Mauritius Compliance news
Mauritius police issue arrest order for former central bank governor
PORT LOUIS, Dec 15 (Reuters) – Police in Mauritius have issued an order for the arrest of the Indian Ocean islands’ former central bank governor, in connection to an inquiry into a conspiracy to defraud case.
The action, by the police anti-money laundering unit, is the first significant one from the government of Prime Minister Navin Ramgoolam, who said last week the outgoing government had falsified the country’s gross domestic product (GDP), budget deficit and public debt figures for years.
UAE Compliance news
Reflecting on Announcements from Abu Dhabi Finance Week: From AI to Crypto to Regulation
Enhancing regulation
ADGM showcased a series of recent regulatory enhancements during Fintech Abu Dhabi which were well received by the delegates.
The developments included:
- A comprehensive framework for the issuance of Fiat-Referenced Tokens (FRTs) within ADGM, broadening the range of digital assets available in a regulated environment
- The release of detailed guidance addressing IT Risk Management
- A consultation paper on proposed updates to the Virtual Asset Framework
US sanctions UAE-based Chinese nationals over North Korean crypto laundering
The U.S. has sanctioned two Chinese nationals based in the United Arab Emirates (UAE) and their front company for laundering millions of dollars in cryptocurrency stolen by North Korean cybercriminals to fund Pyongyang’s weapons programs.
The Office of Foreign Assets Control (OFAC) designated Lu Huaying and Zhang Jian for converting cryptocurrency into cash on behalf of Sim Hyon Sop, a previously sanctioned North Korean banking representative, the Treasury Department announced in a press release on Tuesday.
The FSRA of ADGM Imposes a financial penalty of USD 504,000 on Aarna Capital Limited (ACL)
The Financial Services Regulatory Authority (FSRA) of ADGM has imposed a financial penalty of USD 504,000 (AED 1,850,940) on Aarna Capital Limited (ACL) for failing to maintain adequate anti-money laundering (AML) systems and controls over the period from 8 June 2017 to 13 January 2023.
An FSRA investigation found that ACL had contravened a number of specific requirements in the FSRA’s Anti-Money Laundering and Sanctions Rules and Guidance Rulebook (AML Rules).
Dubai authorities uncover suspected Dh640m money-laundering scheme
Two international money-laundering operations involving the illegal transfer of funds and cryptocurrencies have been broken up in Dubai, with a number of people arrested, officials say.
Prosecutors in the emirate referred an Emirati, 21 British citizens, two US citizens, a Czech citizen and two companies owned by the Emirati person to the Criminal Court of First Instance at Dubai Courts, where they face charges of possessing illicit funds of Dh461 million ($125 million), as well as forgery of official documents and their use.
Global Compliance news
Klarna receives a remark and an administrative fine
FI is issuing Klarna Bank AB (Klarna) a remark and an administrative fine of SEK 500 million for violating the anti-money laundering regulations.
FI has investigated during the period 1 April 2021–31 March 2022 Klarna’s compliance with the anti-money laundering regulations, including the requirements on a general risk assessment and customer due diligence procedures and guidelines.
The investigation shows that Klarna has been in violation of several key rules. Klarna’s general risk assessment has had significant deficiencies; for example, it has not contained any assessments of how the bank’s products and services could be used for money laundering or terrorist financing. In addition, the bank has not had procedures and guidelines that capture all situations for when due diligence measures should be taken for customers that use Klarna’s invoice product.
20 December 2024: Public Statement regarding BMO Manx Limited
REGULATORY INVESTIGATION UNDERTAKEN BY THE ISLE OF MAN GAMBLING SUPERVISION COMMISSION IN RESPECT OF BMO MANX LIMITED (“BMO”)
- Action
1.1 The Isle of Man Gambling Supervision Commission (the “Commission”) makes this public statement in accordance with powers conferred on it under section 19 of the Gambling (Anti-Money Laundering and Countering the Financing of Terrorism) Act 2018 (the “Act”).
1.2 The making of such public statement supports the Commission’s statutory objectives of, among other things, securing an appropriate degree of protection for customers of persons carrying on a regulated activity, reducing financial crime and maintaining confidence in the Isle of Man’s gambling industry.
Jyske Bank accepts fine
Jyske Bank has accepted a fine of just below DKK 24m for during the period from March 2010 to September 2021 not having complied with the requirements of the Danish Act on Measures to Prevent Money Laundering and Financing of Terrorism with respect to customer due diligence procedures and duty of inspection on 35 clients with mortgage loans in Southern Europe.
The portfolio in question is a small liquidation portfolio at Jyske Bank’s Keyplan Mortgage unit, and the loans were established before 2012. The customers in question only have a mortgage and are making repayments on it, and they do not have access to payment accounts or other products in Jyske Bank.
Source: https://www.globenewswire.com/news-release/2024/12/13/2996633/0/en/Jyske-Bank-accepts-fine.html
AUSTRAC takes Ladbrokes and Neds’ operator – Entain – to Federal Court over serious non-compliance with Australia’s money laundering laws
Today, AUSTRAC commenced civil penalty proceedings in the Federal Court against Entain Group Pty Ltd (Entain), which operates online betting sites including Ladbrokes, Neds and other online betting brands. The proceedings allege serious and systemic non-compliance with Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.
AUSTRAC CEO Brendan Thomas said the agency considers there were systemic failures in Entain’s approach to its AML/CTF obligations.
“AUSTRAC’s proceedings allege that Entain did not develop and maintain a compliant anti-money laundering program and failed to identify and assess the risks it faced. We are alleging this left the company at serious risk of criminal exploitation.
SRA issues highest fine to date amidst AML breaches blitz
The Solicitors Regulation Authority (SRA) has issued the highest fine since the limit went up to £25,000 among 14 handed out in recent weeks for breaches of the anti-money laundering (AML) rules.
Another law firm has been fined by the Solicitors Disciplinary Tribunal (SDT) for the same failures of not having the paperwork and procedures in place. It is unclear why the SRA sent this case to the tribunal rather than issue a fine itself.
Australia: AML/CTF Amendment Act overhauls AML/CTF legislative landscape
Set to commence in March 2026, the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (Cth) aims to strengthen compliance, mitigate financial crime risks and adhere to global compliance standards
In brief
On 10 December 2024, the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (Cth) (“AML/CTF Amendment Act“) received royal assent. This legislation makes material amendments to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (“AML/CTF Act“) and brings about significant reform to Australia’s anti-money laundering and counter-terrorism financing (“AML/CTF“) regime.
Feds look to boost anti-money laundering oversight penalties by 40 times
OTTAWA — Ottawa plans to boost penalties for anti-money-laundering oversight failures by 40 times as part of several measures it wants to roll out to crack down on the issue.
The proposal, outlined in the fall economic statement Monday, would see the maximum administrative penalty against banks and others rise to either $20 million per violation, or three per cent of annual worldwide gross revenue if that’s higher.
Deutsche Bank fined $4M over delayed reporting of suspicious activity
A unit of Deutsche Bank AG agreed to pay $4 million to settle US Securities and Exchange Commission allegations that it failed to investigate suspicious activity in a timely manner, including two cases where it waited more than two years to file reports.
Between April 2019 and March 2024, it took Deutsche Bank Securities Inc. an unreasonable amount of time to complete so-called Suspicious Activity Reports after law enforcement or regulators asked the firm to conduct investigations, the SEC said Friday.
The firm, which agreed to pay the fine without admitting or denying the SEC’s findings, said in a statement that it takes its legal and regulatory obligations seriously.
20 December 2024: Public Statement regarding BMO Manx Limited
REGULATORY INVESTIGATION UNDERTAKEN BY THE ISLE OF MAN GAMBLING SUPERVISION COMMISSION IN RESPECT OF BMO MANX LIMITED (“BMO”)
1.1 The Isle of Man Gambling Supervision Commission (the “Commission”) makes this public statement in accordance with powers conferred on it under section 19 of the Gambling (Anti-Money Laundering and Countering the Financing of Terrorism) Act 2018 (the “Act”).
NOTICE Enforcement Action – Civil Penalties – Meritus Trust Company Limited
HAMILTON, BERMUDA – The Bermuda Monetary Authority (Authority or BMA) has levied civil penalties totalling $600,000 on Meritus Trust Company Limited (Company), a local entity licensed under: • The Trusts (Regulation of Trust Business) Act 2001 (Trusts Act) • The Corporate Service Provider Business Act 2012 (CSPB Act) The civil penalties have been levied on the Company for failures to adequately comply with certain obligations imposed on it under the Proceeds of Crime (Anti-Money Laundering & Anti-Terrorist Financing) Regulations 2008 (AML/ATF Regulations), the Trusts Act and the CSPB Act. The Company has since remediated the identified breaches to the satisfaction of the Authority.
South Africa Compliance News
FSCA dishes out fines for R2.1 million, R1.6 million and R200 000
The Financial Sector Conduct Authority (FSCA) has fined a man R2.1 million for running a forex investment scheme without being registered as a financial service provider, while also fining one company R1.6 million and another R200 000 for failing to comply with certain provisions of the Financial Intelligence Centre Act.
The FSCA imposed an administrative penalty of R2 113 225 on Ashley Mmachewe Mphaka and debarred him for 20 years after investigating Mphaka’s Greyshore Investments.
Source: https://www.citizen.co.za/business/fsca-fines-companies-r2-1-million-r1-6-million-and-r200-000/
Capitec hit by R56m Sarb financial penalty
Capitec Bank, SA’s fastest-growing JSE-listed bank, has been hit with a hefty financial penalty of R56.25 million by the South African Reserve Bank (Sarb) for failing to comply with certain anti-money laundering regulations.
Sarb announced the administrative sanctions on Capitec Bank Limited on its website on Friday, noting that R10.5 million of the fine “is conditionally suspended for a period of 36 months as from 30 July 2024”.
Source: https://www.citizen.co.za/business/capitec-hit-by-r56m-sarb-financial-penalty/
South Africa invites public feedback on new anti-money laundering bill
The National Treasury has published the draft General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Bill, 2024, for public comment.
The bill aims to enhance South Africa’s Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) system by addressing deficiencies identified by the Financial Action Task Force (FATF) and strengthening the country’s financial regulatory framework. The draft Bill was published in the Government Gazette on 13 December 2024.