Newsletter 06 Jan 2024: INR 50 Bn Fraud Case, Crypto Fraud, UAE Crime Bust, Thai New Mandate, FDIC Penalty, USD 100 Mn TetherCase

Newsletter 06 Jan 2024: INR 50 Bn Fraud Case, Crypto Fraud, UAE Crime Bust, Thai New Mandate, FDIC Penalty, USD 100 Mn TetherCase

Newsletter (30 Dec 2024 – 05 Jan 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 Conducts Searches in ₹4,957 Crore Bank Fraud Case

The Directorate of Enforcement (ED) conducted search operations across 14 locations in Mumbai and Delhi in a ₹4,957 crore bank fraud case involving M/s Pratibha Industries Limited. The company, engaged in the business of TMT bars, pipes, steel, and infrastructure projects, is under investigation for alleged money laundering under the Prevention of Money Laundering Act (PMLA).

The ED’s operation led to the freezing of assets worth ₹5.4 crore, including bank balances and mutual funds, alongside the discovery of incriminating evidence related to immovable property purchases.

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Terraform Ex-CEO Extradited to the U.S. Over Crypto Fraud

Do Hyeong Kwon, co-founder and former CEO of Terraform Labs, has been extradited from Montenegro to the U.S. on charges of cryptocurrency fraud resulting in over $40 billion in investor losses. The nine-count indictment includes allegations of commodities, securities, and wire fraud, as well as money laundering and conspiracy.

U.S. Attorney General Merrick Garland emphasized the severity of the schemes, stating they involved fraudulent inflation of Terraform’s cryptocurrency values.

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UAE Dismantles AED 641 Million Money Laundering Networks

Dubai authorities uncovered two significant money laundering networks with operations totaling AED 641 million.

• Case 1: A group comprising an Emirati national, 21 British nationals, and others laundered AED 461 million using forged documents.

• Case 2: Another network laundered AED 180 million through cryptocurrency, leading to the arrest of 30 individuals and three companies.

These cases highlight Dubai’s commitment to combating cross-border financial crimes.

Read more

Thailand Tightens Banking Regulations to Curb Junta Financing

The Anti-Money Laundering Office (AMLO) and Bank of Thailand have mandated banks to strengthen compliance with international regulations to prevent financial services from facilitating arms procurement by groups like Myanmar’s junta.

The directive, effective December 27, requires Thai banks to implement stringent checks based on client risk profiles and align with AML/CTPF measures.

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Kansas Bank Challenges $20 Million FDIC Penalty

CBW Bank in Kansas is contesting a $20.4 million penalty imposed by the Federal Deposit Insurance Corporation (FDIC) for alleged anti-money laundering (AML) failures. The FDIC accused the bank of unsafe practices, inadequate customer due diligence, and insufficient controls over international money transfers.

CBW Bank denies the allegations and has vowed to defend itself against the penalty.

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T3 Financial Crime Unit Freezes $100M in USDT

The T3 Financial Crime Unit, a collaboration between Tether, Tron, and TRM Labs, froze $100 million in USDT linked to illicit activities.

Investigations revealed that money laundering services hired via the darknet were a significant contributor to these funds.

The operation analyzed $3 billion in Tether USDT volume globally, targeting crimes such as investment scams, drug trafficking, and terrorism financing.

Read more

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