Anti Money Laundering News (07 Jul – 13 Jul 2025)
Welcome to this week’s edition of the Global AML News Weekly Digest. Here are the top stories making headlines around the world:
Monzo Fined $28 Million by FCA Over Weak Financial Crime Controls
The UK’s Financial Conduct Authority (FCA) has fined digital bank Monzo £21.1 million ($28.57 million) for serious lapses in its anti-financial crime systems between 2018 and 2020. The regulator found that Monzo had onboarded over 34,000 high-risk customers and even accepted implausible addresses like Buckingham Palace and 10 Downing Street. Despite a 2020 FCA order restricting account openings, Monzo failed to comply. CEO TS Anil stated that the issues are now resolved, and the bank has made significant improvements. The fine highlights broader fintech compliance challenges, as rival Starling Bank faced a £29 million penalty in 2024 for similar AML deficiencies.
Wise Fined $4.2 Million by US States for Anti-Money Laundering Failures
Global money transfer firm Wise has been fined $4.2 million by a coalition of U.S. state regulators, including New York, California, and Texas, for deficiencies in its anti-money laundering (AML) systems. The company was found to have weak controls and must now conduct a lookback on closed accounts, enhance suspicious activity reporting, and strengthen AML/CFT due diligence. Wise will also submit quarterly progress reports for two years and undergo independent oversight. This is not the first regulatory issue for Wise, which previously faced penalties in the U.S., Belgium, and Abu Dhabi for AML compliance failures and misleading practices.
Isle of Man Fines Celton Manx $5.3 Million for Systemic AML and CTF Failures
The Isle of Man Gambling Supervision Commission has fined Celton Manx £3.9 million ($5.31 million) for extensive breaches of anti-money laundering and counter-terrorist financing rules. A regulatory inspection found failures in monitoring, risk assessment, customer due diligence, and staff training, with particular concerns over unqualified compliance officers and poor internal oversight. Although Celton Manx claimed no evidence of actual money laundering or customer harm, the fine—reduced from £5.6 million for cooperation—reflects the gravity of the compliance breakdown. A separate £70,000 penalty was also issued to SK IOM for similar deficiencies.
ED Attaches ₹762 Crore in PACL Ponzi Case Linked to ₹48,000 Crore Investor Fraud
The Enforcement Directorate has provisionally attached assets worth ₹762.47 crore belonging to PACL (Pearls Group), its late promoter Nirmal Singh Bhangoo, and related entities under the Prevention of Money Laundering Act. The assets—68 properties across India and Australia—are tied to a massive ₹48,000 crore Ponzi scheme that defrauded lakhs of investors through fraudulent land investment schemes. The ED stated that funds were laundered via complex transactions to disguise their illegal origin, marking one of India’s largest investor fraud crackdowns.
ED Launches Crackdown on ‘Donkey Route’ Money Laundering Network in Punjab and Haryana
The Enforcement Directorate (ED) has conducted sweeping raids across 11 locations in Punjab and Haryana, targeting a transnational human trafficking and money laundering racket linked to the illegal “donkey route” used to smuggle Indians into the U.S. Under the Prevention of Money Laundering Act (PMLA), the ED seized documents, digital evidence, and 30 Indian passports, uncovering a nexus of travel agents and traffickers who extorted crores via hawala networks. The probe, launched after police cases in both states, revealed widespread exploitation of migrants and a network of immigration firms fueling the illegal trade.
MAS Fines 9 Financial Institutions S$27.45 Million Over Major Money Laundering Case
The Monetary Authority of Singapore (MAS) has imposed S$27.45 million in total penalties on nine financial institutions, including Credit Suisse, UOB, and Citi, for AML/CFT breaches linked to the massive 2023 money laundering case. Deficiencies included poor customer risk assessments, failure to corroborate source of wealth, and inadequate transaction monitoring. MAS also sanctioned multiple individuals with prohibition orders and reprimands, particularly targeting executives from Blue Ocean Invest and Trident Trust. The actions underscore Singapore’s zero-tolerance stance on weak AML practices, with MAS calling for more vigilant front-line compliance and adherence to supervisory expectations.
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