Jack Dorsey's Block reveals possible major losses from AML probes, TD Bank's AML boss speaks out and latest on AMLA

From Paul O'Donoghue at AMLi

A breaking AML story which has gone under the radar - Jack Dorsey ’s Block is looking to settle probes with regulators.

The U.S. financial services company looks like it’s expecting to fork out some cash as a result of these agreements - it revealed it has already set some money aside to deal with the issue.

A dollar amount was not revealed, with Block only saying that it did not expect any possible payments to be “material” to the business.

However, it added that it is “reasonably possible” that any charges could be higher than expected and end up being “material” after all.

No further details were provided, but it was reported earlier this year that regulators were investigating alleged compliance lapses at Square and Cash App, Block’s two main units.

TD BANK: What a time for Herbert Mazariegos, TD Bank’s new AML chief, to join the lender.

Mazariegos stepped into his role at the Canadian company in November. Just a few months later, TD was hit with a $3 billion fine and U.S. asset cap after a slew of AML failings emerged at its American arm.

Mazariegos has made his first public comments since the penalties were announced, saying that other lenders should learn from TD’s failings.

“I know we’re in the news today, but we’re not the last ones,” he told a conference in Toronto.

“There will be more. I hope we’re all studying what happened to make our programs better. At the end of the day, we’re all in this together.”

Regulators will likely be eager to see that TD itself has learned its lesson, as the company is still grappling with the fallout of the debacle.

AMLA: After a solid showing at a hearing in front of MEPs, Portugal’s Maria Luís Albuquerque was formally approved as the EU’s new financial services commissioner.

During the three hour grilling, she gave some insight into what she sees as being crucial for the functioning of AMLA, the EU’s new AML watchdog.

Make or break, according to Albuquerque, will be the cooperation of national FIUs.

“The effectiveness of AMLA will depend a lot on how it can build on the existing financial intelligence units in the different member states, because they’re the ones on the ground,” she told the hearing.

“They are the ones who have the information. They have important links with other jurisdictions.”

Albuquerque will have oversight of AMLA in her new role, with the agency to begin formally operating from January.

ANNOUNCEMENT: Dates for fast-growing European Anti-Financial Crime Summit confirmed – Dublin, May 7 2025

Following overwhelming positive feedback this year where we hosted more than 700 delegates, we are set to return to the prestigious RDS Convention Centre on May 7 for the European Anti-Financial Crime Summit 2025. We have also incorporated valuable insights from this year’s participants, and in 2025, we are introducing extended panel sessions to facilitate deeper discussions on the critical issues shaping the industry. This event is recognized as Europe’s leading summit for C-suite, decision-makers and thought leaders in the AFC community, drawing senior industry, regulator and LEA leaders from across the EU, UK, US, and MEA. Secure your place HERE (EARLY BIRD RATE)

UK FRAUD

SFO FUNDING: Combating financial crime has been a key pledge of the UK’s new Labour government.

In what looks to be a statement of intent, it has now followed through on increasing the budget for the country’s Serious Fraud Office (SFO), giving it a ￡9.3 million boost.

The money is set to be used to improve how the SFO tracks case progress, according to the Attorney General’s Office.

A new confiscation team will also be established to help recover assets from convicted offenders.

The money is needed.

The SFO, responsible for handling complex fraud, bribery, and corruption cases, has struggled with limited resources while confronting wealthy defendants capable of prolonged legal battles.

The average SFO case spans over four years from investigation to the first result and involves processing 5 million documents.

NEW RULES: As well as increasing funding for AFC investigators, the UK is also introducing tougher anti-fraud rules for businesses.

This week the government released new guidance on the corporate criminal offense of 'failure to prevent fraud'.

The offense seeks to hold large organizations accountable if they profit from fraudulent activities. It applies to cases where an employee or any other associated person commits fraud with the intent to benefit the organization.

Examples of possible offenses include concealing vital information from consumers or deceptive behavior in financial markets.

The UK government has said the law, which will take effect on 1 September 2025, is aimed at building an “anti-fraud culture”.

SCAMMERS: Finally, two fraudsters have pleaded guilty to their roles in a ￡1.5 million investment scam in the UK.

Between February 2017 and June 2019, Raymondip Bedi and Patrick Mavanga defrauded at least 65 investors, swindling ￡1.54 million ($2 million).

The pair, along with their group, cold-called potential victims, directing them to a convincing website where they were promised high returns on fake cryptocurrency investments.

Following a prosecution by the country’s Financial Conduct Authority (FCA), Bedi pleaded guilty to conspiracy to defraud and money laundering.

While Mavanga admitted to conspiracy to defraud, breaching financial regulations, and possessing false identification documents.

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Have a great Friday ??

Stephen and the team at AMlintelligence.