Newsletter 30 Sep 2024: Dutch Crypto Takedown, SkyCity, Chinese Drug Gang, Russian Virtual Currency, Egmont Report, FINTRAC Impact

Newsletter 30 Sep 2024: Dutch Crypto Takedown, SkyCity, Chinese Drug Gang, Russian Virtual Currency, Egmont Report, FINTRAC Impact

Newsletter (23 Sep – 29 Sep 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. Dutch Authorities Take Down Two Crypto Exchanges In Major Money Laundering Bust

The Dutch authorities, in collaboration with the United States Secret Service, have taken down two cryptocurrency exchanges, pm2btc and Cryptex, seizing €7 million in the process. The investigation revealed that pm2btc, a Russian exchange, was linked to Russian illicit finance. The U.S. has issued a $10 million reward for information leading to the arrest of Sergey Sergeevich Ivanov, a Russian individual associated with pm2btc. This action marks a significant step in combating illegal cryptocurrency activities.

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2. Skycity Fined $4.16 Million For Anti-Money Laundering Breaches

SkyCity Entertainment Group, a casino company, has been handed a $4.16 million fine for breaching anti-money laundering and terrorism financing obligations. The penalty was imposed by the High Court on SkyCity Casino Management (SCML). SkyCity’s CEO, Jason Walbridge, emphasized the company’s commitment to combating financial crimes, acknowledging the responsibility of casino operators in preventing money laundering and terrorism financing.

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3. Italian Police Uncover Drug Gang Using Shadow Chinese Money Brokers

In a major crackdown, Italian police arrested 61 individuals across four countries and seized €60 million following an investigation into international drug trafficking and money laundering. The operation revealed connections between criminal organizations in Albania and Latin America, as well as the use of shadow Chinese money brokers to launder illicit funds. This case highlights the growing trend of criminals exploiting Chinese shadow networks for money laundering activities in Europe.

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4. U.S. Treasury Takes Coordinated Action Against Russian Virtual Currency Exchanges

The U.S. Department of the Treasury, in coordination with international partners, has taken steps to disrupt Russian cybercrime services. FinCEN identified PM2BTC, a Russian virtual currency exchanger associated with Sergey Sergeevich Ivanov, as a “primary money laundering concern.” OFAC also sanctioned Ivanov and Cryptex, a virtual currency exchange registered in St. Vincent and the Grenadines but operating in Russia. These actions are part of a broader international effort to combat illicit finance tied to Russian entities.

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5. The Role Of Financial Intelligence Units (FIUs) In National Risk Assessments

The Egmont Group has released a comprehensive report highlighting the role of Financial Intelligence Units (FIUs) in conducting National Risk Assessments (NRAs) to combat money laundering and terrorist financing. The report emphasizes the importance of collaboration, data-driven insights, targeted strategies, global cooperation, and effective communication in addressing financial crime risks. FIUs work closely with law enforcement, regulators, and the private sector to build a comprehensive understanding of national money laundering and terrorist financing threats.

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6. New FINTRAC Regulations For Mortgage Brokers Starting October 11

Mortgage brokers will face new regulations from October 11 aimed at preventing money laundering and terrorist financing. These include implementing a compliance program, reporting certain types of transactions, and stricter adherence to Know Your Client (KYC) rules. Non-compliance may result in significant financial penalties for brokerages, with broker-owners and principal brokers potentially held accountable if their agents fail to meet the new standards.

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