Newsletter (16 Dec – 22 Dec 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) Bank of America Issued Cease and Desist Order for AML Deficiencies
The Office of the Comptroller of the Currency (OCC) has issued a cease and desist order against Bank of America for deficiencies in its anti-money laundering (AML) measures. The order highlighted failures in timely reporting of suspicious activities and conducting adequate customer due diligence. Although no financial penalty was imposed, the OCC mandated additional corrective measures.
In response, Bank of America emphasized its commitment to improving its AML and sanctions programs. The bank stated that it has been collaborating closely with regulators and is prepared to comply with the order’s requirements.
2) Canada Targets Russian Assets in AML and Sanctions Overhaul
Canada’s 2024 Fall Economic Statement announced significant reforms to its AML and sanctions regimes, focusing on targeting Russian assets. The country plans to implement a “Made-in-Canada” windfall profit mechanism to redirect interest accrued on frozen Russian assets to support Ukraine.
This initiative aligns with Canada’s broader strategy to strengthen its economic sanctions framework while enhancing measures to combat financial crimes.
3) Aeon Bank Ordered to Improve AML Practices
Japan’s Financial Services Agency (FSA) has issued a business improvement order to Aeon Bank for inadequate AML measures. The bank, which operates around 6,800 ATMs across Japan, was found to have deficiencies in its risk management system.
This action follows a 2021 Financial Action Task Force (FATF) review that identified shortcomings in Japan’s regional banks and financial institutions regarding AML efforts. Aeon Bank has been directed to review and enhance its risk management systems.
4) Enforcement Directorate Seizes Dawood Ibrahim’s Brother’s Flat
The Enforcement Directorate (ED) has seized a flat in Thane linked to a money laundering case involving Iqbal Kaskar, brother of fugitive gangster Dawood Ibrahim. The flat, located in Neopolis Tower, had been provisionally attached since March 2022.
Investigations revealed that Kaskar and his associates extorted property and cash from a real estate developer using their alleged connections to Dawood Ibrahim. The ED continues to investigate the case.
5) Turkey Introduces Stricter Crypto AML Regulations
Turkey has announced new AML regulations for crypto transactions, effective February 25, 2025. The rules will require individuals engaging in transactions exceeding 15,000 Turkish liras (approximately $425) to provide identifying information to crypto service providers.
Additionally, crypto service providers will be required to collect information on unregistered wallet addresses. The regulations aim to prevent the use of digital currencies for illicit activities such as money laundering and terrorism financing.
6) Abu Dhabi Authority Fines Aarna Capital for AML Violations
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has fined Aarna Capital Limited (ACL) $504,000 (Dh1.85 million) for failing to maintain adequate AML systems between 2017 and 2023. An investigation found that ACL did not adequately assess AML risks or assign appropriate risk ratings to customers.
The FSRA emphasized the importance of robust AML systems and warned financial institutions to adhere strictly to AML requirements.
Stay informed with our weekly digest, bringing you the most impactful news from around the globe. Thank you for reading!
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- #India
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- #Turkey
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- #Crypto