AMLA’s new HQ, global ML inquiry causes embarrassment in the UK, and Euro AFC Summit announces Financial Services Minister to officially open Summit

‘Pig Butchering’ is the new focus for US DOJ, AMLA’s new HQ, global ML inquiry causes embarrassment in the UK, and Euro AFC Summit announces Financial Services Minister to officially open conference

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“PIG Butchering” is not a very nice term but it is something that has well and truly entered the AFC lexicon over the last year or so. Online fraud is named after a Chinese phrase referencing fattening pigs for slaughter and involves scammers building relationships with victims over the long term. The U.S. Department of Justice department has revealed that last month alone it seized crypto worth more than $112mn linked to such scams.

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Now the DOJ’s new head of crypto enforcement has announced more?scrutiny of crypto exchanges to target illicit behaviour on the platforms. Eun Young Choi is targeting crypto companies that engage in crimes themselves or allow crimes like money laundering to happen. Choi was appointed director of the National Cryptocurrency Enforcement Team (NCET) last year.

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On her target list along with crypto exchanges are the “mixers and tumblers” that obscure the trail of transactions. She told how “they’re allowing for all the other criminal actors to easily profit from their crimes and cash out in ways that are obviously problematic to us,” she said.

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About time, I hear many of you say!

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Brussels has circulated its requirements for hosting the new AMLA headquarters. Interestingly, the DG FISMA officials co-ordinating the bidding are more cost-conscious than many of their colleagues in EU-land, asking Member States if they are willing to pay the rent of the 10,000sqm building “indefinitely.” The office space will hold at least 400 staff – as first revealed here – and will require 30-high security pods for the FIU delegations. The building will also need a large conference room to host the likes of meetings of the 27 Member State delegations, international banking visits and so on. The successful country should also preferably get a good #FATF national score, be close to airports and have good opportunities for the spouses of staff. Let the games begin!

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In Britain meanwhile, there was an embarrassment for the ruling Conservative Party when it was revealed that companies linked to a donor to the party were investigated as part of a major global money-laundering inquiry. Javad Marandi OBE , who has an OBE for business and philanthropy, was named by the media after losing a 19-month legal battle with the BBC to remain anonymous. Marandi strongly denies wrongdoing and isn't subject to criminal sanction. The judgement against him was seen as a milestone for freedom of the press amid growing privacy laws in the courts.

In altogether better news it was announced that Ireland’s Minister for Financial Services Jennifer Carroll MacNeill TD (above) is to deliver the Opening Address at the European Anti-Financial Crime Summit 2023. Eurogroup President Paschal Donohoe is also delivering a Special Address at the Summit.?Have you booked your ticket yet?

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Now here’s your mid-week news digest:

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‘PIG BUTCHERING & CRYPTO CRACKDOWN:?The US DOJ’s cryptocurrency enforcement chief has said that the country was stepping up?scrutiny?of crypto exchanges to target illicit behaviour on the platforms.?The Department of Justice (DOJ) is targeting crypto companies that engage in crimes themselves or allow crimes like money laundering to happen, Eun Young Choi, director of the agency's National Cryptocurrency Enforcement Team (NCET) said. On the target list with crypto exchanges are the “mixers and tumblers” that obscure the trail of transactions, she said.?Choi highlighted “pig butchering” schemes, which are named after a Chinese phrase referencing fattening pigs for slaughter, and involve scammers building relationships with victims over the long term.

The justice department last month seized crypto worth more than $112mn linked to such scams.

Find the story here:?New crackdowns on crypto enablers and ‘pig butchering’ on the way, warns US DOJ enforcer

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INSIDE A GLOBAL MONEY LAUNDERING?MACHINE WITH POLITICAL DIMENSION:?A top British businessman whose foreign companies were part of a?global?money laundering investigation is a major donor to the UK Conservative Party. Javad Marandi, who has an OBE for business and philanthropy, can be named after losing a 19-month legal battle with the BBC to remain anonymous. Marandi strongly denies wrongdoing and isn't subject to criminal sanction. Read the story here:?Top UK businessman and political donor part of global money laundering investigation, spanning Britain, Azerbaijan, Seychelles and BVI

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EURO AFC SUMMIT COUNTDOWN:??IRELAND'S Minister for Financial Services Jennifer Carroll MacNeill is to officially?open?the 'European Anti-Financial Crime Summit 2023,' it was announced today. Ms MacNeill is the Minister of State at the Department of Finance with special responsibility for Financial Services and Insurance. She was appointed to this role in December 2022. The Summit, which is close to capacity attendees, is being held in Dublin on May 25 and is attracting the top global names in AML, AFC and Compliance. Find the story here:?Ireland’s Minister for Financial Services Jennifer Carroll MacNeill to offiically open ‘European Anti-Financial Crime Summit 2023’, it’s announced

Last remaining tickets available

AMLA HQ CHECKLIST:?BIDDING nations have been supplied with the?requirements?for hosting the EU’s new AML Authority (AMLA). A key factor cited is “geographic balance” which many interpret as putting some of the larger Member States – such as Germany and France which already host two or more other EU agencies – at a disadvantage. However, the checklist has also included questions about whether a host Member State would be willing to cover the rent of the building “indefinitely.” Read the full story here:?Specs for hosting AMLA released, including 10,000 sqm building to house 400 staff and 30 high security office pods for FIUs

EUROPE GIVES FINAL NOD ON CRYPTO RULES:?European Union states on Tuesday gave the final nod to the world's first comprehensive set of rules to?regulate?crypto assets on Tuesday, piling pressure on countries such as Britain and the United States to play catch up. An EU finance minister meeting in Brussels approved rules that were thrashed out with the European Parliament, which gave its approval in April. Regulating crypto has become more urgent for regulators after the collapse of the crypto exchange FTX. Read the full piece here:?EU states approve world’s first comprehensive crypto rules

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TERRORISM FINANCING:?The #IMF says member countries face significant challenges when it comes to improving the effectiveness of their fight against terrorism financing. This book is intended to assist anti-money laundering and combating terrorism financing (AML/CFT) policymakers and practitioners in identifying key challenges and good practices for strengthening the effectiveness of counter terrorism financing frameworks. The book’s six chapters cover (1) improving the understanding of terrorist financing risks; (2) the role of the private sector in detecting and disrupting terrorist financing activities; (3) the production and use of financial intelligence to counter terrorism and terrorist financing; (4) investigating, prosecuting, and sanctioning terrorism financiers; (5) terrorism-related targeted financial sanctions; and (6) international cooperation in combating the financing of terrorism. The book presents contributions by experts from the IMF, United Nations, Egmont Group of Financial Intelligence Units, INTERPOL, and Europol. The report is available here:?Countering the Financing of Terrorism

?? We have special offers for Individual and Corporate Members. Your Chief Compliance Officer, Department Head, or Chief Librarian can contact us about our Enterprise Membership for your organisation. Please reach out to James Treacy at?jtreacy@amlintelligence.com?for further information.

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Have a great Wednesday???

Alisha and the team at AMlintelligence.