Elevate your Compliance and Security with Intelect Group. Our monthly round up of news items which are of particular relevance to those businesses regulated for the purposes of Anti-Money Laundering.
‘We prevent bad things happening to good people and their businesses’.
Cyber Security
AI, Corruption, and Digital Tools – a toxic mix fuelling Europe’s criminal underworld
Europol’s 2025 report paints a concerning picture of organised crime in the EU, revealing a landscape where criminal groups are more adaptable, technologically advanced, and deeply embedded than ever before. The EU Serious and Organised Crime Threat Assessment (EU-SOCTA) highlights how these groups exploit global instability, digital tools, and emerging technologies like AI to expand their reach and impact. This isn’t just about public safety, this is about the integrity of your business.
The Internet has become the central nervous system of organised crime, with nearly every type of serious crime having a digital component. Criminals use the internet for fraud, ransomware attacks, drug dealing, and money laundering, hiding behind anonymisation and using stolen data as currency.
Furthermore, the rapid adoption of AI is enabling criminals to automate tasks, evade detection, and operate at a greater scale, accelerating the pace and sophistication of their activities.
Comment – want to better understand your cyber crime exposure? Talk to us about a cyber security risk assessment, find out more here.
Organised Crime
Why Haulage Due Diligence is important
This case of a 61-year-old man charged with possessing cocaine hidden in banana boxes highlights a critical vulnerability in the supply chain, the haulage industry. While the focus often lands on producers and distributors, the transportation phase is ripe for exploitation, making thorough due diligence on haulage companies an absolute necessity.
The tangible nature of commodities such as drugs means they must move to their destination, and haulage companies can be the lynchpin. Criminals seek to infiltrate or exploit legitimate transportation businesses, using them to mask illicit activities.
Basic checks aren’t enough, ensure you scrutinise ownership structures, financial records, and operational procedures. Are there unexplained changes in shipping routes? Discrepancies in declared cargo? A lack of transparency in subcontracting? These are some of the red flags that require further investigation.
Comment – Are you a registered, designated or regulated business taking care of a haulage company? Have ‘you’ conducted sufficient due diligence?
Regulatory
Law firm fined for sanctions breach
Herbert Smith Freehills’ £465,000 fine for breaching Russian sanctions underscores a critical lesson, even the most sophisticated organisations are vulnerable to compliance failures, highlighting the ever-present need for meticulous due diligence and robust internal controls.
The firm made payments totaling £3.9 million to sanctioned Russian banks while winding down its Moscow office, a mistake attributed to “human error.”
While HSF self-reported the breach and cooperated with the investigation, the fine demonstrates that unintentional mistakes are not an excuse when it comes to sanctions compliance. The case illustrates that even firms with established compliance programs can fall foul of sanctions regulations, meaning that a constant state of vigilance is required.
Comment – For due diligence professionals, this case reinforces several key points. First, sanctions screening must be comprehensive and ongoing, not just a one-time check. Second, internal processes must be designed to minimise human error, with multiple layers of verification and clear lines of responsibility.
Finally, swift action and transparency in self-reporting are crucial in mitigating the consequences of a breach. In an environment of constantly evolving sanctions, firms need to ensure their due diligence is up to the task.
Do you want an effective tool to help manage you due diligence and risk assessment responsibilities? Look no further than Investigation Engine.
