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BaFin urges FIs to invest their strong earnings to bolster defences against AI-driven fraud, highlighting generative AI risks, advanced phishing threats, and the need for adaptive security measures

January 28, 2025

For example, through generative AI. More and more companies in the financial sector are using generative AI or testing its use. And of course, criminals are also using such technologies – to develop new attack methods or malicious code, for example. High quality phishing messages can be created quickly using AI, which makes it much more difficult to identify fraudulent messages…

Europol and Eurojust dismantle a €100m ML network using offshore accounts, shell companies, and unregulated crypto exchanges, seizing €8m in cash and freezing €27m in cryptocurrencies

January 27, 2025

The authorities discovered that the group was running a sophisticated money laundering service for other criminal organisations. The group acted as a financial service to transfer criminal profits internationally. Cryptocurrencies were used to move cash profits between criminal organisations. To dispose of the cash profits, money was transported on commercial flights, mainly to Cyprus, and by public transport to neighbouring countries of Spain…

Europol disrupts a Ukrainian-led network exploiting the EU’s temporary protection status for ML and was involved in drug trafficking, tax evasion, and smuggling

January 27, 2025

The action day, which follows raids conducted in October 2024, saw the arrest of several suspects and the seizure of various criminal assets. In total, the operation, which took place over several months, led to the arrest of 23 suspects, the seizure of EUR 35.7 million in cash, bank accounts and cryptocurrencies as well as 36 vehicles, real estate, watches, and jewellery.

Europol’s Taskforce dismantles a large-scale drug trafficking network from Colombia to Spain, seizing 7.2 tonnes of cocaine and €6m, while freezing 53 bank accounts

January 24, 2025

The Spanish Civil Guard supported by Europol busted a large-scale drug trafficking network in an investigation involving Bulgaria, Colombia, Costa Rica and Panama. The suspects were allegedly involved in the reception and wholesale distribution of cocaine across the EU, as well as in money laundering. The sting was coordinated by Europol’s Operational Taskforce…

Europol pinpoints that criminals hire others to violently resolve drug trade disputes through explosive attacks and kidnappings

January 23, 2025

German and Dutch law enforcement have launched a successful cross-border operation arresting 23 suspects involved in violent retaliatory acts linked to the illegal drug trade. The operation, which followed a dispute in Cologne, Germany, saw Dutch criminals hired to carry out attacks, including bombings and kidnappings on German soil. The investigation also uncovered disturbing trends, such as the use of minors in criminal activities and a growing…

Europol holds its largest-ever operation to seize global criminal assets, uniting over 80 experts to trace, freeze, and seize organized crime profits, including €200,000 in cryptocurrencies

January 17, 2025

Over 80 financial experts and representatives from 43 law enforcement agencies across 28 countries joined Europol for Project A.S.S.E.T. (Asset Search & Seize Enforcement Taskforce). This groundbreaking initiative, conducted from 13 to 17 January, aims to enhance global efforts to identify, freeze, and seize criminal assets. The event also included key contributions from international organizations such as Eurojust and Interpol, demonstrating a coordinated global effort…

EPPO Lithuania uncovers an organised crime group allegedly misappropriating nearly €6m from EU structural funds, connected to high-value fraud, ML, and illegal activities by legal entities

January 16, 2025

The investigation concerns fraudulent schemes allegedly carried out between 2018 and 2024, during which the organised group systematically misled the administering authority to obtain EU funds unlawfully. Evidence indicates that the suspects simulated commercial relations and fictitious financial transactions between companies under their control, fraudulently inflating costs and creating the impression of contributing their own funds to EU-funded projects…

EBA and ESMA Report warns of significant ML/TF risks in DeFi and Crypto Lending

January 16, 2025

The report highlights significant ML/TF risks in decentralised finance (DeFi), citing vulnerabilities such as weak customer due diligence and anonymity features that obscure transaction origins across decentralised exchanges, lending, and staking activities…

MONEYVAL reports progress by Slovakia in addressing deficiencies related to NPOs, virtual assets, and high-risk countries, but the improvements were not enough for a ratings upgrade

January 14, 2025

The country remains under MONEYVAL’s enhanced follow-up procedure and must report on overall progress within a year. Additionally, it is required to provide updates on customer due diligence measures (Recommendation 10) at the June 2025 plenary meeting. Further action is needed to fully address deficiencies and strengthen enforcement.

EBA publishes joint report on recent development in crypto-assets

January 13, 2025

This report, intended to inform the European Commission’s (EC) report to the European Parliament and Council, examines decentralised finance (DeFi), crypto lending, borrowing, and staking activities. It is primarily analytical, refraining from policy recommendations but highlighting key insights and risks.

EBA publishes final guidelines on ESG risk management, requiring institutions to identify, measure, manage, and monitor risks, and prepare plans to address financial risks from ESG factors

January 9, 2025

Institutions must develop plans that align with EU transition efforts. They are set to apply from 11 January 2026 for most institutions with an extended deadline for smaller entities. They complement other sustainable finance actions outlined by the EBA. These guidelines are part of the EU’s broader strategy to promote sustainable finance and ensure the stability of financial institutions in light of intensifying ESG challenges…

Eurozone Banks are now required to process payments in 10 seconds under SEPA Instant Payments, raising potential fraud risks