This week we begin with Lithuania’s EMI facing allegations of laundering EUR 2 bn, prompting intensified investigations across Italy and Latvia. The unfolding scandal has resulted in further arrests and raids as authorities crack down on the illicit financial activities. The case highlights the need for enhanced regulatory measures to combat money laundering and underscores the importance of international cooperation in tackling financial crimes of this magnitude. Furthermore, The European Public Prosecutor’s Office (EPPO) uncovers a significant VAT fraud scheme with its roots in Italy, where EUR 220 million in taxes were evaded through illegal cross-border financial operations. The investigation sheds light on the complexities of combating transnational financial crimes and underscores the necessity for enhanced regulatory measures and international cooperation to tackle such widespread fraud effectively.

Moving on Vietnam proposes stricter regulations for cryptocurrency, aiming to enhance oversight and curb potential risks to financial stability and investor protection. The move comes amid growing concerns over the proliferation of digital assets and their potential for misuse in illicit activities. The proposed measures signal the government’s efforts to adapt to the evolving landscape of financial technology while ensuring the safety and integrity of the country’s financial system. In a major crackdown, Green Dot Bank is directed by the Federal Reserve to bolster its anti-money laundering (AML) practices relating to consumer accounts, in response to regulatory scrutiny over potential compliance deficiencies. The order underscores the importance of robust AML controls in the banking sector and highlights the need for financial institutions to remain vigilant in preventing illicit financial activities while upholding regulatory standards and ensuring consumer protection.

Moving forth Paytm Payments Bank incurs a penalty of INR 54.9 Mn for breaching anti-money laundering regulations, underscoring the regulatory scrutiny faced by digital financial service providers in India. The fine highlights the importance of stringent compliance measures to prevent illicit financial activities and protect the integrity of the financial system. Paytm’s regulatory challenges emphasize the evolving landscape of financial technology and the need for robust regulatory oversight in the digital payments sector. The case underscores the prevalence of financial fraud schemes and highlights the importance of robust fraud detection measures to safeguard financial institutions and customers from fraudulent activities. Prosecutors continue to pursue justice in cases of financial fraud and illicit financial activities.