When an established company considers holding crypto, the compliance questions usually come first. Is the activity permissible? Is the exchange or custodian acceptable? Have the wallets been screened? Are AML and sanctions controls adequate? Those questions can all have satisfactory answers while the transaction still produces an outcome the institution did not intend. The reason […]
AML
Posted inBest Practices
Record-setting AML penalty against UBS was years in the making
FinCEN and several other regulators levied a combined $125 million penalty against UBS Financial Services (UBSFS), a broker-dealer and futures commission merchant, due to a series of long-standing compliance failures. The total penalty was a joint effort of federal regulators, including FINRA ($20 million), the Securities and Exchange Commission ($20 million), and the Commodity Futures Trading […]
Posted inFinancial Services
UBS hit with record $125M civil penalty for ‘willful’ BSA violations
UBS Financial Services was slapped with a record $125 million joint civil penalty by four regulatory agencies for willful violations of the Bank Secrecy Act, including a failure to implement and maintain an anti-money laundering compliance program and failure to file suspicious activity reports.
Posted inBest Practices
The hidden compliance cost of building AI-based AML tools in-house
“We can build that internally” sounds like control and savings — until the subject is AML risk assessment technology. A simple internal build can quietly become a governance liability. The real question isn’t whether the tool can be built, but whether it can be governed.
Posted inRegulatory Enforcement
Merrill Lynch to pay $7.5M for failure to file Suspicious Activity Reports
Bank of America’s Merrill Lynch brokerage unit has agreed to pay $7.5 million to settle SEC charges that it failed to file numerous Suspicious Activity Reports between April 2020 and September 2024 due to gaps in its transaction monitoring threshold.
Posted inCryptocurrency and Digital Assets
Experts weigh up challenges for firms, FCA under U.K. plan to regulate crypto
The U.K. has set itself a path to regulate crypto from the end of next year that is different to the rest of Europe. While the EU has created sector-specific rules for the industry under the Markets in Crypto Assets Regulation, the U.K. will instead make crypto firms subject to the same rules as every other financial services provider.
Posted inAML
Bosnia and Herzegovina, and Iraq, added to international watchdog’s list for AML failings
Iraq and Bosnia and Herzegovina need to improve their anti-money laundering/countering the financing of terrorism programs and have been added to the FATF’s grey list.
Posted inAML
New AML investigation into Wise adds pressure on compliance in rapid growth fintechs and challenger banks
Belgian authorities are investigating money-transfer fintech Wise for its controls around suspicious transactions worth over $577 million across 30 European countries. The current investigation only concerns the fintech’s EU operations, but the company has a history of fines for weak financial controls in several regions, including the U.S. and the Middle East.
Posted inFinancial Services
U.K. slashes FS rules, seeks closer EU regulation ties to boost growth
The U.K. government has announced a raft of legislation that will drastically cut compliance requirements in the financial services sector, as well as aim to bring the United Kingdom more in line with the EU to simplify customs regulations and boost trade.
Posted inAML
Most FS firms expect to miss EU AML deadline amid data and due diligence challenges
Two-thirds of financial services firms will not be able to meet the requirements of the EU anti-money laundering package when it comes into force in July 2027.
