Newsletter (03 Feb – 09 Feb 2025)
Welcome to this week’s edition of the Global AML News Weekly Digest. Here are the top stories making headlines around the world:
Hungary’s Central Bank Fines Raiffeisen Bank for Anti-Money Laundering Deficiencies
The National Bank of Hungary (NBH) has imposed a fine of over HUF 41 million on Raiffeisen Bank due to shortcomings in its anti-money laundering (AML) and counter-terrorism financing measures. According to the NBH, the bank’s customer due diligence processes were not fully aligned with legal requirements, and certain customers were misclassified in terms of risk level. Additionally, the bank’s internal controls were found insufficient in supporting risk assessment and screening processes. Despite these issues, the NBH clarified that the deficiencies do not threaten the bank’s stable operations. The bank has been given specific deadlines to address the identified shortcomings and implement measures to monitor the effectiveness of the corrective actions.
MONEYVAL Report Urges Bosnia and Herzegovina to Enhance Anti-Money Laundering Efforts
The Council of Europe’s MONEYVAL has published a report calling on Bosnia and Herzegovina (BiH) to strengthen its anti-money laundering (AML) and counter-terrorist financing (CTF) frameworks. The report identifies moderate effectiveness in nine out of eleven evaluated areas, such as risk awareness, international collaboration, intelligence utilization, and ML/TF investigations, but emphasizes the need for significant improvements in these domains.
Additionally, the report highlights critical deficiencies in the implementation of UN financial sanctions and in addressing terrorism financing risks within the non-profit sector.
While there have been ML convictions, these do not fully reflect the country’s risk profile, and asset confiscation practices need substantial improvement. Similarly, TF prosecutions and convictions are insufficient and hindered by limited understanding of associated risks.
International cooperation is generally effective, but law enforcement lacks initiative in pursuing collaborative actions to address TF risks.
In light of the findings, MONEYVAL has placed BiH under enhanced follow-up and has requested a progress report by December 2026.
FinCEN Penalizes Brink’s Global Services for Breaching AML Regulations
The Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of the Treasury has imposed a $37 million civil penalty on Brink’s Global Services USA, Inc. for deliberate violations of the Bank Secrecy Act (BSA), the principal AML regulation in the U.S. Due to these failures, Brink’s facilitated bulk currency transfers worth hundreds of millions of dollars across the Southwest Border for high-risk entities, including a Mexican currency exchanger later found guilty of BSA violations. This marks FinCEN’s first enforcement action against an armored car service.
According to FinCEN Director Andrea Gacki, Brink’s failed to implement required AML controls, exposing the U.S. financial system to risks associated with money laundering, drug trafficking, and other illicit activities.
The violations include failing to register as a money services business, develop an effective AML program, and file mandatory suspicious activity reports. In addition to the monetary penalty, Brink’s is subject to an independent AML program review.
The resolution was achieved through collaboration with the U.S. Attorney’s Office for the Southern District of California. For further details on the violations, FinCEN has released a Consent Order outlining the case.
Sweden Updates Gambling AML Guidelines to Strengthen Sector Oversight
Spelinspektionen, Sweden’s Gambling Inspectorate, has revised its anti-money laundering (AML) and counter-terrorist financing (CTF) guidelines for online gambling operators, in partnership with the Financial Intelligence Unit (FIPO). These updates address the increasing risk of money laundering in online gambling due to advancements in technology and economic growth.
The 2025 guidelines impose stricter customer due diligence (CDD) measures, surpassing standard know-your-customer (KYC) requirements. Operators are now mandated to verify customers using official identification documents, such as passports or driver’s licenses.
For high-risk customers, enhanced due diligence (EDD) processes are required, including verifying income sources, bank statements, and identifying politically exposed persons (PEPs). Operators must also ensure documentation of the purpose and nature of gambling activities for comprehensive customer background checks.
To ensure compliance, operators must strengthen internal controls with a focus on account monitoring, risk management, and thorough record-keeping for five years. Staff training is emphasized as crucial for identifying suspicious activities and maintaining robust AML protocols.
Spelinspektionen’s Director General, Camilla Rosenberg, stated that the updates align with the EU’s work on establishing a centralized Anti-Money Laundering Authority (AMLA) and upcoming EU AML regulations. The new guidelines reflect the gambling sector’s increased risk exposure and the need for enhanced regulatory clarity.
FATF Flags 14 African Nations for Anti-Money Laundering Deficiencies
As of February 2025, the Financial Action Task Force (FATF) has placed 24 countries on its “grey list” due to inadequate measures against money laundering and terrorism financing. Among them, 14 African nations, including South Africa, have been highlighted for their shortcomings. This designation signals the need for these nations to strengthen their financial systems and compliance with global AML/CTF standards.
ED Files Chargesheet Against 19 Brokerage Entities in NSEL Money Laundering Case
The Enforcement Directorate (ED) has filed a chargesheet against 19 broking entities and their directors for allegedly conspiring with officials of the National Spot Exchange Limited (NSEL) to lure investors into trading on its platform.
The chargesheet, filed on January 28 in a special Prevention of Money Laundering Act (PMLA) court in Mumbai, was acknowledged by the court on February 3. The investigation uncovered a fraudulent scheme where brokers, in collaboration with NSEL, provided false assurances to investors and promoted illegal trade contracts that bypassed mandatory warehouse receipts or physical commodities.
The ED’s investigation led to the attachment of properties worth Rs 3,288.76 crore through 32 provisional orders. Previously, six chargesheets had been filed in the case against 94 accused.
The agency revealed that brokers conspired with NSEL to attract investors with promises of high returns, facilitating a fraudulent scheme. The brokerage earned through these illegal activities, totaling Rs 34.74 crore, was attached under PMLA provisions and confirmed by the adjudicating authority.
The proceeds of crime were layered and integrated into business operations to appear as legitimate funds. The ED initiated the probe based on an FIR registered under various sections of the Indian Penal Code (IPC), 1860.
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