Category: Financial Crime

Regulatory Watch News

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  Taxi drivers turned into managers to receive EU funds for leadership training – two convictions for subsidy fraud in Czechia

  European Public Prosecutor's Office

  May 31, 2023

  An investigation by the European Public Prosecutor’s Office (EPPO) in České Budějovice (Czechia) revealed that in 2017, the convicted person and her company claimed to be providing soft skills leadership training for managers, and had received up to €70 800 (CZK 1 700 000) in EU funds for it. However, the investigation proved that the majority of the documented participants were not managers, but taxi drivers, who had never attended any training session. The company owner was sentenced to 30 months of imprisonment with a probationary period of four years and a financial penalty of €8 500. The company was prohibited from applying for and receiving subsidies for a period of six years.

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  EBA consults on amendments to the Guidelines on money laundering and terrorist financing risk factors to include crypto-asset service providers

  European Banking Authority

  May 31, 2023

  The European Banking Authority (EBA) launched today a public consultation on amendments to its Guidelines on money laundering and terrorist financing (ML/TF) risk factors. The proposed changes extend the scope of these Guidelines to crypto-asset service providers (CASPs). The consultation runs until 31 August 2023. CASPs as well as other credit and financial institutions are exposed to ML/TF risks. For CASPs, these risks can be increased, due to, for example, the use of innovative technologies, instant transfers of crypto assets across the world and services that contain privacy-enhancing features.

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  AUSTRAC accepts Enforceable Undertaking from Bank of Queensland

  Austrac

  May 31, 2023

  AUSTRAC has accepted an Enforceable Undertaking from the Bank of Queensland Limited (BoQ) to improve its compliance with Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws. The action follows a compliance inspection by AUSTRAC which identified concerns relating to the adequacy of BoQ’s AML/CTF systems and controls. The enforceable undertaking binds BoQ to an ongoing remedial action plan to improve its AML/CTF program, which AUSTRAC will monitor to ensure it is undertaken within agreed timeframes. As part of the enforceable undertaking, BoQ will engage an external auditor who will report back to AUSTRAC.