10/01/2025 - Validient's Weekly Roundup

This week’s Anti-Money Laundering (AML) news highlights key global developments in financial crime prevention. The launch of a world-first sanctions regime targeting people smugglers is to go ahead in the UK, while China enacts a revised AML law to combat financial crime and wildlife trafficking. Regulatory enforcement continues, with fines issued to a UK law firm for AML failings, and further delays in the U.S. beneficial ownership reporting deadline reflect its ongoing transparency resistance.

UK to launch world first sanctions regime to snare people smugglers travelling upstream

The UK government has announced plans to introduce a pioneering sanctions regime aimed at dismantling people smuggling networks. This initiative will empower authorities to target individuals and entities facilitating dangerous journeys, thereby disrupting the financial structures that enable such criminal activities. The regime is part of the government's broader strategy to regain control over immigration, reduce illegal crossings, and enhance border security. Legislation to establish this regime is expected to be enacted within the year.

Birmingham firm fined more than ￡27,000 for AML failings

A Birmingham-based law firm has been fined over ￡27,000 for AML failures spanning seven years. The Solicitors Regulation Authority (SRA) identified significant lapses in the firm's AML procedures, including inadequate customer due diligence and insufficient staff training. These deficiencies left the firm vulnerable to being exploited for money laundering activities. The SRA's decision reinforces it's commitment to holding practices accountable for failures in upholding standards in preventing financial crime.

China's New AML Law Strengthening Financial Crime Prevention and Wildlife Protection Efforts

China's revised AML Law came into effect on January 1, 2025, marking a significant step in the country's efforts to combat financial crimes and protect wildlife. The new law adopts a risk-based approach, expands the definition of predicate offences to include wildlife trafficking, and enhances regulations for non-financial businesses. It also introduces beneficial ownership requirements and strengthens international cooperation. These measures aim to disrupt the financial networks that facilitate illegal wildlife trade and other illicit activities.

City firm partner fined for unwitting role in property fraud

A partner at a prominent City law firm has been fined ￡27,500 by the Solicitors Disciplinary Tribunal (SDT) for failing to conduct proper AML checks, which allowed a client to perpetrate a substantial property fraud. The partner admitted to enabling transactions that exhibited signs of fraud but was not found to have acted dishonestly. This case highlights the necessity for legal professionals to diligently perform AML checks to prevent being unwittingly involved in fraudulent schemes.

US beneficial ownership reporting blocked again, filing deadline likely extended to at least March

The implementation of the U.S. Corporate Transparency Act (CTA), which mandates small businesses to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), has once again, been delayed due to ongoing legal challenges. Originally scheduled for January 13, 2025, the compliance deadline has been postponed, with expectations of an extension until at least March. The delay affects global efforts to enhance transparency and combat financial crimes by identifying the individuals who ultimately own or control companies.

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