Emerging Markets Targeted in Sophisticated APP Fraud Schemes
In Q3, emerging markets experienced a wave of sophisticated Authorized Push Payment (APP) fraud schemes, with victims losing over $500 million. Organized crime groups exploited vulnerabilities in digital payment systems and preyed on consumers with limited financial literacy. Fraudsters posed as legitimate businesses or financial institutions, tricking individuals into authorizing payments to fraudulent accounts. Governments […]
AML Failures Lead to Record Fines for Major European Bank
In Q2 2024, a leading European bank was fined €1.2 billion following revelations of significant anti-money laundering (AML) deficiencies. A multi-year investigation uncovered that the bank had failed to monitor high-risk accounts, especially those involving politically exposed persons (PEPs), and had inadequate transaction monitoring systems. Authorities noted that the bank ignored multiple red flags, including […]
Global Surge in Crypto-Related Fraud Highlights Weaknesses in Regulation
The first quarter of 2024 saw an alarming increase in crypto-related fraud cases, with total global losses exceeding $3 billion. Cybercriminals leveraged new and sophisticated techniques, including exploiting decentralized finance (DeFi) platforms and creating fraudulent initial coin offerings (ICOs). Phishing campaigns targeting crypto wallet users and social engineering attacks also surged. Regulatory bodies in the […]
UBS to buy crisis-hit bank Credit Suisse in bid to avoid financial chaos
Banking giant UBS will buy its ailing rival Credit Suisse in a snap deal brokered by Swiss authorities to avoid further chaos in markets after a series of high-profile financial failures. Swiss market watchdog Finma approved the takeover, which came after frantic talks between bank bosses and ministers desperate to secure a deal before nervous […]
Implementing Consumer Duty in Payment Firms
Dear CEO/Director, Firms authorised or registered under the Payment Services Regulations 2017 (“PSRs”)and the Electronic Money Regulations 2011 (“EMRs”) such as Payment Institutions (“PIs”),Electronic Money Institutions (“EMIs”) and Registered Account Information Service Providers(“RAISPs)” to help them implement and embed the Consumer Duty effectively. For many firms, meeting the Duty will require a significant shift in […]
Criminal Investigations in the UK: What to Watch for the UK and the EU in 2023
Developments to the UK criminal liability regime for corporates are expected to hit the statute books in 2023, with the introduction of new “failure to prevent” offences. As we saw with the introduction of the “failure to prevent bribery” offence under section 7 of the Bribery Act 2010, any such expansion of the “failure to […]
Regulators get tough on financial crime in the crypto sector
The collapse of FTX along with multiple firms accompanied by increasing levels of financial crime has provided the catalyst for the UK and other world governments to seek greater regulation of the crypto sector. The front runners on new moves to impose more robust crypto regulations are the US and UK in an attempt to […]
Suspicious Activity Report (SARs) Annual Report 2022
The UKFIU has published the 2022 Suspicious Activity Reports (SARs) Annual Report, which features statistics covering the years 2020-21 and 2021-22. The latest report reveals another record year with 901,255 SARs received and processed (a 21% increase on the previous year). In addition, £305.7M denied to suspected criminals as a result of Defence Against Money Laundering (DAML) […]
Threshold amount specified in the UK Proceeds of Crime Act has increased to £1,000
From January 05, 2023, the £250 threshold amount specified in section 339A of the Proceeds of Crime Act has increased to £1,000. The threshold amount is the value of criminal property below which a bank or similar firm (a deposit-taking body, electronic money or payment institution) can carry out a transaction, in operating an account for […]
Top Fraud Trends to Watch for in 2023
As the economic outlook around the world steadily worsens, the one area that is guaranteed to see growth in 2023 is fraud. So, this paper focuses on the ever-present threat of frauds and scams from criminal elements who use deception in its many forms to dishonestly make personal gain at the expense of their victims. […]