Month: January 2025

Block Faces $175 Million CFPB Order Over Fraud Failures, Following $80 Million State-Led Crackdown

Fraud, Prosecutions
In a world where swiping right or transferring money can be done in seconds, trust is the bedrock of our digital lives. For Cash App users, that trust has been shaken—and regulators are stepping in with a forceful reminder that convenience can’t come at the cost of consumer protection. Today, the Consumer Financial Protection Bureau (CFPB) announced a $175 million settlement with Block, Inc., the parent company of Cash App. The headline is grim: $120 million is set aside to refund users burned by fraud and mishandled disputes, with another $55 million going to a victims relief fund. But the…

Countering Russian sanctions evasion – guidance for exporters

Law, Regulation & Guidance, Sanctions
This guidance is intended to support UK exporters in understanding Russian circumvention practices and in reducing the risk of their business being targeted by those seeking to evade sanctions. While every effort has been made to ensure the accuracy of the information in this guidance, it does not constitute legal advice and cannot be relied upon as such. It remains the responsibility of UK businesses to fully determine the extent of their specific sanctions risk exposure, and to develop an appropriate set of safeguards and controls tailored to their particular circumstances.  Consulting the external screening databases indicated in this document…

U.S. Transfers $50M in Forfeited Assets to the Republic of Estonia in Recognition of Assistance in the Danske Bank Prosecution and Forfeiture

Money Laundering, Prosecutions
The Justice Department announced today that it entered into an agreement to share $50 million in forfeited assets with the Republic of Estonia (Estonia) in recognition of Estonia’s assistance in the successful prosecution of Danske Bank and related forfeiture. “Coordinating with our foreign law enforcement counterparts is critical in the fight against complex financial crime — which now, more than ever before, is transnational in nature,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Today’s agreement to share $50 million in forfeited funds with Estonia recognizes Estonia’s valuable contribution to the successful…

UK to launch world first sanctions regime to snare people smugglers travelling upstreamhttnce-danske-bank

Sanctions
The UK will develop a new sanctions regime to cripple people smuggling crime rings and starve them of illicit finance fuelling their operations.  The UK will develop a new sanctions regime to cripple people smuggling crime rings and starve them of illicit finance fuelling their operations.  In a major speech tomorrow, the Foreign Secretary will reveal plans to bring forward legislation for a new sanctions regime targeting irregular migration and organised immigration crime to secure UK borders in a decade of national renewal.    As the world’s first standalone sanctions regime dedicated to targeting irregular migration and organised immigration crime,…

Chancellor Rachel Reeves could use £5billion of Bitcoin seized from money-laundering probe into Chinese fraudster to plug economic black hole

Money Laundering
Rachel Reeves is sitting on a £5billion windfall of Bitcoin seized from organised criminals that could now be used to plug the huge black hole in her budget. The Mail on Sunday has learnt the Government has amassed an astonishing stash of crypto-currency after a money-laundering probe into a Chinese fraud led to one the world’s biggest ever seizures. Valued at an estimated £5.2billion, the seized Bitcoin was last night described as a ‘get out of jail free card’ for the embattled Chancellor amid fears that Britain faces an ‘economic doom loop’. Crucially, the sum is worth more than the…

France deepens probe into Binance over alleged ML

Money Laundering
French authorities have announced their decision to extend the 2023 investigation into Binance, over alleged money laundering accusations. Following this announcement, the French authorities have deepened their investigation into Binance on suspicion that a large cryptocurrency exchange broke European money laundering and terrorist financing laws. The public prosecutor also mentioned that it had opened a judicial investigation into Binance as it was likely to have assisted in habitual money laundering, in particular drug trafficking and tax fraud. The potential offenses were committed in the region of France, but also in all countries of the European Union. France deepens probe into…

Biggest fraud crackdown in a generation

Fraud
Welfare fraudsters who cheated the taxpayer out of £7 billion last year could be banned from driving if they repeatedly fail to reimburse the public and repay their debt.  Welfare fraudsters who cheated the taxpayer out of £7 billion last year could be banned from driving if they repeatedly fail to reimburse the public and repay their debt. As part of new legislation set to be introduced in Parliament today to deliver the biggest fraud crackdown in a generation, benefit cheats could be disqualified from driving for periods of up to two years if they refuse all opportunities to repay…

£1 million fraud at Aberdeen City Council sends a warning across local government

Fraud
All Scottish councils must learn from the weaknesses that allowed an Aberdeen City Council employee’s £1.1 million fraud go undetected over 17 years. Between 2006 and 2023, the employee transferred 655 council tax refund payments totalling £1.109m into his own bank account. Another staff member acted swiftly and alerted senior colleagues when they became suspicious in September 2023. The council expects to be able to recover the lost funds, with no loss to the taxpayers whose accounts were affected. But the Accounts Commission is concerned that whilst the council had a system of controls in place, these were not adhered…

Two Robinhood Broker-Dealers to Pay $45 Million in Combined Penalties for Violating More Than 10 Separate Securities Law Provisions

Law Enforcement, Regulatory Fines
Washington D.C., Jan. 13, 2025 —  The Securities and Exchange Commission today announced that broker-dealers Robinhood Securities LLC and Robinhood Financial LLC (collectively, Robinhood) have agreed to pay $45 million in combined civil penalties to settle a range of SEC charges arising from their brokerage operations. “It is essential to the Commission’s broader efforts to protect investors and promote the integrity and fairness of our markets that broker-dealers satisfy their legal obligations when carrying out their various market functions,” said Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement. “Today’s order finds that two Robinhood firms failed to observe…

Global Cryptocurrency Exchange BitMEX Fined $100 Million For Violating Bank Secrecy Act

Law Enforcement, Regulatory Fines
Company Willfully Flouted U.S. Anti-Money Laundering Laws to Boost Revenue Matthew Podolsky, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515, announced that HDR GLOBAL TRADING LTD., a/k/a “BITMEX”, was sentenced today to a fine of $100 million for violating the Bank Secrecy Act by willfully failing to establish, implement, and maintain an adequate anti-money laundering (“AML”) and know-your-customer (“KYC”) program. Attorney for the United States Matthew Podolsky said: “Anti-money laundering and know-your-customer rules protect Americans from fraud, combat money laundering, and prevent the financing of terrorist activity. It is critical that all financial institutions,…

Greentube Alderney Limited to pay £1m for regulatory failures

Law Enforcement, Regulatory Fines
Online gambling business Greentube Alderney Limited, trading as Admiral Casino, is to pay £1 million after a Commission investigation revealed social responsibility and anti-money laundering failures. The operator, which runs admiralcasino.co.uk, will pay the money to socially responsible causes as part of a settlement with the Commission. Social responsibility failures included: Anti-money laundering failures included: This is the second time Greentube has faced regulatory action – in 2021 the operator paid out £685,000 after a Commission investigation revealed social responsibility and money laundering failures. John Pierce, Commission Director of Enforcement, said:  “This case arose from a follow-up compliance assessment designed to ensure the operator…

UK anti-corruption minister resigns amid Bangladeshi corruption probe into her family

Corruption
Britain’s anti-corruption minister resigned Tuesday following intense media scrutiny over whether she benefited financially from her relationship with her aunt, former Bangladeshi Prime Minister Sheikh Hasina, as well as a flurry of reporting about how London properties she lived in were paid for. Tulip Siddiq had served as the economic secretary to the U.K.’s Treasury after the Labour Party came to power last July. Hasina, whose government collapsed last August after mass student-led protests, is currently the subject of an ongoing embezzlement probe in Bangladesh. In December, Siddiq was named alongside her family in the inquiry and has denied wrongdoing.…