situation is rapidly outpacing governments’ capacity to…

DOJ’s New Corporate Compliance Blueprint: AI Risks, Whistleblower Protections, and Financial Accountability Take Center Stage

Whistleblowing
At the Society of Corporate Compliance and Ethics (SCCE) 23rd Annual Compliance & Ethics Institute, Principal Deputy Assistant Attorney General Nicole M. Argentieri delivered a keynote speech underscoring the U.S. Department of Justice’s (DOJ) evolving corporate enforcement landscape. Compliance professionals were at the center of her address, emphasizing their critical role in upholding corporate integrity. Argentieri’s speech wasn’t merely a high-level overview of DOJ priorities; it was a call to action for compliance officers and GRC professionals. With the increasing complexity of corporate crimes, driven in part by disruptive technologies like artificial intelligence, the DOJ’s message was clear: robust compliance…

New York Man Pleads Guilty in Crypto-Fueled $25M Money Laundering Case

Digital Currencies, Money Laundering, Prosecutions
The U.S. Attorney’s Office and the FBI announced on Friday that Yanbing Chen, a 30-year-old from Brooklyn, N.Y., pleaded guilty to his involvement in an international money laundering and drug trafficking conspiracy. The organization, led by Jin Hua Zhang of Staten Island, laundered over $25 million in drug proceeds and illegal funds. Chen delivered $50,000 in drug profits, which were converted to Tether, a cryptocurrency, and transferred to Zhang, minus a fee. The funds were traced to multiple countries, including Hong Kong, India, and Brazil. Additionally, Chen transported five kilograms of cocaine in two separate meetings under Zhang’s direction. Zhang…

UK-linked firms suspected of busting Russia sanctions

Sanctions
The government is carrying out 37 investigations into UK-linked businesses for potentially breaking Russian oil sanctions – but no fines have been handed out so far, the BBC can reveal.The identities of the businesses are unknown but it is understood some are likely to be maritime insurance firms.The Treasury said it would take action where appropriate, but pointed to the complexity of the cases as a reason they take considerable time.But Sir William Browder, a longstanding critic of Russian President Vladimir Putin, said it was an “embarrassment” that there had not been a single prosecution or fine for companies investigated…

UNODC report exposes escalating threat of organized crime in the Pacific

Environmental Crime
The Pacific is increasingly becoming an important transshipment hub and an operational and destination point for organized crime syndicates, according to a new report launched today by the UN Office on Drugs and Crime (UNODC).Titled Transnational Organized Crime in the Pacific: Expansion, Challenges, and Impact, the report provides a detailed analysis of the rapidly evolving organized crime landscape and related drivers. It highlights how foreign criminal groups are capitalizing on the region’s geographic isolation, infiltrating legitimate businesses and using new technologies to advance their illicit operations while evading law enforcement.“Transnational organized crime has become a significant security threat in the…

SFO recovers further £295,000 from convicted fraudster’s hidden pensions

Confiscation, Proceeds of Crime
The Serious Fraud Office (SFO) has recovered a further £295,000 from Virendra Rastogi, now known as Vareen Kumar or Veerain Kumarr, who was convicted for an international metal trading scam. The money was recovered from two pension funds as part of an ongoing proceeds of crime investigation into Rastogi’s assets, which has recovered nearly £6 million to date including from the sale of his Marylebone home and via the seizure of money and assets including valuable watches. Rastogi was one of three former directors of RBG Resources plc who was prosecuted by the SFO in 2008 for operating an international…