AML Intel Q1 2025: Trends, risks, and global developments

Regional AML updates

1. Europe and the UK
2. North America
3. Asia and the Pacific

Europe and the UK

• Czechia: The central bank plans to allocate 5% of its €140bn reserves into Bitcoin, becoming the first EU country to hold crypto assets.
• European Union:
  • EU countries, including France, Germany and the UK, were considering using over €200bn in frozen Russian assets to pressure a ceasefire in Ukraine. Talks are ongoing to find a solution balancing security with international law.
  • Europol’s report highlights emerging threats from crime networks in Europe, including rising cybercrime risks involving artificial intelligence, cryptocurrencies and online fraud schemes used for money laundering.
• France: French prosecutors are intensifying investigations into Binance, alleging it likely enabled money laundering linked to drug trafficking and tax fraud.
• Guernsey: A recent Moneyval report confirmed Guernsey’s strong AML regulation. The island has significantly strengthened its regulatory framework since 2015, now operating a robust AML/CFT regime.
• Hungary: The US Treasury sanctioned Antal Rogán, Chief of Staff to Hungary’s president, alleging he established and operated a nationwide corruption network for personal gain.
• Ireland:
  • Cantor Fitzgerald was fined €452,790 for failing to properly monitor and report suspicious trades, breaching AML requirements.
  • A Black Axe gang member was sentenced to five and a half years in prison for laundering over €1 million obtained via online fraud and bank scams.
  • The Irish government has published its 2025 terrorist financing risk assessment, stating that the risk of terrorist financing in Ireland is considered moderate.
• Netherlands: De Nederlandsche Bank fined de Volksbank €20 million for deficient AML controls and failing to ensure sound business conduct.
• Portugal: The Portuguese public prosecutor is investigating suspected tax fraud and money laundering related to transfers between football clubs Valencia CF and SL Benfica. The probe involves inflated fees and illicit commissions in player deals.
• Russia: US officials have been instructed to draft proposals for easing sanctions on specific Russian individuals and entities to improve diplomatic and economic relations. Details of potential concessions remain unclear.
• Spain:
  • The National Police, with Europol, arrested 14 people in connection with a €1 trillion laundering network linked to drug trafficking. The group used the informal “Hawala” method to move funds.
  • SEPBLAC fined ING Spain €3.91 million for failing to report suspicious transactions, highlighting ongoing pressure for compliance in Spain’s banking sector.
• Sweden: The US Treasury sanctioned the Foxtrot network, a Sweden-based operation linked to Iran, for laundering illicit funds for sanctioned entities including the Iranian government.
• Switzerland: Swiss regulators raised concerns about criminal networks using cryptocurrencies for money laundering and organised crime, and are working to tighten related legislation.
• UK:
  • The UK Gambling Commission fined Greentube Alderney £1 million for repeated AML breaches. It warned of stricter future penalties for non-compliance.
  • A Regent’s Park mansion, formerly owned by Saudi royals, was sold for £139 million to a Luxembourg fund, with ownership obscured by offshore trusts. Transparency remains an issue.
  • The Solicitors Regulation Authority (SRA) took no action against Discreet Law, which represented Yevgeny Prigozhin, despite his being under UK sanctions. The firm had petitioned OFSI to release funds.
  • The UK and UAE have enhanced cooperation on financial crime through CAMLOT, a joint anti-money laundering team targeting UK nationals involved in organised crime in the UAE.
  • Four individuals were sentenced for running a £200 million laundering scheme, one of the UK’s largest, involving shell companies and offshore accounts.
  • HMRC has fined UK art businesses up to £13,000 for failing AML compliance. Since 2021, at least 31 art market participants have been penalised for failing to register or submit required information.
  • Grant Thornton UK published an article on the FCA’s digital asset strategy. With fragmented oversight and growing demand, the FCA aims to take a more active regulatory role.
  • Academic research flagged that Premier League club structures may enable money laundering. Offshore ownership obscures transparency. Football transfers will fall under EU AML laws from 2029.
  • The SRA has welcomed new powers to take action against law firms with poor AML compliance. Although misconduct has been identified, enforcement remains limited.
  • AG Communications Ltd agreed to pay £1.4 million after the UK Gambling Commission found failures in addressing suspicious spending and delayed AML checks.
  • The FCA has launched a five-year strategy focusing on trust, risk management and growth. Plans include reducing red tape, digitising systems and using technology to improve regulation.
  • The UK Treasury released its 2023/24 AML/CFT supervisory report, outlining public and private sector enforcement data, regulatory changes and significant fines.

North America

• Canada:
  • Raymond Chun, CEO of TD Bank, assured investors the bank is strengthening its first and second line defences. It has also appointed a new Head of Financial Crime and Risk Management, following reports of systemic AML policy breaches.
  • The Canadian Department of Finance has introduced new regulatory amendments targeting money laundering linked to transnational crime and drug trafficking, particularly fentanyl. These complement the newly formed Canada–US Joint Strike Force focused on cross-border organised crime.
• USA:
  • UBS is investigating legacy Credit Suisse accounts potentially linked to Nazi affiliations and marked as “American blacklist”.
  • The State of Utah has filed a federal lawsuit against TikTok and ByteDance, alleging the platform has facilitated child exploitation, money laundering and drug trafficking.
  • Robinhood has agreed to pay a $45 million penalty following SEC findings of past securities violations, including failures in suspicious trading reports and inadequate controls. These issues have since been addressed.
  • According to the New York Times, regulators from 48 US states fined Block Inc., owner of Cash App, over AML deficiencies and non-compliance with the Bank Secrecy Act.
  • The US government is proceeding with the trial of former Cognizant executives accused of bribing Indian officials for construction permits.
  • US banking executives are lobbying for reduced regulations, including raising reporting thresholds from $10,000 to $100,000 and relaxing capital rules. Critics warn this could erode consumer protection and stability.
  • The US Treasury has suspended enforcement of parts of the Corporate Transparency Act (CTA), which required companies to disclose beneficial ownership.
  • FinCEN has issued a consent order against Brinks, imposing a $37 million civil penalty for Bank Secrecy Act violations and requiring a comprehensive AML compliance overhaul.
  • A US presidential executive order directed the Department of Justice to halt enforcement of anti-bribery and corruption laws.
  • Citigroup mistakenly credited a client’s account with USD $81 trillion. The error was quickly identified and reversed, but the incident raised concerns over internal controls in financial operations.

Asia and the Pacific

• Australia:
  • Amendments to Australia’s AML/CTF Act (2024) have expanded AUSTRAC’s powers. From January 2025, the regulator can impose tougher enforcement actions, including imprisonment and higher fines.
  • The deputy CEO of Entain, one of Australia’s largest gambling firms, has resigned following a money laundering probe. AUSTRAC claims the company accepted AUD152 million in bets from 17 high-risk customers linked to criminal networks.
• Bangladesh: The central bank has engaged EY, Deloitte and KPMG to investigate assets lost during previous leadership. Authorities aim to recover at least USD 16.4 billion. Legal proceedings are underway.
• China (Mainland):
  • Cai Tong Securities was fined CNY1.95 million (USD 247,400) by the People’s Bank of China for ineffective AML procedures. It is the first brokerage fined under China’s revised AML law.
  • China’s updated AML law strengthens enforcement, expands predicate offences and enhances oversight of non-financial sectors. It also targets illegal wildlife trade.
  • Shanghai’s government has issued new rules to improve coordination in tackling money laundering, corruption and bribery (Source - The Paper.cn).
  • The People’s Bank of China met with Gulf Arab states to strengthen cooperation on digital currencies and AML enforcement.
  • The Supreme People’s Procuratorate (SSP) plans to intensify action against corruption-related laundering. New measures include broader investigative powers and tighter supervision.
• Hong Kong:
  • The Independent Commission Against Corruption (ICAC) has charged two former senior bank employees with fraud and laundering more than HK$200 million through fake loans.
  • The Securities and Futures Commission fined Hang Seng Bank HK$66.4 million for compliance failures in selling investment products.
• Japan:
  • Aeon Bank was ordered to improve AML controls after failing to review or report thousands of suspicious transactions. Japan’s financial institutions face increasing pressure to tackle evolving, tech-enabled criminal networks. (Source - Japan News)
  • The EU and Japan’s Strategic Partnership Agreement (SPA), which began in January 2025, enhances cooperation in security, counter-terrorism and international crime.
• Macau: Lau Chak Kwong, VP of the Bank of China Macau Branch and alumnus of Macau University of Science and Technology, shared insights into his anti-money laundering research journey in a recent interview.
• Myanmar: Authorities in Thailand and Myanmar are seeing a surge in scams run by Chinese gangs, with one town dubbed the “global scam capital”. China is intensifying efforts to disrupt these networks.
• New Zealand: New Zealand’s Police Financial Intelligence Unit released its 2025 national risk assessment. Key threats include laundering proceeds from drug smuggling and proliferation financing.
• Philippines: Mastercard has launched TRACE, its AI-powered financial crime detection tool, in the Philippines—the second global rollout after the UK. TRACE monitors real-time payment networks for suspicious activity.
• Singapore:
  • Wang Junjie has been charged in connection with Singapore’s record S$3 billion laundering case. Two former bankers were also charged in 2024.
  • While Singapore’s neutral stance benefits from US ties and Chinese capital, weak enforcement may allow crime syndicates to exploit its financial system for laundering and sanctions evasion.
• Taiwan:
  • MJIB Chief Michael Chen visited Palau to improve judicial cooperation on laundering and fraud linked to Chinese syndicates.
  • Taipei hosted a Global Cooperation and Training Framework (GCTF) workshop on illicit financial flows, co-organised by Taiwan and officials from the US, Japan and Canada. Over 300 attendees from 37 countries participated.

Crypto & AI

• AI ‘deepfakes’ used to bypass KYC software: Konstantin Simonchik, Chief Scientist and Co-founder of ID R&D, shared an example of an AI-generated deepfake of an Estonian passport. The image was deliberately created by criminal groups to pass Know Your Customer (KYC) checks.
• AI use in AML increases demand for skilled professionals: The former head of Israel’s ML/TF Financial Prohibition Authority emphasised that AI will not replace AML professionals. Instead, it will heighten the need for skilled experts who can interpret AI findings, assess risks and ensure regulatory compliance.
• Taiwanese man arrested for illegal USDT dealings: Taiwanese authorities arrested a 30-year-old man operating as an unregistered virtual currency dealer under newly enforced AML rules.
• South Korea vows to crack down on crypto laundering: At Anti-Money Laundering Day in Seoul, Kim Byung-Hwan, chairman of the Financial Services Commission (FSC), announced a crackdown on laundering via virtual assets, citing increased misuse for illicit purposes.
• Upbit may face sanctions in South Korea: Upbit, one of South Korea’s largest crypto exchanges, has been notified by the Financial Intelligence Unit (FIU) of possible sanctions. If confirmed, the firm could be barred from taking on new customers for up to six months.
• Japan faces persistent crypto laundering risks: While global crypto crime declined by 19.6% in 2024, Japan continues to face domestic laundering risks. The Japanese Financial Intelligence Authority (JAFIC) highlighted concerns in its latest report.
• North Korea hacks ByBit and launders funds: The Lazarus Group, linked to North Korea, laundered over $300 million of the $1.5 billion stolen from ByBit. The stolen crypto is now nearly untraceable, thanks to advanced laundering techniques.
• Lazarus Group’s “sandwich attacks” evade detection: According to blockchain analysts, Lazarus Group uses “sandwich attacks” to manipulate token prices around its own transactions. This tactic profits from internal trades while obscuring fund movements.

Other highlights

• FATF grey list changes: The Financial Action Task Force (FATF) has added Nepal and Laos to its grey list due to failures in meeting AML/CFT standards. The Philippines has been removed after addressing FATF concerns.
• US DOJ disbands Russian sanctions task force: The US Department of Justice has disbanded task force KleptoCapture, which was set up to enforce sanctions against Russian oligarchs following the 2022 invasion of Ukraine. Under new Attorney General Pam Bondi, the DOJ will now redirect resources towards fighting drug cartels and international gangs.

Stay ahead of evolving AML risks

Q1 2025 underscores a rapidly changing financial crime landscape shaped by complex threats, new technologies and shifting global regulations. With increased crypto enforcement and AI-driven laundering methods, AML compliance is more important than ever.

Organisations must stay agile and informed to manage these changes effectively. For tailored AML advisory, risk assessments or support with regulatory obligations, contact our financial crime team today.

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