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- Former Swedbank CEO Convicted Of Gross Fraud Over Money Laundering Claims
- Polish DPA Fines mBank PLN4m For GDPR Violations
- UK Regulator Charges First Individual For Running Illegal Crypto ATM Network
- Lithuania Proposes Consumer-Friendly Amendments To Payment Services Law
- China, Nigeria Announce Joint Agreement To Tackle Money Laundering
- AI A Double-Edged Sword For Cybercrime, Warns Czech Banking Association
Former Swedbank CEO Convicted Of Gross Fraud Over Money Laundering Claims
A Swedish appeals court has found former Swedbank CEO Birgitte Bonnesen guilty of gross fraud related to her handling of anti-money laundering protocols in Estonia.
Bonnesen has now been sentenced to 15 months in prison for providing misleading statements during interviews with Swedish media in October 2018, downplaying the money laundering situation at Swedbank’s Estonia branch.
The Svea Court of Appeal overturned parts of a 2023 lower court ruling that had acquitted Bonnesen of all charges.
Although convicted of one count, she was acquitted of six others related to fraud and market manipulation. Bonnesen, who served as Swedbank’s CEO from 2016 to 2019, denied the charges and plans to appeal the verdict.
Prosecutors argued that Bonnesen's misleading statements harmed public and shareholder trust, affecting Swedbank's financial standing.
Polish DPA Fines mBank PLN4m For GDPR Violations
The Polish Personal Data Protection Office (UODO) has issued a fine of PLN4m (£800,000) to mBank for violating the General Data Protection Regulation (GDPR).
The penalty was imposed due to the bank's failure to notify affected individuals about a data breach, as required under Article 34(1) of the GDPR.
The breach occurred on June 30, 2022, when personal data of a group of mBank customers was mistakenly transferred to an unauthorised party.
Despite recommendations from UODO, mBank failed to inform its customers about the potential risk, resulting in the substantial fine.
The UODO president stressed that timely notification is critical in safeguarding individuals’ rights and freedoms when their data is at risk.
UK Regulator Charges First Individual For Running Illegal Crypto ATM Network
In a landmark case, the Financial Conduct Authority (FCA) has charged 45-year-old Olumide Osunkoya, from London, for operating multiple crypto ATMs without proper registration.
These machines, which convert cash into cryptocurrency, allegedly processed £2.6m in transactions between December 2021 and September 2023.
This marks the first criminal prosecution related to unregistered crypto activity under UK regulations and the first case involving illegal crypto ATMs.
"If you're illegally operating a crypto ATM, we will stop you. If you're using a crypto ATM, you are handing your money directly to criminals,” Therese Chambers, joint executive director of enforcement at the FCA, warned.
Osunkoya is set to appear at Westminster Magistrates' Court on September 30, 2024.
Lithuania Proposes Consumer-Friendly Amendments To Payment Services Law
The Bank of Lithuania has proposed changes to the country’s Law on Payments to give consumers more control over additional services offered by payment service providers.
The amendments aim to prevent providers adding non-payment services such as insurance to service bundles without the user’s consent, increasing costs.
Gediminas Šimkus, chair of the board of the Bank of Lithuania, said that “with the proposed changes, we aim to provide more freedom of choice and clarity to consumers, so that they can choose exactly the services or service baskets they need".
Under the proposed amendments, users will have the right to select payment services individually and be fully informed about service rates, whether purchased separately or as part of a bundle.
Providers, meanwhile, will no longer be allowed to impose unwanted services without the user’s approval.
China, Nigeria Announce Joint Agreement To Tackle Money Laundering
China and Nigeria have entered into a wide-ranging strategic partnership that includes new agreements to jointly tackle money laundering while promoting trade in local currencies.
Last week, Nigeria’s President Bola Tinubu met with Chinese President Xi Jinping at the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC).
The two leaders discussed a range of issues and signed a series of agreements and memorandums of understanding (MoUs).
As per a joint statement, the two countries agreed to cooperate on financial intelligence sharing and on anti-money laundering and counter-terrorism financing (AML/CTF) issues.
China agreed to support Nigeria’s efforts to safeguard its financial and foreign exchange markets and to crack down on financial crimes.
The two countries also agreed to encourage bilateral and regional cooperation in the form of local currency swaps to facilitate more efficient trade and investment.
In February 2023, Nigeria was placed on the list of jurisdictions under increased monitoring by the Financial Action Task Force (FATF), also known as the greylist.
AI A Double-Edged Sword For Cybercrime, Warns Czech Banking Association
Cyber fraud is surging in the Czech Republic, with a 37 percent increase in attacks on bank customers in the first seven months of 2024 compared with the same period last year, according to the Czech Banking Association (CBA).
More than 49,000 clients were targeted, resulting in financial damages of CZK845m ($37m), a 9 percent rise year-on-year.
The trade association said that banks in the country have managed to save more than CZK4bn through advanced fraud detection systems, increasingly relying on AI to thwart cyber threats.
However, cybercriminals are also using AI to craft sophisticated scams, including deep fakes and phishing attacks, which has made it more challenging to take preventive action.
"AI is becoming an increasingly important tool that helps us quickly and efficiently identify threats and minimise their impact," said Jan Juchelka, president of the Czech Banking Association.
"Unfortunately, however, it is increasingly abused by e-scammers who use it to create increasingly sophisticated frauds."
