by Elfriede Sixt

EFRI, an association based in Vienna, Austria, set up in spring 2020, by now represents more than 1.052 European consumers who were defrauded by cybercriminals as of writing over EUR 59,2 million in the form of investment scams also referred to as boiler room scams. HSBC, one of the world’s largest banks, is known for being a “dirty” bank. It is public knowledge that HSBC for decades has laundered hundreds of millions of dollars for Mexican drug cartels and HSBC took a prominent role in about all scandals which evolved during the past years: Panama Papers, Swiss Leaks, … (a video on the history of HSBC and its involvement in crimes can be watched here). So probably it is not surprising that this “dirty” bank is also heavily involved in Cybercriminal activities. Continue reading…

Eurojust has supported the Italian authorities to stop an elaborate fraud scheme involving the import of new and used cars from Germany. In total, 60 suspects have been identified, who defrauded the Italian tax authorities of at least EUR 6.3 million in avoided VAT levies. Furthermore, over 200 vehicles were falsely registered in Italy and sold at below market price, creating unfair competition on the car market. Eurojust set up a coordination centre and helped with the execution of European Investigation Orders to Bulgaria, the Czech Republic and Germany. Continue reading…

The European Banking Authority (EBA) recently launched a public consultation on new Guidelines on the role, tasks and responsibilities of anti-money laundering and countering the financing of terrorism (AML/CFT) compliance officers. The Guidelines also include provisions on the wider AML/CFT governance set-up, including at the level of the group. Once adopted, these Guidelines will apply to all financial sector operators that are within the scope of the AML Directive. This consultation runs until 2 November 2021. Continue reading…

The Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR) have published an updated assessment of the UK’s access to cash infrastructure, taking into account the impact of coronavirus (Covid-19), alongside new research on consumers who rely on cash. The findings show that most people have reasonable access to cash through a combination of bank, building society, or Post Office branches and ATMs. The FCA and PSR estimate that 95.4% of the UK population are within 2km of a free cash access point and 99.7% are within 5 km. Consumers’ ability to access banking services and cash can be affected when banks and ATM providers make decisions to close branches and cash machines. Continue reading…

The European Commission has presented an ambitious package of legislative proposals to strengthen the EU’s anti-money laundering and countering terrorism financing (AML/CFT) rules. The package also includes the proposal for the creation of a new EU authority to fight money laundering. This package is part of the Commission’s commitment to protect EU citizens and the EU’s financial system from money laundering and terrorist financing. The aim of this package is to improve the detection of suspicious transactions and activities, and to close loopholes used by criminals to launder illicit proceeds or finance terrorist activities through the financial system. As recalled in the EU’s Security Union Strategy for 2020-2025, enhancing the EU’s framework for anti-money laundering and countering terrorist financing will also help to protect Europeans from terrorism and organised crime. Continue reading…

by Michael Edesess

Nassim Nicholas Taleb doesn’t mince words. When he thinks that something is worthless, he says so. In a recent paper he says in no uncertain terms that bitcoin is worthless. However, those “uncertain terms” are not only in mathematical language but in Taleb-speak. They need some explanation and interpretation. I will provide it in this brief article. In a new paper, “Bitcoin, Currencies, and Fragility,” Taleb aims a scattergun at bitcoin and its underlying database technology, blockchain. Some of those scattershots merely ding bitcoin or blockchain only slightly, or not at all. But some of them hit the mark squarely. Continue reading…

The Governing Council of the European Central Bank (ECB) recently decided to launch the investigation phase of a digital euro project. Following the decision, the President of the Eurogroup Paschal Donohoe joined the meeting, congratulated the Governing Council and expressed his full support for the project. “It has been nine months since we published our report on a digital euro. In that time, we have carried out further analysis, sought input from citizens and professionals, and conducted some experiments, with encouraging results. All of this has led us to decide to move up a gear and start the digital euro project”, says ECB President Christine Lagarde. “Our work aims to ensure that in the digital age citizens and firms continue to have access to the safest form of money, central bank money”. Continue reading…

by Michel Klompmaker

It was coming. Another crypto scandal. Now two South African brothers seem to have run off with 69,000 bitcoins from customers who had entrusted their money to Africrypt. This amounts to several billion euros. The two brothers had founded their company in 2019 in Johannesburg. As usual in this market, they promised high returns and they targeted high net worth individuals. Last April, there was a glitch in which customers were warned that the company had been hacked and that online crypto wallets were at risk. Let’s go back to the seventeenth century just to be sure. How did it come to sit with the tulips again? Continue reading…

On June 2, 2021, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned three Bulgarian nationals due to their extensive roles in corruption in Bulgaria, as well as their network of 64 entities. The administration believes that corruption will lead to a break down in the rule of law, weaken the economy and economic growth, undermine democracy, perpetuate conflicts, and deprive innocent civilians of their basic human rights. The recent action is the largest anti-corruption action to date, indicating that the Ministry of Finance is working tirelessly to hold those involved in corruption accountable. The US government will continue to impose tangible and significant consequences on those involved in corruption and commit to protecting the global financial system from abuse. Continue reading…

The stark rise in the production of synthetic drugs such as (meth-)amphetamines poses increasing challenges for prosecutors across Europe. By rapidly changing the composition of chemicals used for these drugs – as, for instance, red phosphorus, MAPA and APAA – or creating new substances, producers try to exploit legal gaps and avoid prosecution. Also, due to legal uncertainties, it is often difficult to prove suppliers are deliberately selling illegal drugs or substances. Furthermore, the sale of synthetic drugs via online marketplaces, particularly on the darknet, is an obstacle for prosecutions and seriously harms public health. These are some of the main conclusions of the new Eurojust Report on Drug Trafficking. Illicit drug trafficking across the EU is generally growing strongly, with an estimated value of at least EUR 30 billion. The report gives further recommendations to increase financial investigations, asset recovery and judicial cooperation, including with third countries. Continue reading…