Friday's Final Word
As we close out the year, this edition of our financial crime newsletter highlights the evolving tactics and challenges in combating fraud and money laundering. From celebrity crypto scams and a pastor’s betrayal of trust to thought-provoking shifts in fraud terminology and updates on high-profile cases, we reflect on a year of lessons and prepare for what’s ahead in 2025.
🎥 Celebrity crypto scams leave trail of devastated investors in 2024
🆓 Dutch prosecutors drop case against former ING CEO
🔤 Words matter: Changing the language of online fraud
⛪ Pastor charged in crypto scam targeting church's flock
🎄 Everything Compliance podcast: The Holiday Season Edition
🏔️ Canada proposes more powers for AML regulator amid increasing scrutiny
Celebrity crypto scams leave trail of devastated investors in 2024
The 2024 crypto bull market has spawned a wave of celebrity-backed tokens that quickly turned disastrous, including viral sensation Hailey Welch's "Hawk Tuah" crashing 91% in hours, controversial influencer Andrew Tate's "DADDY" facing insider trading allegations, and YouTuber Jack Doherty allegedly executing a live rug-pull of his "McLaren" token. The carnage continued with singer Sean Kingston's "KING" token failing while he faced fraud charges, Nigerian star Davido dumping his token for a $500,000 profit, and both Jason Derulo and Caitlyn Jenner's tokens imploding amid accusations of manipulation - with Jenner now facing legal action. Despite platforms like Pump.fun making it easier than ever for celebrities to launch memecoins without any legitimate use case, these high-profile failures have exposed a troubling pattern where famous faces leverage their influence to promote worthless tokens, often leading to massive losses for retail investors while insiders profit.
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Dutch prosecutors drop case against former ING CEO in money laundering scandal
The Dutch Public Prosecution Service has declined to pursue criminal charges against Ralph Hamers, former CEO of ING, in connection with the bank's 2018 money laundering compliance failures that resulted in a €775 million settlement. Despite evidence that Hamers was aware of deficiencies in the bank's anti-money laundering controls through internal audit reports and legal department communications, prosecutors determined there was insufficient legal evidence to establish personal criminal liability. The decision follows a years-long investigation prompted by financial activist Pieter Lakeman's successful 2020 court challenge of an earlier choice not to prosecute. While the prosecution's decision must still be presented to the court of appeal, Hamers has expressed confidence in a favorable outcome, though Lakeman continues to advocate for prosecution, arguing bank executives should face consequences for overseeing prohibited practices.
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Words matter: Changing the language of online fraud
INTERPOL’s Acting Executive Director of Police Services, Cyril Gout, advocates for more thoughtful language to describe online fraud, arguing that terms like "pig butchering" dehumanize victims and deter them from seeking help. Instead, phrases like "romance baiting" better capture the emotional manipulation used by fraudsters while placing the focus on perpetrators. As financial fraud evolves with sophisticated digital tactics, adopting empowering language is vital to supporting victims and ensuring justice against cybercriminals.
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Pastor charged in crypto scam targeting church's flock
Former pastor Francier Obando Pinillo has been sued by the CFTC for allegedly defrauding investors, primarily Spanish-speaking church members, out of $5.9 million through a fake crypto staking platform promising unrealistic returns of up to 34.9% monthly. The Commission claims Pinillo's "Solanofi platform" was nothing more than a multilevel marketing scheme that never conducted any actual crypto staking activities, instead preying on unsophisticated investors from his Washington-based church community.
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Everything Compliance podcast: The Holiday Season Edition
In this Special Edition of Everything Compliance, the panel explores critical topics for compliance professionals under the new Trump administration. Highlights include Jonathan Marks discussing the threat of deepfake videos in fraud schemes, Karen Moore analyzing EU sustainability requirements and their implications for U.S. companies, and Matt Kelly examining the DOGE initiative’s compliance impact. Karen Woody rounds out the discussion by speculating on future changes at the SEC and reflecting on Time Magazine's controversial choice for Man of the Year.
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Canada proposes more powers for anti money-laundering regulator amid increasing scrutiny
Canada is proposing significant changes to its anti-money laundering (AML) laws, including a 40-fold increase in penalties and enhanced powers for FINTRAC, the country’s AML regulator, following a $3 billion settlement by TD Bank in the U.S. for compliance failures. The proposals aim to strengthen enforcement by criminalizing false or incomplete reporting, increasing fines for violations, and enhancing coordination with other federal agencies. These measures are seen as a response to evolving financial crime risks, U.S. regulatory scrutiny, and the upcoming evaluation by the Financial Action Task Force in 2025-2026.
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