Anti Money Laundering News (07 Apr – 13 Apr 2025)
Welcome to this week’s edition of the Global AML News Weekly Digest. Here are the top stories making headlines around the world:
ED Moves to Seize ₹661 Crore Worth of Assets in National Herald Money Laundering Case
The Enforcement Directorate (ED) has issued possession notices for immovable assets valued at ₹661 crore in connection with the National Herald money laundering case involving Congress leaders Sonia and Rahul Gandhi. The properties, linked to Associated Journals Limited (AJL) and its holding company Young Indian, were earlier attached in November 2023. Notices were posted at sites in Delhi, Mumbai, and Lucknow under Section 8 and Rule 5(1) of the PMLA. The ED alleges that AJL and Young Indian generated proceeds of crime through bogus donations, rents, and advertisements amounting to over ₹85 crore.
OLAF and EPPO Uncover €9.5 Million Cross-Border Fraud and Money Laundering Scheme Involving EU IT Funds
A joint investigation by the European Anti-Fraud Office (OLAF) and the European Public Prosecutor’s Office (EPPO) has exposed a complex €9.5 million fraud and money laundering scheme targeting the European Regional Development Fund. Initially flagged in an IT project in Romania, the probe revealed a transnational network operating across Romania, Cyprus, Czechia, and the UAE. The group allegedly diverted EU funds through fictitious contracts and laundered the proceeds via suspicious transactions spanning multiple countries. OLAF’s findings led to EPPO indicting 12 defendants and initiating the recovery of misappropriated funds by the European Commission.
Ex-Kerala MLA Arrested in ₹20 Crore Fashion Gold Scam
The Enforcement Directorate (ED) has arrested former Kerala MLA and IUML leader MC Kamaruddin and his associate TK Pookoya Thangal for allegedly orchestrating a ₹20 crore fraud through their company, Fashion Gold. The arrests were made on April 7 after investigations linked them to 168 FIRs filed across Kannur and Kasaragod districts, accusing them of illegally collecting funds from investors under the pretext of business investments.
Fashion Gold reportedly lured investors—many of them NRIs—by promising high returns and misrepresented the deposits as share capital or company advances. The ED claims the duo misappropriated ₹20 crore, part of which was used to acquire properties in the names of investors. Assets worth ₹19.62 crore have already been attached. The ED is continuing its probe to trace additional funds and possible accomplices.
Lithuania Fines Revolut €3.5 Million for Anti-Money Laundering Failures
Revolut, the UK-based fintech giant, has been fined €3.5 million by Lithuania’s central bank for deficiencies in its anti-money laundering controls. The penalty—the largest ever issued by the Lithuanian regulator—follows an inspection that uncovered lapses in monitoring business relationships and identifying suspicious transactions. Though no actual money laundering was found, Revolut signed a settlement and has since addressed the procedural weaknesses. Operating under a Lithuanian license in the EU, the company reaffirmed its commitment to regulatory compliance amid growing scrutiny of fintech firms.
Govt Set to Bring Real-Money Gaming Firms Under PMLA Ambit
The Indian government is finalising a move to classify online real-money gaming firms—like Dream11, Games24x7, and Winzo—as “reporting entities” under the Prevention of Money Laundering Act (PMLA), 2002. This would mandate strict compliance requirements, including KYC norms, record-keeping, and reporting suspicious transactions to FIU-IND. The initiative, led by the Ministry of Finance, follows a similar 2023 measure that brought crypto firms under PMLA and aims to curb unaccounted funds in gaming apps.
The industry, which generated $2.7 billion in revenue in 2024 with over 155 million Indian users, expressed concern about regulatory imbalance—arguing that offshore betting apps, handling up to $30 billion, may evade compliance. The government has already blocked over 1,400 illegal gaming websites and 350 offshore platforms, though enforcement remains challenging. Meanwhile, efforts to regulate the sector through IT Rules have stalled due to lack of designated self-regulatory bodies.
Block Fined $40 Million for Cash App’s AML Failures by NYDFS
The New York Department of Financial Services (NYDFS) has fined fintech giant Block Inc. $40 million over serious anti-money laundering (AML) lapses related to its Cash App platform. The regulator cited failures in the company’s Bank Secrecy Act (BSA)/AML compliance program, including allowing high-risk, largely anonymous Bitcoin transactions and failing to address a severe transaction alert backlog between 2019 and 2020.
Block has agreed to retain an independent monitor to evaluate its compliance efforts. While the company did not admit wrongdoing, it emphasized its ongoing commitment to enhancing its compliance infrastructure, including real-time Bitcoin transaction monitoring and enhanced due diligence.
The NYDFS action reflects growing regulatory pressure on fintechs and crypto firms to meet the same compliance standards as traditional financial institutions. It also comes amid broader calls in the U.S. for strategic AML reforms, with lawmakers and financial leaders urging more efficient information sharing and updates to outdated regulatory frameworks.
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