AML Weekly Insights and Recap | Week 30th September - 4th October 2024

Anna Stylianou

Oct 04, 2024

Hello everyone!

We've been keeping a close eye on the Anti-Money Laundering (AML) world, and there's been a lot happening this week!

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China is moving to strengthen its monitoring of new money laundering risks posed by emerging technologies: According to Wang Xiang, a senior legislator, a draft amendment to the Anti-Money Laundering Law aims to address challenges brought by digital platforms, virtual currencies, and other new sectors. The amendment calls for enhanced monitoring systems, guidelines for emerging industries, and proportionate risk mitigation by financial institutions. It also prioritizes data security and privacy.
FCA fines Starling Bank £29m for failings in their financial crime systems and controls: The fine was imposed for significant financial crime failings, particularly around financial sanctions screening. As the bank rapidly grew from 43,000 to 3.6 million customers between 2017 and 2023, its anti-money laundering controls failed to keep up. Starling opened over 54,000 accounts for high-risk customers, despite being restricted from doing so. Additionally, an internal review revealed that since 2017, Starling’s system only partially screened customers against financial sanctions lists, exposing gaps in its controls.
New AML Obligations for Mortgage Professionals in Canada - Effective October 2024: Starting October 11, 2024, mortgage professionals, including administrators, brokers, and lenders, will be required to report specific types of financial transactions—such as suspicious transaction reports, large cash transaction reports, large virtual currency transaction reports, and terrorist property reports —keep thorough records, identify clients through "Know Your Client" procedures, and adhere to ministerial directives.
UBS Faces Ongoing Legal Battle Over Credit Suisse’s Past Money Laundering Scandal: UBS is facing ongoing legal issues linked to Credit Suisse's involvement in a money laundering case with the Bulgarian mafia. Despite UBS's efforts to suspend proceedings, the Swiss Federal Criminal Court has ruled that the case must continue due to the legal responsibilities transferred through UBS’s acquisition of Credit Suisse. The case involves illicit activities dating back 17 years and includes a former Credit Suisse employee’s involvement with drug trafficking and money laundering for the Bulgarian mafia. UBS is now awaiting a decision from the Federal Supreme Court on its motion to dismiss the case.