i-law

Money Laundering Bulletin

Three in ten crime groups in EU use professional launderers, underground banking - Europol

While around 70% of criminal groups active in the European Union (EU) use "basic money laundering techniques" the rest employ professional laundering networks and/or deal with the underground banking system, Europol reports in its first European Financial and Economic Crime Threat Assessment.
Online Published Date:  12 September 2023
Appeared in issue:  308 - 01 November 2023

Small steps - St Kitts & Nevis must stride

A Caribbean micro nation, St Kitts & Nevis currently lacks the capacity to address its money laundering risks, finds Keith Nuthall, but so far (below the radar?) has escaped grey-listing by the Financial Action Task Force.
Online Published Date:  15 September 2023
Appeared in issue:  308 - 01 November 2023

Bancrédito International fined US$15m by FinCEN for reporting, correspondent banking failings & lack of AML program

In FinCEN's first enforcement action against a Puerto Rican International Banking Entity (IBE), one of the oldest and some-time largest in that jurisdiction, Bancrédito International Bank and Trust Corporation has admitted to violations of the US Bank Secrecy Act (BSA) and will pay a US$15 million civil penalty.
Online Published Date:  16 September 2023
Appeared in issue:  308 - 01 November 2023

Infowars - the large language model threat

Technology vendors are keen to promote the benefits of artificial intelligence (AI) in fighting money laundering and terrorist financing, helping obliged entities detect and block illicit money flows. But every technology can also be wielded by bad actors; AI is no different. It can be abused to attack and evade know your customer (KYC) controls, Keith Nuthall discovers.
Online Published Date:  17 September 2023
Appeared in issue:  308 - 01 November 2023

Set fair - Cayman Islands sails into line on AML

For long the archetypal sunny place for shady people's money, Cayman Islands has worked hard to push back the grey-listing clouds cast by the Financial Action Task Force in early 2021. Clear skies of AML/CFT regime compliance are now a realistic prospect, finds Keith Nuthall.
Online Published Date:  17 September 2023
Appeared in issue:  308 - 01 November 2023

Stopgaps - Chinese monetary control

Domestic property market jitters and a clampdown on junket operators mean that money, legal and not, will be looking for alternative investment opportunities and channels out of China. Jens Kastnerlooks for the checks on the balances.
Online Published Date:  21 September 2023
Appeared in issue:  308 - 01 November 2023

pKYC: Lessons from real-world deployments

Always know your customers without the need for time-consuming, costly, regular manual reviews - it is now possible and happening: Clark Frogley of Quantexa, explains how.
Online Published Date:  23 September 2023
Appeared in issue:  308 - 01 November 2023

Emigrant Bank pays US$31,868 to OFAC over Iranian-held CD account

New York-based Emigrant Bank has accepted a US$31,867.90 penalty from the US Office of Foreign Assets Control (OFAC) over its operation of a Certificate of Deposit (CD) account for two individuals resident in Iran.
Online Published Date:  25 September 2023
Appeared in issue:  308 - 01 November 2023

Mr Q operator fined £690,947 by UK Gambling Commission for AML and social responsibility breaches

Lindar Media Ltd, which trades as Mr Q and MrQ.com, has been ordered to pay £690,947 by the UK Gambling Commission for failure to meet licensing conditions between July 2021 and September 2022.
Online Published Date:  25 September 2023
Appeared in issue:  308 - 01 November 2023

DWS, Deutsche Bank subsidiary, fined US$9m by SEC for AML faults

DWS Investment Management Americas, Inc, Delaware-registered investment advisor to a set of mutual funds, and a majority-owned indirect subsidiary of Deutsche Bank AG, has agreed to pay the US Securities and Exchange Commission (SEC) US$9 million for failings in its anti-money laundering controls between at least January 2017 and December 2021.
Online Published Date:  26 September 2023
Appeared in issue:  308 - 01 November 2023

Luxembourg scores 'moderate' in half of FATF effectiveness ratings

The Financial Action Task Force (FATF) has demonstrated how it wants countries to focus as much on effectiveness as technical compliance, with its latest mutual evaluation report on Luxembourg requesting more AML action in high-risk sectors.
Online Published Date:  28 September 2023
Appeared in issue:  308 - 01 November 2023

Shinhan Bank pays US$25m for repeated non-compliance with AML consent orders

The New York subsidiary of Shinhan Bank Co. Ltd of South Korea has reached civil settlements worth US$25 million with US regulators after it failed to meet commitments given to correct deficiencies in its anti-money laundering program, under the Bank Secrecy Act (BSA), across the period 1 April 2016 to 29 March 2021.
Online Published Date:  02 October 2023
Appeared in issue:  308 - 01 November 2023

ADM Investor Services International fined UK£6.5m for AML risk, EDD, monitoring faults

A London brokerage dealing in energy, metals, foreign exchange and other markets must pay UK£6,470,600, which includes a 30% discount for cooperation, after the UK Financial Conduct Authority discovered it had not properly remediated anti-money laundering systems and control failings.
Online Published Date:  02 October 2023
Appeared in issue:  308 - 01 November 2023

Round and about - Russian sanctions evasion

Dark fleet oil shipments through restricted western goods imported via third countries, Russia is mastering sanctions circumvention, in the same way - and better, that is, at far greater scale - than Iran and North Korea. Keith Nuthall studies the ways and means, and how Ukraine's allies are responding.
Online Published Date:  04 October 2023
Appeared in issue:  308 - 01 November 2023

Steep UK rise in student money mule accounts, Barclays reports

British university students have been warned of the dangers of unwittingly becoming money mules for criminal networks after Barclays Bank recorded a 23% surge in UK cases among customers with a student account at the start of the last academic year, in September and October 2022.
Online Published Date:  12 October 2023
Appeared in issue:  308 - 01 November 2023

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