Newsletter (18 Nov – 24 Nov 2024)
Welcome to this week’s edition of the Global AML News Weekly Digest. Here are the top stories making headlines around the world:
INTERPOL Financial Crime Operation Nets 5,500 Arrests, USD 400 Million in Seizures
In a significant crackdown on financial crime, INTERPOL’s five-month Operation HAECHI V (July–November 2024) led to over 5,500 arrests and the seizure of assets worth more than USD 400 million. Spanning 40 countries, the operation targeted cyber-enabled frauds such as voice phishing, romance scams, sextortion, and business email compromise (BEC).
A major highlight was the collaboration between South Korean and Beijing authorities, dismantling a voice phishing syndicate responsible for losses exceeding USD 1.1 billion. The group, which operated under the guise of law enforcement officials, victimized over 1,900 individuals. The operation led to 27 arrests, with 19 indictments issued.
Hong Kong Emerges as a Financial Crime Hub, US Lawmakers Warn
US lawmakers have raised alarms over Hong Kong’s alleged role in global money laundering and sanctions evasion. In a letter to Treasury Secretary Janet Yellen, bipartisan leaders of the House Select Committee on China urged a reassessment of financial ties with Hong Kong, citing its alleged facilitation of illicit activities such as trading with sanctioned nations and laundering proceeds through front companies.
Lawmakers expressed concerns over Hong Kong’s financial sector being used to export Western technology to Russia and manage “ghost ships” for illegal trade. They urged increased scrutiny and potential policy shifts to address these risks.
Australia’s Anti-Money Laundering Bill Aims for Comprehensive Overhaul
The Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 seeks to bolster Australia’s financial crime framework. Key updates include:
• Extending AML/CTF obligations to high-risk services.
• Enhancing customer due diligence and AML program requirements.
• Empowering AUSTRAC to demand disclosures and conduct examinations.
The reforms align with evolving threats posed by new business models and technologies.
Swiss Prosecutor Charges Lombard Odier With Aggravated Money Laundering
Switzerland’s federal prosecutor has indicted private bank Lombard Odier and a former employee for aiding in laundering proceeds from crimes allegedly committed by Gulnara Karimova, daughter of Uzbekistan’s late president.
Karimova allegedly extorted billions through Uzbek state contracts and laundered the funds via a Swiss-based organization. This development marks a significant blow to Lombard Odier’s reputation as one of Switzerland’s most prestigious financial institutions.
Wise Implements Remediation Plan Over AML Lapses
UK-based money transfer firm Wise was placed under a formal remediation plan by the Belgian National Bank following deficiencies in its anti-money laundering controls. A review revealed gaps in customer verification processes, notably the lack of proof of address for numerous accounts.
Wise has since collaborated with regulators to rectify these issues, reportedly contacting affected customers and implementing revised protocols to ensure compliance.
Morgan Stanley Faces Scrutiny Over High-Risk Ultrawealthy Clients
A Wall Street Journal investigation revealed systemic lapses in Morgan Stanley’s wealth management branch. Approximately 24% of its 46,500 international high-net-worth accounts were flagged as high risk for money laundering. Internal documents also cited “longstanding issues” with enhanced due diligence.
These findings highlight vulnerabilities in the bank’s global AML framework and raise questions about its ability to manage high-risk clientele effectively.
Stay informed with our weekly digest, bringing you the most impactful news from around the globe. Thank you for reading!
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