Illegal Digital Banks, Cash For Real Estate, 1MDB Fund Scam, Nordea Fined, Deniss Zolotarjovs, Fugitive Ex-Mayor

Welcome to this week’s edition of the Global AML News Weekly Digest. Here are the top stories making headlines around the world:

1. Brazil’s Crackdown On Illegal Digital Banks In A Multibillion Money Laundering Probe
Brazil is taking significant steps to combat money laundering through digital banking platforms. The Federal Police have launched “Operation Concierge,” targeting a criminal group that operated covert accounts within Brazil’s formal banking system. These illegal digital banks, disguised as legitimate accounts approved by Brazil’s Central Bank, processed an astonishing R$7.5 billion (approximately $1.36 billion). This operation highlights the increasing need for stringent oversight of digital financial services to prevent their misuse by criminal enterprises.
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2. New US Rules Aim To Thwart Real Estate Money Laundering
In a move to close loopholes in the real estate market, the U.S. Treasury Department has implemented new regulations to prevent criminals from laundering money through cash purchases of residential properties. These rules require investment advisers and real estate professionals to report cash sales to legal entities, trusts, and shell companies. However, transactions involving individuals or financing options like mortgages are exempt. This measure is a critical step in ensuring that the real estate sector does not become a safe haven for illicit financial activities.
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3. Swiss Court Convicts PetroSaudi Executives In 1MDB Scandal Fallout
Switzerland’s federal criminal court has handed down convictions in one of the most significant financial scandals of recent years. Two top executives of PetroSaudi were found guilty of fraud and money laundering related to the 1MDB Malaysian fund scandal. Tarek Obaid and Patrick Mahony received sentences of seven and six years, respectively. The court’s decision underscores the global ramifications of the 1MDB scandal, which involved the embezzlement of at least $1.8 billion from Malaysia’s state-owned investment fund.
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4. Nordea Bank Pays $35 Million To Settle US Money Laundering Probe
Nordea Bank Abp, the largest lender in the Nordic region, has agreed to pay a $35 million fine to resolve a U.S. investigation into its past anti-money laundering practices. The New York State Department of Financial Services conducted the probe, which covered the bank’s operations from 2008 to 2019. This settlement closes a chapter on a period of scrutiny over Nordea’s compliance with anti-money laundering regulations, emphasizing the importance of robust financial safeguards in international banking.
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5. Russian Cybercriminal Charged In US For Cryptocurrency Money Laundering And Extortion
In a significant blow to cybercrime, Russian national Deniss Zolotarjovs has been charged in the U.S. for his role in a notorious cybercriminal group. The charges include conspiracy to commit money laundering, wire fraud, and extortion through the use of cryptocurrency. This case, brought in Cincinnati, Ohio, underscores the growing intersection between technology and crime, highlighting the need for advanced cybersecurity measures to combat financial fraud in the digital age.
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6. Philippines Files Money Laundering Case Against Fugitive Ex-Mayor
The Philippine government continues its crackdown on corruption and organized crime with the recent filing of money laundering charges against a fugitive former mayor. Alice Guo, also known as Guo Hua Ping, is accused of links to Chinese criminal syndicates and has evaded Senate hearings on the matter. Despite her denials, Philippine authorities are determined to bring her to justice, reflecting the country’s ongoing battle against financial crimes and corruption.
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