Stung by criticism Switzerland rings in AML and BO changes, UAE claims ‘significant progress’ in meeting FATF demands. More essential news here.....

LENIN (when was that last time you saw him quoted on AML Intelligence??) once said "there are decades where nothing happens; and there are weeks where decades happen." In the anti-financial crime (AFC) world the same might be said around the seismic events in Switzerland this week where the government after decades of subterfuge finally laid out a blueprint to drag its fincrime controls into the modern era. The federal government on Thursday promised a twin-track central beneficial ownership registry as well as introducing CDD processes for lawyers, accountants and other professional services – especially around the creation of trusts in other countries and real estate transactions. (You can almost hear the screams out of the high-end period offices in Zurich and Geneva here in Brussels!!).

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“A robust system to protect against financial crime is essential to the reputation and lasting success of an internationally significant, secure and forward-looking financial centre,” finance minister Karin Keller-Sutter said in Bern. “Money laundering harms the economy and jeopardises confidence in the financial system,” she added

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But Keller-Sutter clearly had tongue firmly in cheek when she claimed Switzerland had a good reputation internationally for upholding financial standards but there were “gaps”. Gaps? Take that as gaping deltas. On these pages earlier this month we carried an opinion piece from Vadim Kleiner who argued Switzerland has become even more of a money laundering haven in recent years. Moreover only last week the country’s own financial regulator #FINMA outlined a whole raft of #AML failings – many of them pretty basic – following a review of 30+ banks.

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With a population of just 8.7mn Switzerland is home to an estimated $2.4tn of foreign assets held by its banks, a significant proportion suspected of being Russian and other dirty money. The Swiss financial community plays a pivotal role helping establishtrusts and offshore structures in other jurisdictions. Only last week a US State Department official decried failings in Bern’s #AFC controls – particularly with regard to sanctions evasion and Russian dirty money. And in April, #G7 ambassadors in Bern rebuked the government in a joint letter over turning a blind eye to many “loopholes” in Swiss law — and the role played by Swiss lawyers in exploiting them — which they said were being used to facilitate the evasion of sanctions.

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So this week’s proposed changes have indeed been seismic. But let’s not become too excited. The blueprint still has to go thru parliament and there is every chance it will be watered down. Nonetheless it is a start – and in the face of international scrutiny it will be difficult for Bern to do a u-turn. You can read our story below.

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Also coming under intense scope over the last three years has been the UAE, which has been swallowing up industrial quantities of Russian money and gold in return for residency and banking privileges. There is no doubt this was partly the reason the #UAE was put on #FATF’s watchlist. So it was interesting to hear this week that the UAE’s AML authorities believe they are making “significant progress” towards getting off the “greylist.” Moreover, they made the pledge at a meeting chaired by foreign minister?Abdullah bin Zayed Al Nahyan. This shows the seriousness with which the local authorities are taking the matter. After all there has been a reported near 50pc rise in STRs so far this year. Nonetheless, the government and local law enforcement’s reluctance to extradite organised crime and sanctioned figures means Abu Dhabi and Dubai still need more action rather than words. We have the full analysis below.

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Back in Europe, the chair of the European Banking Authority was one of three financial supervisors to warn about closer financial and economic ties with Monaco, San Marino and Andorra. #EBA chair?José Manuel Campa wrote to the European Commission in unusually frank terms saying the AFC regimes in the three tiny countries lying within #EU borders were lax and left the EU open to money laundering risks and financial sharp practice. There’s no doubt the big problem here is Monaco and its city state capital Monte Carlo which a recent Moneyval report effectively branded as being reckless about AFC enforcement. The letter could scupper the deal which had been due to come into place next year. We report.

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Then there’s the story of the ￡250 cash withdrawl which led to a sanctions breach in the UK. “At 07:25 AM on 30 June 2022, an employee of the Designated Person’s company successfully withdrew ￡250 in cash using the debit card. By permitting the withdrawal, Wise made funds available to an entity owned or controlled by a designated person and subject to an asset freeze in breach of regulation 12 of the Russia Regulations.” So reads the report of Britain’s Office of Financial Sanctions Implementation (OFSI) about the breach at Wise. OFSI didn’t fine the payments company because of the small size of the breach. Moreover the agency seemed satisfied by Wise’s co-operation with the probe and commitment to hire more compliance staff (who will now also work weekends going forward). Our story on the anatomy and countdown of a breach, below, makes an essential read for all #FCC and AFC teams

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Meanwhile, there was still silence this week from training and conferencing company #ACAMS about intense speculation about a re-shuffle at the top and a change of direction under new French private equity owner, Wendel. Our senior correspondent Laura Lynott has been looking into the matter, observing that rivals are circling as the $500M US company fails to respond to requests for comment, HERE.

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Now for your end of week headlines:

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SWITZERLAND DRAFTS NEW AML LAWS:?SWITZERLAND Wednesday said it had?drafted?new rules to tighten gaping cracks in its money laundering regulations. The move comes amid sustained criticism – led by?AML Intelligence?– of the financial hub’s weak AFC regime. If the new rules are accepted, lawyers, accountants and other company consultants who set up trusts, or holding companies, or arrange real estate deals, will also become subject to due diligence rules and reporting obligations Read the full story here:?Switzerland drafts new AML laws targeting lawyers, advisors and trusts as it relents in face of sustained fincrime criticism

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WISE INSIGHT:?Payments company Wise?breached?the country's Russia sanctions regime by allowing a ￡250 cash withdrawl by a designated person, it was revealed.?The government's Office of Financial Sanctions Implementation (OFSI) said Wise had reported a suspected breach, a withdrawal of Stg￡250 ($317) in cash, which took place the day after the person had been designated. The firm permitted the withdrawal in June last year, shortly after the unidentified customer had been added to the Russian sanctions regime, the Office of Financial Sanctions Implementation said in a statement Thursday . Find the story here:?Countdown to a sanctions breach – how ￡250 cash withdrawl landed Wise Payments in trouble with OFSI

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UAE CLAIMS PROGRESS:?THE UAE has?claimed?“significant progress” in its efforts to be removed from FATF’s watchlist. The country’s foreign affairs minister Abdullah bin Zayed Al Nahyan chaired the country’s latest AML/CFT national strategy meeting where updates were given on efforts to be removed from the “grey list.” DG of the AML Executive Office (EO AML/CTF) Hamid Al Zaabi told the meeting of significant progress made across all items as he described the status of the Emirate’s FATF Action Plan. Find the story here:?UAE says 48pc rise in STRs in efforts to get off FATF ‘greylist’; problems persist in extraditing gangland suspects

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FRAML FOR TOPIC OF DISCUSSION AT FIGHTING ONLINE AND CYBER FRAUD SUMMIT 2023:?THE?increasing?use of artificial intelligence (AI) in the fight against financial crime has spurred the adoption of the term #FRAML – where fraud and anti-money laundering intersect. This will be one of the topics up for discussion at the ‘Fighting Online & Cyber Fraud Summit 2023’ taking place in Dublin, Ireland on November 29 next. Our leading speakers will be discussing the latest technology addressing existing weak spots in traditional Fraud and Anti-Money Laundering (FRAML) solutions. Find the story here:?FRAML and role of AI to feature as topics at the ‘Fighting Online & Cyber Fraud Summit 2023’ in Dublin on Nov 29

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ACAMS RUMOUR SWIRL:?INTEREST continues to grow regarding changes taking place at training company ACAMS – with claims that executives have left or are departing the company. As rumblings continue in the industry regarding a change of direction at #ACAMS,?AML Intelligence?has asked the U.S based company for clarification on what’s next. Attempts have also been made to gain information on the firm’s potential new direction from French private equity group, Wendel, based in Paris. Read the full story here: What’s going on at ACAMS? Company silent on speculation of changes at the top as rivals circle

‘Fighting Online & Cyber Fraud Summit 2023,’ Dublin, Nov 29

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?***?The 'Fighting Online & Cyber Fraud Summit 2023' takes place on November 29 in the Royal Dublin Society convention centre in Dublin, Ireland. Leading speakers and panellists and sponsor partners will be announced soon. Book your place now and avail of the 30% Early Bird Discount – available only until August 31. The summit is being organized by ‘AML Intelligence.’ “This summit is a must-attend for fraud, fincrime, cybersecurity professionals along with regulators and law enforcement. We’ll featuring the top experts in the field from industry, regulators and law enforcement. We’ll be looking at the trends, the solutions and also at the critical role of PPPs,” said?AML Intelligence?MD, James Treacy. ?Typical tickets cost?€400+ VAT?but you can avail of the special??Early Bird Price €280+VAT. Simply apply the Discount Code?FOCFS30BX083?to the ‘Coupon Code’ field in the ticket purchase form, below, to avail of the 30% Early Bird Discount price.***?

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FEDERAL RESERVE WARNS GOLDMAN SACHS:?A US banking regulator has?raised?concerns about Goldman Sachs' risk and compliance oversight of its fintech customers. As a result of the warning from the Federal Reserve earlier this year, a division of the bank’s transaction banking business TxB has stopped signing on riskier fintech clients. Find the story here:?Federal Reserve warns Goldman Sachs on its compliance oversight of fintech units

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INDIA REQUESTS RELEASE OF FUNDS: India has asked the U.S. to allow the?release?of $26 million belonging to at least two Indian diamond firms that was frozen due to their alleged trade links with sanctioned Russian diamond major Alrosa, three Indian sources told Reuters. The funds were frozen earlier this year due to U.S. sanctions on Alrosa that were imposed in April 2022 by the U.S. Treasury's Office of Foreign Assets Control, two of the sources said. Both the sources are Indian government officials, who declined to identify themselves or the companies, citing the sensitivity of the matter. Find the story here:?India asks US to allow release of funds frozen over suspected Russia diamond link

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OPERATION DUCK HUNT:?Intelligence agencies from seven countries have taken down a?notorious?piece of malware used by cybercriminals to target hundreds of thousands of victims.?The US Department of Justice said that the FBI, along with agencies in the UK, France, Germany, the Netherlands, Romania and Latvia, had successfully concluded Operation Duck Hunt, which had neutralised a program known as Qakbot.?Investigators found a total of 52 servers seized in the United States and overseas during the operation, according to The Times. Read the story here:?Cybercrime network busted by ‘Operation Duck Hunt’

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Stephen?and the team at AMlintelligence.