Anti Money Laundering News (21 Apr – 27 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:
SEC Charges PGI Global Founder Ramil Palafox in $198 Million Fraud Scheme
The U.S. Securities and Exchange Commission (SEC) has charged Ramil Palafox, founder of PGI Global, with orchestrating a $198 million fraud involving a Ponzi-like scheme disguised as a crypto and foreign exchange trading operation. The SEC alleges that Palafox misappropriated over $57 million for personal luxuries, including cars and homes, while luring investors with promises of guaranteed profits and a fake AI trading platform. The complaint, filed in the U.S. District Court for the Eastern District of Virginia, seeks permanent injunctions, monetary recovery, and civil penalties. In a parallel move, the U.S. Attorney’s Office has filed criminal charges against Palafox.
MBI Ponzi Scandal: Over 11 Million Victims Defrauded, RM3.17 Billion in Assets Seized
Malaysian authorities have uncovered a massive Ponzi scheme operated by Mobility Beyond Imagination (MBI), which allegedly defrauded more than 11 million victims—mostly from a neighbouring country—over eight years. Investigations revealed that MBI awarded investors redeemable points tied to affiliated businesses, masking the fraudulent operation. Under “Op Northern Star,” the Anti-Money Laundering Crime Investigation Unit seized RM3.17 billion in assets, including bank accounts, properties, and luxury goods. Founder Tedy Teow Wooi Huat remains in custody in China, with Malaysian authorities considering further legal action. Several high-profile arrests, including individuals bearing the title “Datuk,” have been made under anti-money laundering laws.
Absa Bank Fined R10 Million for Anti-Money Laundering Compliance Failures
The South African Reserve Bank’s Prudential Authority has fined Absa Bank R10 million following a 2022 inspection that uncovered serious breaches of the Financial Intelligence Centre Act (FICA). Absa failed to conduct adequate due diligence on high-risk clients, including foreign public officials and politically exposed persons, and neglected timely responses to over 8,500 automated transaction monitoring alerts. The penalties reflect growing regulatory pressure on South African banks to strengthen anti-money laundering measures after the country’s FATF grey listing. Absa has cooperated with regulators and is implementing corrective actions to improve compliance.
ED Targets ₹15,000 Crore Restitution to Fraud Victims in 2025–26
The Enforcement Directorate (ED) plans to restore assets worth about ₹15,000 crore to victims of real estate, Ponzi, and other financial frauds during the 2025–26 fiscal year. This follows an intensified focus on restitution under the Prevention of Money Laundering Act (PMLA), with ₹15,261.15 crore restored in 2024–25 and ₹1,488 crore already in 2025–26. So far, the ED has restituted assets totaling ₹31,951 crore, including recoveries in major cases involving Vijay Mallya, Nirav Modi, and NSEL. The agency, acting on court orders, is expediting asset restoration to rightful claimants even before trials conclude, aligning with government priorities to return misappropriated funds to fraud victims.
Former Rajasthan Minister Mahesh Joshi Arrested in Jal Jeevan Mission Money Laundering Case
The Enforcement Directorate (ED) has arrested former Rajasthan PHED minister and Congress leader Mahesh Joshi under the Prevention of Money Laundering Act (PMLA) in connection with alleged corruption in the Jal Jeevan Mission. Joshi’s arrest followed hours of questioning and stems from an anti-corruption bureau FIR accusing officials of accepting bribes for tender allocations. His arrest was prompted after the Supreme Court questioned why he had not been named earlier. While ED claims substantial evidence against him, Joshi has alleged a political conspiracy, asserting his innocence. A PMLA court has remanded him to four days of ED custody.
155 Bank, SDI Employees Dismissed for Fraud in 2024 Amid Surge in Insider Financial Crimes: Bank of Ghana Report
According to the Bank of Ghana’s 2024 annual fraud report, 155 staff members of banks and specialised deposit-taking institutions (SDIs) were dismissed for fraud, with 54% of cases linked to cash theft and suppression. Employee-linked financial crimes rose 33% over the year, with 365 staff implicated. Overall, 16,733 fraud cases were recorded across banks, SDIs, and payment service providers (PSPs), marking a 5% increase. Forgery and identity theft saw significant spikes, with total fraud risk value reaching GH¢99 million. The BoG has called for stronger internal controls, stricter hiring checks, and better law enforcement collaboration to combat the growing insider threat.
Stay informed with our weekly digest, bringing you the most impactful news from around the globe. Thank you for reading!
Subscribe to our weekly Newsletter – Click Here
Empower your organization with ZIGRAM’s integrated RegTech solutions – Book a Demo
- #EDIndia
- #AssetRestoration
- #PonziScheme
- #RealEstateFraud
- #FinancialRecovery
- #VictimCompensation
- #MaheshJoshi
- #JalJeevanMission
- #PoliticalCorruption
- #MoneyLaunderingCase
- #CongressLeader
- #EDArrest
- #BankOfGhana
- #EmployeeFraud
- #CashTheft
- #IdentityTheft
- #FinancialIntegrity
- #GhanaBanking
- #InternalControls