It’s been a busy week in the AML world. We start with a thought-provoking piece on how federated machine learning and AI could be an important, privacy-safe way of helping combat money laundering.

We have an interesting article on how European consumers still value physical channels for conducting banking transactions. Although digital transactions are on the rise in some countries, in others they’ve fallen back since the pandemic. Many customers still prefer a mix of both physical and digital channels.

In our Gambling coverage this week, we look at the debate over football and gambling sparked by the lengthy ban imposed on Brentford striker Ivan Toney.

To complete this week’s Roundup, we provide you with further money laundering, fraud, corruption and bribery updates from around the world, the latest on gaming and gambling regulation, news from the crypto and virtual assets sector and what’s new in global sanctions including the EU’s plans to use interest on frozen Russian assets to help Ukraine.

Money Laundering, Fraud, & Corruption

Federated Machine Learning for combatting money laundering

In this article, Chandra Gundlapalli, a Forbes Councils Member discusses the potential for federated machine learning and AI to power fund diversion detection whilst addressing data privacy and GDPR requirements.

New report shows world’s largest companies still not providing full disclosure of anti-corruption information within their sustainability reporting

The findings of a new report authored by Transparency International UK and the International Federation of Accountants (IFAC) and World Economic Forum’s Partnering against Corruption Initiative (the Forum), shows there is still significant inconsistency in anti-bribery and corruption disclosure expectations and corporate practices.

European Anti-Financial Crime Summit takes place in Dublin attended by 400 fincrime leaders

Attendees heard from regulators, banking, fintech and law enforcement speakers from across the EU, UK and US at this one-day event. Eurogroup President Paschal Donohoe opened the event stating that AML and anti-financial crime measures were now high on the agenda every month of the EU’s 20 eurozone finance ministers.

UAE Central Bank publishes new guidelines to fight money laundering and terrorism financing

These new rules are designed to help Licensed Financial Institutions (LFIs) better understand the risks associated with money laundering and terrorist financing, so they can more effectively discharge their legal obligations.

Legislation, Reports, Analyses, & Opinions

One in three European consumers still use physical banking channels

Research conducted across banks in Western Europe shows customers wanting a combination of physical and digital channels when using banking services. In some European countries, digital use has declined since the pandemic however, the UK and Spain have shown dramatic rises with digital purchases increasing from 16% to 38% in Spain and 48% to 69% in the UK between 2020 and 2023.

Gaming and Gambling

Brentford and England striker Ivan Toney’s eight-month ban brings the relationship between football and gambling companies into sharp relief

Toney was charged with 262 betting offences and admitted 232 breaches – including betting on his own team to lose. His manager at the club Thomas Frank stated that “Football and gambling’s relationship needs a review“.

Australia’s Crown Casinos group agrees to pay AU$450m fine for failing to follow anti-money laundering laws

Crown Resorts have reached an agreement with Austrac (the Australian Transaction Reports and Analysis Centre) after an investigation that identified poor governance and risk management failures at Crown. Crown Resorts CEO apologised for the failings in a statement published on their website.

Betting and Gaming Industry Promotes Safer Gambling Week 2023

The Betting and Gaming Council (BGC) is supporting this year’s Safer Gambling Week event running from the 13-19 November 2023. Now in its sixth year, it’s an important event for the industry often criticized for not doing enough to support its customers.

Sanctions

EU considers plan to use profits from frozen Russian assets to assist Ukraine.

Officials from the EU Commission and member states met last week to discuss the possibility of using interest generated on €196.6bn of frozen Russian assets help Ukraine.

OFSI looks back on 5 months of Trust Services sanctions

Trust services sanctions limit the ability of persons designated (including those connected with Russia), from accessing the UK’s trust services. Since March 2023, over 1,820 people have been designated. Here the Office of Financial Sanctions Implementation (OFSI) who are responsible for their implementation, provides an update on the sanctions which came into effect on 16 December 2022.

US imposes measures on two Syrian money service businesses accused of helping the Syrian government maintain access to the international financial system in violation of sanctions

The US Government has said it will not normalise relations with the Syria even though it has recently been readmitted to the Arab League. It has identified two money service businesses, Al-Fadel Exchange and Al-Adham Exchange Company, it believes has helped the Syrian government and its allies.

Crypto & Virtual Assets

ESRB publishes report on crypto-assets and decentralised finance

The European Systemic Risk Board (ESRB) has published its latest report outlining the systemic implications of crypto markets, proposing policy options to address risks posed by crypto-assets and decentralised finance.

RiskScreen AML spotlight report

AML Vulnerabilities in Gaming and Gambling

Gaming and gambling companies risk getting caught in a pincer movement. On the one hand, criminal groups are eyeing the potential opportunities afforded by the industry to launder the proceeds of wrongdoing, particularly as online gambling has boomed.

On the other, regulators, alert to this danger, are increasingly cracking down on companies judged to have fallen short on anti-money laundering (AML) standards.

In this industry report, we look at:

– Where gambling and gaming companies face AML risks
– The regulatory environment
– How to ensure compliance with AML

Download this valuable compliance analysis here.