Friday's Final Word
From art heists to crypto mining, this week’s financial crime roundup feels like a mix of Oceans 11 and a diplomatic chess match. Happy reading!
???FCA calls for collaboration as fraud accounts for 36% of all crime
?? Former Trump adviser charged with laundering money through art
?? KYC in crypto mining: catalyst for industry growth
???Inside the EU's sanctions playbook: A diplomatic chess game
???A realist perspective on AI regulation
FCA calls for industry collaboration as fraud accounts for 36% of all crime
The Financial Conduct Authority (FCA) is urging partnership with the financial industry to tackle fraud, which made up a staggering 36% of all crime reported in England and Wales, with 3.2 million incidents in the year to March 2024. While fraud incidents have decreased by 16% compared to the previous year, scam-related complaints are at their highest since 2018, highlighting the evolving nature of financial crime. The FCA emphasizes the need for coordinated efforts, particularly in addressing money mule activity and combating emerging threats like AI-powered deepfake scams. As fraudsters become increasingly sophisticated, the regulator stresses that innovation and collaboration are crucial to stay ahead and protect consumers.
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Former Trump adviser charged with laundering Russian money through art
US authorities have charged Dimitri Simes, a Russian state TV commentator and former Trump campaign adviser, along with his wife Anastasia, for violating sanctions and laundering money through art and antiques. The couple allegedly received $1 million and other benefits from Russian state TV, with Anastasia accused of helping a sanctioned Russian businessman purchase art. The FBI seized numerous artworks from their home, including a 19th-century painting by F.C. Welsch and a statue by the Statue of Liberty's sculptor. This case is part of a broader crackdown on Russian influence in the US, with the couple facing potential sentences of up to 240 years in federal prison.
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KYC in Crypto Mining: Catalyst for Industry Growth
Know Your Customer rules are transforming crypto mining from a largely anonymous sector into a more regulated, legitimate industry. As major mining platforms implement KYC, they're opening doors to institutional investors and fiat onramps. While solo miners can still operate anonymously through certain pools, larger operations are embracing regulation to attract serious capital. KYC is enabling the development of new financial products in the mining space, potentially revolutionizing how miners operate and monetize their activities. Rather than hindering progress, KYC is increasingly seen as a necessary step for the crypto mining industry to reach new heights of growth and legitimacy.
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Inside the EU's sanctions playbook: A diplomatic chess game
In this gripping episode of the EU Finance Podcast, host Aidas Palubinskas sits down with Brice De Schietere, the mastermind behind the EU's sanctions strategy. As Head of the sanctions division at the European External Action Service (EEAS), De Schietere offers a rare glimpse into the complex world of international diplomacy and economic warfare.
Discover how the EU wields sanctions as a powerful foreign policy tool, balancing diplomatic finesse with economic pressure. From crafting regulations to navigating delicate negotiations with non-EU countries, this 33-minute episode pulls back the curtain on the intricate dance between DG FISMA and the EEAS. Whether you're a policy wonk or simply curious about global politics, this insider's perspective on the EU's financial arsenal is not to be missed.
Listen to full podcast here
A realist perspective on AI regulation
In this Foreign Policy article, Viktor Mayer-Sch?nberger and Urs Gasser argue that regulating AI should embrace experimentation, allowing regulators to learn from each other. With AI poised to transform society much like the internet, countries are racing to regulate it, but fragmented rules could increase costs and limit global AI access. The authors compare this to the U.S. holding on to control of the internet's core functions, like ICANN, as if it were "keeping the keys to the global Wi-Fi router." They advocate for regulatory diversity and learning from different approaches to find the best way to manage AI, instead of rushing to standardize rules that could stifle innovation.
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