ECOVIS ProventusLaw welcomes to its monthly newsletter on Anti-Money Laundering and Counter-Terrorist Financing. It is dedicated to everyone who wants to understand the latest trends and developments, get tips from our experts and deepen their knowledge. Have a good read!
FinCEN Reports $688 Million in Mail Theft-Related Check Fraud Following 2023 Alert
The U.S. Department of the Treasury’s FinCEN has reported over $688 million in suspicious check fraud linked to mail theft in the six months following its 2023 alert. Nearly 15,500 reports were filed by 841 financial institutions under the Bank Secrecy Act. FinCEN identified three primary fraud methods: altering stolen checks, using them as templates for counterfeit checks, and forging signatures. Financial institutions across the U.S. have been urged to remain vigilant in detecting and reporting these incidents.
Former Swedbank CEO Sentenced to Prison in Money Laundering Scandal
Birgitte Bonnesen, former CEO of Swedbank, has been sentenced to prison by the Stockholm District Court for her role in the bank’s major money laundering scandal. She was found guilty of fraud for misleading investors about the bank’s anti-money laundering efforts and its exposure to high-risk clients. The case underscores the growing accountability of banking executives as regulatory scrutiny on compliance intensifies. The ruling highlights the importance of robust compliance frameworks and ethical leadership in financial institutions to prevent and address illicit financial activities.
Bank of Lithuania Fines UAB NIUM EU for AML Violations
The Bank of Lithuania has fined electronic money institution UAB NIUM EU € 40,000 for non-compliance with anti-money laundering (AML) and counter-terrorist financing regulations. The inspection revealed that the institution’s internal control functions were not adequately separated from business interests, customer identity checks were insufficient, and enhanced due diligence for high-risk clients was not consistently applied. NIUM EU has been fined €40,000 and must implement a corrective action plan. Additionally, the institution is restricted from establishing new business relationships with clients involved in financial services until compliance is confirmed.
India Advances in AML/CFT Compliance but Faces Ongoing Challenges
India has made significant strides in strengthening its anti-money laundering (AML) and counter-terrorist financing (CFT) framework, achieving high compliance with FATF standards. However, challenges remain in concluding money laundering and terrorist financing trials, especially related to human trafficking and drug cases. While India’s financial institutions demonstrate strong risk awareness, smaller sectors require better enforcement. The country must also improve its prosecution of terrorist financiers and outreach to non-profits to mitigate financing risks.
EU Commission Requests ENISA to Support Certification of Digital Identity Wallets
The European Commission has tasked ENISA, the EU Agency for Cybersecurity, with supporting the certification of European Digital Identity Wallets. These wallets will enable EU citizens to securely identify themselves, store digital documents, and access services via mobile devices, while enhancing privacy. In line with the Digital Identity Regulation, which took effect in May 2024, ENISA will assist in developing a cybersecurity certification scheme for these wallets, ensuring their secure use across Europe. Read more.
FinCEN Withdraws Money Laundering Concern Finding for ABLV Bank
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has withdrawn its finding that ABLV Bank is a financial institution of primary money laundering concern. The decision follows significant developments, including the European Central Bank’s revocation of ABLV’s banking license and the bank’s ongoing liquidation under Latvian government supervision. Latvian authorities have addressed past illicit activities, leading FinCEN to conclude that ABLV no longer poses a substantial money laundering risk.
U.S. Treasury Targets Russian Cybercrime with Sanctions and AML Actions
The U.S. Department of the Treasury has taken decisive steps to disrupt Russian cybercrime operations, designating the Russian virtual currency exchanger PM2BTC as a “primary money laundering concern” linked to ransomware activities. Sergey Ivanov, associated with PM2BTC, and the virtual exchange Cryptex were sanctioned for laundering millions for ransomware actors. FinCEN identified that PM2BTC, responsible for facilitating cybercrime and sanctions evasion, handles a significant proportion of illicit transactions compared to other virtual asset service providers, employing obfuscation techniques to mask its involvement.
UK Secures First Conviction for Crypto ATM Offences
Mr. Olumide Osunkoya has pleaded guilty to five offences in a landmark UK case involving the illegal operation of crypto ATMs. He ran at least 11 unregistered crypto ATMs, processing over £2.6 million in transactions without FCA authorisation. Despite being denied registration in 2021, Osunkoya expanded his ATM network in convenience stores and conducted no customer due diligence. He also used false documents and is suspected of facilitating money laundering and tax evasion. Sentencing will occur at Southwark Crown Court on a date yet to be confirmed.
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