Companies House gets serious around identity checks, Bank of America’s AML reference and new anti-fentanyl PPP

From Paul O'Donoghue at AMLi

Companies House gets serious around identity checks, Bank of America’s AML reference and new anti-fentanyl PPP

Think of the world’s most notorious money laundering hubs. Which countries come to mind?

Maybe the likes of Venezuela, where corruption runs riot? Or Iran, one of just three countries on the FATF blacklist?

Well, there’s a strong argument that the UK should also be included in the list of dishonourable mentions.

The British government itself recently said that as much as 40% of the world’s dirty money flows through the UK at some point. State bodies have estimated ￡100 billion a year is laundered through the nation, and that could be a lowball.

One of the key problems identified is how easy it is to set up a corporate entity in the UK. Essentially, very little identity verification is typically needed - a money launderer’s dream.

The Companies House is looking to change that.

The organization, which operates the country’s corporate registry, is looking at a shakeup which would result in much stricter identity checks.

The move is just in a recent series of AML improvements from the UK, which is hoping to shed its image of being a weak link on the AFC international stage.

BANK OF AMERICA: Buried deep in Bank of America’s latest quarterly accounts was a note which may have come as a surprise to investors. Basically - the lender revealed that it’s in talks with “several” regulators over issues with its various AML programs.

The company has played down the issue, assuring shareholders that no matter the outcome, there won’t be a “material” financial impact on the business.

But what’s considered a major issue by investors and the general public are often two very different things.

Bank of America has said it’s in talks with the regulators about AML fixes, so we’ll have to wait and see if the firm has done enough to avoid any big penalties.

REGULATION OVERHAUL

SINGAPORE: Few jurisdictions have pushed back as strongly against money laundering as Singapore.

Last year the Asian financial hub was rocked when 10 foreigners were charged with laundering $2.2 billion earned from criminal activities abroad.

All 10 have since been convicted and jailed and the city-state has gone to great lengths to ensure there isn’t a repeat case.

The latest measure announced is a new National AML Strategy.

The initiative will focus on measures such as improved asset recovery and a tight oversight of international transactions to cut down on financial crime.

Other AML measures advanced by Singapore in recent months include a drive for increased inter-agency data-sharing and a pledge to increase the striking off of inactive companies.

The European Anti-Financial Crime Summit (EAFCS), hosted by AML Intelligence, is set to return to Dublin on May 7, 2025.

With demand for the event growing rapidly, attendance is expected to rise from 650 participants in 2024 to an anticipated 900 in 2025, underscoring the summit’s increasing importance for industry leaders and policymakers.

Registration is now open HERE. SECURE YOUR EARLY BIRD PLACE TODAY

CANADA: With the fallout of TD Bank’s $3 billion AML penalty still fresh, Canada’s banking industry is doing some soul-searching.

The Canadian Bankers Association (CBA) thinks there is a better way to approach AML.

Rather than filing endless STRs (suspicious transaction reports), the group said financial institutions should be more focused on “outlying suspicious activity”.

The CBA suggested switching to a system like the U.S. and U.K., where “suspicious activity reports” aim to capture broader patterns of suspicious behavior.

The lobby group has said that Canadian institutions submit 12.5 times more reports than U.S. banks and 96 times more than U.K. lenders.

US, CANADA PPP ON FENTANYL

FENTANYL: With fentanyl still a scourge across North American cities, two of the region's leading AML bodies are teaming up to stop the dirty cash fuelling the drug’s spread.

FinCEN, the AML unit of the U.S. Treasury, has joined a Canadian-led PPP (Public Private Partnership) called Project Guardian.

Led by FINTRAC, Canada’s Financial Intelligence Unit, the initiative involves combing through data from public bodies and private companies to try to spot transactions related to fentanyl trafficking.

The two agencies have said that the partnership has the potential to deal a major blow to drug gangs.

CRYPTOCURRENCY: Finally, Italy’s economy minister has defended his decision to raise taxes on cryptocurrency capital gains as part of next year's budget.

The move came despite pressure from some lawmakers in his own party to backtrack.

Under the 2025 budget, Italy will hike the tax on capital gains from cryptocurrency such as bitcoin from 26% to 42%.

The move comes as the EU prepares to implement the world's first comprehensive set of rules for cryptoasset regulation, which are aimed at preventing money laundering through digital currencies.

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Have a great Friday ??

Stephen and the team at AMlintelligence.