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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