Connecting the dots in RegTech | 2024 #13
Good morning, everyone!
Welcome to Connecting the Dots in Regtech, the weekly update for everything new in the world of evolving regulations and compliance tech. This week, we cover stories ranging from the football sphere to an upcoming Dutch criminal trial against a Russian software engineer accused of money laundering.
?? Spanish police raid the headquarters of the Spanish Football Federation over money laundering allegations
Football has often been entangled in the web of corruption and money laundering, and the recent police raid in Spain targeting the Spanish Football Federation demonstrates that this image has yet to change.
??? Corporate Transparency Act ruling misses mark on Congress' power
As American lawmakers debate the constitutionality of the Corporate Transparency Act (CTA) following a contentious ruling in an Alabama court, this Bloomberg Law piece serves as a valuable resource for understanding the legislation's true nature and objectives.
???? Russian developer is facing $1.2 billion money laundering trial in the Netherlands
Prompting an outcry within the developer community, a Dutch court is proceeding with the trial of Russian software engineer Alexey Pertsev, who stands accused of laundering $1.2 billion worth of cryptocurrency through an anonymizing tool known as Tornado Cash.
?? Beijing pushes for AI regulation
Fearful of losing control over Chinese society, regulators in Beijing are marching forward to monitor and control generative AI, mirroring their approach in the crypto sphere. This raises questions about the future prospects of the industry in the country.
Onwards to the news!
?? SPONSORED CONTENT
REPORT
Is the European Union finally moving towards a harmonized approach to combat moneylaundering?
On Wednesday, January 18, the Council of Europe and the European Parliament agreed on new Anti-Money Laundering Rules across 27 countries bloc. These impactful regulations touch various sectors, including the crypto industry, where due diligence measures are now mandated for Crypto-Asset Service Providers (CASPs). Furthermore, football clubs and luxury goods traders find themselves categorized as obliged entities, reflecting a broadening scope of accountability.
?? NEWS HIGHLIGHT
China’s internet regulator has announced a campaign to monitor and control generative artificial intelligence. The move comes amid a bout of online spring cleaning targeting content that the government dislikes, as well as Beijing forums with foreign experts on AI regulation. Chinese Premier Li Qiang has also carried out official inspection tours of AI firms and other technology businesses, while promising a looser regulatory regime that seems unlikely.
AI has been a focus of the Chinese state since 2017, when the State Council laid out a plan to become a world leader in the field by 2030. But the rush of global interest in the technology in the last year, driven in large part by the publicity of generative models such as ChatGPT, has spurred worries among officials that China is falling behind U.S. competitors and that AI-generated content could overrun the country’s controlled internet environment.
?? ARTICLE
For decades, the US has been a favored place for foreign kleptocrats, drug traffickers, and other bad actors to stash their ill-gotten gains in anonymously owned companies. To address the problem, Congress passed the bipartisan Corporate Transparency Act in 2020 to require most US companies, including anonymous shell companies, to disclose their true owners to the government. This was the most significant update to US anti-money laundering law in a generation.
A federal district judge in Alabama ruled on March 1 that the CTA is unconstitutional—on grounds that it was beyond Congress’ power to enact because incorporation of companies is supposedly “in no sense an economic activity” that might affect interstate commerce. He also found it was beyond Congress’ powers to legislate on matters of foreign affairs and taxation.
Russian developer Alexey Pertsev is accused of laundering $1.2 billion worth of crypto through the anonymizing tool Tornado Cash, Dutch prosecutors detailed in an indictment shared ahead of his trial on March 26.
The indictment, seen by CoinDesk, says that between July 9, 2019 and Aug. 10, 2022, "at least in the Netherlands and/or in Russia and/or the United States and/or in Dubai, together and in association with one or more others, at least alone," Pertsev allegedly "made a habit of committing money laundering."
??INSIGHTS
Police have arrested at least six people and raided the headquarters of the Spanish Football Federation and a residence belonging to its former president, Luis Rubiales, as part of an investigation into allegations of corruption and money laundering.
Spanish police told the Associated Press that Rubiales, who made headlines around the world after an unsolicited kiss and defiant refusal to step down, was not among those arrested last Wednesday. However, a source connected to the operation said Rubiales was among five additional people officially put under investigation.
NOW, ON TO THE SUMMARY OF LAST WEEK'S?NEWS
?? REGTECH HIGHLIGHTS
?? Green Check named “Best RegTech Company” by FinTech Breakthrough Awards.
?? BioCatch and Google Cloud Team Up to Bring Fraud Detection and Financial-Crime-Prevention Solutions to Emerging Markets.