Nitesh Palana

In a new step to tackle financial crime, we’ve committed to 9 priorities with the National Crime Agency (NCA) for the UK’s regulated sector. This will help firms focus on the most serious threats, including: • Cash-based money laundering. • The exploitation of money mules. • Fraud linked to high-risk jurisdictions. Read more: https://lnkd.in/ey2dm--j #FinancialCrime #FinancialServices #FinancialRegulation

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🔍 HM Treasury's OFSI has published a Cryptoassets Threat Assessment guide. The UK’s Office of Financial Sanctions Implementation (OFSI) released a critical report highlighting threats to financial sanctions compliance in the cryptoasset sector. Here are the key points: 1️⃣ **Sanctions Evasion Risks**: Since 2022, designated persons (DPs), particularly Russian and DPRK-linked actors, have increasingly used cryptoassets to bypass UK sanctions, exploiting blockchain’s pseudonymous nature. 2️⃣ **Russian Exposure**: UK crypto firms face significant risks from direct/indirect exposure to the Russian exchange Garantex (designated in 2023) and its successor, Grinex, which facilitates illicit transactions, including via Ruble-backed stablecoin A7AS5. 3️⃣ **DPRK Cyber Threats**: North Korean hackers, including groups like Lazarus, pose a severe threat, with high-profile thefts (e.g., $1.5B from Bybit in 2025) and sophisticated money laundering via mixers, DEXs, and no-KYC platforms. 4️⃣ **Iranian Activity**: Iranian crypto firms, like Nobitex, with suspected links to designated entities (e.g., IRGC), are facilitating sanctions evasion, often using AI-generated IDs to bypass KYC checks. 5️⃣ **Compliance Red Flags**: Indicators like large transactions post-sanctions, use of privacy coins, mixers, DEXs, or transactions from sanctioned jurisdictions signal potential evasion, requiring enhanced due diligence. 6️⃣ **Regulatory Oversight**: Crypto firms must register with the FCA, comply with the Travel Rule, and report suspected breaches to OFSI and SARs to the NCA, referencing “OFSI Cryptoassets Threat Assessment - 0725.” 7️⃣ **Call to Action**: UK cryptoasset firms are urged to strengthen compliance through robust due diligence, monitor for red flags, and review OFSI’s guidance and resources to mitigate risks. 💡 **Why It Matters**: With 7% of OFSI’s suspected breach reports since 2022 involving crypto firms, this report underscores the need for vigilance to protect the integrity of UK financial sanctions. 📌 Read the full report for actionable insights: #CryptoCompliance #FinancialSanctions #OFSI #BlockchainSecurity

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🎓 Introducing our new highly interactive 'Failure to Prevent Fraud' (FTPF) e-learning module, designed to help organisations embed fraud awareness and foster a culture of transparency and ethical behaviour. What can you expect? • A clear breakdown of the key components that make up the FTPF offence • Sector-agnostic ‘general awareness’ training • Interactive features: virtual trainer, multimedia, case studies and knowledge checks • SCORM-compatible for seamless LMS integration • 20 minutes to complete (excluding assessment) 🔗 Ensure your organisation is up to date and learn more about the training module: https://okt.to/7icgFx #FraudPrevention #FTPF #ECCTA

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In today’s edition of the Financial Times' Banking Risk and Regulation Edition, I'm commenting on the European Banking Authority (EBA)’s critical take on how RegTech is currently being deployed across the financial sector. While RegTech offers powerful capabilities, it’s not a shortcut. Without a clear understanding of financial crime risks and how controls actually work in practice, the technology can easily be misapplied or misunderstood. The result is not just inefficiency, but potential regulatory and operational exposure. Important discussion on an area where expectations, regulation, and technology are moving fast, but not always in sync. You can read the full piece here (behind paywall): https://lnkd.in/dijKp5Ar #FinancialCrime #RegTech #Compliance #RiskManagement #EBA #Acuminor

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🇬🇧🇺🇸 Momentum is building for deeper UK–US regulatory co-operation on crypto and digital assets. Speaking to the Financial Times as she announced her departure from the New York Department of Financial Services (NYSDFS), Adrienne Harris highlighted the potential of a crypto passporting framework as a “really interesting” opportunity to address the borderless nature of digital markets. With a new US–UK “markets of the future” task force set to consult with industry and deliver recommendations within 180 days, passporting could provide a clear route to: 🔹 Reduce duplicative compliance burdens 🔹 Enhance investor protection 🔹 Improve cross-border market interoperability CryptoUK has long called for international alignment of standards to unlock innovation while safeguarding consumers. Developments like this underline the importance of strong UK leadership in shaping globally competitive regulation. Keeping the UK at the forefront of crypto innovation requires collaboration across industry and policymakers. If your organisation wants to play a part in shaping fair and effective regulation, we invite you to join our community of more than 100 members 👉https://buff.ly/f3lwTZO

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Financial crime is evolving and so are the rules to fight it. Regulators across the US, UK, and EU share common goals, yet their approaches are diverging and creating new challenges for banks. In this article, 𝗦𝗵𝗮𝗿𝗲𝗱 𝗴𝗼𝗮𝗹𝘀, 𝗱𝗶𝘃𝗲𝗿𝗴𝗶𝗻𝗴 𝗽𝗮𝘁𝗵𝘀: 𝗛𝗼𝘄 𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘀 𝗮𝗿𝗲 𝘀𝗵𝗮𝗽𝗶𝗻𝗴 𝘁𝗵𝗲 𝗞𝗬𝗖/𝗔𝗠𝗟 𝗹𝗮𝗻𝗱𝘀𝗰𝗮𝗽𝗲, Phoebe Mannion unpacks what these shifts mean for financial institutions and explores how banks can move from compliance toward resilience. 👉 Read the full piece here: https://okt.to/yN8EaX

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Wealth and asset managers are under pressure to modernise AML systems and match the pace of fintechs without compromising compliance. Our latest eBook outlines 5 key AI AML buying considerations, including: 🔹 Where you are on the AI curve 🔹 Why not all false positives are bad 🔹 The importance of extreme usability 🔹 Explainability and regulatory readiness 🔹 How to future-proof with ‘human-in-the-loop' design If you're evaluating AI-driven AML solutions, this is your must-read guide. 📘 Download now, link in the comments. #AI #AML #Financialcrime

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