i-law

Money Laundering Bulletin

There’s one AI function for AML that doesn’t have to wait until tomorrow

Dr Martin Goodson (+44 (0)7596 068421, martin@evolution.ai) is Chief Scientist and CEO at Evolution AI. Tim Parkman (+44 (0)845 618 1567, tp@lessonslearned.co.uk) is Managing Director at Lessons Learned Ltd.
Online Published Date:  03 October 2018
Appeared in issue:  258 - 01 November 2018

US investigates Danske Bank over non-resident flows through Estonian branch

Danske Bank is under criminal investigation by the US Department of Justice, it reported on 4 October.Denmark’s biggest lender is already subject to criminal inquiries in Estonia and Denmark in connection with suspicious transfers of €200 billion by..
Online Published Date:  04 October 2018
Appeared in issue:  258 - 01 November 2018

UK property of foreign PEPs targeted through courts: two cases

The UK Serious Fraud Office announced on Wednesday [3October] that it was seeking to recover “a number of assets,” including three UK properties, it alleges were “obtained using the proceeds of corrupt deals in Uzbekistan involving Gulnara Karimova..
Online Published Date:  04 October 2018
Appeared in issue:  258 - 01 November 2018

Danske Bank memo reveals Russian money flow mechanism

An internal Danske Bank memo reveals it completed up to €8.5bn of “mirror trades” for Russian clients in a single year, the Financial Times reports [5 October]. [1]The trades involved intermediaries buying Russian government bonds in roubles on..
Online Published Date:  05 October 2018
Appeared in issue:  258 - 01 November 2018

JPMorgan Chase settles over airline payment US sanctions violations

JPMorgan Chase Bank has paid the US Treasury $5,263,171 to settle ‘apparent violations’ of sanction programs overseen by the Office of Foreign Assets Control (OFAC). [1]Between January 2008 and February 2012, the bank processed 87 netting payments..
Online Published Date:  08 October 2018
Appeared in issue:  258 - 01 November 2018

UK sanctions office expects to fine in next six months

The UK Office of Financial Sanctions Implementation annual report for April 2017 to March 2018 [1], published on 5 October, reports that a year ago, in September 2017, UK£12.8 billion in frozen funds were held by UK businesses.The figure, which does..
Online Published Date:  09 October 2018
Appeared in issue:  258 - 01 November 2018

Golden visas have opened Europe to criminals and the corrupt, say NGOs

Individuals seeking to safeguard stolen assets are taking advantage of lax and opaque ‘golden visa’ schemes offered by European Union member states, according to new research by Transparency International and Global Witness. [1]The anti-corruption..
Online Published Date:  10 October 2018
Appeared in issue:  258 - 01 November 2018

Target of first UK unexplained wealth order named

Zamira Hajiyeva, wife of the former chairman of the International Bank of Azerbaijan (IBA), is the subject of the UK’s first unexplained wealth order (UWO), it can be reported after anonymity restrictions expired [on 10 October].Her husband,..
Online Published Date:  10 October 2018
Appeared in issue:  258 - 01 November 2018

UAE bank fined $40m in New York for BSA/AML violations

Mashreqbank PSC, the UAE-based bank and its New York branch have been fined $40 million by the New York Department of Financial Services for Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) law breaches in the branch’s US dollar clearing..
Online Published Date:  15 October 2018
Appeared in issue:  258 - 01 November 2018

Nordea faces possible criminal investigation over Russian laundering claims

Nordea,the Nordic region’s biggest lender, is the subject of criminal complaints of money laundering through the bank filed by Bill Browder, who runs investment firm Hermitage Capital Management. He alleges that Nordea handled the proceeds of a..
Online Published Date:  16 October 2018
Appeared in issue:  258 - 01 November 2018

Paddy Power Betfair pays UK£2.2m over stolen money wagers

Paddy Power Betfair has been penalised UK£2.2 million by theUK Gambling Commission for failing to stop punters playing with stolen money and for not doing enough to identify and communicate with customers showing signs of possible addiction to..
Online Published Date:  17 October 2018
Appeared in issue:  258 - 01 November 2018

Super SARs

Susan Grossey may be contacted on +44 (0)1223 563636, susan@thinkingaboutcrime.com, www.thinkingaboutcrime.com
Online Published Date:  18 October 2018
Appeared in issue:  258 - 01 November 2018

Base errors: the ING case

Denis O’Connor is a Fellow of both the Institute of Chartered Accountants in England & Wales and the Chartered Institute of Securities and Investment. He was a member of the British Bankers’ Association Money Laundering Committee from 2003-10 and a member of the Joint Money Laundering Steering Group’s Board and Editorial Panel between 2010 and 2016. He has been a frequent speaker at industry conferences on financial crime issues, both in the UK and abroad.
Online Published Date:  18 October 2018
Appeared in issue:  258 - 01 November 2018

Building blocks – system re-think

Skilled anti-moneylaundering professionals are in short supply, yet the workload never seems to lessen. Sarah Gibbons looks for answers to the capacity conundrum.Concerns continue to grow about the resilience of anti-money laundering/combating..
Online Published Date:  18 October 2018
Appeared in issue:  258 - 01 November 2018

Two-speed acceleration – cryptocurrencies and regulation in Asia

Cryptocurrencies have made a big splashacross Asia, writes Jens Kastner, with governments taking very different regulatory approaches to curb the financial scams and money laundering following in their wake. While one group of countries has banned..
Online Published Date:  18 October 2018
Appeared in issue:  258 - 01 November 2018

Confidence gains – whistleblower safeguards in the EU

Draft European Union legislation promisesgreater protection for whistleblowers, but with Brexit fast approaching it may come too late for those who wish to speak up in the UK, finds Liz Newmark.New European Union (EU) rules on whistleblower..
Online Published Date:  18 October 2018
Appeared in issue:  258 - 01 November 2018

Selective defence - Egypt

Egypt’s anti-money laundering regime isundermined by lack of judicial capacity and an economically-active military, writes Pavlos Boulos from Beirut, even as legislation governing an Administrative Control Authority charged with curbing corruption..
Online Published Date:  18 October 2018
Appeared in issue:  258 - 01 November 2018

FATF gives Iran reform extension; UK & Israel evaluation reports expected by December

Iran now has until February 2019 to implement anti-money laundering/counter-terrorist financing reforms after the Financial Action Task Force (FATF) agreed at its latest plenary [1] to further extend suspension of counter-measures for non-completion..
Online Published Date:  22 October 2018
Appeared in issue:  259 - 01 December 2018

Capital One pays $100m for delay in BSA/AML remediation

Capital One, the Virginia-based bank, will pay $100m to the US Office of the Comptroller of the Currency (OCC) for violations of a consent order to address Bank Secrecy Act/Anti-Money Laundering failings it signed in 2015. [1]The 2015 cease and..
Online Published Date:  24 October 2018
Appeared in issue:  259 - 01 December 2018

JSC ‘LPB Bank’ fined €2.2m in Latvia, board member ordered off AML/CFT & censured

Latvian lender JSC ‘LPB Bank’ is to pay €2,205,282 to the Financial and Capital Market Commission (FCMC) for anti-money laundering and counter terrorist financing rule breaches.The FCMC has also censured Arniss Kalveršs, the chief risk officer and a..
Online Published Date:  25 October 2018
Appeared in issue:  259 - 01 December 2018

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