INSIGHT: EU’s AML rulebook faces first real test over due diligence

Regulatory Watch News

• 

  Terrorist Financing Targeting Center Jointly Designates Hizballah Financial Institutions and Senior Officials

  US Department of the Treasury

  June 30, 2026

  WASHINGTON—Today, the member states of the Terrorist Financing Targeting Center (TFTC) announced joint designations targeting multiple key components of Hizballah’s financial infrastructure, including five entities and 16 individuals. The targets include major Hizballah institutions Al-Qard Al-Hassan (AQAH) and Bayt al-Mal, as well as their senior leaders. These coordinated actions underscore TFTC members’ shared commitment to disrupting Hizballah’s ability to exploit the international financial system. All targets announced today were previously designated by the United States. The TFTC conducts joint actions, such as sanctions designations, exchanges actionable information on terrorist financing networks, and builds member capacity to counter terrorist networks that threaten security and stability.

• 

  Italy: EPPO freezes textile products worth €11 million in ongoing investigation into smuggling of fabric from China

  European Public Prosecutor's Office

  June 30, 2026

  (Luxembourg, 30 June 2026) – At the request of the European Public Prosecutor’s Office (EPPO) in Bologna (Italy), the Judge for Preliminary Investigations in Prato has issued a freezing order covering over 7.8 million metres of fabric and more than 237 000 garments, as part of an ongoing investigation into a VAT and customs fraud involving the smuggling of textile products from China. As previously reported, the goods, with an estimated market value of approximately €11 million, had been seized as evidence during searches carried out in warehouses in Prato. Following further investigative activities, the EPPO established the exact quantity and value of the seized products, as well as the amount of customs duties and import VAT allegedly evaded. On this basis, the court ordered their preventive freezing, with a view to their possible confiscation and sale by public auction

• 

  EVENT: Launching the FATF’s Roadmap 26-28 on Combatting Fraud

  FATF

  June 30, 2026

  On 1 July, the Financial Action Task Force (FATF) will bring together key partners and stakeholders to officially launch its 2026-2028 Roadmap on Combatting Fraud. Fraud is one of the most pervasive and damaging financial crimes affecting individuals, businesses, and the integrity of financial systems worldwide, so tackling the fraud epidemic is one of the FATF’s key strategic priorities under the incoming UK 2026-2028 Presidency.  The virtual event, taking place on the first day of the UK Presidency, will bring together members of the FATF Global Network, FATF observers, and other stakeholders and partners to shape the FATF’s response to the global fraud epidemic.