Special Report on the role of ‘gatekeepers,’ fallout from FATF plenary, oligarch arrest in France and calls for EU anti-corruption group

IN A SPECIAL REPORT from the Netherlands, dr. Melissa van den Broek sheds light on the changing landscape of AML regulation. in the Netherlands. Melissa writes that the tide is changing in the AML domain. After years of ‘tough talks’ between regulators and gatekeepers, the tone of voice has recently started to change. Instead of only looking back to what went wrong or should have been done better, this change allows for a future-looking discussion on what is needed for a more effective and efficient AML policy. She updates us on the recent #KPMG report ‘Joined forces: towards a more effective and efficient fulfilment of the gatekeeper role in the Netherlands,’ published last month which provides solutions for a more efficient and effective AML policy. In this article for AML Intelligence, she sets out the findings of the study and its relevance within the Netherlands itself – and also for the wider EU and beyond.

In France, the arrest of Russian billionaire oligarch Alexei Kuzmichev has sent shockwaves through the global financial arena. Known as one of the most influential figures in Russia, with close ties to President Putin and the Russian regime, Kuzmichev's detention is part of a broader investigation into money laundering, tax fraud, and violations of international sanctions

Down Under, Australian Federal Police charged seven members of an alleged Chinese organised crime syndicate in what they described as Australia's "most complex" AML investigation yet. The accused have allegedly been clandestinely operating a massive money-remitting chain, the Changjiang Currency Exchange, funnelling a staggering $229M in illicit proceeds over the last three years. The AFP pointed the finger at the Long River money laundering syndicate for orchestrating this extensive money laundering operation.

On the international front, the Financial Action Task Force (FATF) has underscored the importance of asset recovery in the fight against money laundering and terrorist financing. With only a fraction of criminal proceeds currently being reclaimed globally, #FATF has announced substantial amendments to its recommendations, aiming to equip countries with a robust set of measures to deprive criminals of their ill-gotten gains. We report.

We also have separate reports detailing the ‘grey listing’ of Bulgaria, the way cleared for #UAE to come of the watchlist and the de-listing of the Caymans, Albania, Panama and Jordan. There is also a report on how FATF panned the #AML and #CFT efforts of Brazil. Read them on our homepage now.

Separately, the French government is pushing for the establishment of a corruption watchdog authority within the European Union, following a series of recent scandals that have shaken EU institutions. President Macron and French Secretary of State for European Affairs Laurence Boone have proposed the creation of an independent anti-corruption body to monitor potential conflicts of interest and scrutinize officials' income.

Amidst these global developments, the Payment Systems Regulator (PSR) has revealed that TSB emerged as the top performer among Britain's major banks in reimbursing customers who fell victim to fraudsters. With fraud constituting a significant threat in the UK, the survey highlights the critical role played by banks in combating authorised push payment (APP) fraud, which accounted for a significant portion of the country's overall fraud losses last year.

The trial of FTX founder Sam Bankman-Fried has taken an intriguing turn, with the 31-year-old former billionaire revealing startling details about his company's financial woes. Testifying in his defence, Bankman-Fried maintained that he believed his Alameda Research hedge fund had sufficient assets to cover an $8BN debt to the cryptocurrency exchange until just days before both entities collapsed.

Your news updates so far this week:

ORGANISED CRIME SYNDICATE CHARGED: SEVEN members of an alleged Chinese organised crime syndicate have been charged as part of Australia's "most complex" AML investigation. The suspects are accused of secretly running a prominent, multi-billion-dollar money-remitting chain in Australia. The Australian Federal Police (AFP) said the Changjiang Currency Exchange was being secretly run by the Long River money laundering syndicate. It is accused of laundering almost $229 million in the proceeds of crime in the past three years. Check out the story here: Chinese organised crime syndicate suspects charged over Australia’s ‘most complex’ multi-million dollar AML probe

DUTCH REPORT ON 'GATEKEEPERS': Melissa Van den Broek writes on the new Dutch report on ‘gatekeepers’, which reveals enhancement of private and public sector AML and sanctions roles. "THE TIDE is changing in the AML domain. After years of ‘tough talks’ between regulators and gatekeepers, the tone of voice has recently started to change in the Netherlands. ," she says. Find this story here: What new Dutch report on ‘gatekeepers’ reveals on enhancing private and public sector AML and sanctions roles

'MOST POWERFUL' OLIGARCH ARRESTED: ONE of Russia's most powerful oligarchs and Putin ally has been arrested in a money laundering and sanctions violations probe in France. French police detained Russian billionaire oligarch Alexei Kuzmichev on Monday, in an investigation into money laundering, tax fraud and violations of international sanctions. The EU describes Kuzmichev as “one of the most influential persons in Russia,” with close ties to Putin and the Russian regime. Read the story here: Oligarch described as ‘one of Russia’s most powerful’ arrested in France in AML and sanctions probe

*** The ’European Anti-Financial Crime Summit 2024’ is taking place in Dublin on May 16 2024. The leading AML and FCC conference attracts 450 decision-making executives from across the EU, UK and elsewhere. The 2024 will also feature the importance of the transatlantic FCC alliance. EAFCS2024 at the RDS convention centre in central Dublin next year will also have extended exhibition and networking opportunities. Have you booked your tickets yet? You can do so HERE: 

GLOBAL FINCRIME ARMOURY: FATF said on Friday it had made asset recovery a key pillar of every country’s approach to tackling money laundering and terrorist financing. "Globally, countries are only recovering a dismal fraction of the assets generated by criminal activity. This leaves criminals free to enjoy their ill-gotten gains, fuels further criminal activity and distorts the legitimate economy," the organisation said. In what was flagged as "a major milestone," delegates agreed "on a significant set of amendments to the FATF Recommendations that will provide countries with a much stronger toolbox of measures to deprive criminals of the proceeds of crime, a priority of the FATF under the Singapore Presidency." Find the story here: Measures to make asset recovery key pillar of global fincrime armoury revealed by FATF

FRANCE DEMANDS NEW ANTI-CORRUPTION WATCHDOG: The French government wants the European Union to create a corruption watchdog authority, following scandals in recent months that have rattled EU institutions.  President Macron and French Secretary of State for European Affairs Laurence Boone have proposed creating an independent anti-corruption body that can spot conflicts of interest and check the income of officials. According to Politico, the plan is now being pushed by other EU countries. Find the story here: France demands new anti-corruption watchdog for the EU

TSB LEADS UK BANKS IN REIMBURSING CUSTOMERS CONNED BY FRAUDSTERS: TSB came top among Britain's main banks in reimbursing customers conned by fraudsters, the Payment Systems Regulator (PSR) said on Tuesday in its first public survey of how individual lenders handle fraud. The PSR looked at how banks dealt with authorised push payment or APP fraud during 2022, whereby a customer is tricked by a fraudster into sending a payment to an account outside their control. Fraud is Britain's biggest crime, and APP scams accounted for 40% of fraud losses last year. Read the full story here: TSB leads UK banks in reimbursing customers conned by fraudsters

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AML Intelligence is the global leader in Anti-Financial Crime & FCC insights and news reports. We have a monthly audience of 350,000 international AFC professionals across North America, EMEA and RoW. We are the most trusted media in this sector. Contact James Treacy - jtreacy@amlintelligence.com

SAM BANKMAN-FRIED TRIAL: FTX founder Sam Bankman-Fried testified on Monday that he believed his Alameda Research hedge fund had enough assets to cover an $8 billion debt to the cryptocurrency exchange until days before both collapsed. Testifying in his own defence at his fraud trial, the 31-year-old former billionaire told jurors that he was concerned and surprised, but not alarmed, upon learning in October 2022 that Alameda had borrowed $8 billion from deposits that FTX customers sent to the exchange. Read the full piece here: Sam Bankman-Fried testifies he thought hedge fund could cover $8 billion debt to FTX

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Have a great Wednesday 👋

Stephen and the team at AMlintelligence.