Welcome to this week’s edition of the Global AML News Weekly Digest. Here are the top stories making headlines around the world:
DEA: Drug Traffickers Found Citi ‘Favorable’ For Money Laundering
A recently unsealed indictment has revealed that two California residents, allegedly working with the Sinaloa drug cartel, successfully deposited tens of thousands of dollars in cash at Citi ATMs without triggering money laundering alerts. According to the Financial Times, the accused launderers managed to deposit nearly $36,000 in drug proceeds by splitting the cash into smaller transactions to evade the $10,000 reporting threshold mandated by the U.S. Treasury. DEA officials disclosed that this operation was part of a broader network responsible for laundering at least $50 million from methamphetamine and fentanyl sales, with Citi being the chosen bank after evaluating multiple options.
Landmark UK Ruling On Money Laundering Risks In Supply Chains Involving Modern Slavery
In a significant ruling, the English Court of Appeal has underscored the money laundering risks associated with modern slavery in supply chains. The court upheld an NGO’s appeal in the case of R (on the application of World Uyghur Congress) v National Crime Agency, stating that the UK National Crime Agency’s decision not to investigate the import of cotton linked to forced labor was based on a misinterpretation of the UK’s money laundering laws. This ruling highlights the critical need for companies to scrutinize their supply chains for potential forced labor to avoid complicity in money laundering.
Crypto-Friendly Silvergate Bank Pays $63M To Settle Charges With SEC, Fed, California Regulator
Silvergate Capital Corp., the parent company of the now-defunct crypto-friendly Silvergate Bank, has agreed to pay $63 million to settle charges from the SEC, Federal Reserve, and California regulators. The accusations centered on Silvergate’s internal management failings and misleading disclosures about its anti-money laundering program. The bank, along with its former executives, faced allegations of falsely claiming to have an effective Bank Secrecy Act/anti-money laundering program, which exacerbated the banking crisis in the crypto industry following its collapse in 2023.
New Singapore Law Quadruples Fines For Corporate Service Providers That Breach Anti-money Laundering Duties
Singapore has enacted a new law that significantly increases penalties for corporate service providers failing to meet anti-money laundering obligations. Passed on July 2, the law will see fines quadruple as part of the Accounting and Corporate Regulatory Authority’s (ACRA) tougher stance on non-compliance. Second Minister for Finance Indranee Rajah emphasized the government’s commitment to ensuring robust adherence to anti-money laundering regulations among corporate service providers and registered individuals.
Hong Kong Fines DBS Over Breaching Anti-money Laundering Rules
The Hong Kong Monetary Authority (HKMA) has fined DBS Bank (Hong Kong) HK$10 million ($1.28 million) for breaches of anti-money laundering (AML) and counter-terrorist financing regulations. The fine follows an investigation into control failures at DBS between April 2012 and April 2019. The HKMA’s disciplinary action reflects its ongoing efforts to enforce strict compliance with AML regulations within the financial sector.
Nordea Bank Accused Of Money Laundering Totalling $3.7bn
Danish authorities have accused Nordea Bank of failing to prevent over $3.5 billion in money laundering by Russian clients. The Danish Special Crime Unit (NSK) indicted Nordea for extensive violations of the Money Laundering Act between 2012 and 2015, citing the bank’s failure to investigate suspicious transactions and ignoring warnings about transfers to exchange offices in Copenhagen. The case involves transactions amounting to 26 billion kroner ($3.7 billion) and awaits trial in the district court of Copenhagen.
Stay informed with our weekly digest, bringing you the most impactful news from around the globe. Thank you for reading!
- #MoneyLaundering
- #FinancialCrime
- #DEA
- #SinaloaCartel
- #ModernSlavery
- #SupplyChainRisks
- #CryptoBanking
- #SilvergateBank
- #AntiMoneyLaundering
- #SingaporeLaw
- #DBSBank
- #NordeaBank
- #FinancialRegulations
- #AML
- #Compliance
- #BankingNews