BDO's AML Watch

Jamaican arrested for alleged credit card scam in Cayman Islands

• A 25-year-old Jamaican man named Davoy Palmer is facing charges related to fraud, and his arrest is linked to a scam involving a local food delivery app. Allegedly, Palmer used multiple aliases to make fraudulent credit card purchases, leading to his arrest on September 14. He is facing three counts of obtaining property through deceptive means and is also charged with overstaying his allowed time in the Cayman Islands. It remains unclear whether Palmer entered the Cayman Islands as a visitor or holds a work permit, as the local authorities have not disclosed this information.
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Revealed: Thousands Who Bought ‘Golden Passports’ Through Dominica’s $1bn Scheme

• The Caribbean nation of Dominica, through its "golden passports" scheme, has granted citizenship to numerous individuals, including controversial figures such as a former Afghan spymaster and a Libyan colonel under Muammar Gaddafi, according to an investigation by The Guardian and several international news organizations. Dominica's citizenship by investment program, one of the world's largest, has generated over $1 billion since 2009. The program offers visa-free access to 140 countries, including most EU member states, and attracts individuals from various nations, including Iran, China, and Russia. The investigation raises concerns about the transparency and governance of the scheme and its potential impact on natural-born Dominicans, as some countries have suspended visa-free travel to Dominica. The investigation was based on government documents and leaked information.
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New Europol Report Shines Light On Multi-Billion Euro Underground Criminal Economy

• Europol's inaugural threat assessment, 'The Other Side of the Coin,' delves into the complex world of financial and economic crime in the EU. Based on contributions from EU Member States and partners, the report highlights how criminals employ various tactics, including money laundering, corruption, fraud, and counterfeiting. Key findings reveal that a significant number of criminal networks utilize money laundering, corruption, and legal business structures to fund their illicit activities. Asset recovery is a potent tool to combat these activities, but its efficacy remains relatively low. Europol's European Financial and Economic Crime Centre (EFECC), established in 2020, plays a vital role in supporting international investigations and improving the recovery of criminal assets. In 2022, the EFECC assisted in 402 investigations, and its services are increasingly in demand.
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Coinbase secures AML registration from the Bank of Spain

• Cryptocurrency exchange Coinbase has secured Anti-Money Laundering (AML) compliance registration from Spain's central bank, enabling Spanish users to retain custody of their crypto assets and conduct transactions in euros. This expansion reflects the growing interest in digital assets in Spain, with 29% of adults believing in the future of crypto and crypto becoming the country's second preferred payment method. Coinbase's international vice president, Nana Murugesan, stressed their commitment to global regulatory compliance. This move follows Crypto.com's regulatory approval in Spain and Coinbase's efforts to establish a strong presence in Europe. As the MiCA Act progresses, a need for stricter non-European oversight in the global crypto market is highlighted.
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• US authorities are cracking down on offshore banks following a $15 million fine imposed on a Puerto Rican lender, Bancrédito. The Financial Crimes Enforcement Network (FinCEN) accuses Bancrédito of violating anti-money laundering and transaction reporting requirements between 2015 and 2022. They allowed more than $100 million in suspicious transactions, including payments tied to bribery, drugs, and a cryptocurrency scam. Bancrédito is now in liquidation, and this is the first enforcement action against a Puerto Rican international banking entity (IBE). IBEs face increased scrutiny due to their elevated risk of exposure to money laundering. It's also a sign of FinCEN addressing gaps and risks identified in the 2022 US national money laundering risk assessment.
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