ECOVIS welcomes you 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.
Latvijas Banka Issues Unified Guidelines to Strengthen Financial Fraud Risk Management
On 19 May 2025, Latvijas Banka and the Finance Latvia Association published the “Guidelines for Monitoring, Managing, and Mitigating the Risk of Financial Fraud.” This harmonised, risk-based framework is directed at credit, payment, and electronic money institutions operating in Latvia and aims to enhance fraud detection, prevention, and response capabilities.
The guidelines cover key aspects of fraud risk management, including:
- Internal control mechanisms to deter internal fraud;
- Procedures for handling customer fraud-related complaints fairly and efficiently;
- Protocols for assessing, rejecting, or suspending suspicious payment orders;
- Criteria for determining gross negligence by clients.
The framework highlights the importance of accessible, relevant information and inter-institutional data exchange to foster coordinated responses. Recognising the dynamic nature of financial fraud, the guidelines will be updated regularly to reflect emerging risks, regulatory changes, and sectoral best practices.
FATF, INTERPOL, and UNODC Call for Stronger Global Action on Financial Crime
On 19 May 2025, at the 34th Session of the Commission on Crime Prevention and Criminal Justice in Vienna, the FATF, INTERPOL, and UNODC jointly urged states to step up efforts to combat money laundering and terrorist financing. Emphasising the need to disrupt illicit financial flows linked to serious crimes—such as drug and human trafficking, migrant smuggling, and fraud—the call to action highlighted global shortcomings in asset recovery and stressed the urgency of international cooperation and capacity building. The FATF has already strengthened its standards, aiming for tangible progress ahead of the 2026 UN Crime Congress.
Bank of Lithuania Highlights Role of Motivation in AML Efforts at Vilnius Conference
On 20 May 2025, the Bank of Lithuania and the Centre of Excellence in Anti-Money Laundering hosted the conference “The Power of Motivation in Combating Money Laundering” in Vilnius. The event convened over 500 public and private sector representatives to discuss how personal and institutional motivation drives effective AML practices. Emphasis was placed on interinstitutional cooperation, information sharing, and values-based leadership. Key topics included crypto-asset risks, real estate sector vulnerabilities, and the importance of individual commitment in strengthening financial crime prevention.
ESMA Final Report Proposes MAR and MiFID II Amendments to Boost SME Access to Capital Markets
On 7 May 2025, ESMA published its Final Report (ESMA74-1103241886-1086), offering technical advice to the European Commission on targeted amendments to the Market Abuse Regulation (MAR) and MiFID II. The focus is refining rules for SME Growth Markets (SME GMs) under the broader Listing Act initiative, which aims to ease regulatory burdens for EU SMEs while maintaining robust market safeguards.
Financial institutions are encouraged to review and update their compliance frameworks, particularly concerning disclosure of inside information, SME GM registration criteria, and cross-border market abuse monitoring systems.
Gediminas Šimkus Stresses EU-Wide AML Harmonisation at Vilnius Conference
On 20 May 2025, during the AML Center Conference in Vilnius, Gediminas Šimkus, Chair of the Bank of Lithuania, called for greater harmonisation of anti-money laundering regulations across the EU. Reframing “AML” as adequacy, mobilisation, and leadership, he outlined these as core principles for effective financial crime prevention. Šimkus urged a risk-based supervisory approach that maintains both oversight and financial service accessibility, warning against blanket de-risking. He highlighted the role of the new AMLA in eliminating regulatory fragmentation and strengthening cross-border enforcement, calling it a potentially transformative force in the EU’s AML framework.
UK Finance 2025 Fraud Report Reveals Surge in Cases Amid Evolving Criminal Tactics
UK Finance’s 2025 Annual Fraud Report highlights an increasingly complex threat landscape. Total fraud losses held steady at £1.17 billion, while the number of reported fraud cases surged by 12% to a record 3.31 million in 2024.
Key Findings:
- Remote purchase fraud, especially in the e-commerce sector, rose sharply:
- +22% in reported cases
- +11% in financial losses
- Over 2.5 million incidents reported
- Authorised Push Payment (APP) fraud losses declined slightly by 2%, yet:
- Investment scams within APP fraud spiked, with a 34% increase in losses despite fewer cases
- The financial sector blocked £1.45 billion in unauthorised fraud, preventing 67 pence of every £1 attempted
- Under the new Payment Systems Regulator (PSR) reimbursement framework, 86% of in-scope APP fraud victims received compensation
- Romance scam losses dropped by 17%, reflecting progress in public awareness
U.S. Treasury Targets Cambodia-Based Huione Group as Primary Money Laundering Concern
On 1 May 2025, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a Notice of Proposed Rulemaking (NPRM) under Section 311 of the USA PATRIOT Act, formally identifying the Cambodia-based Huione Group as a financial institution of primary money laundering concern.
Key Allegations:
- $4 billion in illicit proceeds laundered between August 2021 and January 2025
- Sources of funds include:
- Cyber heists orchestrated by North Korea (DPRK)
- Cryptocurrency investment scams
- The group’s operations span several interconnected entities:
- Huione Pay PLC – payment service provider
- Huione Crypto – virtual asset service provider (VASP)
- Haowang Guarantee – online marketplace
AML/KYC Deficiencies:
FinCEN’s investigation revealed:
- No publicly disclosed AML/KYC policies
- Significant compliance failures across the group’s entities
- Facilitated laundering of cybercrime-related proceeds and fraud-based scams
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