Szego faces backlash as AMLA chair from conservative MEPs, Deutsche celebrates end of special monitor, Wise in scope over AML in Belgium.

From Paul O'Donoghue at AMLi

EUROPE’S new AMLA Chair-apparent Bruna Szego is facing into something of backlash from conservatives in the European Parliament. The parliament’s biggest grouping, the European People’s Party (EPP) is not happy with the process that saw the Italian selected as nominee for the job. Ms Szego is likely facing into a tough public hearing at the European Parliament next month and the EPP is saying her ratification by the European Council is not assured. We have the full report HERE:

Elsewhere, the question has to be asked this morning, has Deutsche Bank finally put its long-running AML issues behind it?

The German lender has been saddled with an external monitor to assess its progress in dealing with a host of compliance deficiencies.

It has been reported that #BaFin, the German regulator, has finally withdrawn the monitor, which was first appointed back in 2018. We have the full story.

British money transfer firm Wise was forced into a formal remediation plan by European regulators over its AML controls, it was reported this morning. A review by the Belgian National Bank, which supervises Wise in Europe, found in early 2022 that the company lacked proof of address for hundreds of thousands of customers, the FT said. The story is on our homepage.

SWISS BANK CHARGED: Swiss private bank Lombard Odier and a former employee have been charged with aggravated money laundering by the Office of the Attorney General of Switzerland (OAG). Prosecutors allege the bank and its ex-employee played a “decisive role” in concealing proceeds from crimes linked to "The Office." The story is on our homepage.

CREDIT SUISSE: Also looking to put distance between itself and some serious AML issues is Swiss lender Credit Suisse.

The company, now part of its former rival UBS, got a legal win this week - with the caveat that it came on a technicality.

The bank had been found guilty of failing to prevent money laundering by a major Bulgarian cocaine trafficking gang.

The Swiss Federal Court had found an ex-employee of the bank guilty of money-laundering, with Credit Suisse also guilty of an offence.

The former employee died in April 2023; her heirs and the bank filed an appeal that November.

The court said that because the woman had died, it was not possible to examine the alleged violation of the criminal code without violating the presumption of innocence in her case.

In the US meanwhile, a court has ruled OFAC acted outside its authority when it sanctioned cryptocurrency mixer Tornado Cash in 2022. The Treasury Department agency accused the crypto mixer of helping launder over $7 billion for North Korean hackers and other malicious cyber actors

But a three judge court at the New Orleans-based 5th U.S. Circuit Court of Appeals on Tuesday sided with six users of Tornado Cash who with the financial backing of the cryptocurrency exchange Coinbase filed a lawsuit challenging the sanctions. It is a major setback by supervisors tackling money laundering thru crypto. We report here: Court overturns OFAC sanctions on cryptocurrency mixer Tornado Cash over $7 billion cyber laundering

LATAM

VENEZUELA: Countries and international bodies around the world have recognised that Nicolas Maduro’s supposed victory in Venezuela's presidential election was fraudulent.

Despite this, he has hung onto his position, propped up by a variety of prominent state officials who still support him.

New U.S. sanctions target 21 of these officials, including ministers and militia leaders.

The measures freeze the U.S.-based assets of sanctioned individuals and prohibit Americans from conducting business with them.

Perhaps more importantly, it means international financial institutions engaging with them risk being sanctioned themselves.

According to the U.S., the new sanctions are an attempt to hold accountable those who use violence and intimidation to undermine democratic governance.

INSIGHT

AI: With financial institutions scrambling to implement AI into compliance models, it’s worth knowing how they could be impacted by the EU’s latest rules covering exactly this area.

That’s why Shagufta Siddiqa, Assistant Vice President in Model Validation at Barclays India, has taken a look at the compliance implications of the EU’s new AI Act.

Readers can get insight into the six 'general principles' which are to be the stepping stone for the development and usage of any AI model.

The piece also details the possible implications of straying from the Act, such as being liable or hefty fines which could be based on turnover.

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

‘EUROPEAN Anti-Financial Crime Summit 2025′ (EAFCS 2025), hosted by AML Intelligence, is set to return to Dublin on May 7 next, it’s been confirmed.

EAFCS is a key platform for top executives from banks, financial institutions, tech companies, regulators, and policymakers to discuss the most pressing issues in anti-financial crime.

The summit, which has become one of the most significant events on the European calendar, offers attendees the chance to hear from high-profile speakers and network with influential decision-makers in the field.

Join 900 Delegates from across the globe. Registration is now open . Early Bird Rates now available.

CRIME

VAT: Finally, the financial damage estimated to have been caused by Europe’s biggest VAT fraud has risen to €2.9 billion, officials have said.

The European Public Prosecutor’s Office (EPPO) said it has uncovered a criminal syndicate “suspected of a complex VAT fraud scheme involving the trade of popular electronic goods and creating an estimated VAT loss of €297 million.”

The #EPPO said the scheme is thought to be one of those involved in a wider VAT carousel fraud – “a complex criminal scheme that takes advantage of EU rules on cross-border transactions between its Member States, as these are exempt from value-added tax.”

Investigators linked the latest fraud to a criminal syndicate based in the Baltics that operated over 400 companies across 15 EU countries.

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