Month: April 2025

Cyprus Parliament Asked to Probe Abramovich Firm’s Taxes After Superyacht Scheme

Fraud
A Cypriot parliamentary committee is scheduled to discuss a company owned by Russian billionaire Roman Abramovich, which shut down after being hit by $18.5-million in taxes related to a fraudulent superyacht-rental scheme. Citing a January investigation by OCCRP and its Cypriot member center, CIReN, Parliamentarian Alexandra Attalides wrote a letter asking the Committee on Ethics to look into whether the tax bill was paid. “In the event that this has not happened,” she asked the parliamentary committee to seek information on “what actions the competent authority took before the dissolution of the company, in order to ensure the repayment of…

MAS Proposes New Regulatory Framework to Open Private Market Investment Funds to Retail Investors

Regulation
Key Takeaways Wider Investment Choices: MAS is proposing a framework to allow retail investors to access private market investment funds, including private equity, private credit, and infrastructure.Two Fund Options: The proposal outlines two structures—Direct Funds for transparency into investments and Long-term Investment Fund-of-Funds (LIFF) for diversification and expert management.Consultation Process: MAS is seeking feedback on regulatory requirements and the types of assets suitable for retail investors.Future Potential: The proposal aims to create a sustainable and diversified market, with the potential for future listings of private market investment funds.Deep Dive The Monetary Authority of Singapore (MAS) is looking to broaden the…

Switzerland’s Frozen Russian Assets Continue to Climb

Sanctions
Switzerland has increased the total value of frozen Russian assets by $1.81 billion over the past year, bringing the total to over $8 billion, as authorities continue to enforce sanctions related to the war in Ukraine. US Lawmakers Pass Megobari Act Targeting Threats to Georgia’s DemocracyOfficials with the ruling Georgian Dream party rejected the move, with the mayor of Tbilisi claiming it was a “deep state” plot. US Sanctions Myanmar Militia Tied to Cyber-Scams, Human TraffickingThe Treasury Department said Americans have lost $5.5 billion to scam operations run from Southeast Asia since 2022. Switzerland has tightened its grip on Russian…

Treasury Sanctions Houthi Network Procuring Weapons and Commodities from Russia

Sanctions
WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) took action against a network of Houthi financial facilitators and procurement operatives working in coordination with Sa’id al-Jamal, a senior Houthi financial official backed by Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF). This network has procured tens of millions of dollars’ worth of commodities from Russia, including weapons and sensitive goods, as well as stolen Ukrainian grain, for onward shipment to Houthi-controlled Yemen. Additionally, OFAC has identified eight digital asset wallets used by the Houthis to transfer funds associated with their activities. “The Houthis remain reliant…

Leaked Letters Give Insight Into Anti-Money Laundering Gaps at Swiss Bank Reyl

Money Laundering
Leaked correspondence between the Swiss regulator FINMA and private bank Reyl Intesa Sanpaolo shows the bank has been under investigation for “weaknesses in the area of money laundering.”FINMA said it found a “very high” appetite for risk at Reyl, along with “a certain carelessness” in how it conducted due diligence.Reyl’s clients included the daughter of Kazakhstan’s former president, who amassed vast wealth for himself and his family during his two decades in power, and the son-in-law of Uzbekistan’s longtime strongman ruler.In response to OCCRP, Reyl said it has “strengthened its compliance and anti-money laundering frameworks” and has carefully reviewed and…

NYDFS Hits Block, Inc. with $40 Million Settlement Over Cash App Compliance Failures

Money Laundering, Prosecutions
Key Takeaways: $40 Million Penalty: Block, Inc. has agreed to pay a $40 million penalty for failing to meet BSA/AML compliance requirements related to Cash App.Independent Monitor: Block must retain an Independent Monitor to oversee the company’s compliance improvements.Investigation Findings: DFS found inadequate customer identification, insufficient risk-based controls, and transaction monitoring issues within Block’s operations.Bitcoin Transactions: The company failed to scrutinize high-risk Bitcoin transactions, creating vulnerabilities for illicit activity.Growth-Related Issues: Cash App’s rapid growth between 2019 and 2020 led to a significant backlog of transaction alerts that were not promptly addressed.Deep Dive The New York Department of Financial Services (NYDFS)…

EPPO Uncovers Massive €100M VoIP VAT Fraud

Fraud
German authorities have convicted three men in a massive tax fraud scheme involving internet-based phone services, in a case that European prosecutors say cost taxpayers an estimated 100 million euros ($113.9 million). The European Public Prosecutor’s Office (EPPO) said Monday that its office in Munich helped secure the convictions, which mark a significant breakthrough in one of Europe’s most complex cases of so-called VAT carousel fraud. The scheme was run by a criminal group code-named “Cuba” and centered around Voice over Internet Protocol (VoIP)—technology that allows people to make phone calls over the internet instead of traditional telephone networks. Investigators…

California Attorney General Reminds Businesses That Bribery Is Still Illegal, No Matter What’s Happening in Washington

Bribery
Key Takeaways Bribery is still illegal: Even though the DOJ has paused enforcement, both the FCPA and California law remain in full effect.California has its own enforcement power: The UCL allows the state to take action against businesses for bribery, regardless of what happens on the federal level.No relaxation in compliance: Companies must continue adhering to strong anti-corruption measures to avoid legal risks down the road.Internal controls are key: Businesses should maintain accurate financial records and strong internal controls to keep things above board.Deep Dive California and U.S. businesses should take note, bribing foreign officials is still a big no-no,…

Transnational Cybercrime in Southeast Asia Hits Record High

Fraud
Transnational organized crime in Southeast Asia has reached unprecedented levels, driven by a surge in large-scale cyber scam operations run by complex criminal networks, according to a new report from the United Nations Office on Drugs and Crime (UNODC). The report describes the rise of “sophisticated transnational syndicates” that have built vast cybercrime centers powered by interconnected networks of money launderers, human traffickers, data brokers and other illicit service providers. These actors have helped turn Asian criminal syndicates into global leaders in cyber fraud, underground banking and money laundering, the UNODC said. Their success is credited to their ability to…

Ex-Senior Chinese Anti-Corruption Official Arrested on Bribery Charges

Bribery
Li Gang, a former top Chinese anti-corruption official, has been arrested for allegedly accepting bribes, marking a dramatic fall from grace for the former Party watchdog. Banner: EditQ/Wikimedia CommonsRELATED ARTICLES US Lawmakers Pass Megobari Act Targeting Threats to Georgia’s DemocracyOfficials with the ruling Georgian Dream party rejected the move, with the mayor of Tbilisi claiming it was a “deep state” plot. US Sanctions Myanmar Militia Tied to Cyber-Scams, Human TraffickingThe Treasury Department said Americans have lost $5.5 billion to scam operations run from Southeast Asia since 2022.Reported byAlena KorolevaOCCRPApril 22, 2025A former top anti-corruption official once tasked with sniffing out…

Man convicted of trying to smuggle £1m in suitcases out of UK

Money Laundering
A man who was stopped at Heathrow Airport with £1m in two suitcases has admitted money laundering following a National Crime Agency investigation. Mazen Al Shaar custodyMazen Al Shaar, 48, was stopped by Border Force officers on Saturday 15 March this year as he was about to fly from Terminal Three to Beirut. Al Shaar, of Marsworth Close, Middlesex, said he only had £500 in cash on him and that he was leaving the UK to visit family. But officers searched his three suitcases and two of them contained the huge cash haul. Today, Al Shaar, who is a supermarket…

UK insurance broker charged with failure to prevent bribery

Bribery, Corruption
Representatives of United Insurance Brokers Limited (UIBL) were ordered to appear before Westminster Magistrates’ Court next month. The broker is charged with failing to prevent associates from bribing state officials in Ecuador between October 2013 and March 2016. The SFO alleges UIBL’s US-based intermediaries for Ecuador paid bribes in return for the awarding of re-insurance contracts worth US$38 million. If this case proceeds to a contested trial, it will be the first time that an SFO “failure to prevent bribery” case is heard by a jury. UIBL offered re-insurance services which insure against any losses caused by making significant and…

NCA secures first convictions for breach of UK sanctions

Sanctions
Dmitrii Ovsiannikov, the former Russia appointed Governor of the illegally annexed Ukrainian city of Sevastopol, has become the first person to be convicted for breaching the UK’s Russia sanctions. Dmitrii OvsiannikovOvsiannikov was found guilty of circumventing sanctions regulations and money laundering after receiving £76,000 from his wife and a new Mercedes from his brother. His brother Alexei Owsjanikow was also found guilty of circumventing sanctions regulations, having made economic resources available to Dmitrii. These are the first convictions for enabling a designated person. In 2016, Russian President Vladimir Putin appointed Dmitrii Ovsiannikov as governor of the city of Sevastopol in…

France to Seize Villa Owned by Moldovan Politician Charged in $1B Corruption Scandal

Corruption
French authorities have been given the greenlight to seize a villa owned by Vladimir Plahotniuc, a former top Moldovan politician who is on the run from corruption charges stemming from his alleged role in a billion-dollar banking scandal. Plahotniuc, the former leader of the Democratic Party of Moldova, fled the country amid a power shift in June 2019. He has since been implicated in a scandal dubbed the “Theft of the Century,” which saw $1 billion stolen from three national banks between 2012 and 2014, plunging the country into economic crisis. Moldovan prosecutors accuse Plahotniuc of receiving tens of millions…

MGM agrees to pay $8.5 million fine for money laundering violations

Money Laundering, Regulatory Fines
MGM Resorts International executives had suspicions about illegal bookmaker Mathew Bowyer’s source of income as early as 2015, and were notified by a customer in 2018 that Bowyer was attempting to poach gamblers from MGM casinos, alleges a complaint filed Thursday by the Nevada Gaming Control Board. In April of 2018, the complaint says, an MGM customer wrote in an email to a corporate host that his casino hosts may be sharing information about him with Bowyer, including an allegation that “Mr. Bowyer is attempting to steal clients from the MGM, hence he is in the illegal bookmaking business and…

Operation Machinize: Hundreds of barbershops targeted in NCA-coordinated crackdown

Money Laundering
Barbershops and other cash-intensive businesses across England have been targeted by police and other law enforcement officers during a three-week crackdown on high street crime. In total, 265 premises were visited across Operation Machinize, where officers secured freezing orders over bank accounts totalling more than £1m, executed 84 warrants and made 35 arrests. The operation saw 55 individuals questioned about their immigration status and a further 97 individuals safeguarded in relation to potential modern slavery. In addition, officers seized more than £40,000 in cash, some 200,000 cigarettes, 7,000 packs of tobacco, over 8,000 illegal vapes and two vehicles. Two cannabis…

Emerging money laundering and terrorist financing risks from April 2025

Counter Terrorist Financing, Money Laundering
Licence Condition 12.1.1(3) of the Licence Conditions and Codes of Practice (LCCP), requires operators to keep up-to-date with emerging risks information published by the Gambling Commission. This emerging risks publication is a trigger for operators to review their money laundering and terrorist financing risk assessments and related policies, procedures and controls to ensure that they remain appropriate and effective. Money service business activity in remote and non-remote casinos Risk information Some remote and non-remote casinos offer money service business (MSB) facilities, which include: foreign currency exchangethird-party cheque cashingthird-party money transfer (into and out of the casino)We are aware of casino…