Financial Crimes Newsletter Month

From the WNS RegDesk

Global regulators are intensifying efforts to combat fraud, financial crime, and digital risks through stricter enforcement, expanded AML coverage, and stronger international cooperation, including coordinated sanctions.
Fraud is increasingly viewed as a national, system wide risk, driving collaboration among financial institutions, telecom providers, and technology platforms rather than siloed compliance approaches.
Regulatory oversight is broadening beyond traditional financial firms to sectors such as legal, real estate, and professional services, bringing many new entities into the AML perimeter.
At the same time, authorities are modernizing financial and payments regulations, clarifying rules for crypto and digital assets, and strengthening oversight of AI, virtual assets, and emerging technologies to close enforcement gaps, manage cross border risks, and protect consumers and financial system integrity.

Brief on Global Enforcement Actions

A snapshot of fines and penalties for AML/CTF failures worldwide, underscoring the need for vigilant and focused compliance.

FinCEN - Assesses Historic $80 Million Penalty Against Canaccord Genuity LLC for Securities Fraud-Related Bank Secrecy Act Violations

FinCEN imposed a record $80 million penalty on Canaccord Genuity LLC for willful Bank Secrecy Act violations tied to securities fraud. The firm failed to maintain an effective AML program, conduct proper CDD, and file at least 160 required SARs. Regulator said the lapses allowed fraudulent OTC trading to go undetected, harming investors and limiting law‑enforcement visibility.

Jurisdictional Shifts You Can’t Ignore

Key regulatory updates specific to jurisdictions that are important for you to know.

CBUAE - Issues Guidance Note to Protect Consumers

UK GOV - Fraud Strategy Launch

The UK government launched its Fraud Strategy 2026–2029 to tackle fraud, now the UK’s most common crime. The strategy focuses on three pillars—Disrupt, Safeguard and Respond—and includes £250m+ investment and the creation of a new Online Crime Centre to strengthen public‑private data sharing. It also aims to improve victim support, disrupt fraud at source, and enhance law‑enforcement and international cooperation.

UK GOV - New disruption unit launched in crackdown on fraud

The UK government launched a new Online Crime Centre, a cross‑sector disruption unit aimed at cracking down on large‑scale fraud. The centre will bring together law enforcement, intelligence agencies, banks, telecoms firms and tech companies to identify and shut down scam infrastructure such as fraudulent accounts, websites and phone numbers. Backed by £30m+ in funding, the unit forms part of the government’s expanded Fraud Strategy, which includes £250m investment over three years to tackle the UK’s most pervasive crime and better protect victims.

FATF - Jurisdictions under Increased Monitoring

UK GOV - UK crackdown on vile scam centres steps up with sanctions on illicit crypto network

The UK government stepped up its crackdown on overseas scam centres by imposing sanctions on Xinbi, a major illicit cryptocurrency marketplace used to sell stolen personal data and support large‑scale online fraud. The sanctions also target operators of Cambodia’s “#8 Park” scam compound, linked to the trafficking and forced exploitation of up to 20,000 workers. The measures aim to cut off scam networks from the legitimate crypto system, protect UK victims, and address serious human‑rights abuses ahead of the UK’s Illicit Finance Summit.

UK GOV - Cap on donations from overseas electors and ban on crypto donations to protect democracy

The UK government announced new rules to protect democratic integrity by capping political donations from overseas electors at £100,000/year and introducing an immediate ban on cryptocurrency donations. The measures follow an independent review that warned of sustained risks from foreign financial interference and untraceable funding. Changes will be implemented through amendments to the Representation of the People Bill and apply with retrospective effect to shut down potential abuse routes.

FinCEN - Issues Exceptive Relief to Streamline Customer

FinCEN - Issues Expanded Southwest Border Geographic Targeting Order (GTO)

FinCEN issued an expanded Geographic Targeting Order (GTO) to strengthen efforts against money laundering and cartel activity along the U.S. southwest border. The order requires certain Money Services Businesses (MSBs) in designated areas of Arizona, California, New Mexico, and Texas to report cash transactions between $1,000 and $10,000. By increasing reporting and identity‑verification requirements, the GTO aims to give law enforcement faster access to financial intelligence and disrupt cartel‑linked cash flows.

FINRA - Progress Update on Rule Modernization

FINRA issued a progress update on its Rule Modernization initiative (FINRA Forward), highlighting completed reforms aimed at reducing unnecessary regulatory burdens while maintaining investor protection. Key changes include raising the annual gift limit to $300, modernizing rules for capital acquisition brokers, and updating guidance on negative consent for bulk account transfers. FINRA noted that additional rule updates are underway as part of its broader effort to keep regulations aligned with today’s market structure and business practices.

OCC - Agencies Clarify the Capital Treatment of Tokenized Securities

U.S. Banking regulators—including the OCC, Federal Reserve, and FDIC—issued updated guidance clarifying the capital treatment of tokenized securities. The agencies confirmed that eligible tokenized securities receive the same regulatory capital treatment as their non‑tokenized equivalents, emphasizing that capital rules are technology‑neutral. Banks holding such assets must continue to apply sound risk‑management practices and comply with existing laws and regulations.

Market Announcements

Key developments across global financial crime regulation and supervision.

PSR - Releases ahead on card fees, fraud and payments reform in 2026/27

The Payment Systems Regulator (PSR) published its 2026/27 annual plan, setting out priorities to tackle high card fees, strengthen protections against Authorised Push Payment (APP) fraud, and advance wider payments reform, while supporting open banking and overseeing critical infrastructure as it prepares for consolidation into the FCA.

Financial Markets Tribunal upholds the DFSA’s

AMLA - Concludes first public hearing on draft regulatory technical standards

The EU AMLA concluded its first public hearing on draft Regulatory Technical Standards (RTS) under the new EU AML/CFT framework. The hearing brought together over 1,600 stakeholders to discuss proposed rules on CDD and the identification of business relationships and transactions, with feedback to inform the final EU Single Rulebook.

AMLA - Launches data collection exercise to test risk assessment models

The EU AMLA launched a data collection and testing exercise to calibrate its EU‑wide money‑laundering risk assessment models. The exercise will support the selection of up to 40 financial institutions for AMLA’s direct supervision from 2028 and promote consistent risk assessments across EU supervisors, with participating entities required to submit data by 22 April 2026.

FATF - Releases new paper on cyber-enabled fraud

DFSA - AML and Glossary Modules amendments come into force; FAQs published

The Dubai Financial Services Authority (DFSA) brought into force amendments to its AML and Glossary Modules, aligning the DIFC regulatory framework with updated UAE federal AML legislation. The DFSA also published FAQs to help firms interpret the new requirements, addressing areas such as governance, risk assessments, digital onboarding, outsourcing and internal audit expectations.

FinCEN - Launches Webpage for Whistleblower Tips on Fraud

SEC - Clarifies the Application of Federal Securities Laws to Crypto Assets

The U.S. Securities and Exchange Commission (SEC), together with the CFTC, issued an interpretation clarifying how federal securities laws apply to crypto assets and related transactions. The guidance introduces a token taxonomy, confirms that most crypto assets are not securities, and explains when crypto‑related activities—such as airdrops, staking, and mining—may fall under securities regulation, aiming to provide long‑awaited regulatory certainty for market participants.

OCC - Requests Comments on Proposal to Implement GENIUS Act

AUSTRAC - Opens enrolment for new professions in next step for AML reforms

AUSTRAC opened enrolment for newly regulated professions—including lawyers, accountants, real estate professionals and precious‑metal dealers—as part of Australia’s sweeping AML/CTF reforms. From 1 July 2026, these sectors will be required to comply with AML obligations, expanding AUSTRAC’s supervision from around 19,000 to nearly 100,000 businesses and closing long‑standing gaps in the regime.

AUSTRAC - What to expect from the changes to the AML/CTF Rules

AUSTRAC outlined what reporting entities and newly regulated businesses can expect from the updated AML/CTF Rules, confirming details on transitional arrangements, amendment rules and the “travel rule.” The guidance sets phased timelines—extending up to 2029 for some obligations—to help businesses update systems and processes while maintaining effective management of money‑laundering and terrorism‑financing risks under the reformed regime.

Regulatory News

Recent regulatory updates shaping financial crime compliance across global jurisdictions.

FATF - Participates in the UNODC-INTERPOL Global Fraud Summit

The Financial Action Task Force (FATF) participated in the UNODC‑INTERPOL Global Fraud Summit in Vienna, highlighting the rapid growth of large‑scale, technology‑enabled fraud worldwide. FATF stressed the need for stronger international cooperation and showcased how AML tools—such as beneficial ownership transparency, transaction freezing and virtual‑asset tracing—can be used to disrupt fraud networks and protect victims across borders.

FATF - Understanding and Mitigating the Risks of Offshore Virtual Asset Service Providers (oVASPs)

The Financial Action Task Force (FATF) published a report on understanding and mitigating the risks posed by Offshore Virtual Asset Service Providers (oVASPs), warning that regulatory gaps are being exploited for fraud, money laundering and terrorist financing. The report highlights typologies used by oVASPs to evade supervision and sets out good practices, including activity‑based regulation, stronger cross‑border cooperation, and enhanced enforcement to address non‑compliant providers.

FATF - Targeted report on Stablecoins and Unhosted Wallets - Peer-to-Peer Transactions

The Financial Action Task Force (FATF) released a targeted report on stablecoins and unhosted wallets, warning that peer‑to‑peer (P2P) transactions are increasingly exploited for money laundering, fraud, terrorist financing and sanctions evasion. The report calls on countries and industry to strengthen AML/CFT controls, fully implement FATF Recommendation 15, and require stablecoin ecosystems to adopt risk‑based safeguards—particularly where transactions occur without regulated intermediaries.

The 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

FIFAI II: AI Risks and Opportunities: Adopting an AGILE Framework in Canadian Financial Services

Canadian regulators and industry leaders released FIFAI II, examining how artificial intelligence is reshaping risks and opportunities across Canada’s financial sector. The report introduces the AGILE framework—Awareness, Guardrails, Innovation, Learning and Ecosystem Resiliency—to help financial institutions strengthen governance, manage AI‑driven risks, and responsibly harness innovation through closer public‑private collaboration.