FATF calls for Big Tech to tackle sextortion scams, FCA scraps ‘name and shame’ policy, Dutch Chief Prosecutor praises SARs effectiveness

WITH CYBER CRIMINALS inventing more ways to enable online child sexual exploitation, it is up to technology companies and governments to stop them.

That is according to the Financial Action Task Force (FATF), which has published a new report examining the issue.

Alongside the governments of the UK and Australia, it issued a warning that financial networks fuel online child sexual exploitation (OCSE) and called for urgent action to disrupt them.

Elisa de Anda Madrazo , the FATF president, said Big Tech must take some of the responsibility for enabling such abuse.

The organisation put forward several suggestions on how to tackle the issue - one of which is to confiscate the homes of convicted offenders.

It praised Australia for pursuing such initiatives, which it said could act as a powerful deterrent and help curb online child abuse.

European Anti-Financial Crime Summit 2025, May 7

#EAFCS2025: Time is running out! The special early ticket price for European Anti-Financial Crime Summit 2025 ends soon– secure your place now before prices rise!Why Attend? ? Top-tier speakers – Hear from global AML, AFC, and FCC leaders, including regulators, policymakers, and banking executives. ? Elite networking – Connect with decision-makers from leading EU & UK banks, fintechs, gaming and enforcement agencies. ?Unrivalled insight – Stay ahead of the latest trends, challenges, and innovations in financial crime compliance. ? AFC event of the year – Join 700+ senior professionals at the premier summit shaping the future of financial crime prevention. Book your/your AFC department’s place here: European Anti-Financial Crime Summit 2025

EU

SARS: The belief among senior banking officials that suspicious activity reports (SARs) are ineffective is false, according to Dutch Chief Public Prosecutor Michiel Zwinkels.

He said investigators often rely on SARs to understand criminal operations. "Banks are very critical of the fact that they have to report so many unusual transactions: that would lead to nothing. That is a misconception,” he told NRC. “Reports do not always lead to a criminal investigation, but they are incredibly important to gain insight into the ecosystem.”

Banks in many countries have complained about filing more SARs. They argue that while some reports support investigations, most go unused or turn out to be false alarms.

UK

NAME AND SHAME: The UK's Financial Conduct Authority (FCA) has abandoned its plan to publicly 'name and shame' certain firms under investigation.

The regulator announced that it will not introduce a public interest test for disclosing company names. It will instead maintain its policy of naming firms only in exceptional cases.

The FCA had already softened its stance on the 'name and shame' policy in November.However, it still attracted backlash. Last month, a House of Lords committee urged the FCA to drop the initiative, calling it an "abject failure".

WATCHDOG: The UK'S Payment Systems Regulator (PSR) will be abolished and its remit absorbed by another financial regulator, the government said, as it aims to cut red tape in favor of growth.

The PSR, which oversees systems including MasterCard and bank transfers, tackles problems such as fraud, excessive fees and lack of competition among banks and payment providers.

The government said its decision to axe the PSR followed businesses complaining that the UK's financial regulatory system was overly complex.

FINANCIAL CRIME

CITIGROUP: A $22. MILLION 'fraud event' played a role in convincing Citigroup to overhaul its IT and compliance systems.

The company plans to dramatically reduce its reliance on information technology contractors and hire thousands of employees for IT as the lender grapples with regulatory punishments over data governance and deficient controls.

Citigroup's head of technology Tim Ryan told staff in recent weeks that the bank aims to cut back external contractors to 20% of those working in IT from the current 50%.

BELGIUM: Finally, Belgian police have raided the Brussels headquarters of Huawei and multiple homes across the country as part of an EU corruption probe.

Authorities also conducted raids in Portugal as part of the investigation into alleged bribes paid to Members of the European Parliament (MEPs).

The searches are the result of a two-year investigation into potential bribery, corruption, money laundering, and criminal organization linked to Huawei’s lobbying activities.

?? 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 [email protected] for further information.

Join the world’s fastest-growing FinCrime community and become an AML Intelligence member.

Have a great Friday ??

Stephen and the team at AMlintelligence.