Our monthly round up of news items relevant to AML regulated businesses
Cyber Security
Criminal businesses – Organised criminals operate in much the same way as legitimate businesses, so it should come as little surprise that in the world of cybercrime at least, they have recruitment strategies. Researchers from Kaspersky found offers of employment benefits and salaries as high as $1.2 million were being advertised on the Dark Web. Apparently some groups were also found to conduct regular performance reviews of their contractors.
Criminals innovate all the time, cyber crime is particularly attractive given the high rewards and low risk. Please get protected or face the consequences.
Where your breached data ends up – An average of eight companies a day are having their data leaked online to Dedicated Leak Sites (DLS), according to a report, by Group-IB’s Threat Intelligence division. According to the report, the industries most affected by data breaches were manufacturing (5.8% of all companies), financial services (5.1%), real estate (4.6%) and education (4.2%).
Regulatory
Organised crime takedown – Members of a Chinese-Australian money laundering organisation have been arrested in Sydney. The Xin Money Laundering Organisation (MLO) is alleged to have moved an estimated $10 billion offshore while amassing a blue-chip property portfolio comprising mansions, a luxury city building and hundreds of acres of land near Sydney’s second airport.
Be prepared, because this enquiry is investigating links to other jurisdictions, including, Asia, the Caribbean, Switzerland, America, and the United Arab Emirates.
Police have also seized cryptocurrency and are examining how the syndicate used crypto exchanges to move illicit funds.
Companies House and UBO’s – Around 40% of offshore companies have failed to declare their true owners and now face the prospect of fines or suspension of their ownership rights. The deadline for confirmation to UK Companies House was January 31st. The UBO register is one of many initiatives designed as part of the government’s anti-money laundering regulations.
Due Diligence
Bribery and corruption – Transparency International has drawn attention to five countries that traditionally score highly regarding anti-corruption. Apparently, Australia, Austria, Canada, Luxembourg, and the United Kingdom have seen a significant decline in their assessments. The UK has come under particular criticism for the amount of property found to be owned by Russians accused of financial crime.
Expect further regulatory requirements for lawyers, accountants, money managers, and corporate formation agents.
Fraud prioritised – Fraud in the UK is set to become a strategic policing requirement under plans revealed by the Government. In the plans it is expected that Action Fraud will be reviewed, a new computer system will be utilised to conduct analysis and ten regional fraud squads will be formed.
