TD Bank’s $450M AML provision, shock at CZ’s light sentence, AMLA seeks chief and 5-person board, just 2 weeks to ‘fincrime event of the year.

THE SEARCH for the Chair of Europe's new AML Authority (AMLA) will begin as early as next month, AML Intelligence has learned. EU authorities will advertise the role in late May or early June when the search for AMLA’s chief officially gets underway. This will be followed after the summer break in September by a search for the five permanent independent members of the authority’s Executive Board. Many names are already being mentioned in connection with the powerful new position of Chair. Given the influence of major EU countries in decision making within the Union, it’s thought French and Spanish candidates are most likely to fill the role – which is unlikely to go to a German given the Authority will be based in Frankfurt.

CANADA’s TD Bank said late on Tuesday it had taken an initial provision of $450 million in connection with the anti-money laundering probe by a US regulator. The multi-million dollar provision stems from a lengthy probe by US regulatory and law enforcement. That same probe has been blamed for derailing the bank’s takeover of Tennessee-based First Horizon Corp. last spring. In Canadian terms the provision is enormous and reflects the seriousness of the probe south of the border. News of the provision emerged late on Tuesday. “This is deadly serious. #TD is clearly preparing for the worst,” one source told AML Intelligence.

South of the border meanwhile there was some dismay at the light jail sentence handed down to former Binance ceo, Changpeng Zhao. There was shock right across the financial industry as Zhao received just four months in prison after pleading guilty to violating US AML laws at the world’s largest cryptocurrency exchange. Once considered the most powerful crypto industry figure, Zhao, known as “CZ,” is the second major crypto boss to be sentenced to prison.

Zhao (47) effectively ran a industrial-scale crypto laundry for gangsters, oligarchs and autocrats. It was a no-questions-asked operation with not even lip service played to compliance as billions of dollars were laundered across the globe. "'Crime pays' is the message sent today," Dennis Kelleher, head of the financial reform advocacy group Better Markets, wrote in an email, noting Zhao will still get to keep his vast wealth. Go to our homepage for the latest.

The Wolfsberg Group has pushed back against a suggestion from the Financial Action Task Force (FATF) that banks should more closely track cash withdrawals by their customers at overseas ATMs. The banking group said it was concerned that the FATF’s suggestion could lead to “substantial adverse impacts” on customers travelling abroad and potentially delay or prohibit customer access to their funds. The FATF recently announced that it is considering changes to its ‘Recommendation 16/R.16’ and its ‘Interpretive Note/INR.16’, to adapt them to changes in payments business models and messaging standards.

R.16 is a recommendation around wire transfers - it states: “Countries should ensure that financial institutions include required and accurate originator information, and required beneficiary information, on wire transfers.” Read Paul O’Donoghue’s analysis of the Wolfsberg submission. Go to our homepage for the latest.

*** It’s just two weeks out from ‘European Anti-Financial Crime Summit (EAFCS) 2024’ - the stand-out Anti-Financial Crime (AFC) event of the year. Hundreds of delegates are attending from banking, fintech, finreg and regtech from across the EU, UK, US and Middle East. Have you booked your or your department’s place at EAFCS2024? 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
• Crypto – everything a fincrime leader needs to know
• PPPs – building out the partnerships at home and on a transatlantic basis to fight financial crime.

There’s still some time to book your or your organisation’s tickets here: EAFCS2024

The European Banking Authority (EBA) has said that customers tricked into making two-factor authentication payments should not automatically be denied refunds by payment service providers (PSPs). The authority has issued an opinion looking at new types of payment fraud and possible ways of combating them. While an EBA opinion is not legally enforceable, it informs the European Commission’s Supranational Risk Assessment, which can then directly link into policies at the EU level. In its opinion, the EBA advised EU legislators and the EU Commission to clarify the liability rules in updates to the Payment Services Regulation, which sets out the rules for all retail payments in the EU. We have the full insight here: EBA argues customers tricked by scammers into making 2FA payments should not automatically be denied refunds

We have read through the details of the EU's new AML Regulation and Directive so you don’t have to. Read our ready reckoner. Go to our homepage for the latest.

Seven people have been arrested following a money laundering probe into King Gaming, a company which was poised to make the ‘largest single private investment in the Isle of Man’. Go to our homepage for the latest.

Russian firms' efforts to make payments for goods in China as secondary sanctions fears spook local banks have generated a flourishing market for middlemen, four sources told Reuters, with up to half of transactions now handled by intermediaries. Go to our homepage for the latest.

France, Ireland and Latvia have been given a two month deadline to correctly implement EU rules on money laundering. Catch this here: France, Ireland and Latvia called out by EU for AML failures

The EU’s AML directives make a presumption elected officials “are guilty until proven innocent,” a senior Irish politician claimed in parliament in a criticism of PEPs rules. Go to our homepage for the latest.

This week we’re loving the social post from Milda Olencevičiūtė, AML/KYC Process Lead for Large Corporations & Institutions at Danske Bank. She posed the question: "What do Process Lead and motorcycling have in common?" Her response brought a smile to our faces. Find the story here: Danske’s Milda Olencevičiūtė inspires with her Monday morning social post

Now for your mid-week news blast...

SEARCH FOR AMLA CHIEF & BOARD: THE SEARCH for the Chair of Europe's new AML Authority (AMLA) will begin as early as next month, AML Intelligence has learned. EU authorities will advertise the role in late May or early June when the search for AMLA's chief officially gets underway. This will be followed after the summer break in September by a search for the five permanent independent members of the authority's Executive Board. Go to our homepage for the latest.

EUROPE'S NEW AML LAW: The laws governing the EU's new AML Regulation and Directive were passed by the European Parliament this month and the European Commission's AML Task Force based in Brussels is leading plans to recruit AMLA staff and deliver the new headquarters in Frankfurt. Some 40 banks which operate across borders fall under the direct supervision of the new Authority. Catch this here: Everything you need to know about Europe’s new AML laws and the Authority (AMLA) – all in one place

SEVEN ARRESTED IN ML PROBE: Seven people have been arrested following a money laundering probe into King Gaming, a company which was poised to make the ‘largest single private investment in the Isle of Man’. The company has also had its online gaming licence suspended by the jurisdiction's Gambling Supervision Commission, which confirmed it is in contact with the police. Go to our homepage for the latest.

RUSSIAN PAYMENTS TO CHINA: Russian firms' efforts to make payments for goods in China as secondary sanctions fears spook local banks have generated a flourishing market for middlemen, four sources told Reuters, with up to half of transactions now handled by intermediaries. The US Treasury has warned it could apply sanctions on those facilitating transactions, opens new tab with Russia, calling on foreign banks to boost compliance. Go to our homepage for the latest.

‘European Anti-Financial Crime Summit (EAFCS) 2024’ is set to be the stand-out Anti-Financial Crime (AFC) 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

Crypto – everything a fincrime leader needs to know

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

DANSKE'S MILDA OLENCEVICIUTE INSPIRING POST: It was Monday - and despite May just being around the corner, it was chilly and damp at AMLi HQ. That's why we really enjoyed the social post from Milda Olencevičiūtė, AML/KYC Process Lead for Large Corporations & Institutions at Danske Bank. She posed the question: "What does Process Lead and motorcycling have in common?"

AML FAILURES: France, Ireland and Latvia have been given a two-month deadline to correctly implement EU rules on money laundering. In a statement, the European Commission said the three countries incorrectly transposed Anti-Money Laundering Directives.

GUILTY UNTIL PROVEN INNOCENT: EUROPE's AML directives make a presumption elected officials “are guilty until proven innocent,” a senior Irish politician claimed in parliament in a criticism of PEPs rules. Government MP and chair of the powerful Finance Committee John McGuinness said the rules made it feel that politicians were guilty - until proven otherwise - of siphoning off money amid additional scrutiny of their bank accounts and those of family members and associates.

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Have a great Wednesday👋

Stephen and the team at AMlintelligence.