AML Fines in 2022

In 2022, global fines for failing to prevent money laundering and other financial crime surged more
than 50 percent, with many firms, particularly in the UK and the US, committing repeat infractions.

While fines are typically issued several years after AML failings occur, the top AML fines incurred in
2022 occurred across the following sectors:

Trading and Brokerage – $6 billion+ in fines

Banking – $2 billion+ in fines

Gambling – $71.4 million+ in fines

Cryptocurrency – $30 million in fines

Asset Management – $2 million+ in fines

Source: Comply Advantage March 2023

AML Fines UAE and World 2022/2023

Bank of Baroda (State Owned Institution)

The CB UAE levied a fine worth 6.8 million AED on Bank of Baroda's GCC operations in Dubai over
deficiencies in compliance with anti-money laundering, finance terrorism and illegal organization
financing laws.

The state-owned Indian bank reportedly failed to comply with UAE Federal Decree Law no (20) of
2018 on Anti Money Laundering and Combating the Financing of Terrorism. Bank of Baroda has said
it is taking steps to improve compliance but is also reserving its option to appeal this sentence.

Bank of Baroda is no stranger to financial crimes. In a prior 2018 case, the bank was fined 90 million
rupees (approx. $1,232,292) by the Indian FIU for breaching anti-money laundering norms and for
failing to report suspicious transactions.

its branch in Ashok Vihar, New Delhi, where a massive forex remittance scam was uncovered in
2015. The scam did involve illegal remittances to Hong Kong and Dubai between August 2014 and
August 2015. HDFC bank also involved in this forex scam.

Its relating to providing banking services to the controversial Gupta family of SA, currently domicile
in Dubai. This UAE fine might relate to incident as well.

World 2022-

1. Danske Bank fined over $2 billion for defrauding investors.

“Danske Bank lied to U.S. banks about its deficient anti-money laundering systems, inadequate
transaction monitoring capabilities, and its high-risk, offshore customer base in order to gain
unlawful access to the U.S. financial system.”

~ Kenneth Allen Polite Jr, Assistant Attorney General of the Justice Department’s Criminal Division.

2. Credit Suisse paid EUR 238 million (USD 234 million) to settle investigation.
Prosecutors said the alleged scheme took place in several countries between 2005 – 2012, causing
“fiscal damage” of over 100 million euros to the French state. The total €238 million penalty included
€115 million damages to compensate the French government for lost tax revenue.

It was the latest in a long list of fraud and AML-related investigations into Credit Suisse that go back
all the way to 1986.

3. Santander Bank UK paid GBP 107.7 million (USD 132 million) to the FCA.

“Santander’s poor management of their anti-money laundering systems and their inadequate
attempts to address the problems created a prolonged and severe risk of money laundering and
financial crime.”

~ Mark Steward, FCA Executive Director of Enforcement and Market Oversight.

4. USAA FSB Bank fined USD 140m by FinCEN.

In particular, USAA FSB admitted that it intentionally failed to implement and manage an
appropriate anti-money laundering program.

5. Sydney’s The Star Casino fined AUS$ 100m (USD 62 million) with license suspended.

“The institutional arrogance of this company has been breath-taking.”

~ Philip Crawford, Chief Commissioner of the NSW Independent Casino Commission (NICC).

Finance Company-Feb 2023

The CBUAE has imposed 1.8 million AED penalty on a finance company for weak compliance culture
as well as for violating laws of anti-money laundering and combating the financing of terrorism
(AML/CFT) and illegal organisations.

The findings illustrate that the finance company engaged in high risk, repeated violations and had an
overall weak compliance culture relating to policies and procedures designed for AML/CFT.

The sanctions follow a review by a third-party consultant and an examination conducted by the
CBUAE that revealed high risk and repeated AML/CFT violations by the finance company in addition
to operational failings by the Board of Directors.

Exchange House- Dec 2022

The CB UAE has penalised an exchange house operating in the country for failing to achieve the
appropriate levels of compliance with anti-money laundering regulations.

The banking regulator imposed a fine of Dh1.92 million on the exchange house. “The fine is the
result of the findings of an examination conducted by the Central Bank, which revealed that the
exchange house failed to obtain letters of no objection from the regulator to enter into certain
business relationships,” the regulator said.

Exchange House License Revoke 2023

CB UAE has revoked the licence of Dollar Exchange, an exchange house operating in the UAE. The
exchange house failed to maintain the required level of paid-up capital and bank guarantee and to
have been in default of equity obligations.
Furthermore, the exchange house was found to have engaged in serious AML misconduct. The
findings showed that the exchange house had a weak compliance framework and had failed to
comply with its regulatory obligations. The time set for submitting an appeal has expired, and an
appeal has not been submitted.

Al Rasheed, an exchange house operating in the emirates, had been subject to the misconduct, and
that it also deliberately suppressed remittance turnover, failed to meet its liquidity requirements
and provided incorrect information to the CBUAE. The exchange also transferred its licence without
obtaining a letter of no objection from the CBUAE.

“The findings showed that Al Rasheed had a weak compliance framework and had failed to comply
with its regulatory obligations. The time set for submitting an appeal has expired and an appeal has
not been submitted,” the bank said.

CB UAE has cancelled the licence of Iris Health Services (insurance service provider) for not
complying with the applicable guidelines.

CB UAE dropped Al Fazaa Insurance Agent from the register of insurance agents. This was the second
registration cancellation in December 2022, the supervisory authority had already revoked the
license of the Emirati broker BH Insurance Brokerage in accordance with the provisions regulating
the insurance agents businesses in force to safeguard the transparency and integrity of the
insurance industry and the UAE financial system.

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Ahref.com \traffic checker

https://home.treasury.gov/news/press-releases/jy1330

(Sanction evasion EOCN news link)

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