Anti Money Laundering News (02 Feb – 08 Feb 2026)
Welcome to this week’s edition of the Global AML News Weekly Digest. Here are the top stories making headlines around the world:
🇮🇳 India proposes penalties for crypto AML reporting failures in Budget 2026
India’s Union Budget 2026 proposed a penalty framework to strengthen AML reporting compliance for virtual digital asset (VDA) transactions. Under the proposal, reporting entities that fail to furnish accurate or timely crypto transaction statements may face penalties of up to ₹50,000, along with daily fines for continuing defaults.
The measure is aimed at improving visibility over crypto-related transactions and closing gaps in AML oversight under the Income-tax Act and linked reporting rules. Authorities said the proposal reflects increased regulatory focus on the misuse of digital assets for money laundering and tax evasion.
🇮🇳 Enforcement Directorate reports 95% conviction rate under PMLA
India’s Enforcement Directorate informed Parliament that 95% of concluded trials under the Prevention of Money Laundering Act (PMLA) have resulted in convictions.
The government said the high conviction rate reflects stronger investigations, improved attachment of proceeds of crime, and more effective prosecution strategies. The disclosure comes amid continued debate over the ED’s expanding enforcement powers and the growing number of money-laundering cases pursued across sectors.
🇬🇧 UK FCA intensifies AML scrutiny of Annex I firms
The UK’s Financial Conduct Authority announced heightened supervisory and enforcement attention on Annex I firms, citing elevated money-laundering risks in non-traditional financial services.
The FCA said it had identified weaknesses in customer due diligence, governance, and transaction monitoring among several firms operating at the perimeter of full regulation. While not a single penalty announcement, the move signals increased likelihood of enforcement action where firms fail to remediate AML deficiencies.
🇪🇺 EU confirms Anti-Money Laundering Authority to be fully operational by 2028
The European Union confirmed that its new Anti-Money Laundering Authority (AMLA) is on track to become fully operational by 2028.
AMLA will directly supervise selected high-risk financial institutions and coordinate cross-border AML enforcement across EU member states. Officials said the authority will have powers to impose fines, issue binding decisions, and resolve supervisory disputes, marking a major shift toward centralised AML enforcement in the EU.
🇱🇹 Lithuania fines Baltic Bet €330,600 for AML violations
Lithuania’s gambling regulator fined online betting operator Baltic Bet €330,600 for breaches of national AML requirements.
The regulator cited failures including inadequate customer due diligence, weak monitoring of high-risk customers, and insufficient controls to detect suspicious betting activity. Authorities said the penalty reflects a broader enforcement push to address money-laundering risks in the gambling sector.
APAC banks face mounting KYC backlogs amid AML system failures
A regional industry analysis found that nearly half of APAC banks are struggling with significant KYC backlogs due to outdated, manual AML systems.
The report warned that delays in customer onboarding and periodic reviews increase regulatory exposure and heighten the risk of enforcement action, particularly as APAC regulators step up AML inspections and penalties. Banks were urged to modernise transaction monitoring and KYC processes to avoid supervisory sanctions.
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