NEWS: KPMG accused of ‘appalling’ audit work of Chinese biotech firm linked to $400M accounting fraud

Regulatory Watch News

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  Germany: Individual arrested over €1.1 million fraud involving subsidies for renovation of historic buildings and suspected arson

  European Public Prosecutor's Office

  November 6, 2026

  (Luxembourg, 6 November 2026) – At the request of the European Public Prosecutor’s Office (EPPO) in Berlin (Germany), an individual was arrested this week on suspicion of fraudulently obtaining over €1.1 million in EU subsidies intended for the renovation of two historic buildings. He is also suspected of deliberately setting fire to one of the buildings in an attempt to conceal the alleged fraud. The arrested suspect was the representative of two non-profit associations based in the German federal state of Saxony-Anhalt. He applied for and received EU subsidies from the European Regional Development Fund (ERDF), totalling €1 126 299, for the renovation of two historic buildings, including energy-efficiency improvements. The buildings were intended for cultural activities, following their renovation.

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  Treasury Targets Global Scam Networks and the Corporate Infrastructure That Enables Them

  OFAC

  November 5, 2026

  WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned four individuals and 41 entities that support the business network of Prince Group Transnational Criminal Organization (TCO) previously sanctioned by the United States for its role in cyber-enabled fraud, money laundering, and human trafficking.  Additionally, OFAC designated a Malaysian individual who defrauded U.S. victims by managing a network of Africa-based scammers.

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  FCA to explore quantum computing to tackle financial crime

  Financial Conduct Authority

  November 5, 2026

  A new initiative will bring together firms, quantum technology providers, and national research labs to explore practical applications of quantum computing.

  The FCA will bring together financial services firms, quantum technology providers and national research laboratories to explore how quantum computing could help tackle financial crime. The Quantum Experimentation Group, the first of its kind for a regulator, will initially explore how quantum machine learning could help detect money laundering and fraud. It will launch in the first quarter of 2027. Participants will use an FCA synthetic dataset – artificially generated data – to help overcome a key barrier to testing: access to suitable data.