Mauritius Compliance news
Mauritius arrests ex-governor of central bank, local media report
PORT LOUIS, Jan 3 (Reuters) – Police in Mauritius arrested the country’s former central bank governor on Friday in connection with an investigation into a case of conspiracy to defraud, local media in the Indian Ocean island nation reported.
Last month, Mauritius police’s anti-money laundering unit issued an order for the arrest of Harvesh Kumar Seegolam over the case, without providing details. Seegolam was out of the country when the order was issued.
“The former Governor of the Bank of Mauritius, Harvesh Seegolam, was arrested on his arrival at Plaisance airport this Friday, January 3,” the online version of Mauritius’ Le Défi Media Group reported.
MAURITIUS’S COMMITMENT IN THE COMBAT AGAINST MONEY LAUNDERING AND THE FINANCING OF TERRORISM AND PROLIFERATION
Mauritius has, through numerous initiatives, demonstrated its unflinching commitment to combat money laundering and the financing of terrorism and proliferation. To this effect, Mauritius has ratified and acceded to numerous international conventions, protocols, and treaties to express its commitment towards the international community to combat this scourge, amongst others, the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, commonly known as the Vienna Convention and the United Nations Convention against Transnational Organised Crime, also known as the Palermo Convention.
Mauritius has further committed itself to the International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation issued, in February 2012, by the Financial Action Task Force (the FATF Recommendations) and to its Mutual Evaluation procedure.
Source: AML/CFT | Bank of Mauritius
Mauritius High Court lifts sanctions on Libya’s Ola Energy
The Tripoli based Libyan government announced today that the High Court of Mauritius has lifted the sanctions imposed by the Financial Intelligence Unit (FIU) on Ola Energy, formerly known as Oil Libya.
Ola Energy is one of Africa’s leading petroleum products distributors and marketers, operating in more than 17 countries on the African continent and operating an extensive network of petrol stations and services.
The company, a subsidiary of the Libya Africa Investment Portfolio (LAIP), changed its name from Oil Libya to Ola Energy in 2018 as part of a plan to modernise its presence in regional markets.
Source: Mauritius High Court lifts sanctions on Libya’s Ola Energy
UAE Compliance news
The DFSA Enhances Its Crypto Token Framework
The Dubai Financial Services Authority (“DFSA”) announced today amendments to its Crypto Token framework, signalling a significant step forward in promoting innovation within the fintech sector.
The new framework aims to provide a clearer regulatory environment for businesses operating in the web3 space, ensuring that they are able to innovate and grow while operating within a secure and transparent regulatory environment.
One of the key changes introduced by the DFSA is the introduction of new provisions for those entities conducting marketing activities, as well as making introductions or referrals. These new provisions are designed to provide greater clarity and certainty for businesses conducting ancillary services, especially for those operating in or from the Dubai International Financial Centre, while also ensuring that the DFSA is able to effectively regulate and monitor these entities.
DFSA decision to fine Al Ramz Capital LLC for failure to report suspicious transactions referred to the Financial Markets Tribunal
The Dubai Financial Services Authority (DFSA) today published a Decision Notice against Al Ramz Capital LLC (Al Ramz), a DFSA Recognised Member, recording a DFSA finding that Al Ramz failed to report suspicious transactions and imposing a financial penalty of USD 25,000 (AED 91,813) on Al Ramz.
Al Ramz disputes the DFSA’s findings and has referred the Decision Notice to the Financial Markets Tribunal (FMT). The DFSA’s decision is therefore provisional and reflects the DFSA’s current understanding of Al Ramz’s conduct.
The FMT will determine what, if any, is the appropriate action for the DFSA to take. The DFSA’s decision may be confirmed, varied, or overturned as a result of the FMT’s review.
The DFSA publishes Whistleblowing Thematic Review
The Dubai Financial Services Authority (DFSA) has released its Whistleblowing Thematic Review, conducted in 2024 to assess the effectiveness of whistleblowing frameworks across DFSA Regulated Entities.
This comprehensive review, which involved surveys, desk-based analysis, and on-site visits, highlights the critical role whistleblowers play in detecting, escalating, and addressing misconduct. It also emphasises the importance of robust whistleblowing policies and procedures in fostering a speak-up culture and promoting ethical behaviour.
The report outlines eight key themes and findings, including whistleblower protection, policies and procedures, governance, and training and awareness.
Source: https://www.dfsa.ae/news/dfsa-publishes-whistleblowing-thematic-review
Global Compliance news
NOTICE OF ASSESSMENT OF CIVIL MONEY PENALTY, FINDINGS OF FACT AND CONCLUSIONS OF LAW, ORDER TO PAY, and PRAYER FOR RELIEF
The Federal Deposit Insurance Corporation (FDIC) has determined that CBW Bank, Weir, Kansas (Respondent or Bank), violated laws or regulations in conducting its affairs from on or about December 11, 2018, through on or about August 19, 2020 (Review Period). Specifically, Respondent failed to maintain an adequate Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) compliance program, which led to multiple incidents where Respondent repeatedly violated the Bank Secrecy Act (BSA), 31 U.S.C. § 5311 et seq.; 12
Kenya to legalise cryptocurrencies, says Treasury Cabinet Secretary
Kenya is preparing legislation to legalice cryptocurrencies, the Treasury Cabinet Secretary John Mbadi, said on Friday, marking a significant shift in the government’s stance.
Cryptocurrencies have been banned in Kenya, but widespread public use has continued underground, circumventing restrictions.
“Kenya’s financial sector is a beacon of innovation and growth in Africa,” Mbadi said in a statement outlining the new policy.
ABS fined more than £25,000 for AML failings
A Birmingham law firm has been fined more than the Solicitors Regulation Authority’s (SRA) stated £25,000 for ‘traditional’ firms for anti-money laundering (AML) failures because of its status as an alternative business structure (ABS).
Tyndallwoods Solicitors, has been fined £27,813 by the Solicitors Regulation Authority (SRA) for failing to implement proper anti-money laundering (AML) measures over a seven-year period. An SRA investigation revealed that from 2017 until September 2023, the firm lacked the required risk assessment, policies, controls, and procedures mandated under AML legislation.
Source: https://todaysconveyancer.co.uk/abs-fined-more-than-25000-for-aml-failings/
Singapore defines Polymarket as an illegal gambling site
As part of Singapore’s crackdown on unlicensed gambling platforms, the country has blocked access to crypto-based prediction firm, Polymarket.
On 12 January, multiple users reported that they were unable to access Polymarket in Singapore, and those who do use it risk an SGD 10,000 penalty, six months in jail, or both.
This is because the country only permits gambling through a state-owned entity. Polymarket has been described as quite a controversial platform after having been under scrutiny for its handling of US election-related betting.
Source: https://sbcnews.co.uk/asia/2025/01/13/singapore-bans-polymarket/
FCA fines Arian Financial LLP £288,962.53 for failings relating to cum-ex trading
The FCA has fined Arian Financial LLP (Arian) £288,962.53 for failing to ensure it had effective systems and controls against financial crime.
Arian’s failure to implement adequate systems and controls against financial crime put it at risk of being used to support fraudulent trading and money laundering on behalf of clients of the Solo Group.
This is the seventh case brought by the FCA in relation to cum-ex trading and withholding tax schemes. This has involved proactive engagement with EU and global law enforcement authorities. The FCA has imposed fines of more than £22m in relation to this trading.
Upbit faces business suspension and fines over anti-money laundering violations
The exchange has until January 20 to submit its response to the FIU.
Upbit, which dominates South Korea’s crypto trading market, faces potential business suspension and fines due to violations of anti-money laundering (AML) regulations, particularly regarding its Know Your Customer (KYC) practices, Maeil Business Newspaper reported on Jan. 16.
On January 9, the Financial Intelligence Unit (FIU) of South Korea’s Financial Services Commission, overseeing anti-money laundering (AML) and counter-terrorism financing (CFT) compliance, issued a preliminary notice of sanctions targeting Upbit.
Source: https://cryptobriefing.com/upbit-sanctions-over-aml-kyc/
US Banking Regulator FDIC Hits Bank With $20,448,000 Penalty – About a Quarter of the Lender’s Total Assets
The Federal Deposit Insurance Corporation (FDIC) is penalizing a Weir, Kansas-based bank with a monetary fine equal to over a quarter of the lender’s total assets.
The US banking regulator says it has determined that CBW Bank failed to maintain an “adequate Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) compliance program” and is consequently imposing a fine of $20.448 million over the violations which occurred between December of 2018 and August of 2021.
SEC fines cannabis hedge fund $150K for bogus AML policies, ties to Russian oligarch Abramovich
Cannabis hedge fund Navy Capital Green Management agreed to pay $150,000 to settle charges levied by the Securirties and Exchange Commission (SEC) that the firm misled investors about its anti-money laundering/countering the financing of terrorism (AML/CFT) policies and allowed a sanctioned Russian oligarch to invest.
Navy Capital told investors it abided by strict AML/CFT due diligence policies despite actual due diligence practices being materially inconsistent with its representations, the SEC alleged in an order Tuesday.
SRA imposes maximum £25,000 fine over AML failings
The Solicitors Regulation Authority has exercised its fining powers fully by issuing a financial penalty of £25,000 to a firm for AML breaches.
The regulator announced the fine – the maximum it can impose on a firm – against southeast practice Harrison Thames Valley Solicitors (trading as Harrison’s Solicitors).
The firm, headquartered in Reading, failed to ensure it had relevant documents in place to prevent activities related to money laundering. Regulators flagged up a potential issue in October 2023 after a desk-based review and referred the matter for a formal investigation.
Source: https://www.lawgazette.co.uk/news/sra-imposes-maximum-25000-fine-over-aml-failings/5122067.article
Tinubu: Over 100 Terrorist Financiers Prosecuted, Convicted in Two Years
Alex Enumah in Abuja
President Bola Tinubu has disclosed that over 100 terrorist financiers have been prosecuted and convicted in the last two years, as part of efforts at building a globally competitive economy that will enable the government enhance the livelihoods of citizens.
Tinubu made the disclosure at the opening of the 2025 National Anti-Money Laundering, Counter Financing of Terrorism and Proliferation (AML/CFT/CPF) Summit, in Abuja Tuesday.
The president, who was represented by the Secretary to the Government of the Federation (SGF), Senator George Akume, noted that the administration has made progress in tackling the threats of terrorism and other violent crimes through the gallant action of the country’s frontline troops and security agencies.
Volksbank slapped with €20 million in fines for mismanagement, AML violations
De Nederlandsche Bank (DNB) has imposed two administrative fines totaling 20 million euros on de Volksbank N.V. for serious regulatory violations, including failures in business operations and deficient anti-money laundering controls.
The penalties, announced on Jan. 30, stem from prolonged and systemic non-compliance with Dutch financial laws, according to DNB. The central bank levied a 15 million euros fine for de Volksbank’s failure to ensure sound business operations and an additional 5 million euros fine for its deficient anti-money laundering measures.
Source: https://nltimes.nl/2025/01/30/volksbank-slapped-eu20-million-fines-mismanagement-aml-violations
NPA seizes R52.5m in cross border strike against illegal mining
The National Prosecuting Authority’s Asset Forfeiture Unit (AFU) – working in collaboration with the South African Financial Intelligence Centre (SA-FIC), the Namibian Financial Intelligence Centre (Nam-FIC) and the Namibian Prosecutor-General (Nam PG) office has seized some R52.5 million held in eight Namibian bank accounts.
NPA Mpumalanga Regional spokesperson Monica Nyuswa said the money is allegedly linked to intentions to commit or proceeds from “massive alleged illegal coal mining” in the province’s Carolina area.
Source: https://www.sanews.gov.za/south-africa/npa-seizes-r525m-cross-border-strike-against-illegal-mining
FCA issues first fine for transaction reporting failures under MiFIR
Infinox Capital Limited (Infinox) has been fined £99,200 by the FCA for failing to submit 46,053 transaction reports which risked market abuse going undetected.
To monitor, detect and disrupt market abuse effectively, the FCA needs to receive complete, accurate and timely transaction reports.
Between 1 October 2022 and 31 March 2023, Infinox failed to submit transaction reports for single-stock contracts for difference (CFD) trades executed through one of its corporate brokerage accounts. Trades executed through this corporate brokerage account accounted for the majority of this business line.
NPA seizes R52.5m in cross border strike against illegal mining
The National Prosecuting Authority’s Asset Forfeiture Unit (AFU) – working in collaboration with the South African Financial Intelligence Centre (SA-FIC), the Namibian Financial Intelligence Centre (Nam-FIC) and the Namibian Prosecutor-General (Nam PG) office has seized some R52.5 million held in eight Namibian bank accounts.
NPA Mpumalanga Regional spokesperson Monica Nyuswa said the money is allegedly linked to intentions to commit or proceeds from “massive alleged illegal coal mining” in the province’s Carolina area.
Source: https://www.sanews.gov.za/south-africa/npa-seizes-r525m-cross-border-strike-against-illegal-mining
Prudential Authority imposes sanctions on Standard Bank
Noncompliance with Fica earns it six cautions and R13m in fines
The Prudential Authority (PA) announced it has imposed administrative sanctions on Standard Bank of South Africa (SBSA) and fined it R13m as a result of its noncompliance with certain provisions of the Financial Intelligence Centre (FIC) Act.
“The administrative sanctions imposed on SBSA are due to its failure to comply with certain provisions of the FIC Act and consist of six cautions not to repeat the conduct which led to the noncompliance and a financial penalty totalling R13m,” the authority said on Friday. It is responsible for the prudential regulation of banks and insurance companies within the South African Reserve Bank.
Source: Prudential Authority imposes sanctions on Standard Bank
LPL Financial fined $18 million by SEC over due diligence failures on new high-risk accounts
The U.S. Securities and Exchange Commission (SEC) has fined LPL Financial $18 million for failing to conduct proper due diligence on new high-risk accounts.
The firm did not adequately assess the risks associated with certain accounts, related to cannabis and foreign entities, which were prohibited under LPL’s anti-money laundering (AML) policies.
This penalty underscores the importance of thorough client vetting in maintaining robust anti-money laundering (AML) practices.