Month: July 2025

Transparency International Urges Stronger EU Anti-Corruption Directive

Corruption
As Denmark takes over the rotating presidency of the Council of the European Union on Tuesday, Transparency International is calling on Copenhagen to break a deadlock in stalled negotiations over the EU Anti-Corruption Directive. Talks between EU member states and the European Parliament collapsed last week after negotiators failed to reach agreement on key provisions of the directive, which aims to standardize definitions of corruption offenses and establish common penalties across the bloc. While the European Parliament has pushed for stronger measures, Transparency International says a handful of member states are blocking progress. Italy has reportedly demanded the removal of…

Belarusian Fertilizer Company Dodging EU Sanctions, Leaked Documents Show

Sanctions
A Belarusian state fertilizer company under European Union sanctions has found a way around the export ban by leasing its production lines to intermediary firms that pose as manufacturers, according to an investigation by the Belarusian Investigative Center (BIC). Some fertilizer produced by the sanctioned enterprise is shipped into the EU through Latvia using documentation that obscures its true origin. A leaked government document obtained by BIC confirms the government’s role in setting up the scheme to help the fertilizer company in “overcoming sanctions.” According to the leaked document, the government-backed scheme involves “special exporters,” which lease production facilities from…

Monzo Fined £21 Million Over Financial Crime Control Failings as FCA Flags ‘Systemic’ Lapses

Regulatory Fines
The UK’s Financial Conduct Authority (FCA) has fined Monzo Bank £21,091,300 for serious and repeated failures in its financial crime controls, citing deficiencies in the digital bank’s customer onboarding, risk assessment, and transaction monitoring systems between 2018 and 2022. According to a statement issued Monday, the regulator found that Monzo’s financial crime framework failed to keep pace with its explosive growth, expanding from 600,000 customers in 2018 to over 5.8 million by 2022. The FCA said Monzo’s controls were not only inadequate but “obviously implausible” at times, such as when it onboarded customers listing famous London landmarks as their residential…

Spanish Police Arrest Son of Russian Defense Executive in Money Laundering Probe

Money Laundering
Spanish police have arrested Dmitry Artyakov, the son of a top Russian defense official, on suspicion of laundering millions of euros through real estate deals in northeastern Spain. Artyakov, who is under U.S. sanctions, was detained on Saturday at his home in Girona as part of a probe led by Spain’s Anti-Corruption Prosecutor’s Office and coordinated by the Audiencia Nacional, Spain’s top criminal court, judicial sources confirmed to OCCRP. Authorities allege Artyakov acquired eight properties, including two adjacent luxury villas, in the coastal town of Castell-Platja d’Aro between 2005 and 2008 through funds linked to the “Troika Laundromat,” a massive…

Top Andorran Bankers Jailed over €70M Laundering Plot

Money Laundering
Andorra’s top court on Tuesday sentenced 18 executives of Banca Privada d’Andorra (BPA) to prison terms ranging from three and a half to seven years for laundering money in favor of a single client. The ruling also bars them from working in the banking sector and, in some cases, includes expulsion from the country. The case was unusually complex. The court’s ruling runs 6,180 pages and took 20 months to complete. Legal proceedings began in 2018, spanned 195 days, with each session lasting six hours—and this is just the first of several cases tied to the bank’s collapse. The investigation…

UAE Off EU Watchlist, Critics Say Reforms Fall Short

Law, Regulation & Guidance, Money Laundering
Transparency International has criticized the European Parliament’s decision to approve the removal of the United Arab Emirates from the EU’s high-risk list for money laundering and terrorist financing, warning that the move undermines efforts to protect the bloc’s financial system. “While the UAE has introduced a series of welcome reforms, it’s still too soon to judge whether these have significantly strengthened the country’s defences against dirty money,” Eka Rostomashvili, campaigner at Transparency International, told OCCRP. She pointed to persistent gaps in enforcement, especially in the real estate sector, where suspicious transactions exposed by journalists remain uninvestigated. An investigation Dubai Unlocked,…

UK Strikes Off 11,500 Companies in Crackdown on Fraud and Shell Entities

Fraud
British authorities have struck off 11,500 firms from the Companies House register following a coordinated campaign to dismantle corporate entities used to enable fraud and money laundering in the U.K. and abroad. The crackdown, led by the National Economic Crime Centre (NECC), is part of a broader government effort to prevent the abuse of U.K. corporate structures, which officials estimate are involved in laundering more than £100 billion ($134 billion) annually. The removed companies failed to meet Registered Office requirements under the Companies Act 2006. Many were linked to high-risk incorporation addresses and corporate formation agents suspected of facilitating criminal…

Barclays Fined £42 Million by FCA Over Financial Crime Control Failures

Regulatory Fines
The UK’s Financial Conduct Authority (FCA) has fined Barclays Bank UK and Barclays Bank a combined £42 million for separate and serious failures in their financial crime risk management, marking the latest in a series of enforcement actions against the bank over weak anti-money laundering (AML) controls. The fines stem from two unrelated cases involving WealthTek LLP and Stunt & Co, both of which exposed significant lapses in Barclays’ due diligence and monitoring practices, according to the FCA’s Final Notices issued on July 16, 2025. Failure to Flag WealthTek’s Client Money Activities Barclays Bank UK PLC was fined £3.1 million…

EU Rolls Out 18th Sanctions Package Targeting Russia’s War Machine & Sanctions Circumvention

Sanctions
Brussels has approved its most comprehensive sanctions package yet against Russia, marking the 18th wave of EU action since the start of the war in Ukraine. The new measures aim to ratchet up pressure on the Kremlin’s energy revenues, financial lifelines, and military-industrial backbone, while also closing loopholes and clamping down on sanctions evasion through third countries and shadow networks. The package introduces a dynamic new oil price cap, cutting the ceiling for Russian crude from $60 to $47.60 per barrel and tying future adjustments to market averages, ensuring the price remains 15% below the six-month benchmark for Urals crude.…

Alleged Russian Tax Fraud Mastermind Funneled Millions Into Luxury Dubai Properties

Money Laundering
Perched on a crescent of artificial islands known as Palm Jumeirah in Dubai, the Kempinski Hotel & Residences resembles a sprawling seaside palace. Many of the 244-unit development’s luxurious apartments and villas have reportedly sold for millions of dollars, some even before the complex officially opened in 2011. OCCRP reporters found that among the early investors was a company owned by Dmitry Klyuev, the alleged mastermind of a massive Russian tax scandal known as the Magnitsky Affair. The Magnitsky Affair was named after whistleblower Sergei Magnitsky, a lawyer who died in prison after giving evidence to Russian prosecutors about the…

UK Sanctions Balkan Gangs After Passport Fraud Reveal

Fraud
A UK crackdown targets Balkan gangsters who used fraudulent Bosnian documents—just weeks after Bosnian journalists revealed the scale of the identity theft scheme. The move comes after Bosnia’s Center for Investigative Journalism (CIN) exposed how international fugitives obtained genuine Bosnian passports using stolen identities. The list of individuals and firms the U.K. Foreign Office sanctioned on Wednesday includes a range of targets, from a small boat supplier in Asia to informal Hawala money movers in the Middle East, and gang leaders based in North Africa. Among them are individuals accused of supplying fake passports and forged documents to Balkan gangs,…

Hong Kong Regulator Fines Three Banks for Anti-Money Laundering Failures

Regulatory Fines
Key Takeaways IOBHK Hit with Largest Fine: Indian Overseas Bank’s Hong Kong Branch was fined HK$8.5 million (US$1.1 million) and ordered to conduct a look-back review and implement a remedial plan due to serious AML/CFT control failures.BCOM Entities Also Penalized: Bank of Communications (Hong Kong) Limited and its Hong Kong Branch were fined HK$4 million (US$512,000) and HK$3.7 million (US$474,000), respectively, for failing to properly feed transactions into their monitoring system.Deficient Transaction Monitoring: All three banks were found to have inadequate systems for monitoring customer relationships and identifying suspicious activity, undermining compliance with AML/CFT regulations.Regulatory Warning Issued: The HKMA emphasized…

Lithuanian Prime Minister Resigns Amid Corruption Scandal Involving EU Funds

Corruption
Lithuanian Prime Minister Gintautas Paluckas resigned on Thursday following a widening corruption scandal that has engulfed his family and inner circle, triggering the collapse of his cabinet after less than a year in office. His resignation, confirmed first by President Gitanas Nausėda, came after Lithuania’s Financial Crime Investigation Service raided on Thursday UAB Dankora, a company co-owned by Paluckas’ sister-in-law. Investigators are probing whether European Union development funds intended for an electric boat charging facility were misused. The project — located in a village with no direct water access — had received more than 170,000 euros in EU funding, much…

Abramovich business associate Eugene Shvidler fails to overturn UK sanctions

Sanctions
A business associate of the oligarch Roman Abramovich has failed to overturn sanctions imposed on him after Russia’s invasion of Ukraine, after a supreme court judgment seen as a test case for the UK’s sanctions regime. Eugene Shvidler served on the board of companies owned by the former owner of Chelsea football club and now lives in the US. He was placed under sanctions by the UK government in March 2022 as part of measures to target Russia-linked oligarchs and officials after Vladimir Putin ordered the invasion of Ukraine. Shvidler, who was born in the USSR in 1964, grew up…

Congress Takes Aim at Dirty Money in the Multi-Billion-Dollar U.S. Art Market

Art Market, Money Laundering
The Antiquities Coalition commends Senators John Fetterman (D-PA), Chuck Grassley (R-IA), Sheldon Whitehouse (D-RI), Dave McCormick (R-PA), and Bill Cassidy (R-LA), and Andy Kim (D-NJ) for introducing the Art Market Integrity Act, a commonsense proposal to apply anti-money laundering (AML) safeguards to high-risk art transactions. For years, criminals have exploited the art market’s regulatory gaps to move and hide illicit funds, finance armed conflict and terrorism, and evade U.S. sanctions. This bipartisan bill fights back through the Bank Secrecy Act (BSA)—a key tool for detecting and preventing financial crime—in recognition of the American art market’s global significance and its growing…

Law firm that failed to spot it was acting for PEP fined £173k

Money Laundering, Regulatory Fines
A law firm that failed to identify that the beneficial owner of its client was a politically exposed person (PEP) has been fined £173,000 by the Solicitors Regulation Authority (SRA). Cambridge-based Taylor Vinters no longer exists, having merged with London firm Mishcon de Reya in 2021 and been fully absorbed in 2023; the misconduct predates that. It has struck a regulatory settlement agreement with the SRA and the size of the fine reflects the fact that it was an alternative business structure, meaning the £25,000 limit on the SRA fines for traditional firms does not apply. The agreement said that,…

HSBC Targeted in Swiss Probe Linked to Ex-Lebanon Central Banker

Money Laundering
HSBC Holdings Plc’s Swiss private bank is the focus of a Swiss investigation into suspected money-laundering connected to the alleged embezzlement of hundreds of millions of dollars by the former head of Lebanon’s central bank. Swiss federal prosecutors opened the probe in January into HSBC Private Bank (Suisse) SA, an unnamed individual and four other “unknown persons” in relation to the case, it said in a statement on Wednesday. It declined to comment further given the probe is ongoing. Since 2020, Swiss prosecutors have been investigating the case surrounding Riad Salameh, Lebanon’s former central bank governor, who was then charged…

Penalty issued for breach of Russia Sanctions

Sanctions
The Office of Financial Sanctions Implementation (OFSI) has imposed a £300,000 monetary penalty against Markom Management Limited (MML) for a breach of UK financial sanctions imposed against Russia following the 2014 annexation of Crimea. The breach relates to MML’s involvement in the making of a payment of £416,590.92 to a designated person, who remains subject to an asset freeze under current Russia sanctions. This payment was in breach of the UK sanctions in force at the time in response to Russia’s annexation of Crimea. MML gave instructions to make the payment from another company’s bank account with the knowledge that…