Welcome to this week’s edition of the Global AML News Weekly Digest. Here are the top stories making headlines around the world:

China Cracks Down on Bitcoin Money Laundering Ring

Chinese authorities have arrested 11 suspects in a significant cryptocurrency money-laundering case, seizing over 2 million yuan worth of digital assets. This operation highlights China’s ongoing strict stance on cryptocurrency activities, reinforcing the government’s commitment to cracking down on illegal financial activities involving digital currencies. The arrests are part of a broader effort to curb financial crimes and ensure financial stability within the country.

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FCA Calls for Improved Treatment of Politically Exposed Persons (PEPs)

The UK’s Financial Conduct Authority (FCA) has issued a directive to financial firms, urging them to enhance their treatment of Politically Exposed Persons (PEPs). The FCA has outlined several key points for firms to follow:- Definition Clarification: Firms should ensure their definition of a PEP, family member, or close associate is limited to the minimum required by law.
– Status Review: Promptly review the status of PEPs and their associates once they leave public office.
– Effective Communication: Communicate effectively with PEPs, explaining the reasons for actions in line with the Consumer Duty.
– Risk Assessment: Consider the actual level of risk posed by the customer and ensure information requests are proportionate.
– Staff Training: Improve training for staff dealing with PEPs.
This directive aims to prevent unfair treatment of parliamentarians, senior public servants, and their families while ensuring robust risk management practices.

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Chinese Tycoon Guo Convicted in US Over $1 Billion Scam

Guo Wengui, a self-exiled Chinese businessman, has been convicted by a US court of defrauding his online followers in a billion-dollar scam. Guo was found guilty on nine of the twelve criminal counts he faced, including racketeering, fraud, and money laundering. This high-profile case underscores the international reach of financial fraud and the importance of cross-border cooperation in bringing perpetrators to justice.

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Money Laundering Case: ED Attaches ₹300.11 Crore Worth of Properties Linked to M3M India

In a significant move against money laundering, the Enforcement Directorate (ED) has attached immovable properties valued at ₹300.11 crore (approximately USD 37 million) belonging to M3M India Infrastructures Private Ltd. The properties, spanning 88.29 acres, are linked to an alleged money laundering case. This action reflects India’s intensified efforts to combat financial crimes and recover illicit assets.

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Biggest Indian Crypto Exchange WazirX Hacked; $230 Million Stolen

India’s largest cryptocurrency exchange, WazirX, has suffered a major security breach resulting in the theft of over $230 million in digital assets. The breach, which occurred early Thursday, affected one of WazirX’s wallets, leading to significant user fund losses. The exchange, known as ‘India Ka Bitcoin Exchange,’ confirmed the breach and is currently working on security enhancements to prevent future incidents. This event highlights the critical need for robust security measures in the rapidly growing cryptocurrency sector.

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South Korea Enacts First Crypto Investor Protection Law

South Korea introduced its first law to protect cryptocurrency investors, the Virtual Asset User Protection Act, which came into force on Thursday. This law is part of the country’s effort to address regulatory gaps in the cryptocurrency industry and prevent unfair trading practices. The new regulations follow several high-profile incidents, including the Terra-Luna crash and the collapse of FTX, and are designed to bolster investor confidence and safeguard their interests.

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