i-law

Money Laundering Bulletin

Using mindfulness to strengthen due diligence and mental well-being

In the challenging and often turbulent world of money laundering prevention, professionals bear the weight of navigating organisational constraints, interpreting regulations, outsmarting criminals, and upholding the integrity of the global financial system. Drawing from neuroscience, emotional intelligence theory, and empirical studies and real-world applications - including Google's renowned 'Search Inside Yourself' programme - Mario Menz illustrates how mindfulness can redefine anti-money laundering practice.
Online Published Date:  26 June 2023
Appeared in issue:  306 - 01 September 2023

FATF warns nearly 3 in 4 jurisdictions fail to meet VASP AML standards

The June 2023 plenary of the Financial Action Task Force (FATF), which wound up today [Friday 23 June], has warned that almost 75% of jurisdictions worldwide are failing to implement its AML standards on virtual assets and virtual asset service providers (VASPs).
Online Published Date:  26 June 2023
Appeared in issue:  306 - 01 September 2023

Tiger Brokers pays NZ$900,000 in New Zealand for wide-ranging AML breaches

The New Zealand-based subsidiary of Tiger Fintech (Singapore) PTE Ltd, which offers share trading online, has been ordered to pay NZ$900,000 (US$546,700) by the Auckland High Court for multiple failings under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.
Online Published Date:  29 June 2023
Appeared in issue:  306 - 01 September 2023

Reset - UK AML oversight

Just on deadline, 30 June 2023, HM Treasury dropped its consultation on reform of the UK anti-money laundering and counter-terrorism financing (AML/CFT) supervisory regime.
Online Published Date:  04 July 2023
Appeared in issue:  306 - 01 September 2023

Swathes of French property owned by persons unknown, investigators find

A cross-match of France's corporate beneficial ownership register with its land registry has revealed that 7.33 million or 71% of 'parcels'- the smallest plot size recorded - belonging to private companies are held anonymously.
Online Published Date:  06 July 2023
Appeared in issue:  306 - 01 September 2023

EU banking supervision of AML marked by persistent basic flaws - EBA report

A remote possibility, but if there is someone out there not yet persuaded of the dire need for a European Union Anti-Money Laundering Authority - it's not as if there aren't enough cases (Danske Bank, ABLV, ING,...) - a glance through the European Banking Authority's latest findings on member state competent authorities' approach to tackling financial crime in the banking sector should settle the matter.
Online Published Date:  12 July 2023
Appeared in issue:  306 - 01 September 2023

Merrill Lynch fined US$12m in U.S. for not filing hundreds of SARs

Broker-dealer Merrill Lynch has been ordered to pay US$12m - US$6m to the US Securities and Exchange Commission (SEC) and US$6m to the Financial Industry Regulatory Authority (FINRA) - after it applied too high a value threshold for filing suspicious activity reports (SARs).
Online Published Date:  13 July 2023
Appeared in issue:  306 - 01 September 2023

Bastion Capital London fined UK£2.45m over financial crime control failings around cum-ex trading

Bastion Capital London Limited (in liquidation), a securities broker, was ordered, on 12 July 2023, to pay a UK£2,452,700 penalty by the UK Financial Conduct Authority over serious flaws in its financial crime controls that allowed a set of clients to conduct trades enabling withholding tax reclaims in Denmark and Belgium to which they were not entitled.
Online Published Date:  13 July 2023
Appeared in issue:  306 - 01 September 2023

Star Racing fined £594,000 in UK after source of funds check breaches

Star Racing Limited, trading as Star Sports, will pay a UK£594,000 penalty for not meeting anti-money laundering and social responsibility obligations between March 2020 and May 2021.
Online Published Date:  18 July 2023
Appeared in issue:  306 - 01 September 2023

Making waves - The Bahamas

Despite a recent 'little local difficulty' - FTX - The Bahamas is pushing forward with its plan to escape close monitoring by the Caribbean Financial Action Task Force, find Keith Nuthall and Poorna Rodrigo.
Online Published Date:  25 July 2023
Appeared in issue:  306 - 01 September 2023

Deutsche Bank pays US$186m to Fed after non-compliance with consent orders

Deutsche Bank and its US operations have accepted a US$186,392,035 civil penalty after the US Federal Reserve found they had failed to meet the terms of consent orders to address anti-money laundering and sanctions compliance deficiencies that were issued in 2017 and 2015, respectively.
Online Published Date:  25 July 2023
Appeared in issue:  306 - 01 September 2023

Betfred operator fined UK£3.25m over risk assessment, CDD, record keeping, control & social harm failings - test

Done Bros (Cash Betting) Ltd, the firm behind 'Betfred', a bookmaker with a UK network of shops and a website, has agreed to pay UK£3.25 million to settle multiple breaches of its licence conditions around anti-money laundering, counter terrorist financing and social responsibility.
Online Published Date:  25 July 2023
Appeared in issue:  306 - 01 September 2023

How not to run a cultural transformation project: a guide to avoiding pitfalls

Culture isn't merely an accessory - it is the heartbeat of the organisation, writes Mario Menz, the compass that guides every action and decision. But when that compass starts leading towards the murky waters of financial crime, it's time for transformation! However, cultural transformation is not a simple task. In this article, he journeys through the pitfalls and blunders of cultural change, examining infamous corporate missteps and research-driven insights.
Online Published Date:  25 July 2023
Appeared in issue:  306 - 01 September 2023

Nigerian politician's assets confiscated in UK a decade after conviction

A Nigerian politician convicted of corruption over a decade ago has finally seen the UK£101.5 million (US$130 million) he laundered into the UK confiscated by Southwark Crown Court in London.
Online Published Date:  26 July 2023
Appeared in issue:  306 - 01 September 2023

Exit strategy

No stranger to controversy, arch Brexiteer Nigel Farage, former leader of the UK Independence Party (UKIP), has created a stir in AML circles with the fallout from his subject access request (the other type of SAR) to Coutts.
Online Published Date:  01 August 2023
Appeared in issue:  306 - 01 September 2023

Mirabaud fined US$3m in Dubai over CDD failings around connected customers

The Dubai-based armarm of Swiss banking group Mirabaud is to pay a US$3,022,500 (AED 11,100,131) fine for breaches of anti-money laundering requirements in its dealings with a series of interconnected client accounts between June 2018 and October 2021.
Online Published Date:  02 August 2023
Appeared in issue:  306 - 01 September 2023

EU hits Belarus with new sanctions, as Wagner group settles in (testing)

The European Union (EU) has ramped up sanctions on Belarus, as Russia's ally has increased its role in the invasion of Ukraine, hosting members of the Wagner Group, the Russian mercenary company, which recently rebelled after tension between its leader Yevgeny Prigozhin and the military high command came to a head.
Online Published Date:  03 August 2023
Appeared in issue:  306 - 01 September 2023

EU hits Belarus with new sanctions, as Wagner group settles in

The European Union (EU) has ramped up sanctions on Belarus, as Russia's ally has increased its role in the invasion of Ukraine, hosting members of the Wagner Group, the Russian mercenary company, which recently rebelled after tension between its leader Yevgeny Prigozhin and the military high command came to a head.
Online Published Date:  23 August 2023
Appeared in issue:  306 - 01 September 2023

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