Anti Money Laundering News (18 May – 24 May 2026)
Welcome to this week’s edition of the Global AML News Weekly Digest. Here are the top stories making headlines around the world
Former Sabah Water Department Director Sentenced to 96 Years in Major Malaysia Money Laundering Case
A Malaysian court sentenced former Sabah Water Department director Ag Mohd Tahir Mohd Talib to a total of 96 years in prison and imposed RM284.3 million in fines after convicting him on 12 money laundering charges under Malaysia’s Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds of Unlawful Activities Act 2001. The offences were committed between October and November 2016 across multiple locations, including Kota Kinabalu, Sembulan, Sulaman and Kuala Lumpur. The court found him guilty on 11 charges under Section 4(1)(b) and one charge under Section 4(1)(a) of the AML law. Each count carried an eight-year jail term, with sentences running concurrently. The case is linked to Sabah’s high-profile “Watergate” corruption scandal involving millions in illicit assets, luxury goods and unexplained wealth tied to public sector corruption and financial crime.
FINRA Fines Pictet Overseas and Blue Ocean ATS Over AML Failures in Penny Stock Trading
The Financial Industry Regulatory Authority (FINRA) fined Pictet Overseas Inc. US$610,000 and Blue Ocean ATS LLC US$550,000 for anti-money laundering and supervisory violations linked to low-priced securities trading. FINRA alleged that both firms failed to establish adequate AML programs capable of detecting and reporting suspicious trading activity involving penny stocks, which are considered highly vulnerable to fraud, manipulation and illicit financial flows. Regulators stated that the firms failed to implement proper surveillance systems and supervisory controls to identify suspicious transactions and red flags associated with low-priced securities. The enforcement action highlights growing regulatory scrutiny of broker-dealers and alternative trading systems handling microcap securities and reinforces expectations for robust AML transaction monitoring, suspicious activity reporting and supervisory oversight in capital markets. The penalties underscore FINRA’s continued focus on market integrity, investor protection and financial crime risk management within the securities industry.
Kuwait Conducts 57 Anti-Money Laundering Workshops to Strengthen Financial Crime Compliance
Kuwait’s authorities have organized 57 anti-money laundering workshops as part of an intensified national effort to strengthen AML and counter-terrorism financing compliance across the country. According to reports, the initiative forms part of Kuwait’s broader regulatory reforms under Law No. 76 of 2025 and subsequent 2026 compliance measures aimed at enhancing the country’s financial crime prevention framework.
The workshops focused on raising awareness of AML obligations, improving compliance capabilities, and strengthening institutional understanding of money laundering and terrorism financing risks. Authorities described the initiative as one of Kuwait’s strongest actions to improve AML preparedness and regulatory enforcement standards. The training programs are expected to support both public and private sector entities in aligning with evolving international AML standards, improving suspicious transaction detection and strengthening risk-based compliance controls. The initiative also reflects growing regional emphasis on regulatory capacity-building and financial system integrity.
Iran Allegedly Moved Billions Through Cryptocurrency Networks Despite US Sanctions
Reports citing investigations into Iranian financial networks revealed that billions of dollars were allegedly moved through cryptocurrency channels, including Binance-linked accounts, despite ongoing US sanctions. The Wall Street Journal reported that Iranian financier Babak Zanjani and affiliated entities allegedly used crypto infrastructure between 2023 and early 2026 to facilitate transactions connected to oil sales and sanctioned networks. Compliance reviews reportedly identified approximately US$850 million in transactions linked to Zanjani and as much as US$1.7 billion tied to Iranian networks associated with entities connected to Hamas, Hezbollah and the Houthis. The allegations have intensified scrutiny of cryptocurrency exchanges and digital asset compliance frameworks amid concerns that sanctioned actors are leveraging crypto ecosystems to bypass traditional financial controls. US authorities have continued expanding sanctions targeting Iran’s shadow banking networks, tanker operations, shell companies and digital asset channels as part of broader efforts to disrupt sanctions evasion and terrorism financing.
Nepal Recommends Prosecution of 29 Individuals in Rs20 Billion Money Laundering Investigation
Nepalese investigators have recommended prosecution against 29 individuals, including Bhatta and Agrawal, in a major Rs20 billion money laundering investigation linked to alleged misuse of public investment funds and securities market activities. Authorities allege that funds belonging to listed companies, including Himalayan Reinsurance, Himalayan Securities Banker, HLI Large Cap Fund and Nepal Micro Insurance, were diverted and misused for share trading and related transactions. Investigators claim the accused violated money laundering laws by channeling company funds into unauthorized activities and concealing illicit financial flows.
The Department of Money Laundering Investigation reportedly sought transaction records and trading details from the Nepal Insurance Authority, Securities Board of Nepal, Nepal Stock Exchange and CDS and Clearing Ltd as part of the investigation. Authorities are also pursuing recovery claims worth approximately Rs20 billion, marking one of Nepal’s most significant recent financial crime enforcement actions.
AUSTRAC Orders External Audit Over Suspected AML Weaknesses at NSW Sports Club
Australia’s financial intelligence agency AUSTRAC has ordered Bankstown District Sports Club Ltd in New South Wales to appoint an external auditor over concerns that its anti-money laundering controls may be inadequate to prevent organized crime exploitation through gambling activities and poker machines. AUSTRAC stated that the audit will assess whether the club implemented an effective risk-based AML/CTF program, conducted appropriate risk assessments and maintained sufficient compliance controls.
Acting CEO Katie Miller warned that clubs and pubs handling large volumes of cash and gaming operations remain vulnerable to money laundering and criminal abuse. The regulatory action reflects Australia’s increasing enforcement focus on the gaming and hospitality sectors, particularly entities operating poker machines and cash-intensive venues. The case further highlights growing expectations for stronger AML governance, customer risk assessment, transaction monitoring and financial crime prevention controls across gambling and gaming businesses.
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