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Overview - regulator alignment in EU & UK
Unequal treatment, gaps, inconsistencies in regulation - all make for frustration amongst entities covered by anti-money laundering (and opportunity for criminals). The European Union has responded with a new super-supervisor and the UK has already gone part of the way - Keith Nuthallconsiders their prospects.
Online Published Date:
18 June 2024
Appeared in issue:
316 - 02 September 2024
Credit Suisse continues BSA/AML remediation after switch to OCC supervision
The New York branch of Credit Suisse will pursue work on repairing its Bank Secrecy Act (BSA) compliance failures, as originally agreed on 22 December 2020 with the Federal Reserve Bank of New York and the New York State Department of Financial Services, following its transfer to oversight by the Office of the Comptroller of the Currency (OCC) on 28 May 2024.
Online Published Date:
18 June 2024
Appeared in issue:
316 - 02 September 2024
HSBC Private Bank barred from new PEP business in Switzerland
FINMA, the Swiss Financial Market Supervisory Authority, has ordered HSBC Private Bank (Suisse) SA not to take on any new politically exposed persons (PEPs) as clients until it has corrected anti-money laundering compliance failings identified in the handling of two past PEP business relationships.
Online Published Date:
18 June 2024
Appeared in issue:
316 - 02 September 2024
Singapore sting - control reset
The break-up of a Chinese criminal network, in August 2023, that laundered billions of dollars in Singapore has prompted its government to look hard at domestic law and enforcement, with inevitable consequences for obliged entities. Jens Kastner examines the fallout.
Online Published Date:
21 June 2024
Appeared in issue:
316 - 02 September 2024
Court of Appeal finds payment obligations under letters of credit suspended by UK Russian sanctions regime
The Court of Appeal has handed down its much-anticipated decision in Celestial Aviation Services Ltd v UniCredit Bank AG (London Branch) [2024] EWCA Civ 628, holding that UniCredit Bank AG was excused from making payment under various letters of credit that it had issued in connection with the supply of aircraft to Russian airlines, by virtue of the UK sanctions regime. Susannah Cogman, Rupert Lewis and Ajay Malhotra of Herbert Smith Freehills study the ruling and consider its implications.
Online Published Date:
21 June 2024
Appeared in issue:
316 - 02 September 2024
EU Russia sanctions target North Korean and other military supply shippers
A company helping ship military supplies from North Korea into Russia has been sanctioned by the European Union (EU), after Moscow signed a defence deal with the one-party state subject to the Financial Action Task Force's (FATF) harshest restrictions.
Online Published Date:
25 June 2024
Appeared in issue:
316 - 02 September 2024
UK Court of Appeal clarifies key proceeds of crime points in decision that police misapplied law
The Court of Appeal, on 27 June [2024], ruled that the UK National Crime Agency (NCA) had misconstrued the Proceeds of Crime Act (POCA) when it decided, entirely within its discretion, not to open a criminal investigation into money laundering in connection with the importation of cotton goods from Xinjiang, China, which the World Uyghur Congress claimed were made by forced labour.
Online Published Date:
28 June 2024
Appeared in issue:
316 - 02 September 2024
Raiffeisen fined €2m in Austria over flawed AML on correspondent banks
Austria's Financial Market Authority has imposed a record €2 million (US$2.14 million) penalty on Raiffeisen Bank International for anti-money laundering failings in two of its correspondent banking relationships, according to Reuters.
Online Published Date:
28 June 2024
Appeared in issue:
316 - 02 September 2024
FATF looks to new priorities as Mexico takes on presidency
The Financial Action Task Force (FATF) has approved priorities for the upcoming Mexican presidency of the global AML/CFT body, from 1 July [2024] to June 2026, including launching the fifth round of mutual evaluations.
Online Published Date:
28 June 2024
Appeared in issue:
316 - 02 September 2024
Trio of US banks enter AML/CFT revision consent orders with FDIC
Thread Bank and TN Bank, both of Tennessee, and California Business Bank have signed consent orders with the US Federal Deposit Insurance Corporation (FDIC), all dated in May 2024, published in June, in which they undertake to rework their anti-money laundering and counter terrorist financing controls to meet Bank Secrecy Act (BSA) requirements.
Online Published Date:
29 June 2024
Appeared in issue:
316 - 02 September 2024
FinCEN proposes rule to reinforce US financial institution AML/CFT programs
US financial institutions, covered by the Bank Secrecy Act (BSA), would be required to allocate and calibrate their anti-money laundering and counter terrorist financing (AML/CFT) resources to best effect based on periodic risk assessments they conducted, under a proposed rule FinCEN published on 28 June.
Online Published Date:
29 June 2024
Appeared in issue:
316 - 02 September 2024
Silvergate, ex CEO & ex CRO charged with misleading investors over BSA/AML compliance
The US Securities & Exchange Commission (SEC), on 1 July, filed charges in a US District Court, in New York, that Silvergate Capital Corporation, owner of Silvergate Bank, now liquidated, its former CEO Alan Lane, and former Chief Risk Officer (CRO) Kathleen Fraher deceived investors in stating that the bank had an effective Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance programme and continuously monitored its high-risk cryptocurrency customers, including the FTX exchange.
Online Published Date:
02 July 2024
Appeared in issue:
316 - 02 September 2024
Wolfsberg Group seeks pivot to effective risk-based AML
Twelve global banks, members of the Wolfsberg Group, want to see more effective 'monitoring for suspicious activity' (MSA).
Online Published Date:
02 July 2024
Appeared in issue:
316 - 02 September 2024
DBS Bank fined HK$10m in Hong Kong for CDD and monitoring breaches
The Hong Kong subsidiary of Singapore-headquartered DBS Bank (DBSHK) must pay a HK$10 million (US$1,279,680) penalty after the Hong Kong Monetary Authority (HKMA) found it had contravened the Anti-Money Laundering and Counter Terrorist Financing Ordinance (AML) between 2012 and 2017.
Online Published Date:
06 July 2024
Appeared in issue:
316 - 02 September 2024
USA and China non-compliant with 'gatekeeper' AML standards, says FATF
A Financial Action Task Force (FATF) paper on gatekeeper professions and corruption has highlighted how some major countries are dragging their feet in implementing AML/CFT controls.
Online Published Date:
10 July 2024
Appeared in issue:
316 - 02 September 2024
FATF says 'negligible' progress on virtual assets AML implementation in last year
A Financial Action Task Force (FATF) paperhas warned that governments are failing to strengthen anti-money laundering/counter financing of terrorism (AML/CFT) controls on virtual assets and virtual asset service providers (VASPs), with only 25% of those surveyed fully or largely compliant with FATF guidance.
Online Published Date:
10 July 2024
Appeared in issue:
316 - 02 September 2024
EBA issues guidelines on travel rule for crypto transfers
New guidelines from the European Banking Authority (EBA) will steer crypto-asset service providers (CASPs) in applying the so-called 'travel rule', requiring counterparties to pass on identifying information about the originators and beneficiaries of crypto transfers.
Online Published Date:
11 July 2024
Appeared in issue:
316 - 02 September 2024
Crypto exchange Payeer fined €9.3m in Lithuania for sanctions and AML breaches
Virtual currency exchange and wallet operator UAB Payeer has to pay penalties totalling €9.3m after Lithuania's Financial Crime Investigation Service (FCIS) found it had violated both sanctions and the country's anti-money laundering/counter financing of terrorism (AML/CFT) law.
Online Published Date:
15 July 2024
Appeared in issue:
316 - 02 September 2024
PEPs not subject to excessive checks by most firms, says UK regulator
UK politically exposed persons (PEPs) are to be presumed lower risk than their foreign counterparts under proposed changes to Financial Conduct Authority Guidance.
Online Published Date:
19 July 2024
Appeared in issue:
316 - 02 September 2024
EU beneficial ownership registers - an update on access
A European Court of Justice ruling, in November 2022, against fully open beneficial ownership registers in European Union member states slammed the brakes on progress towards greater transparency, but subsequent legislative developments signal revision not derailment. Sara Lewis tracks the stop-start journey from Brussels.
Online Published Date:
19 July 2024
Appeared in issue:
316 - 02 September 2024
Green Dot fined US$44m, ordered to remake BSA/AML compliance program
The US Federal Reserve Board (FRB) has agreed a cease and desist order with Green Dot Corporation, holding company of Green Dot Bank of Provo, Utah, over consumer compliance failings around its prepaid debit card accounts and third party tax return preparation service, as well for comprehensive breaches of Bank Secrecy Act/Anti Money Laundering (BSA/AML) obligations. The bank will also pay a US$44 million civil penalty.
Online Published Date:
20 July 2024
Appeared in issue:
316 - 02 September 2024
People business - modern slavery
Off-grid, undocumented, indentured - millions of individuals are trafficked and exploited around the world to profit both criminals and otherwise legitimate businesses. Paul Cochrane, Brenda Dionisi and Ed Zwirn probe a cruel hidden economy.
Online Published Date:
21 July 2024
Appeared in issue:
316 - 02 September 2024
CNB and Summit banks sign US OCC orders to renew BSA and OFAC programs
CNB Bank and Trust, of Illinois, and Summit National Bank, of Wyoming, signed consent orders, dated in June, but published on 18 July, with the US Office of the Comptroller of the Currency (OCC), committing to root and branch revision of their Bank Secrecy Act/Anti-Money Laundering and Office of Foreign Asset Control (OFAC) compliance programs.
Online Published Date:
21 July 2024
Appeared in issue:
316 - 02 September 2024
UK Coinbase operation fined UK£3.5m - serviced high-risk customers against undertaking
CB Payments Ltd - UK arm of leading cryptocurrency trading business the Coinbase Group - which only hosts e-money wallets rather than engaging in transactions, must pay a UK£3,503,546 financial penalty for onboarding and/or providing e-money services to high-risk customers in breach of a Financial Conduct Authority (FCA) ordinance of October 2020.
Online Published Date:
26 July 2024
Appeared in issue:
316 - 02 September 2024
State Street fined US$7.5m by OFAC over invoice date changes to evade Russia sanctions
In the United States, Directive 1 under Executive Order 13662 bars US persons from dealing in new debt of proscribed entities over 90, 30 or 14 days' maturity, according to date of issuance. Importantly, sending out an invoice counts as dealing in debt under Directive 1.
Online Published Date:
27 July 2024
Appeared in issue:
316 - 02 September 2024
Sanctioned Russian banker forfeits over £780,000 in deal with UK law enforcement
A London, UK court, on 29 July, ratified an agreement between the National Crime Agency (NCA) and Stephen Gater, estate manager in the UK for Petr Aven, sanctioned former head of Alfa Bank, Russia's largest commercial lender, under which UK£783,827.34 (US$1,007,923) will pass to UK authorities.
Online Published Date:
29 July 2024
Appeared in issue:
316 - 02 September 2024
London house and golf club linked to Azeri fraud forfeit after six-year investigation
After a six-year battle with the UK National Crime Agency, the wife of Jahangir Hajiyev, former chair of the International Bank of Azerbaijan, has agreed to forfeit a Knightsbridge house, worth around UK£14 million (US$18 million), and a golf club in Ascot.
Online Published Date:
06 August 2024
Appeared in issue:
316 - 02 September 2024
AIA International Hong Kong branch fined HK$23m over PEP & EDD failings
The Hong Kong branch of AIA International Ltd, Asia's largest life insurance group, is to pay a HK$23 million (US$3 million) penalty after the Insurance Authority (IA) in Hong Kong found the company's screening processes had not always identified politically exposed persons (PEPs) in the period March 2016 to October 2022.
Online Published Date:
06 August 2024
Appeared in issue:
316 - 02 September 2024
Customers Bank, Pennsylvania agrees to rework BSA/AML and OFAC controls
On 5 August, Customers Bank entered into a written undertaking with the Federal Reserve Bank of Pennsylvania to revise its Bank Secrecy Act/Anti-Money Laundering (BSA/AML) and US sanctions compliance programmes.
Online Published Date:
13 August 2024
Appeared in issue:
316 - 02 September 2024
A reckoning - reparation for Ukraine
Putin's war on Ukraine is spinning through billions of dollars, both spent directly on military materiel and the price of physically devastating an economy and society, and that before the opportunity cost of lost growth, to say nothing of lives wrecked and ended - how to value them? Keith Nuthall, Poorna Rodrigo and Dylan Carterexamine the considerations at play in making Russia pay.
Online Published Date:
13 August 2024
Appeared in issue:
316 - 02 September 2024
OTC Link pays US$1.19m to SEC for monitoring and reporting failures
OTC Link LLC, a broker-dealer registered with the US Securities and Exchange Commission (SEC), which services other broker-dealers trading in Over-the-Counter (OTC) securities, has agreed to a cease and desist order and US$1.19 million civil penalty for breaches of the Bank Secrecy Act.
Online Published Date:
14 August 2024
Appeared in issue:
316 - 02 September 2024
GD Legal Solicitors fined in UK for AML risk assessment and control failures
Manchester, UK-based law firm GD Legal Solicitors has been ordered to pay a UK£21,843 (US$28,052) penalty after the Solicitors Regulation Authority (SRA) found it had breached the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
Online Published Date:
15 August 2024
Appeared in issue:
316 - 02 September 2024
New heights - Nepal charts route to FATF compliance
The government of Nepal, the Himalayan republic sited between Asian giants India and China, has passed amendments to 20 laws affecting anti-money laundering and counter financing of terrorism (AML/CFT) as the country seeks to avoid a re-grey-listing by the Financial Action Task Force (FATF). Prithvi Shrestha, in Kathmandu, and Keith Nuthall look at whether the changes will suffice.
Online Published Date:
15 August 2024
Appeared in issue:
316 - 02 September 2024
War in Gaza - another front: the financing of Hamas
The 7 October terrorist attacks on Israel put the Palestinian banking sector squarely in the crosshairs. Hamas, though, writes Paul Cochrane, continues to receive funding as the war enters its tenth month.
Online Published Date:
16 August 2024
Appeared in issue:
316 - 02 September 2024
Steep path - Bhutan
Progress on technical compliance with international standards is encouraging but the Kingdom of Bhutan remains in the foothills of effective AML/CFT, find Phuntsho Wangdi, reporting from Thimphu, and Keith Nuthall.
Online Published Date:
17 August 2024
Appeared in issue:
316 - 02 September 2024