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

Luxembourg’s Financial Regulator Fines BGL BNP Paribas €3 Million

Luxembourg’s financial regulator, CSSF, has imposed a €3 million fine on BGL BNP Paribas for non-compliance with anti-money laundering (AML) laws. The penalty, one of the largest ever issued by the CSSF, stems from an inspection conducted between May and November 2021. This follows a similar precedent set in 2020 when Banque Internationale à Luxembourg was fined €4.6 million for analogous breaches. This significant enforcement action underscores the importance of stringent AML measures and continuous regulatory scrutiny.

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Big Mafia Money-laundering Ring Uncovered In Rome

In a major crackdown, Rome’s DDA anti-mafia investigators have dismantled a substantial money-laundering operation linked to crime syndicates. The probe, initiated in 2018, culminated in a nationwide operation on Tuesday, resulting in the arrest of 18 individuals and the seizure of assets worth €131 million. The suspects are accused of aiding prominent mafia clans, including the Mazzarella, D’amico, Mancuso, Mazzaferro, and Senese clans. This operation highlights the extensive efforts required to combat organized crime and the pervasive issue of money laundering within these networks.

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Crypto Payment Service Payeer Hit With Record $10 Million Fine In Lithuania

Lithuania’s Financial Crime Investigation Service (FNTT) has levied a record fine of €9.29 million ($10 million) against crypto payment company Payeer. The fine, announced on July 7, was issued due to Payeer’s violations of AML regulations and facilitating transactions with sanctioned banks. This marks the largest penalty imposed on a virtual asset service provider in Lithuania, reflecting the increasing regulatory focus on the cryptocurrency sector to ensure compliance with financial crime prevention measures.

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Citigroup Fined $136 Million For Compliance Failures

Citigroup has been fined $135.6 million by U.S. banking regulators for persistent failures in risk control and data management. This penalty adds to the challenges faced by CEO Jane Fraser, with ongoing regulatory issues affecting the bank’s operations. Acting Comptroller of the Currency Michael Hsu emphasized the need for Citigroup to address its long-standing deficiencies and allocate appropriate resources to mitigate these risks. The Federal Reserve also highlighted that a 2023 inspection revealed ongoing data control problems, reinforcing the necessity for robust compliance frameworks.

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Court Orders Freeze On Assets Of Alice Guo, POGO Firms And Cohorts

The Court of Appeals (CA) has issued a freeze order on all bank accounts and assets belonging to Bamban, Tarlac Mayor Alice Guo, due to her alleged involvement with illegal Philippine offshore gaming operators (POGOs). The CA’s 61-page resolution details the freezing of 90 bank accounts, 12 real estate properties, and 13 vehicles linked to Guo and her associates. This action follows an investigation by the Anti-Money Laundering Council (AMLC), which uncovered significant connections between Guo’s business operations and illicit POGO activities. This case underscores the critical role of AML measures in detecting and addressing financial crimes associated with high-risk industries.

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Italy: EPPO Seizes Assets In €1.3 Million Fraud And Money Laundering Investigation

The European Public Prosecutor’s Office (EPPO) in Naples has coordinated with the Italian Financial Police to freeze assets worth €1.3 million linked to fraud, embezzlement, and money laundering. The investigation targets four companies and their legal representatives, suspected of misappropriating EU funds. One company fraudulently secured €1.3 million in grants for SME development projects, with significant portions of the funds disbursed. This action highlights the EPPO’s commitment to protecting EU financial interests and ensuring accountability for the misuse of public funds.

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