Welcome to our weekly newsletter that provides the most recent updates and insights regarding AML, financial crime compliance, and emerging risks.
The main news articles from last week are:
1) Maximiliano Pilipi, formerly of Noblesville and now residing in Florida, faces federal money laundering charges for operating an unlicensed money transmitting business, Aurum Capital Holdings, from 2007 to 2013. The IRS seized nearly $10 million from Pilipi’s Morgan Stanley accounts, alleging he flipped cryptocurrency into government-backed currency. Pilipi, who failed to register his business with the Financial Crimes Enforcement Network, is accused of laundering proceeds through darknet transactions. The IRS contends Pilipi knew his actions were unlawful, attempting to conceal his Bitcoin transfers. He allegedly used laundered funds to buy properties in Noblesville and Arcadia. Pilipi’s preliminary hearing is scheduled for January 12 in a Florida federal court.

2) Global law firm Clyde & Co received a £500,000 ($635,613) fine for numerous breaches of money laundering regulations tied to a shipping industry client, known as Company A, over 14 transactions from 2014 to 2018. Clyde & Co admitted inadequate due diligence and expressed regret, noting improvements in risk management and regulatory compliance since identifying the issues in 2018. The fine equals the record imposed on Locke Lord in 2017. SRA Chief Executive Paul Philip stated the penalty should serve as a warning, emphasizing the need for robust anti-money laundering processes. Ed Mills-Webb, linked to the case, admitted contributing to the due diligence failure and was fined £11,900.

3) Koreatown lawyer Paulinus Iheanacho Okoronkwo, 67, faces federal charges related to an alleged $2.1 million bribe while serving as an officer of Nigeria’s state-owned oil company. The five-count indictment includes charges of engaging in monetary transactions from unlawful activity, tax evasion, and obstruction of justice. Okoronkwo, a dual U.S.-Nigerian citizen and former general manager of the Nigerian National Petroleum Corp., allegedly received the bribe from a Swiss subsidiary of China’s Sinopec for negotiating drilling rights. To conceal the scheme, the payment was falsely characterized as legal fees. Okoronkwo is also accused of using a portion for a house purchase. If convicted, he could face up to 10 years for each money laundering count, 10 years for obstruction of justice, and 5 years for tax evasion. The FBI and IRS are investigating.

4) The Securities Commission (SC) has charged Chin Wai Lan, director of Pixelvest Sdn Bhd, with money laundering offenses exceeding RM164.5 million. The SC revealed that Chin faces 17 charges under the Anti-Money Laundering, Terrorism Financing, and Proceeds of Unlawful Activities Act for receiving proceeds of unlawful activities. The charges allege that Chin received illegal proceeds in her personal bank accounts and various companies she directs or partners with, including Pinetree Field, SC Wealth Planners, Quarters Venture, New Straits Venture, and Quarters Capital. The offenses reportedly occurred between December 23, 2020, and October 2, 2022, in Kuala Lumpur and Selangor. Chin has claimed trial to all charges and was granted bail at RM7 million with specified conditions. If convicted, she could face imprisonment for up to 15 years and a fine.

5) British authorities have dismantled a money-laundering network, convicting two men for smuggling over £100 million ($125 million) in cash from London to Dubai. The network employed couriers, posing as tourists, who were paid up to £5,000 to transport cash bags. Traveling in business class for extra luggage allowances, they checked in three to four suitcases, each containing £1 million or more. Couriers received customs declarations and suitcase lock codes upon arrival. Financial crime lawyers note increased regulation has forced criminals to seek alternative methods, like physical transportation. The National Crime Agency suspects the money primarily originated from drug dealing during the pandemic.

6) In the Mahadev online betting and gaming app money laundering case, the Enforcement Directorate (ED) has arrested Nitin Tibrewal and Amit Agrawal. Tibrewal, a close associate of accused Vikash Chapparia, is accused of acquiring undisclosed properties in Dubai and holding a significant stake in a foreign portfolio investment company linked to Chapparia. Amit Agrawal, a relative of another accused, Anil Kumar Agrawal, allegedly received funds from the Mahadev app. The ED suspects that the assets were obtained using proceeds from Mahadev app profits. The ongoing investigation has also involved celebrities and Bollywood actors connected to the online betting platform. The main promoters are detained in Dubai.