Britain’s new ‘debanking law’, law enforcement and banking chiefs converge on Dublin for EAFCS2024 and Dutch central bank fines crypto.com €2.85M

From Alisha H. at AMLi

A DRAFT law published in Britain this week will compel banks to give customers three months' notice and an explanation before closing their accounts. The bill comes after former Brexit Party leader Nigel Farage said last year he was ‘debanked’ on political grounds. Terminating services became a political issue after Farage said his account at private bank Coutts, part of NatWest, was closed due to his political views, spurring a row that ended with the shock departure of NatWest CEO Alison Rose. Payment services providers like banks would have to give 90 days’ notice of an account closure, up from two months at present, and must provide a “sufficiently detailed and specific explanation” to the customer. Banks would not be allowed to insert clauses into customer contracts to circumnavigate the new requirements.

In Sweden, the central bank said on Thursday the digitalisation of payments has brought issues with fraud and the exclusion of some groups, and legislation is needed to ensure also cash can be used to pay. Meanwhile, a survey of compliance specialists in the financial services sector found that seven out of 10 fear the digital euro will lead to more scams and technical glitches. There were also worries that an electronic currency would diminish the role of cash. A majority of the officers polled by the Compliance Institute do not believe there is a need for the digital euro.

*** On April 17 next we are hosting a special webinar on ‘How to implement AI to combat top AML typologies.’ The event is for FCC, AFC and AML leaders in banking and financial services. We will hear from expert Dr Janet Bastiman of #NapierAI. We will be looking at screening customers during, after onboarding, and throughout the client lifecycle. The applications of AI for FCC are game-changing, freeing operational efficiencies and transforming compliance. In this webinar, we will discuss AI implementation and the regulatory landscape its use. Interest is high, so if you are a leader in this sector, don’t miss out. Book your place now. REGISTER HERE:

Top global law enforcement chiefs and banking AFC leaders will meet at a PPPs forum at this year’s European Anti-Financial Crime Summit 2024 (EAFCS).The public and private officials from across the EU, UK and US will gather at the special Roundtable event on ‘PPPs in FinCrime and Asset Recovery.’ “This is an invitational roundtable which is a gathering on the fringes of ‘European Anti-Financial Crime Summit 2024,'” confirmed Stephen Rae from organisers, AMLintelligence.com . “The roundtable is about driving forward the Public Private Partnership or P3 approach to tackling financial crime. You can see from the most recent Wolfsberg report that PPPs are and always will be the answer to a problem as complicated and global as money laundering and financial crime,” he said.

The invitational roundtable is open to senior banking leaders attending the summit and international law enforcement chiefs. The white paper will be published following the May 16 summit. The underlying theme for EAFCS2024 is building out the transatlantic network of PPPs in fighting global financial crime. Earlier this week the Wolfsberg Group called on law enforcement to share information on terrorists with financial institutions to help disrupt terror financing.

Have you booked your AFC department’s place at the ‘European Anti-Financial Crime Summit 2024’ yet? You can register today here: European Anti-Financial Crime Summit 2024

Prosecutors in Munich meanwhile confirmed they have launched a money laundering investigation into the collapsed property company, Signa. The Signa group owns stakes in upmarket retailer Selfridges and the iconic Chrysler building in New York City. Prosecutors confirmed they were investigating the collapsed Austrian property group Signa on suspicions of money laundering.

On Wednesday the Dutch central bank today announced said it had fined virtual assets exchange Crypto.com €2.85 million ($3.11 million) for offering its services in the Netherlands without proper registration. The regulator said the violations were “so serious and culpable” that it raised the penalty, which has a base amount of €2 million, by €850,000.

We also report on how career prosecutor and former financial intelligence director, Xolisile Khanyile has called on fin-crime leaders to “confront” the fact that almost half of FATF's "grey- listed" countries are African nations. It’s a thought-provoking intervention by Xolisile which is bound to resonate throughout the African continent and in the corridors of influence at the OECD headquarters in Paris where #FATF is based. Senior correspondent Laura Lynott reports on Xolisile’s intervention which made at this month’s ‘Women in FinCrime Summit.’ Read her report here: Almost half FATF’s greylist countries are in Africa – why this is a problem

PLUS we have an exclusive interview with European Commission’s Alexandra Jour-Schroeder who explains the new AML rules around transparency around foreign legal entities and trusts – as well as why football clubs will become obliged entities. See the full story on our homepage now.

It’s set to be the stand-out Anti-Financial Crime event of the year. Have you booked your or your department’s place at the ‘European Anti-Financial Crime Summit 2024’ in Dublin on May 16? The summit will hear from the top global leaders on AML and AFC for a banking, fintech, finreg and gaming audience. Delegates from across the globe are preparing for the #EAFCS24 - have you secured your ticket? Book your or your organisation’s tickets here:

Now for your end-of-week news blast:

BRITAIN’S DE-BANKED LAW: A DRAFT law published in Britain today (Thursday) will compel banks to give customers three months' notice and an explanation before closing their accounts. The bill comes after former Brexit Party leader Nigel Farage said last year he was 'debanked' on political grounds.

DIGITAL CURRENCY CONCERNS: SWEDEN's central bank said today (Thursday) the digitalisation of payments has brought issues with fraud and exclusion of some groups, and legislation is needed to ensure also cash can be used to pay. The Riksbank said in an annual report on the retail payments system that measures are needed to make payments safer and more accessible.

MUNICH PROSECUTOR OPENS AML PROBE INTO SIGNA: PROSECUTORS in Munich today (Wednesday) confirmed they have launched a money laundering investigation into the collapsed property company, Signa. It comes as creditors of one of the main companies in René Benko’s Signa Group claimed it fell into insolvency because of “illicit” financial transactions, not a downturn in the European property market.

*** It’s set to be the stand-out Anti-Financial Crime event of the year. Have you booked your or your department’s place at the ‘European Anti-Financial Crime Summit 2024’ in Dublin on May 16? The summit will hear from the top global leaders on AML and AFC for a banking, fintech, finreg and gaming audience. Topics being covered are:

• Europe’s new AML regime –what it means for your bank/organisation

• AI and Machine Learning – how can your organisation harness technology in the fight against financial crime

• Sanctions – how your organisation can stay compliant

• PPPs – building out the partnerships at home and on a transatlantic basis to fight financial crime.

Delegates from across the globe are preparing for the #EAFCS24 - have you secured your ticket? Book your or your organisation’s tickets here: EAFCS2024

MAJOR FINE FOR CRYPTO.COM: THE DUTCH central bank today (Wednesday) said it had fined virtual assets exchange Crypto.com €2.85 million ($3.11 million) for offering its services in the Netherlands without proper registration. Companies wishing to provide crypto services in the Netherlands are required to register with the De Nederlandsche Bank (DNB) under Dutch laws meant to counter money laundering and the financing of terrorist organisations.

FATF’S AFRICA PROBLEM: CAREER prosecutor and former financial intelligence director, Xolisile Khanyile has called on fin-crime leaders to “confront” the fact that almost half of FATF's "grey- listed" countries are African nations. Ms Khanyile told the "Women in FinCrime Summit" that she was particularly asking for women leaders to shine a spotlight on this difficult fact and how it is impacting Africa’s progress globally.

EU'S NEW RULES ON BENEFICIAL OWNERSHIP: MANY of you have asked us what the new European AML regime means for transparency around foreign legal entities and trusts. We posed the question to the Deputy Director General of the European Commission’s financial services directorate Alexandra Jour Schroeder.

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Have a great Friday 👋

Stephen and the team at AMlintelligence.