Compliance Clarified – a podcast by Thomson Reuters Regulatory Intelligence Season 9, Episode 10: Cross-border crypto fraud enforcement and the globalization of money laundering as a service
Nov 30, 2023
33:47
Former crypto chief executive Sam Bankman-Fried's guilty verdict stemming from the FTX fraud and collapse already seems like old news in a period of serious enforcement action related to crypto scams and industry misconduct.
This tenth episode of season nine brings together Helen Chan, regulatory intelligence expert in Hong Kong and Rachel Wolcott, senior editor in the UK to unpack themes emerging from recent initiatives from Chinese law enforcement, Europol, and U.S. regulators as well as the Department of Justice and the Financial Crimes Enforcement Network (FinCen).
There has been that $4 billion Binance mega enforcement in the U.S. which saw the chief executive forced to step down, pay a $50 million fine, and potentially face jail time. The U.S. Securities and Exchange Commission last week brought charges against Kraken, adding to the number of crypto exchanges facing U.S. enforcement action.
Not to be left out, Europol recently issued a big report on money laundering that focused in part on crypto. It too has been busy working with EU member states as well as the U.S. to take out crypto mixers and deal with crypto-related money laundering and fraud.
Helen and Rachel also discuss the proliferation of money laundering as a service amongst organized crime gangs and their use of crypto. The episode starts with a look at Chinese law enforcement's efforts to take down pig butchering gangs and ends with Helen's advice to compliance officers navigating this increasingly complex landscape.
Links
China's crackdown on "pig butchering" invites domestic crypto scrutiny: www.linkedin.com/posts/helenhchan_chinas-crackdown-on-pig-butchering-activity-7135118841197576193-K62M?utm_source=share&utm_medium=member_desktop
Hong Kong's SFC silent on HTX legal troubles as banished exchange operates freely in the city: www.linkedin.com/posts/helenhchan_htx-operations-hong-kong-activity-7123519728999927808-0FJI?utm_source=share&utm_medium=member_desktop
UK FCA signed off registered crypto's change-in-control to e-money firm fined for sanctions breaches, linked to Ukrainian PEPs and fraud: www.linkedin.com/feed/update/urn:li:activity:7120708996084195328/
Crypto exchange HTX's Seychelles strike-off complicates asset recovery efforts, increases compliance risk for partner firms: www.linkedin.com/feed/update/urn:li:activity:7118129918885961729/
SPECIAL REPORT-How "pig butchering" scams have emerged as a billion-dollar crypto industry: https://regintel-content.thomsonreuters.com/document/I0E082C3089FA11EE8156BA093D3C55E7
The other side of the coin: Europol analysis of financial and economic crime: www.europol.europa.eu/cms/sites/default/files/documents/The%20Other%20Side%20of%20the%20Coin%20-%20Analysis%20of%20Financial%20and%20Economic%20Crime%20%28EN%29.pdf
SEC charges Kraken for Operating as an Unregistered Securities Exchange, Broker, Dealer, and Clearing Agency: /www.sec.gov/news/press-release/2023-237
Contact us:
Helen.Chan@thomsonreuters.com
Rachel.Wolcott@Thomsonreuters.com
For more information about Regulatory Intelligence, click here: legal.thomsonreuters.com/en/products/regulatory-intelligence
Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer. Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.
This tenth episode of season nine brings together Helen Chan, regulatory intelligence expert in Hong Kong and Rachel Wolcott, senior editor in the UK to unpack themes emerging from recent initiatives from Chinese law enforcement, Europol, and U.S. regulators as well as the Department of Justice and the Financial Crimes Enforcement Network (FinCen).
There has been that $4 billion Binance mega enforcement in the U.S. which saw the chief executive forced to step down, pay a $50 million fine, and potentially face jail time. The U.S. Securities and Exchange Commission last week brought charges against Kraken, adding to the number of crypto exchanges facing U.S. enforcement action.
Not to be left out, Europol recently issued a big report on money laundering that focused in part on crypto. It too has been busy working with EU member states as well as the U.S. to take out crypto mixers and deal with crypto-related money laundering and fraud.
Helen and Rachel also discuss the proliferation of money laundering as a service amongst organized crime gangs and their use of crypto. The episode starts with a look at Chinese law enforcement's efforts to take down pig butchering gangs and ends with Helen's advice to compliance officers navigating this increasingly complex landscape.
Links
China's crackdown on "pig butchering" invites domestic crypto scrutiny: www.linkedin.com/posts/helenhchan_chinas-crackdown-on-pig-butchering-activity-7135118841197576193-K62M?utm_source=share&utm_medium=member_desktop
Hong Kong's SFC silent on HTX legal troubles as banished exchange operates freely in the city: www.linkedin.com/posts/helenhchan_htx-operations-hong-kong-activity-7123519728999927808-0FJI?utm_source=share&utm_medium=member_desktop
UK FCA signed off registered crypto's change-in-control to e-money firm fined for sanctions breaches, linked to Ukrainian PEPs and fraud: www.linkedin.com/feed/update/urn:li:activity:7120708996084195328/
Crypto exchange HTX's Seychelles strike-off complicates asset recovery efforts, increases compliance risk for partner firms: www.linkedin.com/feed/update/urn:li:activity:7118129918885961729/
SPECIAL REPORT-How "pig butchering" scams have emerged as a billion-dollar crypto industry: https://regintel-content.thomsonreuters.com/document/I0E082C3089FA11EE8156BA093D3C55E7
The other side of the coin: Europol analysis of financial and economic crime: www.europol.europa.eu/cms/sites/default/files/documents/The%20Other%20Side%20of%20the%20Coin%20-%20Analysis%20of%20Financial%20and%20Economic%20Crime%20%28EN%29.pdf
SEC charges Kraken for Operating as an Unregistered Securities Exchange, Broker, Dealer, and Clearing Agency: /www.sec.gov/news/press-release/2023-237
Contact us:
Helen.Chan@thomsonreuters.com
Rachel.Wolcott@Thomsonreuters.com
For more information about Regulatory Intelligence, click here: legal.thomsonreuters.com/en/products/regulatory-intelligence
Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer. Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.