CSI has launched an artificial intelligence (AI)-powered anti-money laundering (AML) solution and said it plans to add more solutions of this kind later this year.
\nThe provider of financial software and technology said in a Monday (April 21) press release that these new solutions are powered by Dataseers, a B2B software-as-a-service (SaaS) company specializing in tools for risk, fraud, compliance and operations.
\nThe solution that was launched Monday, TruDetect, provides templates for suspicious activity report (SAR) and currency transaction report (CTR) narratives; customer behavior dashboards; tailored user roles, workflowsand alerts; and AI-powered risk confidence scoring, according to the release. It can be integrated into any core banking system.
\n\u201cTrueDetect seamlessly integrates into any bank\u2019s compliance team, instantly providing support and AML protection that causes no disruptions to the customer experience,\u201d CSI Chief Risk and Information Security Officer Steve Sanders said in the release.
\nThe solutions that will be rolled out later this year are called TrueProtect and will monitor for malicious account takeovers in addition to suspicious P2P, ACH, wire and card activity, per the release.
\n\u201cWith TruProtect, we\u2019re putting AI-powered prevention measures within reach for community banks, helping them stay one step ahead of bad actors without requiring specialized technical expertise or massive security teams,\u201d Sanders said in the release.
\nDataseers founder and CEO Adwait Joshi said in the release that the partnership between the two companies will enable financial institutions to not just react to threats, \u201cbut stay steps ahead, delivering trust and excellence at every turn.\u201d
\nThese new solutions are the latest offerings to CSI\u2019s growing product suite.
\nCSI said in September that it acquired overdraft management software firm Velocity Solutions to help bankers establish controls according to account behavior, giving them access to a real-time dashboard that tracks the health of their overdraft program.
\nIn July, CSI debuted a developer portal for community banks, saying it enables these banks to consider more application programming interfaces (APIs) across account opening, payments, document services and other applications, to onboard new solutions to open new lines of revenue, streamline back-office operations and enhance their engagement with account holders.
\nThe post CSI Launches AI-Powered AML Solution in Collaboration With Dataseers appeared first on PYMNTS.com.
\n", "content_text": "CSI has launched an artificial intelligence (AI)-powered anti-money laundering (AML) solution and said it plans to add more solutions of this kind later this year.\nThe provider of financial software and technology said in a Monday (April 21) press release that these new solutions are powered by Dataseers, a B2B software-as-a-service (SaaS) company specializing in tools for risk, fraud, compliance and operations.\nThe solution that was launched Monday, TruDetect, provides templates for suspicious activity report (SAR) and currency transaction report (CTR) narratives; customer behavior dashboards; tailored user roles, workflowsand alerts; and AI-powered risk confidence scoring, according to the release. It can be integrated into any core banking system.\n\u201cTrueDetect seamlessly integrates into any bank\u2019s compliance team, instantly providing support and AML protection that causes no disruptions to the customer experience,\u201d CSI Chief Risk and Information Security Officer Steve Sanders said in the release.\nThe solutions that will be rolled out later this year are called TrueProtect and will monitor for malicious account takeovers in addition to suspicious P2P, ACH, wire and card activity, per the release.\n\u201cWith TruProtect, we\u2019re putting AI-powered prevention measures within reach for community banks, helping them stay one step ahead of bad actors without requiring specialized technical expertise or massive security teams,\u201d Sanders said in the release.\nDataseers founder and CEO Adwait Joshi said in the release that the partnership between the two companies will enable financial institutions to not just react to threats, \u201cbut stay steps ahead, delivering trust and excellence at every turn.\u201d\nThese new solutions are the latest offerings to CSI\u2019s growing product suite.\nCSI said in September that it acquired overdraft management software firm Velocity Solutions to help bankers establish controls according to account behavior, giving them access to a real-time dashboard that tracks the health of their overdraft program.\nIn July, CSI debuted a developer portal for community banks, saying it enables these banks to consider more application programming interfaces (APIs) across account opening, payments, document services and other applications, to onboard new solutions to open new lines of revenue, streamline back-office operations and enhance their engagement with account holders.\nThe post CSI Launches AI-Powered AML Solution in Collaboration With Dataseers appeared first on PYMNTS.com.", "date_published": "2025-04-21T14:34:39-04:00", "date_modified": "2025-04-21T14:34:39-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/04/CSI-AML-Dataseers.png", "tags": [ "AI", "AML", "Anti-Money Laundering", "artificial intelligence", "banking", "Banks", "CSI", "Dataseers", "Fraud Prevention", "News", "PYMNTS News", "risk management", "TruDetect", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2681932", "url": "https://www.pymnts.com/aml/2025/block-fined-40-million-for-cash-apps-anti-money-laundering-failures/", "title": "Block Fined $40 Million for Cash App\u2019s Anti-Money Laundering Failures", "content_html": "Block\u00a0will pay a $40 million penalty over anti-money laundering deficiencies in its\u00a0Cash App.
\nThe\u00a0New York Department of Financial Services\u00a0(NYDFS)\u00a0announced\u00a0the penalty Thursday (April 10), saying it came after the regulator found \u201csignificant failures\u201d in Block\u2019s Bank Secrecy Act/anti-money laundering (BSA/AML) compliance program.
\n\u201cAll financial institutions, whether traditional financial services companies or emerging cryptocurrency platforms, must adhere to rigorous standards that protect consumers and the integrity of the financial system,\u201d NYDFS Superintendent\u00a0Adrienne Harris said in a news release.
\n\u201cCompliance functions must keep pace with company growth or expansion. The rapid growth of Block\u2019s Cash App absent a robust compliance function created risk and vulnerabilities that violated the rules financial services companies operating in New York must adhere to.\u201d
\n\u201cNotably, Block\u2019s lax treatment of high-risk\u00a0Bitcoin transactions\u00a0allowed largely anonymous transactions to proceed without proper scrutiny,\u201d the release said. \u201cAdditionally, Block\u2019s rapid growth between 2019 and 2020 contributed to a severe transaction alert backlog, which Block left unaddressed for a significant period of time.\u201d
\nAside from the monetary penalty, Block is required to retain an independent monitor to carry out a comprehensive evaluation of its compliance with NYDFS regulations. The department said Block cooperated with the investigation and has \u201calready committed significant financial and other resources\u201d to remediate the issues identified by the investigation.
\n\u201cBlock did not admit to any of the department\u2019s findings, and we are pleased to put this matter behind us,” the company said in a statement provided to PYMNTS. \u201cWe share the department\u2019s dedication to addressing industry challenges and remain committed to investing across our operations to help promote a safe and healthy financial system.\u201d
\nThe company\u00a0published a statement\u00a0on its website Thursday that \u2014 while not mentioning the investigation \u2014 outlined Cash App\u2019s compliance efforts, which include a bitcoin monitoring program featuring things like \u201cenhanced due diligence\u201d and real-time transaction blocking.
\n\u201cThis is an enduring effort,\u201d the company said. \u201cWe are committed to continued investment in safety, and full compliance with both the letter and the spirit of the law as our program continually evolves.\u201d
\nThe NYDFS action comes amid calls for updates to federal anti-money laundering\u00a0(AML), rules, the subject of a recent\u00a0House Financial Services Committee\u00a0hearing.
\nDarrin McLaughlin, executive vice president and chief AML and sanctions officer for Flagstar Bank, testified before the committee on behalf of the American Bankers Association.
\n\u201cWe need a strategic approach\u201d that includes the banking sector, the government and other stakeholders, he said, and that \u201cregulatory reforms let us\u00a0focus on the real threat.\u201d
\nBanks have embraced AML compliance and anti-fraud programs, he said, to identify anomalous patterns of fund flows. However, McLaughlin noted an issue with the suspicious activity reports (SARs) that banks are required to file.
\n\u201cBy the time law enforcement receives the reports, it is often too late,\u201d he said, adding that the \u201cfederal government has a database that is bursting with information that should be shared with the private sector.\u201d
\nThe post Block Fined $40 Million for Cash App\u2019s Anti-Money Laundering Failures appeared first on PYMNTS.com.
\n", "content_text": "Block\u00a0will pay a $40 million penalty over anti-money laundering deficiencies in its\u00a0Cash App.\nThe\u00a0New York Department of Financial Services\u00a0(NYDFS)\u00a0announced\u00a0the penalty Thursday (April 10), saying it came after the regulator found \u201csignificant failures\u201d in Block\u2019s Bank Secrecy Act/anti-money laundering (BSA/AML) compliance program.\n\u201cAll financial institutions, whether traditional financial services companies or emerging cryptocurrency platforms, must adhere to rigorous standards that protect consumers and the integrity of the financial system,\u201d NYDFS Superintendent\u00a0Adrienne Harris said in a news release.\n\u201cCompliance functions must keep pace with company growth or expansion. The rapid growth of Block\u2019s Cash App absent a robust compliance function created risk and vulnerabilities that violated the rules financial services companies operating in New York must adhere to.\u201d\n\u201cNotably, Block\u2019s lax treatment of high-risk\u00a0Bitcoin transactions\u00a0allowed largely anonymous transactions to proceed without proper scrutiny,\u201d the release said. \u201cAdditionally, Block\u2019s rapid growth between 2019 and 2020 contributed to a severe transaction alert backlog, which Block left unaddressed for a significant period of time.\u201d\nAside from the monetary penalty, Block is required to retain an independent monitor to carry out a comprehensive evaluation of its compliance with NYDFS regulations. The department said Block cooperated with the investigation and has \u201calready committed significant financial and other resources\u201d to remediate the issues identified by the investigation.\n\u201cBlock did not admit to any of the department\u2019s findings, and we are pleased to put this matter behind us,” the company said in a statement provided to PYMNTS. \u201cWe share the department\u2019s dedication to addressing industry challenges and remain committed to investing across our operations to help promote a safe and healthy financial system.\u201d\nThe company\u00a0published a statement\u00a0on its website Thursday that \u2014 while not mentioning the investigation \u2014 outlined Cash App\u2019s compliance efforts, which include a bitcoin monitoring program featuring things like \u201cenhanced due diligence\u201d and real-time transaction blocking.\n\u201cThis is an enduring effort,\u201d the company said. \u201cWe are committed to continued investment in safety, and full compliance with both the letter and the spirit of the law as our program continually evolves.\u201d\nThe NYDFS action comes amid calls for updates to federal anti-money laundering\u00a0(AML), rules, the subject of a recent\u00a0House Financial Services Committee\u00a0hearing.\nDarrin McLaughlin, executive vice president and chief AML and sanctions officer for Flagstar Bank, testified before the committee on behalf of the American Bankers Association.\n\u201cWe need a strategic approach\u201d that includes the banking sector, the government and other stakeholders, he said, and that \u201cregulatory reforms let us\u00a0focus on the real threat.\u201d\nBanks have embraced AML compliance and anti-fraud programs, he said, to identify anomalous patterns of fund flows. However, McLaughlin noted an issue with the suspicious activity reports (SARs) that banks are required to file.\n\u201cBy the time law enforcement receives the reports, it is often too late,\u201d he said, adding that the \u201cfederal government has a database that is bursting with information that should be shared with the private sector.\u201d\nThe post Block Fined $40 Million for Cash App\u2019s Anti-Money Laundering Failures appeared first on PYMNTS.com.", "date_published": "2025-04-10T13:38:19-04:00", "date_modified": "2025-04-10T13:38:19-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/01/Cash-App-Block-settlement.jpg", "tags": [ "AML", "Anti-Money Laundering", "Bank Secrecy Act", "Bitcoin", "Block", "BSA", "Cash App", "Cryptocurrency", "money laundering", "new york department of financial services", "News", "NYDFS", "PYMNTS News", "regulations", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2502006", "url": "https://www.pymnts.com/aml/2025/okx-crypto-exchange-fined-500-million-for-anti-money-laundering-violations/", "title": "OKX Crypto Exchange Fined $500 Million for Anti-Money Laundering Violations", "content_html": "The operator of the\u00a0OKX\u00a0cryptocurrency exchange has admitted to breaking anti-money laundering (AML) laws.
\nAs part of the plea,\u00a0Aux Cayes FinTech\u00a0\u2014 doing business as OKX \u2014 will pay more than\u00a0$504 million\u00a0in fines and fees, the U.S. Department of Justice said Monday (Feb. 24).
\n\u201cFor over seven years, OKX knowingly violated anti-money laundering laws and avoided implementing required policies to prevent criminals from abusing our financial system,\u201d Acting U.S. Attorney\u00a0Matthew Podolsky\u00a0said in a news release.
\n\u201cAs a result, OKX was used to facilitate over five billion dollars\u2019 worth of suspicious transactions and criminal proceeds.\u201d
\nOKX, one of the world\u2019s largest crypto exchanges, had been accused of violating its own policy of allowing people in the U.S. trade on its platform. Prosecutors also said the platform was used to carry out more than $5 billion of suspicious transactions and criminal proceeds.
\nAnd even after the company began requiring customers to provide\u00a0know-your-customer (KYC)\u00a0information to trade, prosecutors say employees would advise users on how to give false information to get around the KYC process and the prohibition on U.S. users.
\nIn one instance, the release said, an OKX employee encouraged a potential U.S. customer to open an account by providing false information about their nationality: \u201cI know you\u2019re in the US, but you could just put a random country and it should go through. You just need to put Name, nationality, and ID number. You could just put the United Arab Emirates and random numbers for the ID number.\u201d
\nIn a statement issued following the plea, OKX said the improper trades by American customers were the result of\u00a0\u201clegacy compliance gaps,\u201d\u00a0adding that these customers are no longer part of the platform, and had been a small slice of its overall user base.
\nThe plea comes as other crypto exchanges are seeing U.S. government legal action against them go away.
\nFor example, the financial platform\u00a0Robinhood\u00a0announced earlier this week that the Securities and Exchange Commission (SEC) had\u00a0concluded an investigation\u00a0into its crypto exchange and had no plans to follow up with enforcement action.
\nDays earlier, another crypto firm, Coinbase, announced that the SEC was preparing to dismiss its\u00a02023 lawsuit\u00a0against the company.
\n\u201cThis would be a\u00a0full dismissal, with $0 in fines paid and zero changes to our business,\u201d CEO Brian Armstrong wrote in a post on social platform X.
\nThe post OKX Crypto Exchange Fined $500 Million for Anti-Money Laundering Violations appeared first on PYMNTS.com.
\n", "content_text": "The operator of the\u00a0OKX\u00a0cryptocurrency exchange has admitted to breaking anti-money laundering (AML) laws.\nAs part of the plea,\u00a0Aux Cayes FinTech\u00a0\u2014 doing business as OKX \u2014 will pay more than\u00a0$504 million\u00a0in fines and fees, the U.S. Department of Justice said Monday (Feb. 24).\n\u201cFor over seven years, OKX knowingly violated anti-money laundering laws and avoided implementing required policies to prevent criminals from abusing our financial system,\u201d Acting U.S. Attorney\u00a0Matthew Podolsky\u00a0said in a news release.\n\u201cAs a result, OKX was used to facilitate over five billion dollars\u2019 worth of suspicious transactions and criminal proceeds.\u201d\nOKX, one of the world\u2019s largest crypto exchanges, had been accused of violating its own policy of allowing people in the U.S. trade on its platform. Prosecutors also said the platform was used to carry out more than $5 billion of suspicious transactions and criminal proceeds.\nAnd even after the company began requiring customers to provide\u00a0know-your-customer (KYC)\u00a0information to trade, prosecutors say employees would advise users on how to give false information to get around the KYC process and the prohibition on U.S. users.\nIn one instance, the release said, an OKX employee encouraged a potential U.S. customer to open an account by providing false information about their nationality: \u201cI know you\u2019re in the US, but you could just put a random country and it should go through. You just need to put Name, nationality, and ID number. You could just put the United Arab Emirates and random numbers for the ID number.\u201d\nIn a statement issued following the plea, OKX said the improper trades by American customers were the result of\u00a0\u201clegacy compliance gaps,\u201d\u00a0adding that these customers are no longer part of the platform, and had been a small slice of its overall user base.\nThe plea comes as other crypto exchanges are seeing U.S. government legal action against them go away.\nFor example, the financial platform\u00a0Robinhood\u00a0announced earlier this week that the Securities and Exchange Commission (SEC) had\u00a0concluded an investigation\u00a0into its crypto exchange and had no plans to follow up with enforcement action.\nDays earlier, another crypto firm, Coinbase, announced that the SEC was preparing to dismiss its\u00a02023 lawsuit\u00a0against the company.\n\u201cThis would be a\u00a0full dismissal, with $0 in fines paid and zero changes to our business,\u201d CEO Brian Armstrong wrote in a post on social platform X.\nThe post OKX Crypto Exchange Fined $500 Million for Anti-Money Laundering Violations appeared first on PYMNTS.com.", "date_published": "2025-02-26T09:20:14-05:00", "date_modified": "2025-02-26T09:20:14-05:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/02/AML-OKX-crypto.png", "tags": [ "AML", "Anti-Money Laundering", "Aux Cayes FinTech", "crypto regulation", "Cryptocurrency", "cryptocurrency exchanges", "Department of Justice", "Financial Crime", "know your customer", "KYC", "money laundering", "News", "OKX", "PYMNTS News", "regulations", "US Department of Justice", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2442986", "url": "https://www.pymnts.com/aml/2025/brinks-settles-anti-money-laundering-charges-with-doj-and-fincen/", "title": "Brink\u2019s Settles Anti-Money Laundering Charges With DOJ and FinCEN", "content_html": "The Brink\u2019s Company said Thursday (Feb. 6) that its subsidiary, Brink\u2019s Global Services USA (BGS USA), reached agreement with two U.S. agencies to resolve investigations related to cross-border currency shipments and compliance with federal money-transmitting laws.
\nBGS USA reached a non-prosecution agreement with the Department of Justice (DOJ) and a consent order imposing civil money penalty with the Financial Crimes Enforcement Network (FinCEN), the company said in a press release.
\nBrink\u2019s said in the release that it agreed to pay a total of $42 million over three years and that it cooperated throughout the investigations. The company added that the resolutions involve currency shipments that occurred from 2018 to 2020 and that it strengthened its global Ethics & Compliance program over the last several years.
\n\u201cUpon learning of the DOJ investigation in 2020, we conducted our own thorough internal review and have since implemented further enhancements to our global Ethics & Compliance program, which were acknowledged by the DOJ in our agreement,\u201d Brink\u2019s President and CEO Mark Eubanks said in the release. \u201cAs an industry leader, we are committed to continuous improvement and are always evolving our program to address changing compliance risks.\u201d
\nFinCEN said in a Thursday press release that it assessed a $37 million civil money penalty against BGS USA for willful violation of the anti-money laundering (AML) law, the Bank Secrecy Act (BSA), and that the company will be subject to an AML program review.
\nThe agency said that the resolution with BGS USA sets forth that the company failed to register with FinCEN as a money services business, failed to develop an effective AML program, and failed to file suspicious activity reports.
\n\u201cFor years, Brink\u2019s moved large sums domestically and across the Southwest border without required AML controls, exposing the U.S. financial system to a heightened risk of money laundering, including from narcotics trafficking and other illicit activity,\u201d FinCEN Director Andrea Gacki said in the release.
\nThe DOJ said in a Thursday press release that BGS USA would forfeit $50 million to settle criminal allegations that it operated as an unlicensed money transmitting business and that, as part of the non-prosecution agreement, the company admitted that it illegally transported money domestically and internationally.
\nFor all PYMNTS B2B coverage, subscribe to the daily\u00a0B2B Newsletter.
\nThe post Brink\u2019s Settles Anti-Money Laundering Charges With DOJ and FinCEN appeared first on PYMNTS.com.
\n", "content_text": "The Brink\u2019s Company said Thursday (Feb. 6) that its subsidiary, Brink\u2019s Global Services USA (BGS USA), reached agreement with two U.S. agencies to resolve investigations related to cross-border currency shipments and compliance with federal money-transmitting laws.\nBGS USA reached a non-prosecution agreement with the Department of Justice (DOJ) and a consent order imposing civil money penalty with the Financial Crimes Enforcement Network (FinCEN), the company said in a press release.\nBrink\u2019s said in the release that it agreed to pay a total of $42 million over three years and that it cooperated throughout the investigations. The company added that the resolutions involve currency shipments that occurred from 2018 to 2020 and that it strengthened its global Ethics & Compliance program over the last several years.\n\u201cUpon learning of the DOJ investigation in 2020, we conducted our own thorough internal review and have since implemented further enhancements to our global Ethics & Compliance program, which were acknowledged by the DOJ in our agreement,\u201d Brink\u2019s President and CEO Mark Eubanks said in the release. \u201cAs an industry leader, we are committed to continuous improvement and are always evolving our program to address changing compliance risks.\u201d\nFinCEN said in a Thursday press release that it assessed a $37 million civil money penalty against BGS USA for willful violation of the anti-money laundering (AML) law, the Bank Secrecy Act (BSA), and that the company will be subject to an AML program review.\nThe agency said that the resolution with BGS USA sets forth that the company failed to register with FinCEN as a money services business, failed to develop an effective AML program, and failed to file suspicious activity reports.\n\u201cFor years, Brink\u2019s moved large sums domestically and across the Southwest border without required AML controls, exposing the U.S. financial system to a heightened risk of money laundering, including from narcotics trafficking and other illicit activity,\u201d FinCEN Director Andrea Gacki said in the release.\nThe DOJ said in a Thursday press release that BGS USA would forfeit $50 million to settle criminal allegations that it operated as an unlicensed money transmitting business and that, as part of the non-prosecution agreement, the company admitted that it illegally transported money domestically and internationally.\nFor all PYMNTS B2B coverage, subscribe to the daily\u00a0B2B Newsletter.\nThe post Brink\u2019s Settles Anti-Money Laundering Charges With DOJ and FinCEN appeared first on PYMNTS.com.", "date_published": "2025-02-06T16:01:15-05:00", "date_modified": "2025-02-06T22:33:43-05:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/02/Brinks-AML-DOJ-FinCEN.png", "tags": [ "AML", "Anti-Money Laundering", "B2B", "B2B Payments", "Bank Secrecy Act", "Brink\u2019s Company", "Brink\u2019s Global Services USA", "commercial payments", "Department of Justice", "DoJ", "financial crimes enforcement network", "FinCEN", "money-transmitting", "money-transmitting laws", "News", "PYMNTS News", "regulations", "What's Hot", "What's Hot In B2B" ] }, { "id": "https://www.pymnts.com/?p=2424873", "url": "https://www.pymnts.com/aml/2025/cbw-says-fdics-20-million-aml-fine-unreasonable/", "title": "CBW Says FDIC\u2019s $20 Million AML Fine \u2018Unreasonable\u2019", "content_html": "CBW Bank, with roughly $90 million in assets, filed a suit against the Federal Deposit Insurance Corp. (FDIC) contending that $20.4 million in penalties assessed against the bank for alleged failures over anti-money laundering (AML) efforts and deficiencies are both \u201cunprecedented\u201d and \u201cunreasonable.\u201d\u00a0\u00a0
\nThe suit against the FDIC also states that the government agency\u2019s structure and actions were and are unconstitutional.
\nIn an action disclosed by the FDIC at the end of December and issued to the Kansas bank on Nov. 19, the FDIC charged that CBW \u201cfailed to maintain an adequate anti-money laundering/Countering the Financing of Terrorism\u201d program while \u201crecklessly engaged in unsafe or unsound practices\u201d that were allegedly tied to repeated violations of the Bank Secrecy Act.
\nDuring the period cited in the FDIC suit, from 2018 to 2020, CBW operated a \u201cmultibillion dollar international monetary transfer business,\u201d and generated the bulk of its fee-based revenues from correspondent banking services for international financial institutions (FIs) based outside the United States. Services included, among others, cross-border remote deposit capture services for checks and high-volume electronic funds transfers. The complaint alleges that CBW failed to file \u201chundreds\u201d of suspicious activity reports and lacked appropriate customer due diligence practices.\u00a0
\n\u201cDue to the failures described above, Respondent earned millions in fee income that it otherwise would not have earned if it had maintained an adequate AML/CFT compliance program,\u201d the FDIC said in the filing, as the bank processed billions of dollars in transactions.\u00a0
\nIn one example listed in the FDIC document, an unnamed CBW customer wired \u201cover 70% of its bulk cash funds to accounts\u201d at a different foreign FI based in Grand Cayman; CBW\u2019s processes allegedly failed to review or flag those transactions.\u00a0 Subsequent reviews in 2022 and 2023 found, per the FDIC\u2019s order, that many of the deficiencies cited remained uncorrected.
\nCBW, for its part, filed its own complaint in Kansas in November, where the bank said that the penalty \u201cis unreasonable and unprecedented for a bank of this size, complexity, and supervisory history. There is no justifiable basis for any CMP [civil monetary penalties], let alone for one of this magnitude given the conduct at issue in this case.\u201d\u00a0
\nThe bank also stated in its suit that the CMP was levied \u201cfor years-old conduct that occurred in the long-abandoned correspondent banking and money services businesses.\u201d In 2020, CBW entered into a consent order with the FDIC that shut down those businesses.
\nThe most recent suit also charged that the \u201cFDIC seeks to impose civil monetary penalties in an amount it is aware will consume substantial amounts of the bank\u2019s capital and harm its reputation.\u201d
\nCBW said in the suit that the action by the FDIC is unconstitutional because administrative proceedings \u201cunconstitutionally deprives CBW of its Seventh Amendment jury rights,\u201d adding that the process subjects the bank \u201cto an administrative proceeding presided over by an executive officer unconstitutionally insulated from presidential control.\u201d
\nReached for comment on Wednesday, the FDIC referred PYMNTS back to the orders, and a spokesperson stated that the \u201cFDIC lets the orders speak for themselves.\u201d
\nThe actions come at a time, as PYMNTS Intelligence has reported, as many as 7 in 10 FIs have turned to artificial intelligence and machine learning to combat fraud. Separately, there has been some anticipation ahead of the incoming presidential administration the the very structure of several regulatory agencies \u2014 including the FDIC \u2014 may be reconfigured.
\n\n
\n
The post CBW Says FDIC\u2019s $20 Million AML Fine \u2018Unreasonable\u2019 appeared first on PYMNTS.com.
\n", "content_text": "CBW Bank, with roughly $90 million in assets, filed a suit against the Federal Deposit Insurance Corp. (FDIC) contending that $20.4 million in penalties assessed against the bank for alleged failures over anti-money laundering (AML) efforts and deficiencies are both \u201cunprecedented\u201d and \u201cunreasonable.\u201d\u00a0\u00a0\nThe suit against the FDIC also states that the government agency\u2019s structure and actions were and are unconstitutional.\nIn an action disclosed by the FDIC at the end of December and issued to the Kansas bank on Nov. 19, the FDIC charged that CBW \u201cfailed to maintain an adequate anti-money laundering/Countering the Financing of Terrorism\u201d program while \u201crecklessly engaged in unsafe or unsound practices\u201d that were allegedly tied to repeated violations of the Bank Secrecy Act.\nFocusing on AML/CFT\nDuring the period cited in the FDIC suit, from 2018 to 2020, CBW operated a \u201cmultibillion dollar international monetary transfer business,\u201d and generated the bulk of its fee-based revenues from correspondent banking services for international financial institutions (FIs) based outside the United States. Services included, among others, cross-border remote deposit capture services for checks and high-volume electronic funds transfers. The complaint alleges that CBW failed to file \u201chundreds\u201d of suspicious activity reports and lacked appropriate customer due diligence practices.\u00a0 \n\u201cDue to the failures described above, Respondent earned millions in fee income that it otherwise would not have earned if it had maintained an adequate AML/CFT compliance program,\u201d the FDIC said in the filing, as the bank processed billions of dollars in transactions.\u00a0 \nIn one example listed in the FDIC document, an unnamed CBW customer wired \u201cover 70% of its bulk cash funds to accounts\u201d at a different foreign FI based in Grand Cayman; CBW\u2019s processes allegedly failed to review or flag those transactions.\u00a0 Subsequent reviews in 2022 and 2023 found, per the FDIC\u2019s order, that many of the deficiencies cited remained uncorrected.\nThe Response\nCBW, for its part, filed its own complaint in Kansas in November, where the bank said that the penalty \u201cis unreasonable and unprecedented for a bank of this size, complexity, and supervisory history. There is no justifiable basis for any CMP [civil monetary penalties], let alone for one of this magnitude given the conduct at issue in this case.\u201d\u00a0 \nThe bank also stated in its suit that the CMP was levied \u201cfor years-old conduct that occurred in the long-abandoned correspondent banking and money services businesses.\u201d In 2020, CBW entered into a consent order with the FDIC that shut down those businesses. \nThe most recent suit also charged that the \u201cFDIC seeks to impose civil monetary penalties in an amount it is aware will consume substantial amounts of the bank\u2019s capital and harm its reputation.\u201d\nCBW said in the suit that the action by the FDIC is unconstitutional because administrative proceedings \u201cunconstitutionally deprives CBW of its Seventh Amendment jury rights,\u201d adding that the process subjects the bank \u201cto an administrative proceeding presided over by an executive officer unconstitutionally insulated from presidential control.\u201d\nReached for comment on Wednesday, the FDIC referred PYMNTS back to the orders, and a spokesperson stated that the \u201cFDIC lets the orders speak for themselves.\u201d\nThe actions come at a time, as PYMNTS Intelligence has reported, as many as 7 in 10 FIs have turned to artificial intelligence and machine learning to combat fraud. Separately, there has been some anticipation ahead of the incoming presidential administration the the very structure of several regulatory agencies \u2014 including the FDIC \u2014 may be reconfigured.\n \n \nThe post CBW Says FDIC\u2019s $20 Million AML Fine \u2018Unreasonable\u2019 appeared first on PYMNTS.com.", "date_published": "2025-01-08T21:14:02-05:00", "date_modified": "2025-01-08T21:14:02-05:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "tags": [ "AML", "Anti-Money Laundering", "bank regulation", "banking", "CBW Bank", "civil monetary penalties", "countering the financing of terrorism", "FDIC", "Federal Deposit Insurance Corp.", "News", "PYMNTS News" ] }, { "id": "https://www.pymnts.com/?p=2310357", "url": "https://www.pymnts.com/aml/2024/stenn-collapses-over-fintechs-possible-ties-to-money-launderers/", "title": "Stenn Collapses Over FinTech\u2019s Possible Ties to Money Launderers", "content_html": "U.K. FinTech\u00a0Stenn\u00a0has reportedly collapsed over possible ties to a Russian money laundering scheme.
\nThe company was placed into administration \u2014 a type of insolvency procedure \u2014 earlier this month after a reference to it appeared in a U.S. indictment in a money laundering case, the Financial Times\u00a0reported, citing sources familiar with the matter.
\nThe sources said that reference led Stenn\u2019s lenders, including banking giant HSBC, to begin examining potentially suspicious transactions. Stenn \u2014 which had at one point been valued at\u00a0$900 million\u00a0\u2014 specialized in\u00a0invoice financing\u00a0for small and medium-sized businesses.
\nSources told the FT that HSBC began investigating potentially suspicious transactions at London-based Stenn earlier this year after American prosecutors unsealed an indictment that included passing references to Stenn and its founder and CEO Greg Karpovsky. Neither Stenn nor Karpovsky were accused of wrongdoing in that case, the report adds.
\nHowever, the references to them in the indictment were enough for HSBC to investigate further, uncovering potentially suspicious transactions, the sources said.
\nKarpovsky told the FT that he was \u201ccooperating\u201d with Stenn\u2019s administrators and that it \u201cwould not be appropriate\u201d to speak about that process.
\n\u201cHowever, I am obviously concerned about any allegations of impropriety against me and I deny any wrongdoing in connection with Stenn,\u201d he said.
\nThe FT report notes that the company\u2019s collapse is likely to spotlight the due diligence of its banking partners and investors, considering that Stenn\u2019s former auditor had resigned due to concerns about some transactions, and Karpovsky had also been involved in an invoice finance company in Russia that later imploded amid allegations of fraud.
\nThe news comes at a time when anti-money laundering (AML) controls are \u201cemerging not merely as a regulatory obligation but as a\u00a0strategic priority\u00a0for the year ahead,\u201d as PYMNTS wrote last week.
\nAs technology makes financial services faster and more accessible, the threat of financial crimes is rising, and regulators are demanding more vigilance.
\n\u201cAgainst this backdrop, AML, which has traditionally been viewed as a cost center \u2014 a\u00a0necessary burden to satisfy regulators\u00a0\u2014 is becoming a cornerstone of competitive differentiation for financial institutions (FIs) in an era where trust is increasingly a marketable asset,\u201d PYMNTS wrote.
\nRecent weeks and months have seen several FIs take measures to improve their AML measures, typically at the behest of regulators. For example,\u00a0Wise\u00a0updated its controls on the\u00a0recommendation\u00a0of a European regulator, while\u00a0TD Bank\u00a0is working on its\u00a0risk controls\u00a0as ordered by the U.S. government.
\nThe post Stenn Collapses Over FinTech\u2019s Possible Ties to Money Launderers appeared first on PYMNTS.com.
\n", "content_text": "U.K. FinTech\u00a0Stenn\u00a0has reportedly collapsed over possible ties to a Russian money laundering scheme.\nThe company was placed into administration \u2014 a type of insolvency procedure \u2014 earlier this month after a reference to it appeared in a U.S. indictment in a money laundering case, the Financial Times\u00a0reported, citing sources familiar with the matter.\nThe sources said that reference led Stenn\u2019s lenders, including banking giant HSBC, to begin examining potentially suspicious transactions. Stenn \u2014 which had at one point been valued at\u00a0$900 million\u00a0\u2014 specialized in\u00a0invoice financing\u00a0for small and medium-sized businesses.\nSources told the FT that HSBC began investigating potentially suspicious transactions at London-based Stenn earlier this year after American prosecutors unsealed an indictment that included passing references to Stenn and its founder and CEO Greg Karpovsky. Neither Stenn nor Karpovsky were accused of wrongdoing in that case, the report adds.\nHowever, the references to them in the indictment were enough for HSBC to investigate further, uncovering potentially suspicious transactions, the sources said.\nKarpovsky told the FT that he was \u201ccooperating\u201d with Stenn\u2019s administrators and that it \u201cwould not be appropriate\u201d to speak about that process.\n\u201cHowever, I am obviously concerned about any allegations of impropriety against me and I deny any wrongdoing in connection with Stenn,\u201d he said.\nThe FT report notes that the company\u2019s collapse is likely to spotlight the due diligence of its banking partners and investors, considering that Stenn\u2019s former auditor had resigned due to concerns about some transactions, and Karpovsky had also been involved in an invoice finance company in Russia that later imploded amid allegations of fraud.\nThe news comes at a time when anti-money laundering (AML) controls are \u201cemerging not merely as a regulatory obligation but as a\u00a0strategic priority\u00a0for the year ahead,\u201d as PYMNTS wrote last week.\nAs technology makes financial services faster and more accessible, the threat of financial crimes is rising, and regulators are demanding more vigilance.\n\u201cAgainst this backdrop, AML, which has traditionally been viewed as a cost center \u2014 a\u00a0necessary burden to satisfy regulators\u00a0\u2014 is becoming a cornerstone of competitive differentiation for financial institutions (FIs) in an era where trust is increasingly a marketable asset,\u201d PYMNTS wrote.\nRecent weeks and months have seen several FIs take measures to improve their AML measures, typically at the behest of regulators. For example,\u00a0Wise\u00a0updated its controls on the\u00a0recommendation\u00a0of a European regulator, while\u00a0TD Bank\u00a0is working on its\u00a0risk controls\u00a0as ordered by the U.S. government.\nThe post Stenn Collapses Over FinTech\u2019s Possible Ties to Money Launderers appeared first on PYMNTS.com.", "date_published": "2024-12-16T08:45:59-05:00", "date_modified": "2024-12-16T08:45:59-05:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/12/Stenn-money-launderers.png", "tags": [ "AML", "Anti-Money Laundering", "FinTech", "HSBC", "investigations", "invoice financing", "money laundering", "News", "PYMNTS News", "Stenn", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2301417", "url": "https://www.pymnts.com/aml/2024/new-year-new-aml-and-compliance-approach-for-financial-institutions/", "title": "New Year, New AML and Compliance Approach for Financial Institutions", "content_html": "It\u2019s almost 2025, but many businesses are still facing the same old anti-money laundering (AML) and know your customer (KYC) concerns, among other compliance requirements.
\nWith the news that Wise, the money transfer giant, has implemented a European regulator\u2019s recommendations to bolster its AML programs, AML is emerging not merely as a regulatory obligation but as a strategic priority for the year ahead.
\nParticularly as financial services become increasingly faster and more accessible through technology, the risks of financial crimes are growing just as quickly, and regulators are demanding heightened vigilance.
\nAgainst this backdrop, AML which has traditionally been viewed as a cost center \u2014 a necessary burden to satisfy regulators \u2014 is becoming a cornerstone of competitive differentiation for financial institutions (FIs) in an era where trust is increasingly a marketable asset.
\nAfter all, Wise is far from alone. TD Bank\u00a0reportedly is working to select compliance monitors to track its progress on risk and controls and report to regulators, as ordered by the U.S. government in October; while the U.S. Office of the Comptroller of the Currency\u00a0(OCC) this past September signed a\u00a0formal agreement with Wells Fargo to rectify deficiencies in its anti-money laundering (AML) and financial crimes risk management practices.
\nAs a result of its past compliance failures, TD Bank\u00a0is expected to pay a roughly $3 billion penalty and agree to limits on its growth in the U.S. And government agencies are reportedly also investigating\u00a0Citigroup\u2019s AML policies and its ties to a sanctioned Russian official.
\nWith 2025 approaching, among the best ways for businesses to avoid penalties that erode both the bottom line and end-user trust is to embrace a proactive approach to AML/KYC. And next-generation technologies and artificial intelligence (AI) tools can help financial institutions detect and prevent\u00a0AML anomalies better and faster than they ever could before.
\nRead more:\u00a0Surging Business Innovation Puts Compliance Role at Center of Growth
\nAML is no longer just about keeping a banking license but about protecting customers, reputations and the ability to innovate. FIs that don\u2019t invest in sophisticated AML frameworks can face the risk of falling behind not only in compliance but in their ability to serve customers effectively.
\nThe U.S., for example, has indicated that combatting financial crime will remain a bipartisan priority under the incoming Trump administration. And, of course, it isn\u2019t just the U.S. where AML is grabbing headlines. In November, the United Kingdom\u2019s finance regulator fined\u00a0Metro Bank\u00a0$21 million for failing to monitor AML risks.
\nThis regulatory intensity coincides with a wave of technological innovation. Manual processes are no match for the speed and scale of modern financial crime, but AI and machine learning are playing an increasingly central role in AML, enabling FIs to sift through vast amounts of transaction data to identify anomalies in real time.
\nSeven in 10 FIs\u00a0are now using AI and machine learning to fend off bad actors, according to the PYMNTS Intelligence and Hawk collaboration, \u201cFinancial Institutions Revamping Technologies to Fight Financial Crimes.\u201d
\nIn July, Wolfgang Berner, co-founder and CPO of\u00a0Hawk, unpacked for PYMNTS the opportunities that large transaction models (LTMs) \u2014 generative AI models adapted to financial crime \u2014 represent in establishing more robust, accurate and comprehensive detection and prevention mechanisms.
\n\u201cLTMs see transactions in their entirety without aggregation, maintaining a broad view and understanding language data within transactions, such as reference texts indicating intent,\u201d Berner said.
\nSee also: Partner-Bank POV: Why Third-Party Risk Standards Power Cross-Border Payments
\nAs PYMNTS\u2019 Karen Webster wrote at the start of September,\u00a0regulators\u00a0aren\u2019t shy now about aggressively examining and sanctioning FinTechs and FinTech models. Banks and payments ecosystems reassess FinTech partnerships. Sponsor banks turn down more deals and take longer to look at the ones that they\u2019ll OK in the end.
\nLooking ahead, AML systems must no longer operate in silos. Integrating these systems with fraud detection, know-your-customer (KYC) and other compliance tools can help to create a unified defense against financial crime.
\nPYMNTS Intelligence shows that end-user expectations are evolving. The report \u201cProgress\u00a0and\u00a0Protection: Balancing Convenience and Security in Digital Banking,\u201d done in collaboration with\u00a0NCR Voyix, found that 69% prioritize fraud and financial crime protection when selecting a financial institution, with nearly a third (32%) considering this the most critical factor in their decision-making.
\nThe post New Year, New AML and Compliance Approach for Financial Institutions appeared first on PYMNTS.com.
\n", "content_text": "It\u2019s almost 2025, but many businesses are still facing the same old anti-money laundering (AML) and know your customer (KYC) concerns, among other compliance requirements.\nWith the news that Wise, the money transfer giant, has implemented a European regulator\u2019s recommendations to bolster its AML programs, AML is emerging not merely as a regulatory obligation but as a strategic priority for the year ahead.\nParticularly as financial services become increasingly faster and more accessible through technology, the risks of financial crimes are growing just as quickly, and regulators are demanding heightened vigilance.\nAgainst this backdrop, AML which has traditionally been viewed as a cost center \u2014 a necessary burden to satisfy regulators \u2014 is becoming a cornerstone of competitive differentiation for financial institutions (FIs) in an era where trust is increasingly a marketable asset.\nAfter all, Wise is far from alone. TD Bank\u00a0reportedly is working to select compliance monitors to track its progress on risk and controls and report to regulators, as ordered by the U.S. government in October; while the U.S. Office of the Comptroller of the Currency\u00a0(OCC) this past September signed a\u00a0formal agreement with Wells Fargo to rectify deficiencies in its anti-money laundering (AML) and financial crimes risk management practices.\nAs a result of its past compliance failures, TD Bank\u00a0is expected to pay a roughly $3 billion penalty and agree to limits on its growth in the U.S. And government agencies are reportedly also investigating\u00a0Citigroup\u2019s AML policies and its ties to a sanctioned Russian official.\nWith 2025 approaching, among the best ways for businesses to avoid penalties that erode both the bottom line and end-user trust is to embrace a proactive approach to AML/KYC. And next-generation technologies and artificial intelligence (AI) tools can help financial institutions detect and prevent\u00a0AML anomalies better and faster than they ever could before.\nRead more:\u00a0Surging Business Innovation Puts Compliance Role at Center of Growth\nThe Expanding Scope of AML and Its Impact on Business\nAML is no longer just about keeping a banking license but about protecting customers, reputations and the ability to innovate. FIs that don\u2019t invest in sophisticated AML frameworks can face the risk of falling behind not only in compliance but in their ability to serve customers effectively.\nThe U.S., for example, has indicated that combatting financial crime will remain a bipartisan priority under the incoming Trump administration. And, of course, it isn\u2019t just the U.S. where AML is grabbing headlines. In November, the United Kingdom\u2019s finance regulator fined\u00a0Metro Bank\u00a0$21 million for failing to monitor AML risks.\nThis regulatory intensity coincides with a wave of technological innovation. Manual processes are no match for the speed and scale of modern financial crime, but AI and machine learning are playing an increasingly central role in AML, enabling FIs to sift through vast amounts of transaction data to identify anomalies in real time.\nSeven in 10 FIs\u00a0are now using AI and machine learning to fend off bad actors, according to the PYMNTS Intelligence and Hawk collaboration, \u201cFinancial Institutions Revamping Technologies to Fight Financial Crimes.\u201d\nIn July, Wolfgang Berner, co-founder and CPO of\u00a0Hawk, unpacked for PYMNTS the opportunities that large transaction models (LTMs) \u2014 generative AI models adapted to financial crime \u2014 represent in establishing more robust, accurate and comprehensive detection and prevention mechanisms.\n\u201cLTMs see transactions in their entirety without aggregation, maintaining a broad view and understanding language data within transactions, such as reference texts indicating intent,\u201d Berner said.\nSee also: Partner-Bank POV: Why Third-Party Risk Standards Power Cross-Border Payments\nAML and the Financial System of the Future \nAs PYMNTS\u2019 Karen Webster wrote at the start of September,\u00a0regulators\u00a0aren\u2019t shy now about aggressively examining and sanctioning FinTechs and FinTech models. Banks and payments ecosystems reassess FinTech partnerships. Sponsor banks turn down more deals and take longer to look at the ones that they\u2019ll OK in the end.\nLooking ahead, AML systems must no longer operate in silos. Integrating these systems with fraud detection, know-your-customer (KYC) and other compliance tools can help to create a unified defense against financial crime.\nPYMNTS Intelligence shows that end-user expectations are evolving. The report \u201cProgress\u00a0and\u00a0Protection: Balancing Convenience and Security in Digital Banking,\u201d done in collaboration with\u00a0NCR Voyix, found that 69% prioritize fraud and financial crime protection when selecting a financial institution, with nearly a third (32%) considering this the most critical factor in their decision-making.\nThe post New Year, New AML and Compliance Approach for Financial Institutions appeared first on PYMNTS.com.", "date_published": "2024-12-03T14:24:13-05:00", "date_modified": "2024-12-03T22:35:32-05:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/12/AML-financial-institutions.png", "tags": [ "AML", "Anti-Money Laundering", "B2B", "B2B Payments", "bank regulation", "banking", "Banks", "commercial payments", "Featured News", "financial institutions", "know your customer", "KYC", "News", "PYMNTS News", "regulations", "Security", "td bank", "Wise" ] }, { "id": "https://www.pymnts.com/?p=2299591", "url": "https://www.pymnts.com/aml/2024/report-wise-implements-regulators-recommendations-to-bolster-aml-programs/", "title": "Report: Wise Implements Regulator\u2019s Recommendations to Bolster AML Programs", "content_html": "FinTech\u00a0Wise reportedly has implemented a European regulator\u2019s recommendations to bolster its anti-money laundering (AML) programs.
\nWise was forced into a formal remediation plan after the\u00a0National Bank of Belgium found in 2022 that there was a shortcoming in its AML controls, the Financial Times (FT)\u00a0reported Thursday (Nov. 28).
\nThe National Bank of Belgium supervises the London-listed FinTech in Europe and determined that Wise lacked proof of address for hundreds of thousands of customers, according to the report.
\nWise told the FT: \u201cIn 2021, the National Bank of Belgium carried out a routine review of Wise Europe as part of a marketwide exercise in the wake of Brexit. We worked closely with our regulator in Belgium and have fully implemented their recommendations.\u201d
\nUnder a remediation plan developed by the FinTech\u00a0and approved by the regulator, Wise was required to contact all the customers to request their proof of address and to freeze the accounts of those who did not do so in time, according to the report.
\nThe company bolstered its anti-crime staff with customer service staff, per the report.
\nWise said in the report that one-third of its global team is now dedicated to fighting financial crime and maintaining compliance.
\nWise was known as TransferWise until rebranding in February 2021. Wise said at the time that the name change reflected the broader change of the company beyond its original roots as a\u00a0money transfer company.
\nIn August 2022, the firm was fined $360,000 in Abu Dhabi for violating\u00a0AML regulations, with the\u00a0Abu Dhabi Global Market\u2019s Financial Services Regulatory Authority (FSRA) saying at the time in a\u00a0statement that it \u201cfound that Wise did not establish and maintain adequate AML systems and controls to ensure full compliance with its AML obligations.\u201d
\nA Wise spokesperson told PYMNTS at the time that the company takes its responsibility to protect its customers and prevent money laundering seriously, noting that it had worked with the FSRA and neither the company nor the authority found instances of money laundering or any financial crime.
\nToday, Wise maintains more than 65 regulatory licenses around the world, according to the Thursday FT report.
\nThe post Report: Wise Implements Regulator\u2019s Recommendations to Bolster AML Programs appeared first on PYMNTS.com.
\n", "content_text": "FinTech\u00a0Wise reportedly has implemented a European regulator\u2019s recommendations to bolster its anti-money laundering (AML) programs.\nWise was forced into a formal remediation plan after the\u00a0National Bank of Belgium found in 2022 that there was a shortcoming in its AML controls, the Financial Times (FT)\u00a0reported Thursday (Nov. 28).\nThe National Bank of Belgium supervises the London-listed FinTech in Europe and determined that Wise lacked proof of address for hundreds of thousands of customers, according to the report.\nWise told the FT: \u201cIn 2021, the National Bank of Belgium carried out a routine review of Wise Europe as part of a marketwide exercise in the wake of Brexit. We worked closely with our regulator in Belgium and have fully implemented their recommendations.\u201d\nUnder a remediation plan developed by the FinTech\u00a0and approved by the regulator, Wise was required to contact all the customers to request their proof of address and to freeze the accounts of those who did not do so in time, according to the report.\nThe company bolstered its anti-crime staff with customer service staff, per the report.\nWise said in the report that one-third of its global team is now dedicated to fighting financial crime and maintaining compliance.\nWise was known as TransferWise until rebranding in February 2021. Wise said at the time that the name change reflected the broader change of the company beyond its original roots as a\u00a0money transfer company.\nIn August 2022, the firm was fined $360,000 in Abu Dhabi for violating\u00a0AML regulations, with the\u00a0Abu Dhabi Global Market\u2019s Financial Services Regulatory Authority (FSRA) saying at the time in a\u00a0statement that it \u201cfound that Wise did not establish and maintain adequate AML systems and controls to ensure full compliance with its AML obligations.\u201d\nA Wise spokesperson told PYMNTS at the time that the company takes its responsibility to protect its customers and prevent money laundering seriously, noting that it had worked with the FSRA and neither the company nor the authority found instances of money laundering or any financial crime.\nToday, Wise maintains more than 65 regulatory licenses around the world, according to the Thursday FT report.\n\nThe post Report: Wise Implements Regulator\u2019s Recommendations to Bolster AML Programs appeared first on PYMNTS.com.", "date_published": "2024-11-29T15:46:37-05:00", "date_modified": "2024-11-29T15:46:37-05:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/04/Wise.jpg", "tags": [ "AML", "Anti-Money Laundering", "cross-border payments", "Digital Payments", "FinTech", "FinTech regulations", "global remittances", "National Bank of Belgium", "News", "Payment Methods", "PYMNTS News", "TransferWise", "What's Hot", "Wise" ] }, { "id": "https://www.pymnts.com/?p=2293208", "url": "https://www.pymnts.com/aml/2024/report-us-government-investigating-citigroups-anti-money-laundering-policies/", "title": "Report: US Government Investigating Citigroup\u2019s Anti-Money Laundering Policies", "content_html": "U.S. government agencies are reportedly investigating Citigroup\u2019s anti-money laundering (AML) policies and its ties to a sanctioned Russian official.
\nThe Department of Justice (DOJ), the FBI and the IRS\u00a0are looking at the bank\u2019s work for a trust that holds assets owned by Russian billionaire Suleiman Abusaidovich Kerimov, Bloomberg reported Thursday (Nov. 14), citing unnamed sources.
\nA Citigroup spokesperson told Bloomberg: \u201cCiti is committed to conducting all business with the highest consideration for compliance with all applicable laws and regulations. At the same time, we are actively ending nearly all of our institutional banking business in Russian, except for those operations necessary to fulfill remaining legal and regulatory obligations, while we proceed with the closing of our Russian consumer banking business.\u201d
\nDuring an Oct. 15 earnings call, Citigroup CEO Jane Fraser spotlighted the company\u2019s continuing transformation process by noting that the company recently closed a longstanding consent order tied to its anti-money laundering systems.
\n\u201cWe have increased our investments in areas where we have not made sufficient progress, such as data quality management,\u201d Fraser said. \u201cI and the management team remain steadfast and determined to get this transformation right and to get this done.\u201d
\nThe Federal Reserve announced Oct. 1 that it terminated its decade-old enforcement action against Citigroup that was focused on deficiencies tied to the banking giant\u2019s anti-money laundering practices.
\nIn the 2013 documentation of the consent order, the Fed said that Citigroup had \u201cadopted a firmwide compliance risk management program designed to identify and manage compliance risks across the consolidated organization related to compliance with all applicable laws, rules and regulations,\u201d and that the consent order did not constitute an admission or denial of the allegations made as part of the enforcement action.
\nThere is growing scrutiny on anti-money laundering efforts, highlighted by enforcement actions and fines from regulators when banks, FinTechs and other firms are deemed to come up short, PYMNTS reported in July.
\nAt the same time, the rules governing anti-money laundering and fraud-fighting efforts may change, as regulators seek input on the use of advanced technologies to sharpen fraud defenses at financial institutions.
\nThe post Report: US Government Investigating Citigroup\u2019s Anti-Money Laundering Policies appeared first on PYMNTS.com.
\n", "content_text": "U.S. government agencies are reportedly investigating Citigroup\u2019s anti-money laundering (AML) policies and its ties to a sanctioned Russian official.\nThe Department of Justice (DOJ), the FBI and the IRS\u00a0are looking at the bank\u2019s work for a trust that holds assets owned by Russian billionaire Suleiman Abusaidovich Kerimov, Bloomberg reported Thursday (Nov. 14), citing unnamed sources.\nA Citigroup spokesperson told Bloomberg: \u201cCiti is committed to conducting all business with the highest consideration for compliance with all applicable laws and regulations. At the same time, we are actively ending nearly all of our institutional banking business in Russian, except for those operations necessary to fulfill remaining legal and regulatory obligations, while we proceed with the closing of our Russian consumer banking business.\u201d\nDuring an Oct. 15 earnings call, Citigroup CEO Jane Fraser spotlighted the company\u2019s continuing transformation process by noting that the company recently closed a longstanding consent order tied to its anti-money laundering systems.\n\u201cWe have increased our investments in areas where we have not made sufficient progress, such as data quality management,\u201d Fraser said. \u201cI and the management team remain steadfast and determined to get this transformation right and to get this done.\u201d\nThe Federal Reserve announced Oct. 1 that it terminated its decade-old enforcement action against Citigroup that was focused on deficiencies tied to the banking giant\u2019s anti-money laundering practices.\nIn the 2013 documentation of the consent order, the Fed said that Citigroup had \u201cadopted a firmwide compliance risk management program designed to identify and manage compliance risks across the consolidated organization related to compliance with all applicable laws, rules and regulations,\u201d and that the consent order did not constitute an admission or denial of the allegations made as part of the enforcement action.\nThere is growing scrutiny on anti-money laundering efforts, highlighted by enforcement actions and fines from regulators when banks, FinTechs and other firms are deemed to come up short, PYMNTS reported in July.\nAt the same time, the rules governing anti-money laundering and fraud-fighting efforts may change, as regulators seek input on the use of advanced technologies to sharpen fraud defenses at financial institutions.\nThe post Report: US Government Investigating Citigroup\u2019s Anti-Money Laundering Policies appeared first on PYMNTS.com.", "date_published": "2024-11-14T21:08:54-05:00", "date_modified": "2024-11-14T21:08:54-05:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/11/Citigroup-anti-money-laundering.jpg", "tags": [ "AML", "Anti-Money Laundering", "Citigroup", "DoJ", "FBI", "IRS", "justice department", "News", "PYMNTS News", "Suleiman Abusaidovich Kerimov", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2291020", "url": "https://www.pymnts.com/aml/2024/united-kingdom-financial-conduct-authority-fines-metro-bank-21-million-dollars-money-laundering-protection-lapses/", "title": "UK\u2019s FCA Fines Metro Bank $21 Million for Money Laundering Protection Lapses", "content_html": "The United Kingdom\u2019s finance regulator fined Metro Bank for failing to monitor money laundering risks.
\nThe Financial Conduct Authority said Metro must pay 16.7 million pounds (about $21 million) for a lack of proper money laundering protections on 60 million transactions between 2016 and 2020, according to a Tuesday (Nov. 12) press release.
\n\u201cMetro\u2019s failings risked a gap being left in our defense against the criminal misuse of our financial system,\u201d Therese Chambers, the FCA\u2019s joint executive director of enforcement and market oversight, said in the release. \u201cThose failings went on for too long.\u201d
\nMetro automated the monitoring of transactions for financial crime in June 2016, although the system did not work as planned, per the release.
\nBecause of an error in how data was inputted into the system, transactions taking place on the day an account was opened \u2014 and any other transactions until the account record was updated \u2014 were not tracked, the release said. While staff raised concerns about the issue in 2017 and 2018, the problem was not fixed.
\nWhen a fix was found in July 2019, Metro didn\u2019t have a way to consistently determine that relevant transactions were added to the monitoring system until December 2020, according to the release.
\nMetro Bank issued a statement Tuesday saying that it accepts the FCA\u2019s findings and has cooperated with the regulator\u2019s investigation.
\n\u201cThe conclusion of these inquiries draws a line under this legacy issue, allowing the bank to move forward and fully focus on the future, building on the solid foundations it has already laid,\u201d Metro CEO Daniel Frumkin said in the statement.
\nThe bank added that since 2020 it has \u201cresolved transaction monitoring system failings and made transaction monitoring enhancements.\u201d
\nAs PYMNTS wrote earlier this year: \u201cEnforcement actions and fines from regulators \u2026 highlight the growing scrutiny on anti-money laundering (AML) efforts.\u201d
\nLast month, for example, the U.S. federal government issued a $3 billion penalty to TD Bank for its AML failures.
\nAlso last month, the FCA fined Starling Bank 29 million pounds related to its financial crime controls, which the regulator called \u201cshockingly lax.\u201d
\nThe post UK\u2019s FCA Fines Metro Bank $21 Million for Money Laundering Protection Lapses appeared first on PYMNTS.com.
\n", "content_text": "The United Kingdom\u2019s finance regulator fined Metro Bank for failing to monitor money laundering risks.\nThe Financial Conduct Authority said Metro must pay 16.7 million pounds (about $21 million) for a lack of proper money laundering protections on 60 million transactions between 2016 and 2020, according to a Tuesday (Nov. 12) press release.\n\u201cMetro\u2019s failings risked a gap being left in our defense against the criminal misuse of our financial system,\u201d Therese Chambers, the FCA\u2019s joint executive director of enforcement and market oversight, said in the release. \u201cThose failings went on for too long.\u201d\nMetro automated the monitoring of transactions for financial crime in June 2016, although the system did not work as planned, per the release.\nBecause of an error in how data was inputted into the system, transactions taking place on the day an account was opened \u2014 and any other transactions until the account record was updated \u2014 were not tracked, the release said. While staff raised concerns about the issue in 2017 and 2018, the problem was not fixed.\nWhen a fix was found in July 2019, Metro didn\u2019t have a way to consistently determine that relevant transactions were added to the monitoring system until December 2020, according to the release.\nMetro Bank issued a statement Tuesday saying that it accepts the FCA\u2019s findings and has cooperated with the regulator\u2019s investigation.\n\u201cThe conclusion of these inquiries draws a line under this legacy issue, allowing the bank to move forward and fully focus on the future, building on the solid foundations it has already laid,\u201d Metro CEO Daniel Frumkin said in the statement.\nThe bank added that since 2020 it has \u201cresolved transaction monitoring system failings and made transaction monitoring enhancements.\u201d\nAs PYMNTS wrote earlier this year: \u201cEnforcement actions and fines from regulators \u2026 highlight the growing scrutiny on anti-money laundering (AML) efforts.\u201d\nLast month, for example, the U.S. federal government issued a $3 billion penalty to TD Bank for its AML failures.\nAlso last month, the FCA fined Starling Bank 29 million pounds related to its financial crime controls, which the regulator called \u201cshockingly lax.\u201d\nThe post UK\u2019s FCA Fines Metro Bank $21 Million for Money Laundering Protection Lapses appeared first on PYMNTS.com.", "date_published": "2024-11-12T09:33:28-05:00", "date_modified": "2024-11-12T09:33:28-05:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/10/Metro-Bank.jpg", "tags": [ "AML", "banking", "Banks", "FCA", "Financial Conduct Authority", "international", "Metro Bank", "News", "PYMNTS News", "regulations", "uk", "What's Hot" ] } ] }