Episode 188

26th September – 28th September 2025

Sanctions

UK Government Publishes Sanctions Starter Guide for Businesses and Organisations

The UK Government has released a comprehensive starter guide to help businesses and organisations understand and comply with UK sanctions regulations. Published by the Foreign, Commonwealth & Development Office, the guide outlines who must comply, the types of sanctions, ranging from financial and trade to immigration and transport, and how to conduct due diligence using official sanctions lists. It explains the concept of designated persons, sectoral measures, and ownership/control rules, while also detailing licensing exceptions and penalties for breaches or circumvention. The guide serves as an accessible entry point for navigating the complex legal landscape of UK sanctions.

UK Freezes Assets of Music Groups Over Terrorism Links and updates Russia Guidance

On 25th September 2025, HM Treasury designated two entities, namely Embers of an Empire and Rampage Productions, under the Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019, imposing asset freezes for their alleged roles in promoting and facilitating terrorism through music and related events. Both groups are accused of disseminating material which encourages terrorism and financially supporting individuals involved in such activities. UK financial institutions must freeze any assets linked to these entities and report findings to the Office of Financial Sanctions Implementation (‘OFSI’), with non-compliance potentially constituting a criminal offence. OFSI has also updated the Russia Sanctions Guidance this week. The Guidance on looking up amendments to the regulations is here, and looking up exceptions to the trade and transport sanctions is here.

US Sanctions Indian Nationals and Online Pharmacy for Trafficking Counterfeit Fentanyl Pills

The US Treasury has sanctioned two Indian nationals, Sadiq Abbas Habib Sayyed and Khizar Mohammad Iqbal Shaikh, and an India-based online pharmacy for distributing counterfeit prescription pills laced with fentanyl and other illicit drugs to American consumers. Operating under the guise of legitimate pharmaceutical sales, the network used encrypted messaging and deceptive marketing to supply dangerous substances, contributing to the ongoing synthetic opioid crisis. The action, taken under Executive Order 14059, blocks all US-linked assets and prohibits transactions, reinforcing the US commitment to dismantling global drug trafficking operations and protecting public health.

Money Laundering

Eurojust and Europol Dismantle Gold-Based Drug Laundering Network Across France and Italy

A joint French–Italian investigation supported by Eurojust and Europol has dismantled two interlinked organised crime groups involved in drug trafficking and laundering at least €30m through gold bar transactions. One network, led by Syrian and Egyptian nationals in northern Italy, used the hawala system and complicit smelting businesses to convert drug cash into gold, which was then routed to countries including Kosovo, Türkiye, and Morocco. Coordinated raids led to 12 arrests, the seizure of nearly 100 kilos of gold, luxury assets worth €8 million, and the disruption of a sophisticated “crime-as-a-service” model which masked illicit proceeds behind precious metal trade.

Netherlands Improves FATF Compliance, Strengthens AML/CFT Framework

Following its 2022 mutual evaluation, the Netherlands has made notable progress in addressing technical deficiencies in its anti-money laundering and counter-terrorist financing regime, according to the FATF’s 2025 follow-up report. The country now holds 10 “Compliant” and 29 “Largely Compliant” ratings across FATF’s 40 recommendations, with only one, correspondent banking, still rated “Partially Compliant.” Notably, Recommendation 15 on new technologies was upgraded, reflecting improved oversight of emerging financial risks. The Netherlands remains under regular follow-up and will continue reporting on its implementation efforts ahead of the 5th round evaluation.

Fraud

INTERPOL Recovers $439 Million in Global Crackdown on Cyber-Enabled Financial Crime

INTERPOL’s Operation HAECHI VI, spanning April to August 2025 across 40 countries, has recovered $439 million from cyber-enabled financial crimes including phishing, romance scams, sextortion, investment fraud, and illegal online gambling. Investigators blocked over 68,000 bank accounts and froze nearly 400 cryptocurrency wallets, with standout recoveries in Thailand, Portugal, and South Korea. The operation leveraged INTERPOL’s I-GRIP stop-payment system to intercept illicit funds in real time, proving that cross-border cooperation can reclaim assets once thought lost to fraud.

Allianz Faces Dual Spotlight: £93M Fraud Detection in UK Amid $16.8M Fine in Australia for Misleading Insurance Claims

In a turbulent moment for global insurer Allianz, the company finds itself both commended and condemned across two continents.

In the UK, Allianz Insurance uncovered over 15,800 cases of insurance fraud totalling £92.6 million in the first half of 2025, which is a 34 per cent increase from the same period in 2024. The surge was driven by increasingly sophisticated scams, including ghost broking, exaggerated personal injury claims, and “ballooning” tactics where seemingly minor claims escalate dramatically post-liability admission. Allianz responded with enhanced machine learning models, voice analytics, and a new partnership with US tech firm Carpe Data to combat personal injury fraud. Director of Fraud Ben Fletcher emphasised the insurer’s commitment to protecting honest customers and preserving industry integrity.

Meanwhile, in Australia, Allianz Australia Insurance Limited and its partner AWP Australia Pty Ltd were fined a combined $16.8 million by the Supreme Court of New South Wales for misleading travel insurance promotions. The breaches, which occurred between 2016 and 2018, involved advertising maximum benefits without disclosing sub-limits and exclusions. ASIC Deputy Chair Sarah Court warned that thousands of customers may have purchased policies under false impressions of coverage. Justice Rothman attributed the misconduct to corporate reluctance to invest in proper oversight, calling for systemic reform.

EU Study Uncovers Widespread Fraud and Safety Risks in Cinnamon Products

A new investigation by the European Commission’s Joint Research Centre has revealed extensive fraud and non-compliance in cinnamon sold across the EU. Of 104 samples tested, over 66% failed to meet international standards or breached EU food safety laws, with some containing excessive levels of coumarin, a liver-toxic compound found in cassia cinnamon. The study exposed deceptive practices such as mislabelling cassia as premium Ceylon cinnamon and substituting bark with other plant parts. With cinnamon demand rising, the findings underscore the need for improved surveillance, standardised testing methods, and stronger regulatory enforcement to protect consumers and ensure product integrity.

EU Demands Tech Giants Reveal Anti-Scam Measures Under Digital Services Act

The European Commission has formally requested Apple, Booking.com, Google, and Microsoft to disclose how their platforms and search engines detect and mitigate financial scams, under obligations set by the Digital Services Act. The inquiry targets fraudulent apps, fake accommodation listings, deceptive ads, and scam-linked search results. It also probes identity verification practices and advertising repositories, aiming to strengthen systemic risk assessments and consumer protection. This move aligns with broader EU efforts to curb online fraud and enforce transparency across Very Large Online Platforms.

Other Financial Crime

UK Government Issues Strategic Guidance for Engaging with China, Hong Kong, and Macao

The UK government has published comprehensive guidance to support responsible and secure engagement with China, including Hong Kong and Macao, across business, academic, and civil society sectors. Recognising China’s global economic and research significance, the guidance consolidates country-specific advice on travel, trade, regulatory risks, intellectual property, and national security. It encourages UK actors to engage confidently while remaining vigilant to potential threats, such as cyber risks, money laundering, and human rights concerns. This strategic framework reflects a long-term commitment to managing UK-China relations with clarity, resilience, and cross-sector collaboration.

European Police Chiefs Unite to Combat Digital Crime and Youth Exploitation

At the 2025 European Police Chiefs Convention in The Hague, over 400 law enforcement leaders from 53 countries convened to confront escalating threats posed by digital crime and youth exploitation. Europol’s Executive Director Catherine De Bolle underscored the urgency of international cooperation, as panels revealed how organised crime networks are leveraging online platforms to recruit minors and launder money through crypto-enabled systems. Key proposals included centralised investigative units, regulatory obligations for tech platforms, and joint cross-border operations to trace illicit assets. The event also spotlighted innovation in policing, honouring agencies from Portugal, Germany, and Norway for pioneering ethical and technical solutions to emerging threats.

Cybercrime

UK Arrest in Cyber Attack on Collins Aerospace Disrupting European Flights

The National Crime Agency has arrested a man in his 40s in West Sussex in connection with a cyber incident targeting Collins Aerospace, reported on 19 September. The attack disrupted flights at Heathrow and other European airports over the weekend. The suspect was detained on suspicion of Computer Misuse Act offences and released on conditional bail. The NCA, supported by the South East Regional Organised Crime Unit, emphasised that the investigation is ongoing and part of broader efforts to combat persistent cyber threats impacting UK infrastructure and public safety.

Cybercrime News Round-up

Now, a round-up of other cybercrime news this week. The Kido nursery chain became the target of a hacking group calling itself Radiant, which stole the names, addresses, and pictures of approximately 8,000 children, alongside data belonging to parents and crucial safeguarding notes. These hackers have demanded a ransom, even contacting some parents directly. In other news, the Co-op has reported that as a result of its cyber-attack earlier this year it has lost at least £206 million in revenues in the first half of 2025. Finally, the woes at Jaguar Land Rover continue as production remains suspended at its UK factories until at least October, costing the company at least £50 million per week, prompting the government to consider unprecedented financial support for the supply chain.