Newsletter (14 Oct – 20 Oct 2024)
Welcome to this week’s edition of the Global AML News Weekly Digest. Here are the top stories making headlines around the world:
1. FATF Changes Grey Listing Criteria To Target High-Risk Nations
The Financial Action Task Force (FATF) has revised its grey listing criteria to focus on nations posing significant risks to the international financial system. This strategic change is designed to alleviate pressure on low-capacity nations while prioritizing those that could pose greater threats. The updated criteria are expected to streamline the process and enhance international cooperation in combating financial crimes, ensuring resources are directed at more severe offenders.
2. Russia’s Financial System Faces FATF Scrutiny On Digital Currency
As the FATF plenary session approaches, Russia’s digital currency framework is under the microscope. Russia’s financial watchdog, Rosfinmonitoring, is at risk of further action by the FATF, including possible blacklisting, due to concerns over anti-money laundering (AML) compliance in the country’s cryptocurrency regulations. Despite implementing legislation for better oversight, concerns persist. The outcome of this scrutiny could impact Russia’s financial system and its international standing, especially with a focus on virtual currencies.
3. TikTok Under Investigation For Allegedly Operating As An Unlicensed Crypto Exchange
TikTok is facing scrutiny in the UK for allegedly functioning as an unlicensed cryptocurrency exchange. A whistleblower letter to the Financial Conduct Authority (FCA) claims that TikTok’s virtual currency exchange process allows users to convert TikTok Coins into real money, which could fall under UK anti-money laundering laws. If the FCA finds this in violation of financial regulations, TikTok may be forced to alter its operations related to virtual currency, affecting its current monetization models.
4. EPPO Freezes €9 Million In Sicilian Fraud Investigation
The European Public Prosecutor’s Office (EPPO) in Palermo has ordered the freezing of €9 million as part of an investigation into EU fund fraud involving local Sicilian politicians and private individuals. The fraudulent scheme misused €8.7 million from the European Social Fund intended for social and vocational training projects. This development highlights ongoing efforts by European authorities to crack down on financial crimes tied to EU funding.
5. Italy Launches UBO Register To Enhance Financial Transparency
Italy’s Ministry of Enterprises and Made in Italy (MIMIT) has made its Ultimate Beneficial Owner (UBO) register operational, with the first reporting deadline set for December 11, 2023. The UBO register, established under Italy’s anti-money laundering laws, aims to increase transparency by identifying individuals who ultimately own or control legal entities. This measure strengthens Italy’s commitment to fighting money laundering and enhancing corporate accountability.
6. 5,600 Victims of THB 1.6 Billion Loss Linked to Thai Direct Sales Scam
Over 5,600 individuals have filed complaints against The iCon Group, a direct sales company in Thailand, alleging losses of THB 1.6 billion through fraudulent business practices. Most victims were involved in selling dietary supplements, and many more are expected to come forward as police prepare to bring money laundering charges against the suspects. This case underscores the significant impact of fraudulent schemes in the direct sales sector, both in Thailand and internationally.
Stay informed with our weekly digest, bringing you the most impactful news from around the globe. Thank you for reading!
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