Newsletter (13 Jan – 19 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:
1. Upbit Faces Major Setback Over KYC Violations
South Korea’s largest cryptocurrency exchange, Upbit, has been ordered to suspend operations for up to six months by the Korean Financial Services Union (FIU). The exchange is accused of violating KYC norms under the Specified Financial Transaction Information Act, with 500,000 to 600,000 suspected violations. Penalties could amount to record fines, potentially up to 100 million won per transaction. This decision significantly impacts Upbit, which holds 70% of South Korea’s crypto market share.
Read more.
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2. BitMEX Hit with $100M Fine for AML Failures
The US Department of Justice has fined cryptocurrency exchange BitMEX $100 million for ignoring anti-money laundering (AML) laws. This follows guilty pleas by the company and its founders in 2022. In addition to the fine, BitMEX has been placed on two years of probation. The company had previously paid over $110 million in related civil and criminal settlements.
Read more.
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3. SEC Charges LPL Financial $18M for AML Program Failures
Broker-dealer and investment adviser LPL Financial LLC has agreed to pay an $18 million civil penalty for failing to comply with AML regulations. Between 2019 and 2023, LPL reportedly failed to verify customer identities, neglected to close high-risk accounts, and violated its own AML policies. The firm is now working on improving its compliance framework to address these issues.
Read more.
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4. Block Penalized $255M Over Cash App Violations
Block Inc., led by Jack Dorsey, will pay $255 million in penalties for failing to comply with BSA/AML requirements through its Cash App platform. This includes an $80 million fine levied by state regulators and $55 million by the CFPB. Block has also been ordered to refund consumers up to $120 million for related issues. With over 50 million users, Cash App is under scrutiny to strengthen its AML and risk controls.
Read more.
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5. Robinhood Fined $45M for AML & Securities Breaches
Popular trading platform Robinhood has been fined $45 million by the SEC for AML and regulatory violations. Two of its broker-dealer units will pay penalties of $33.5 million and $11.5 million, respectively. Robinhood has committed to conducting an internal compliance audit to address the lapses.
Read more.
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6. FIU-IND and NHB Sign MoU for Improved AML Coordination
India’s Financial Intelligence Unit (FIU-IND) and the National Housing Bank (NHB) have signed a Memorandum of Understanding (MoU) to enhance coordination and information sharing under the Prevention of Money Laundering Act. The MoU aims to strengthen efforts to identify and mitigate financial crimes within the housing finance sector.
Stay informed with our weekly digest, bringing you the most impactful news from around the globe. Thank you for reading!
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- #BitMEX
- #LPLFinancial
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