Author: gracechurchfcp

FATF Publishes its ‘Tougher’ New Beneficial Ownership Standards

KYC, Regulation
FATF today published its “tougher” global beneficial ownership standards to assist countries and financial institutions to prevent shell companies being safe havens for illicit proceeds. The task force’s Recommendation 24 requires countries to ensure that competent authorities have access to adequate, accurate and up-to-date information on the true owners of companies. The Paris-based body has also updated the guidance that will help countries implement the revised Recommendation 24. The guidance explains types and sources of relevant information, and mechanism and sources to obtain such information. This includes the multi-pronged approach, which consists of combining information from, among others, companies themselves,…

UK Gambling Commission Fines 32Red and Platinum Gaming £7M for AML, Social Responsibility Failures

Money Laundering, Prosecutions
BRITAIN’S Gambling Commission today fined 32Red and Platinum Gaming with a €7.1M fine for AML and other failings. The Commission said the penalty on the online operator owned by Kindred Group Plc was also to includes social responsibility failures. “These failures highlight clearly that both operators failed to interact with customers in a way which minimises the risk of them experiencing harms associated with gambling,” said Kay Roberts, executive director of the Gambling Commission. The regulator said financial triggers for anti-money laundering reviews at 32Red were too high and not appropriate to effectively manage money laundering and terrorist financing risks,…

Ericsson agrees to $206m plea bargain with US in bribery case

Bribery, Prosecutions
Swedish telecom giant Ericsson has agreed to plead guilty and pay a $206 million fine for breaching its deferred prosecution deal with U.S. authorities by withholding information about its alleged misconduct in Iraq and other countries. In 2019, Ericsson admitted to accusations of bribery and other wrongdoing in multiple countries and paid a record $1 billion fine under a deferred prosecution agreement struck with the U.S. Department of Justice. The deal allowed the company to avoid a criminal conviction but required it to report any potential wrongdoing and submit to the scrutiny of an outside monitor over a three-year period.…

FROM RUSSIA WITH CRYPTO: MOSCOW-BASED EXCHANGES OFFERING TO ANONYMOUSLY CONVERT STABLECOINS FOR CASH IN THE UK

Digital Currencies
Moving money around the world has never been easier. At the click of a button, it’s possible to ping funds from one continent to another in a matter of minutes. While much of this still flows through established payment providers and financial institutions, like major multinational correspondent banks, there are a growing range of alternatives on the market. One is the proliferation of cryptocurrencies, which use blockchain technology to move digital assets from one place to another. Some cryptocurrencies, called stablecoins, peg their value to ‘real world’ assets, such as the US dollar, to help reduce fluctuations in their value.…

What does new anti-fraud regulation mean for UK plc?

Fraud, Regulation
Legal experts are expecting the enactment of a series of new anti-fraud measures this year, particularly via the economic crime and corporate transparency bill. What effect will this have on British businesses?Jonathan Weinberg14 Mar 2023Gettyimages 1366039494This year is set to be a significant one for the legislative side of the fight against financial crime in the UK. That means there’s plenty of debate about it – in the Houses of Parliament, around boardroom tables and within legal chambers. Matt Horne worked for the National Crime Agency for nearly a decade, latterly as deputy director of investigations, before becoming head of…

What more can Westminster do to fight financial crime?

Money Laundering
Having reclassified fraud as a national security threat, the government’s resolve against financial crime – particularly money-laundering – is hardening. But will the new legislative measures it’s considering go far enough? The City of London Corporation’s website boasts of the UK’s status as “the world’s most global financial centre”, but what it doesn’t mention is that this country is also a magnet for international financial crime. The problem has grown to such a scale that the government announced last month that it was classifying fraud as a national security threat – a move that UK Finance, the trade body representing…

Oligarch’s lawyers say UK caused serious hardship by freezing assets

Sanctions
Eugene Shvidler wants expedited court hearing to hear his claim that impounding his jets was wrong. A Russian-born billionaire who is a close associate of the former owner of Chelsea FC, Roman Abramovich, has launched a legal challenge against UK government sanctions imposed on him in response to Vladimir Putin’s invasion of Ukraine. The case is the first to be launched in the British courts by an individual with sanctions following the invasion of Ukraine, and could serve as a test case for other oligarchs seeking to overturn restrictions such as travel bans or asset freezes. Eugene Shvidler has accused…

More than 1000 artifacts in Metropolitan Museum of Art catalog linked to alleged looting and trafficking figures

Corruption
In the village of Bungmati, Nepal, above an ancient spring, stand two stone shrines and a temple. One of those shrines has a large hole where a statue of Shreedhar Vishnu, the Hindu protector god, used to be. Carved by master artisans nearly a thousand years ago, the sandstone god was flanked by the Hindu goddess Laxmi and the winged demigod Garuda and is considered a protective figure. For many years members of the local community carefully tended and worshipped the idol. “When women started their labor pain, our elders used to come to put mustard oil on the statue…

New EU Measures against Money Laundering and Terrorist Financing

Regulation
MEPs approved stricter rules to close existing gaps in combating money laundering, terrorist financing and evasion of sanctions in the EU.On Tuesday, MEPs from the Economic and Monetary Affairs and Civil Liberties, Justice and Home Affairs committees adopted their position on three pieces of draft legislation on the financing provisions of EU Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) policy. The package consists of: the EU “single rulebook” – regulation – with provisions on conducting due diligence on customers, transparency of beneficial owners and the use of anonymous instruments, such as crypto-assets, and new entities, such as crowdfunding…

U.S. Anti-Money Laundering Vulnerabilities Counter its Efforts to Aid Ukraine, Experts Say

Money Laundering
The U.S. is a magnet for the world’s dirty money, financial crime experts say, as they weigh in on how vulnerabilities in America’s anti-money laundering laws counter the country’s efforts to aid Ukraine in its defense against the Russian invasion. Illicit proceeds equal an estimated two percent of U.S. gross domestic product, according to findings in the Treasury’s 2022 Strategic Action Plan. Russian oligarchs, experts note, contribute to this problem by funneling their ill-gotten gains through industries that are exempt from rigorous anti-money laundering checks. And that’s a lot of money. The combined illicit wealth of just three Russian oligarchs…

SFO recovers criminal assets from £740m property fraud concealed through school donation

Asset Seizure
Today, the SFO confiscated an additional £92,500 from Achilleas Kallakis, one of the fraudsters behind the UK’s largest ever mortgage fraud case – ten years after his conviction. A recent SFO investigation exposed how criminal proceeds from this fraud were donated towards a theatre at Mr Kallakis’ child’s London private school in 2005. When the school later removed the Kallakis name from the theatre, the family took legal action against it, revealing the additional funds to the SFO. Following a three day hearing at Southwark Crown Court, this donation, paid through a complex family trust fund, was confirmed as the…

Understanding the Art Market and Anti-Money Laundering Regulations

Money Laundering
The world’s largest art markets lack robust anti-money laundering supervision. This exacerbates their appeal as a destination for illicit finance. In late February, the Financial Action Task Force (FATF) published a report on Money Laundering and Terrorist Financing in the Art and Antiquities Market. The report highlights a series of risk factors that make it appealing to criminals, including widespread secrecy surrounding beneficial owners and transactions, the subjectivity and wide-ranging values of artwork, and the size and global nature of the art market. There is often a legitimate reason for many of these oddities: anonymity prevents bias in the bidding…

The Financial Conduct Authority Is Investigating Suspected Money Laundering Failings At Barclays

Money Laundering, Regulation
Barclays Bank is being investigated by the Financial Conduct Authority (FCA) for suspected failings in its compliance and anti-money laundering (AML) systems. The UK regulator requested an independent review of Barclays’ internal systems under Section 166 of the Financial Services and Market Act 2000. This involves asking an independent firm of experts to review and report on Barclays’ systems and provide recommendations to improve practices in line with AML regulations. The Financial Times reported that there had been a number of incidents where the bank had failed to conduct thorough know your customer (KYC) and AML checks. Although the incidents…

North West group arrested in suspected property fraud where victims lost life savings

Fraud
Five men have been arrested across the North West and London in an NCA investigation linked to property investment fraud and money laundering. Man in his dressing gown being arrested by the NCANCA officers arrested a 68 year-old man at an apartment in Central London on Thursday [23 Feb] morning. He is suspected of being involved in the fraud that targeted victims with promises of investment returns on North West property developments. Would-be investors were approached to purchase apartments advertised as off plan with offers of high rates of guaranteed rental income when completed. The projects were never completed resulting…

Three Russians under sanctions own UK property via overseas entities

Sanctions
Three Russian oligarchs under sanctions are among those to declare they own more than £35m of UK property through the British Virgin Islands, Cyprus and Russia, the Guardian has found. Alexander Frolov, a billionaire and associate of Roman Abramovich, is revealed as the owner of a mansion in Weybridge in Surrey bought for £9.8m in 2008 and a flat in Knightsbridge bought for £15.4m via the BVI. Frolov, who owns an estimated 10% stake in Evraz, a UK-incorporated mining company, was placed under sanctions last year along with co-owners Abramovich and Alexander Abramov. The UK government said he was involved…

Swiss regulator investigates 12 banks in Lebanese central banker corruption case

Bribery, Corruption, Regulation
ZURICH (Reuters) -Switzerland’s financial regulator has investigated 12 banks and launched enforcement proceedings against two of them in relation to corruption charges against longtime central banker Riad Salameh, it said on Monday. Lebanese authorities charged Salameh, his brother Raja and one of his assistants on Thursday with money laundering, embezzlement and illicit enrichment after months of delay in the high-profile case. The Salameh brothers have denied wrongdoing throughout the process. The governor insisted on his innocence to Reuters last Thursday, saying the charges were “not an indictment” and pledged to abide by judicial procedures. The charges are the product of…

Report: $3.8 Billion in Crypto Stolen Last Year, Mostly by North Korea

Digital Currencies
Hackers stole US$3.8 billion worth of cryptocurrency last year, surpassing the $3.3 billion record registered in 2021 despite a dramatic fall in the crypto market’s value, according to a new report by blockchain analysis firm Chainanalysis. North Korean hackers stole most of it. Crypto theft peaked in March and October, which alone saw equivalents of $732 and $776 million stolen. Elaborate encryption mechanisms underlying blockchains — public ledgers recording transactions in blockchain networks — make them nearly invincible to hacker attacks. There are still weak spots that can be exploited, however. The report said that over 82% of all cryptocurrency…

Treasury Targets Global Sanctions Evasion Network Supporting Russia’s Military-Industrial Complex

Sanctions
WASHINGTON – Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed full blocking sanctions against 22 individuals and entities across multiple countries related to a sanctions evasion network supporting Russia’s military-industrial complex. Today’s action, taken pursuant to Executive Order (E.O.) 14024, are part of the U.S. strategy to methodically and intensively target sanctions evasion efforts around the globe, close down key backfilling channels, expose facilitators and enablers, and limit Russia’s access to revenue needed to wage its brutal war in Ukraine. Over the last year, Treasury has sanctioned over 100 individuals and entities engaging in…

Experts warn UK businesses of imminent changes to anti-money laundering regulations

Money Laundering, Regulation
Legal experts have urged UK businesses to pay close attention to upcoming changes to the 2017 Money Laundering Regulations (MLRs) that will impose further compliance requirements on in-scope firms. In line with the 2022 Money Laundering and Terrorist Financing (Amendment) (No.2) Regulations, from 1 April 2023, businesses subject to the MLRs will have to comply with checks of the register of overseas entities (ROE) at Companies House for dealings with corporate entities. For dealings with trust entities, businesses subject to the MLRs will have to comply with checks of the trust registration service (TRS) that is maintained by HM Revenue…

Britain Sets Out Plans to Regulate Crypto Industry in Wake of FTX Collapse

Digital Currencies, Regulation
The U.K. formally laid out plans to regulate the cryptocurrency industry, with the government looking to rein in some of the reckless business practices that emerged over the past year and contributed to the demise of FTX. In a widely-anticipated industry consultation launched Tuesday, the government proposed a number of measures aimed at bringing regulation of crypto asset businesses in line with that of traditional financial firms. Among the proposals unveiled Tuesday was a move that would strengthen rules targeting financial intermediaries and custodians that store crypto on behalf of clients. A big theme that emerged in 2022 was the…

Police arrest 20 money launderers in Spanish probe into fake invoices, loans and luxury property to channel dirty money

Money Laundering
POLICE have arrested 20 suspected money launderers and drug traffickers and seized more than €5.5M in assets, it’s been announced. The operation was led by the Spanish Guardia Civil, with support from the Italian Central Directorate for Anti-Drugs Services (Direzione Centrale Servizi Antidroga), and resulted in the assets and more than 2 tons of drugs. Based in the South of Spain, the criminal network was composed of Albanian, Italian, Spanish and Moroccan nationals, and was led by Italian nationals who evaded capture using forged identity documents. The criminal network used a variety of money laundering methods to obfuscate their drug…

Man Extradited from Peru on International Money Laundering Charges

Money Laundering, Prosecutions
ALEXANDRIA, Va. – A Belize City, Belize, man was extradited to the United States Tuesday on charges of laundering tens of millions of dollars of drug proceeds on behalf of notorious international drug trafficking organizations. According to court documents, Jianxing Chen, 42, led and controlled a network of couriers who transported cash generated by the domestic sale of controlled substances. Some of the cash came from cocaine sales throughout the United States – including Chicago, Houston, Los Angeles, New York, Atlanta, as well as in the Eastern District of Virginia.  At Chen’s direction, couriers transported drug money across the country…

City fund managers sentenced to 12 years for $8m fraud

Fraud, Prosecutions
Three fund managers have been sentenced to a total of 12 years and 3 months following their conviction for a fraud which resulted in losses of $8.45 million to the Libyan Sovereign Wealth Fund. A seven year NCA investigation, which began after one of the fund managers, Frederic Marino, walked of a 2014 meeting with financial auditors and fled to Norway, found that Yoshika Ohmura, Aurelien Bessot and Marino had abused their positions to conduct fraudulent trades whilst managing the fund worth around 822m. Today, Marino and Ohmura were sentenced to 7 years 6 months and 3 years 6 months…

Handbook of good practices in the fight against corruption

Bribery, Corruption
The goal of this Handbook is to map a variety of anti-corruption practices in EU Member States (MS) that have proved to be useful in solving problems related to corruption, and which can inspire similar initiatives elsewhere. For this purpose, one good anti-corruption practice either established or innovative, with positive impact aspirations in each EU Member State was selected, and clustered into eight types of anti-corruption approaches. The Handbook is structured along these identified types. Each chapter consists of a theoretical part about the respective type of anti-corruption approach and is illustrated by corresponding case studies. To ensure transferability, analysis…

Fraud targeted thousands across UK and abroad

Fraud
More than 700 potential UK victims have been identified, among thousands worldwide targeted by a boiler room fraud that was run from Romania. National Crime Agency investigators believe the fraud, primarily offering false investments, was being carried out on a mass scale before it was closed down in September last year.Computer image web Three Romanian nationals were detained during a series of searches by NCA investigators and Romanian Police officers at apartments in north Bucharest. Since September, work has been underway to identify victims of the fraud. So far, a potential 700 plus UK victims have been identified and a…

No questions asked: money laundering thrives in Australia because of professionals willing to facilitate it

Money Laundering
Lawyers, accountants and real estate agents can face little scrutiny and there is as yet no action from government to increase regulation. Raids earlier this month by the Australian federal police provided a rare window into the shady world of international money laundering. Australia is far from a model global citizen when it comes to cracking down on money laundering – and property has become a favoured vehicle for organised crime to hide and transfer dirty money. The AFP arrested nine people, including the alleged head of the money-laundering organisation, Stephen Xin, at his Vaucluse home. They have now been…

Watchdog and West Yorkshire police raid crypto ATM operators in UK first

Digital Currencies
Authorities have raided several sites around Leeds as part of what is believed to be the UK’s first crackdown on illegally operated crypto ATMs. Evidence was gathered from multiple sites around the city that were suspected to be hosting machines allowing customers to buy or convert traditional currencies into cryptoassets including bitcoin. The raids follow a joint investigation between the Financial Conduct Authority and the West Yorkshire police force’s digital intelligence and investigation unit. “The FCA will review evidence gathered during these visits and consider further potential enforcement action,” the regulator said. While the FCA does not regulate cryptoassets, it…

US Investigators Subpoena Hedge Funds in Binance Money-Laundering Probe: Report

Money Laundering
Authorities have not brought charges against the company, which has faced intense scrutiny following competitor FTX’s collapse, the Washington Post reported. Federal prosecutors are investigating the relationship between Binance and U.S.-based hedge funds as part of a broader investigation into the cryptocurrency exchange’s possible skirting of money-laundering guardrails, according to a report by the Washington Post. Heading the investigation is the U.S. Attorney’s Office for the Western District of Washington in Seattle, which, in recent months, has sent subpoenas to firms requesting records of their dealings with Binance, the Post reported, citing two people who had reviewed one of the…

Most Criminal Cryptocurrency Funnels Through Just 5 Exchanges

Digital Currencies, Money Laundering
The crypto money-laundering market is tighter than at any time in the past decade, and the few big players are moving a “shocking” amount of currency. FOR YEARS, THE cryptocurrency economy has been rife with black market sales, theft, ransomware, and money laundering—despite the strange fact that in that economy, practically every transaction is written into a blockchain’s permanent, unchangeable ledger. But new evidence suggests that years of advancements in blockchain tracing and crackdowns on that illicit underworld may be having an effect—if not reducing the overall volume of crime, then at least cutting down on the number of laundering…

UK imposes further coordinated sanctions on Iranian regime officials

Sanctions
The UK is placing further sanctions on regime officials in Iran today, including on Deputy Prosecutor General Ahmad Fazelian. These sanctions, alongside designations by the European Union and the United States, demonstrate the international community’s unified condemnation of the horrific violence the Iranian regime is inflicting on its own people, including the execution of dual British-Iranian national Alireza Akbari. Alongside the Prosecutor General in Iran, whom the UK sanctioned last week, Fazelian is responsible for a judicial system characterised by unfair trials and egregious punishments, including use of the death penalty for political purposes. Last week Alireza Akbari tragically became a…

More MEPs could lose immunity in corruption probe, president says

Bribery, Corruption
The EU says it will launch proceedings to remove parliamentary immunity from two MEPs implicated in an ongoing corruption scandal. Parliamentary President Roberta Metsola said she had taken the move after a request from Belgian police. But her statement did not name the MEPs involved. The scandal erupted last month after one MEP and three others were arrested on charges of corruption and money-laundering. While authorities have not named the country behind the bribery network, numerous EU sources have accused Qatar of running the operation. But the Gulf state has strenuously denied any claims of misconduct as unfair and “gravely…

Mobile phone fraud: ‘They stole £22,500 using my banking app

Fraud
A pickpocket took Jacopo de Simone’s mobile phone and used his banking apps to steal £22,500. He said his bank investigated but found him liable for the losses so he is still fighting to get the money back. He is just one victim of the growing threat of mobile phone fraud and banks need to do more to tackle it, according to charity the Fraud Advisory Panel. UK Finance, which represents 300 banks, said the industry was constantly monitoring fraud threats. Criminals are stealing mobiles not for the device but to try to access finance apps to steal thousands of…

UK Treasury Considers Plan for Digital Pound

Digital Currencies
The government is considering introducing a “digital pound”, the economic secretary to the Treasury has told MPs. The UK was committed to becoming a world crypto hub, Andrew Griffith said. And the government was “a long way down the road… to establish a regime for the wholesale use, for payment purposes, of stablecoins”. Stablecoins are designed to have a predictable value linked to traditional currencies or assets such as gold. The currency, for use by households and businesses, would sit alongside cash and bank deposits, rather than replacing them. ‘Game-changing technology’A public consultation on the attributes of a digital pound…

U.S. to Designate Russia’s Wagner Group as “Transnational Criminal Organisation”

Sanctions
US will apply designation in the coming days, says national security council spokesman, imposing new sanctions on the group The US will designate the Russian mercenary group Wagner as a “significant transnational criminal organization”, imposing further sanctions on the military contractor which has been aiding Moscow in its invasion of Ukraine. The White House national security council spokesman, John Kirby, announced on Friday that the treasury will apply the new designation in the coming days, putting it in the same category as Italian mafia groups and Japanese and Russian organized crime. The designation will allow the wider application of sanctions…

Former L.A. Council Member Jose Huizar Pleads Guilty in Corruption Case

Corruption, Prosecutions
Former Los Angeles City Councilmember Jose Huizar pleaded guilty Friday to charges of racketeering and tax evasion, admitting that he extorted at least $1.5 million in bribes from real estate developers. Under a plea agreement filed Thursday in federal court in Los Angeles, Huizar acknowledged that sweeping corruption allegations that he has denied for years were true. “Are you pleading guilty because you’re in fact guilty?” Judge John F. Walter asked Huizar in court Friday morning. “Yes, your honor,” Huizar responded. Huizar’s unexpected capitulation caps a brutal downfall for a man who was born into poverty on a Mexican ranch,…

Fraudsters Sentenced for £21m Loss in Cryptocurrency

Digital Currencies, Fraud, Prosecutions
Four offenders were sentenced today (13 January 2023) for fraudulently obtaining and laundering Bitcoin and other cryptocurrency worth tens of millions of pounds from an Australia-based cryptocurrency exchange. Stephen William Boys, 58, Kelly Caton, 44, Jordan Kane Robinson, 23, and James Austin-Beddoes, 27, were found guilty of fraud, converting and transferring criminal property at Preston Crown Court and then sentenced to a total of 15 years. All four were associates of James Parker, who masterminded the conspiracy from his home in Blackpool over a three-month period between October 2017 and January 2018. James Parker identified and then exploited a loophole…

Thailand’s SEC issues rules on management of digital wallets for custody of digital assets and keys

Digital Currencies, Regulation
The Securities and Exchange Commission (SEC) has issued regulations requiring digital asset business operators that provide custody of clients’ digital assets to establish a digital wallet management system to accommodate efficient custody of digital assets and keys* and ensure safety of clients’ assets. The regulations cover the following requirements: (1) Policy and guidelines for overseeing risk management and management of digital wallets and keys as well as communication to clarify such policy, action plans and procedures, work supervision and internal control to ensure compliance with the policy; (2) Policy and procedures for designing, developing and managing digital wallets as well…

FCA penalises Al Rayan Bank PLC for anti-money laundering failures 

Money Laundering, Prosecutions
The Financial Conduct Authority (FCA) has fined Al Rayan Bank PLC (Al Rayan) £4,023,600 for failing to put in place adequate anti-money laundering (AML) controls. Between 1 April 2015 and 30 November 2017, Al Rayan allowed money to pass through the bank and be used within the UK without carrying out appropriate checks. The firm failed to adequately check its customers’ Source of Wealth and Source of Funds when it was required to make sure the money was not connected to financial crime.  The failings were made worse by the lack of proper training provided to staff about how to handle…

St. Louis Man Sentenced to 19+ Years for Money Laundering

Money Laundering, Prosecutions
A St. Louis man was sentenced to 19 years and seven months in prison after admitting to his involvement in a methamphetamine operation in southern Illinois. Terrence Thompson, 35, pled guilty to one count of conspiracy to launder monetary instruments. According to court records, Thompson conspired with the co-defendants to distribute more than 500 grams of methamphetamine in the Southern District of Illinois. Law enforcement conducted a search warrant on Thompson’s residence and recovered more than 10 kilograms of methamphetamine. Members of the conspiracy utilized various payment methods to deal the illegal narcotics, including CashApp, cashier’s checks, bank transfers and…

New York’s Financial Regulator Takes Aim at Firms Co-Mingling Crypto Funds

Digital Currencies, Regulation
New York’s chief financial regulator is set to release new guidance on Monday dictating that companies separate customers’ crypto assets from their own, after alleged co-mingling of funds at collapsed crypto exchange FTX and its affiliated trading firm Alameda Research led to hefty losses for clients. The New York State Department of Financial Services (NYDFS), which leads one of the few state agencies with a regulatory system in place for cryptocurrency companies, will also stipulate that state-regulated companies disclose to customers how they account for clients’ digital currency. The guidance is the latest in a series of crypto-related directives NYDFS…