Financial Crime Bulletin
Feb 2026
From the WNS RegDesk
- Global regulators have shifted decisively from setting expectations to aggressively enforcing them — especially in high‑risk areas such as payments, cryptoassets, sanctions, and market abuse. Firms can no longer rely on grace periods or gradual remediation; enforcement is now rapid, public, and deterrence‑driven.
- Authorities are increasingly targeting entities involved in cross‑border illicit finance, including crypto intermediaries, correspondent banks, PSPs, and shadow‑banking structures. Expect more multi‑agency taskforces, intelligence‑sharing, and pressure on offshore jurisdictions.
- Sanctions enforcement has intensified sharply, with February 2026 marking a new phase of intelligence‑led, network‑focused strategies that target facilitators, not just primary sanctioned actors. Institutions must upgrade to network‑based sanctions and risk‑screening capabilities.
- The UK, US, UAE, and others are now enforcing crypto regulations at the same standard as traditional finance, signaling a transition into a fully regulated crypto economy. Decentralization is no longer an acceptable defense for weak controls.
- AI‑related risks — including deepfakes and automated decisioning — are now part of formal financial‑crime regulation. Regulators are shifting from ethical principles to enforceable model‑governance requirements akin to AML/CTF expectations.
- Globally, financial‑crime frameworks are converging across FATF, AMLA, FinCEN, and national regulators. Compliance is moving from rules‑based methods toward continuous, risk‑adaptive, intelligence‑driven monitoring.
Brief on Global Enforcement Actions
A snapshot of fines and penalties for AML/CTF failures worldwide, underscoring the need for vigilant and focused compliance.
FCA - Takes action against HTX to stop illegal financial promotions
The FCA has launched legal action against HTX for illegally promoting crypto services to UK consumers. HTX continued publishing unauthorized financial promotions despite repeated FCA warnings. The FCA has moved to block HTX’s online platforms and apps in the UK to protect consumers.
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PSR - Fines Bank of Ireland UK over £3.7m for failing to implement Confirmation of Payee
The PSR fined Bank of Ireland UK £3.78m for implementing Confirmation of Payee 14 months late. The delay left over 1.14 million new payees and £6.9 billion in transactions without fraud‑protection checks. PSR said the bank had ample time to comply; the fine was reduced by 30% for early settlement.
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DFSA - Fines Ark Capital Management (Dubai) Limited USD 504,000 for market abuse systems and change of control reporting failings
The DFSA fined Ark Capital Management USD 504,000 for ineffective market‑abuse controls and delayed or missed reporting of suspicious trades. The firm also failed to notify the regulator about a proposed change in control involving an investor agreement.
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US Treasury Proposes Rule to Sever Swiss Bank MBaer’s Access to U.S. Financial System
The U.S. Treasury Department has proposed a rule to cut off Swiss bank MBaer Merchant Bank AG from the U.S. financial system, citing evidence that the bank funnelled over $100 million for illicit actors tied to Iran and Russia.
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US DOJ - Virtual Asset Trading Platform Sentenced for Violating the Travel Act and Other Federal Criminal Charges
The U.S. Department of Justice announced that Paxful Holdings Inc., a virtual asset trading platform, was sentenced to pay a $4 million criminal penalty after pleading guilty to charges including violating the Travel Act, Bank Secrecy Act violations, and knowingly transmitting illicit funds
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Bank of Canada issues immediate compliance order to XTM Inc.
The Bank of Canada has issued a temporary compliance order directing XTM Inc. to immediately stop all retail payment activities, citing serious concerns that the company failed to safeguard client funds.
Read MoreJurisdictional Shifts You Can’t Ignore
Key regulatory updates specific to jurisdictions that are important for you to know.
UK - Announces sanctions against perpetrators of human rights violations in Iran
The UK has imposed sanctions on 10 individuals and 01 organisation involved in serious human rights violations in Iran, particularly for enabling brutality against peaceful protesters. The sanctioned include senior Iranian officials such as the Minister of the Interior, police chiefs and IRGC members.
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UK - Imposes fresh sanctions to dismantle Sudan’s 'war machine'
The UK imposed new sanctions on 06 individuals linked to atrocities and the supply of fighters and weapons in Sudan, aiming to “dismantle Sudan’s war machine”. Announced after Foreign Secretary Yvette Cooper’s visit to the Sudan–Chad border, the measures seek to increase pressure for a ceasefire and humanitarian access amid a severe crisis.
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UK - Announces biggest sanctions package against Russia four years on from full-scale invasion of Ukraine
The UK announced nearly 300 new sanctions targeting Russia’s oil revenues, shadow fleet, and military supply networks to weaken its war effort. This largest package since early 2022 coincides with new UK support for Ukraine on the invasion’s fourth anniversary.
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US Treasury - Releases Two New Resources to Guide AI Use in the Financial Sector
A shared Artificial Intelligence Lexicon, which standardizes definitions for key AI concepts to improve communication across financial institutions, regulators, and technology providers.
Read MoreMarket Announcements
Key developments across global financial crime regulation and supervision.
AMLA - Consults on key mandates for the private sector and harmonized supervision
The EU’s Anti-Money Laundering Authority (AMLA) has launched consultations on Business Relationship, Enforcement and Customer Due Diligence as part of the Regulatory Technical Standards (RTS) to strengthen and harmonize AML/CFT rules across the EU.
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Financial Markets Tribunal upholds the DFSA’s decision to impose a fine on Al Ramz Capital LLC of USD 25,000 for failing to immediately report suspicious transactions on NASDAQ Dubai
The Tribunal upheld the DFSA’s USD 25,000 fine on Al Ramz Capital for not promptly reporting suspicious Nasdaq Dubai trades, confirming the firm had objective grounds to suspect market abuse and failed to file a required STOR.
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DFSA - publishes Crypto Token FAQs to support implementation of updated regulatory framework
The DFSA has published new Crypto Token FAQs to help firms understand and implement its updated Crypto Token regulatory framework, effective from 12 Jan 2026. The FAQs clarify authorisation requirements, firm‑led token suitability assessments, treatment of stablecoins, and how the rules apply across various business models—aiming to strengthen regulatory clarity, market integrity, and investor protection.
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FATF - Releases new paper on cyber-enabled fraud
FATF warns that cyber enabled fraud is rapidly increasing worldwide, now accounting for major shares of crime in jurisdictions like the UK and Singapore, and urges stronger global standards, better payment transparency, improved asset recovery tools, and enhanced international cooperation to combat these evolving digital threats.
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FinCEN - Launches Webpage for Whistleblower Tips on Fraud, Money Laundering, Sanctions Violations
The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) has launched a new confidential whistleblower webpage to receive tips on fraud, money laundering, and sanctions violations. The platform allows individuals to submit detailed information on suspected violations of the Bank Secrecy Act, U.S. sanctions, and related laws.
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OCC - Requests Comments on Proposal to Implement GENIUS Act
The Office of the Comptroller of the Currency (OCC) has issued a proposed rulemaking to implement the GENIUS Act, establishing a federal regulatory framework for payment stablecoin issuers. The proposal outlines requirements for permitted and foreign stablecoin issuers, covers custody activities by OCC‑supervised entities, and invites public comments for 60 days.
Read MoreRegulatory News
Recent regulatory updates shaping financial crime compliance across global jurisdictions.
CBUAE - Issues Guidance Note to Protect Consumers and Ensure Responsible Use of Artificial Intelligence in the Financial Sector
CBUAE issued a guidance note outlining principles for the responsible use of AI in the financial sector, focusing on protecting consumers, ensuring fairness, transparency, human oversight, and strong data governance across licensed financial institutions.
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FATF - High-Risk Jurisdictions subject to a Call for Action - 13 February 2026
FATF reaffirmed that DPRK, Iran, and Myanmar continue to remain high‑risk jurisdictions requiring enhanced due diligence and, where necessary, countermeasures due to persistent AML/CFT and proliferation‑financing deficiencies.
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FATF - Jurisdictions under Increased Monitoring - 13 February 2026
FATF’s recent update lists jurisdictions under Increased Monitoring —commonly known as the “grey list”. The listed countries have committed to action plans and are subject to closer FATF oversight but are not subject to enhanced due diligence requirements. The list includes Kuwait and Papua New Guinea getting added with NIL removals.
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FinCEN - Reminds Financial Institutions of Its Resources on Identifying Potential Relationship Investment Scams
FinCEN is reminding financial institutions to stay alert for relationship investment scams as part of the annual #DatingorDefrauding campaign. The agency highlights several existing resources that explain how these scams operate—often involving fictitious relationships, virtual currency fraud, elder exploitation, deepfake‑enabled schemes, and misuse of FinCEN’s name.
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FinCEN - Issues Exceptive Relief to Streamline Customer Due Diligence Requirements
FinCEN has issued an exceptive relief order that streamlines Customer Due Diligence (CDD) requirements by removing the mandate for financial institutions to re‑identify and re‑verify beneficial owners each time a legal entity opens a new account.
Read MoreThe Double-edged Sword of Technology
Emerging technologies and trends that both strengthen defenses against financial crime and introduce new vulnerabilities.
UK Gov. - Science-led collaboration against deepfakes
The UK has launched a science‑led initiative to combat the rapid rise of deepfakes, creating a world‑first detection evaluation framework and running a major Deepfake Detection Challenge with government, academia, and industry to set standards and improve identification of harmful synthetic media.
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UK Gov. - Leads global fight against deepfake threats
The UK government is leading a global effort to combat deepfake threats by developing a world‑first deepfake detection evaluation framework in collaboration with major tech companies like Microsoft, as well as academics and law‑enforcement experts. The framework tests detection tools against real‑world harms such as fraud, impersonation, and abusive content, setting consistent standards for industry. With deepfakes surging to 8 million shared in 2025, the initiative aims to close detection gaps, protect the public, and hold technology companies accountable.
Read MoreExpert Perspectives
Valuable, domain-backed perspectives on the latest trends, challenges and strategies of navigating the world of financial crimes by WNS Experts
AI-powered Tools for Smarter Compliance
Purpose-built WNS solutions, powered by AI and human Genuity, that drive real impact towards the battle against financial crime.
