Swiss banker ‘stole client’s dirty money’ claim, Germany’s new ‘Sharks’ unit hunts ‘big fish’ launderers, Singapore’s new P2P data sharing platform

A BOARD member at a Swiss private bank has been accused of money laundering after authorities red-flagged deposits he was making to the Dominican Republic. The private banker is charged with taking illicit funds from a customer and depositing the money under his own name at his institution. The customer had entrusted the banker with the cash, wishing to conceal its true ownership to shield his wealth from government authorities. The accused, who cannot be named under Swiss law, was charged with taking over SFr14mn ($15.4mn) in a multi-layered criminal conspiracy over seven years until 2015. The fraud was uncovered after AML authorities in Switzerland raised questions about large transfers made by the banker to businesses in Central America. We have the story here: Swiss private banker charged with ML, accused of stealing client’s illicit cash

Singapore this week officially launched its Private to Private (P2P) platform for banks to share money laundering suspicions. The platform, known as COSMIC (Collaborative Sharing of Money Laundering /TF Information & Cases) is the first centralised digital AML/CFT platform to facilitate sharing of customer information among financial institutions (FIs). The banks may share customer information with another participant FI only if the customer’s profile or behaviour displays certain objectively-defined indicators of suspicion, or red flags. COSMIC was co-developed by local regulator, the Monetary Authority of Singapore (MAS) and six major commercial banks in Singapore – DBS, OCBC, UOB, Citibank, HSBC and Standard Chartered Bank.

***On April 17 next we are hosting a special webinar on ‘How to implement AI to combat top AML typologies.’ The event is for FCC, AFC and AML leaders in banking and financial services. We will hear from experts, including Dr Dr Janet Bastiman of NapierAI. Register your place here: How to implement AI to combat top AML typologies

Wolfsberg made easy. The banking group last week issued its latest guidelines, stating that while AML protocols for customer issues are crucial, the spotlight should also turn inwards to focus on the importance of internal controls. Previously, the group has highlighted three ‘Wolfsberg Factors’ for financial institutions (FIs) and regulators for more effective outcomes in Financial Crime Risk Management (FCRM). These are:

· 1: Complying with regulations

· 2: Establishing controls

· 3: Providing useful information to authorities.

These are to be used to guide Internal Audits (IAs), which measure the effectiveness of FCRM outcomes. It has now issued a new set of principles to provide FIs with a framework for this type of IA. Sarah Beth Felix, the CEO and Founder of Palmera Consulting, said the updates “add little” for FIs. “To me, there are a lot of formalities and platitudes,” she told AML Intelligence. “For example: ‘Take a risk-based approach.’ Well, auditors know that already. That advice doesn’t add anything.” But what exactly are the new measures? We studied the guidelines, so you don’t have to.

Germany's FIU has set up a squad of 20 agents known as the "Sharks" to target the country's biggest money launderers. The elite unit of fincrime experts will use their FIU powers but can operate outside of chasing STRs to target “big fish” money launderers. Read the latest here: Germany’s new ‘Sharks’ unit to hunt down ‘big fish’ money launderers, #FIU chief announces

Also in Singapore this week, a defendant in the city-state’s biggest-ever money laundering case was sentenced to 13 months in prison, the first conviction for an investigation that grabbed headlines after billions in luxury properties, cars and gold bars were seized.

SPECIAL REPORT: On January 17 last, the fincrime community across the EU learned a deal had finally been struck on the bloc's new AML laws - and the establishment of #AMLA. But it was far from a done deal. Up to the last minute, many doubted a compromise could be met, with some fearing the AML package would have to be postponed until after June’s European elections. Now we have the full behind the scenes account of how the deal was reached, written by a member of the Belgian Presidency negotiating team, Annika Agemans. Read the exclusive down-to-the-wire account here: Down to the wire – the inside story of how Belgian Presidency secured deal on Europe’s new AML regime

*** Global identity verification solution ID-Pal is thrilled to announce its headline sponsorship of the exclusive European Anti-Financial Crime Summit (EAFCS) 2024, by AML Intelligence. It’s set to be the stand-out Anti-Financial Crime event of the year. Have you booked your or your department’s place at the ‘European Anti-Financial Crime Summit 2024’ in Dublin on May 16? The summit will hear from the top global leaders on AML and AFC for a banking, fintech, finreg and gaming audience. Topics being covered are:

Europe’s new AML regime –what it means for your bank/organisation

AI and Machine Learning – how can your organisation harness technology in the fight against financial crime

Sanctions – how your organisation can stay compliant

Crypto – everything a fincrime leader needs to know

PPPs – building out the partnerships at home and on a transatlantic basis to fight financial crime.

Delegates from across the globe are preparing for the #EAFCS24 - have you secured your ticket? Book your or your organisation’s tickets here:

2023 was the year of widespread cutbacks, so it is perhaps unsurprising that the knock-on impact has echoed into 2024. In many firms, compliance was one of the areas which escaped major cuts - easier to trim areas such as recruitment or marketing.

France's new FIU chief Antoine Magnant officially took up duties as Director of #Tracfin this week. Magnant was appointed to the role by the Council of Ministers to replace Guillaume Valette Valla.

In just three years, Brazil's hugely popular Pix payment system has become the country's favorite way to pay, replacing cash and wire transfers in many cases and now threatening the dominance of credit cards in the booming e-commerce sector.

Now for your mid-week news blast...

SWISS PRIVATE BANKER CHARGED WITH ML: A board member at a Swiss private bank was on Wednesday accused of money laundering after authorities red-flagged deposits he was making to the Dominican Republic. The private banker is accused of taking illicit funds from a customer and depositing the money under his own name at his institution.

WOLFSBERG MADE EASY: WHILE AML protocols for customer issues are crucial, new #Wolfsberg guidelines turn the spotlight inwards to focus on the importance of internal controls. Previously, the group has highlighted three ‘Wolfsberg Factors’ for financial institutions (FIs) and regulators for more effective outcomes in Financial Crime Risk Management (FCRM).

EU AML LAW NEGOTIATIONS DOWN TO THE WIRE: On January 17 last, the fincrime community across the EU learned a deal had finally been struck on the bloc's new AML laws - and the establishment of AMLA. Some had given up hope of a deal in advance of the European elections in June. So how did the Belgian Presidency achieve what many feared was impossible? We asked the people who did it - the Belgian negotiating team.

BERLIN’S ‘SHARKS’ HUNT ‘BIG FISH’ MONEY LAUNDERERS: Germany's FIU has set up a squad of 20 agents known as the "Sharks" to target the country's biggest money launderers. FIU chief Daniel Thelesklaf said the new unit was codenamed the Sharks because they would be taking down "the big fish." The unit's 20 experts will use the data and powers of the FIU but will operate independently of concrete suspicious activity reports, he revealed.

‘FIRST’ DIGITAL P2P PLATFORM LAUNCHED: SINGAPORE on Monday officially launched its Private to Private (P2P) platform for banks to share money laundering suspicions. The platform, known as COSMIC (Collaborative Sharing of Money Laundering /TF Information & Cases) is the first centralised digital AML/CFT platform to facilitate sharing of customer information among financial institutions (FIs).

SIGNAPORE MONEY LAUNDERING SENTENCE: A defendant in Singapore's biggest-ever money laundering case was sentenced to 13 months in prison (Tuesday), the first conviction for an investigation that grabbed headlines after billions in luxury properties, cars and gold bars were seized. Defendant Su Wenqiang, a Cambodian national, was sentenced to 13 months imprisonment for two counts of money laundering, Singapore police said in a statement.

EAFCS HEADLINE SPONSOR REVEALED: Global identity verification solution ID-Pal is thrilled to announce its headline sponsorship of the exclusive European Anti-Financial Crime Summit (EAFCS) 2024, by AML Intelligence. The partnership underscores ID-Pal’s place at the core of the financial services ecosystem, with its award-winning platform for robust anti-money laundering (AML) screening and customer onboarding. Find this story here: ID-Pal revealed as Headline Sponsor of the European Anti-Financial Crime Summit 2024

UK AND IRELAND COMPLIANCE RECRUITMENT: With 2023 being a year of widespread cutbacks, it is perhaps unsurprising that the knock-on impact has echoed into 2024. In many firms, compliance was one of the areas which escaped major cuts - easier to trim areas such as recruitment or marketing. However, a significant hiring pause is being reported in the sector, mainly among more junior roles.

NEW HEAD OF FRANCE FIU: France's new FIU chief Antoine Magnant officially took up duties as Director of Tracfin (Tuesday). Magnant was appointed to the role by the Council of Ministers on March 6 last. He was previously Deputy Director General of the Direction générale des Finances publiques and replaces the previous incumbent Guillaume Valette Valla.

*** On April 17 next we are hosting a special webinar on ‘How to implement AI to combat top AML typologies.’ The event is for FCC, AFC and AML leaders in banking and financial services. We will hear from expert Dr Janet Bastiman of NapierAI. We will be looking at screening customers during, after onboarding, and throughout the client lifecycle. The applications of AI for FCC are game-changing, freeing operational efficiencies and transforming compliance. In this webinar, we will discuss AI implementation and the regulatory landscape its use. Interest is high, so if you are a leader in this sector, don’t miss out. Book your place now. REGISTER HERE:

PIX PAYMENTS KILLING CASH: In just three years, Brazil's hugely popular Pix payment system has become the country's favorite way to pay, replacing cash and wire transfers in many cases and now threatening the dominance of credit cards in the booming e-commerce sector. The instant payments designed by Brazil's central bank are a boon to online retailers, helping with cash flow in a sector with tight margins, while undercutting the legacy business of banks and fintechs built on existing credit card infrastructure.

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Have a great Thursday ??

Stephen and the team at AMlintelligence.