Episode 226

20th February – 22nd February 2026

Sanctions

US Treasury Sanctions CJNG‑Linked Timeshare Network Defrauding American Citizens

The US Department of the Treasury has sanctioned Kovay Gardens, a Mexican timeshare resort, along with five individuals and 17 companies linked to a large‑scale fraud network run by the terrorist-designated Cartel de Jalisco Nueva Generación (‘CJNG’). The scheme, centred in the Puerto Vallarta area, has long targeted US timeshare owners, and particularly older Americans, through deceptive call‑centre operations which impersonate legitimate brokers, lawyers, and officials. Victims are tricked into paying repeated “fees” and “taxes” for non-existent sales or rentals, often losing life savings. Treasury’s action, coordinated with multiple US agencies and Mexico’s financial intelligence unit, escalates efforts to cut off CJNG’s diversified revenue streams, which extend beyond drug trafficking to timeshare fraud, extortion, and fuel theft. All designated individuals and entities now face asset blocking, strict sanctions prohibitions, and potential secondary sanctions for those who transact with them.

US Treasury Sanctions Sudanese RSF Commanders for Atrocities Committed in El‑Fasher

The US Department of the Treasury has imposed sanctions on three senior commanders of Sudan’s Rapid Support Forces (‘RSF’) for their roles in the 18‑month siege and eventual capture of El‑Fasher, during which RSF fighters carried out mass killings, torture, starvation tactics, and widespread sexual violence against civilians. The designations respond to documented atrocities, which include executions, ethnic‑based attacks, and the destruction of evidence of mass graves, and follow similar actions taken by the UK and EU. As Sudan’s civil war continues to spiral since 2023, the United States emphasised that the conflict has generated the world’s worst humanitarian crisis, with more than 150,000 killed and over 14 million displaced, and urged the RSF to agree to an immediate humanitarian ceasefire.

Money Laundering

MONEYVAL Praises Latvia’s Strong AML/CFT Progress but Highlights Gaps in Non‑Financial Sector Supervision

A new MONEYVAL assessment finds that Latvia has made significant progress in combating money laundering, terrorist financing, and proliferation financing, reflecting major reforms to its financial system since 2018 and a strong national understanding of related risks. The report highlights effective financial intelligence capabilities, robust international cooperation, and strengthened risk‑based supervision in the banking sector, while also noting that non‑financial sectors, particularly legal professionals, require improved risk assessment and oversight. Although Latvia demonstrates strong asset recovery efforts and effective use of investigative tools, challenges remain in prosecuting large historical cases and ensuring accountability of legal persons. MONEYVAL has issued key recommended actions to be completed within three years, with Latvia due to report back in June 2028.

Fraud

Chinese National Convicted in $2.2 Million Gift‑Card Laundering Scheme

A federal judge in Albany has found Jun Wang, a 63‑year‑old Chinese national and US permanent resident, guilty of participating in a money‑laundering conspiracy involving more than $2.2 million in Walmart gift cards. Evidence showed that between 2019 and 2021, Wang redeemed gift cards purchased by fraud victims across the United States, often within minutes of purchase, and used the proceeds to buy additional cards at Walmart and Sam’s Club stores in Florida to obscure the funds’ origins. Prosecutors described him as a key link in an international fraud network, while the FBI highlighted the scale of losses suffered by victims, including elderly individuals. Wang faces up to 20 years in prison when sentenced in June 2026.

INTERPOL Operation Red Card 2.0 Leads to 651 Arrests and $4.3 Million Recovered in Africa-Wide Crackdown on Online Scams

An INTERPOL‑coordinated cybercrime crackdown across 16 African countries, named Operation Red Card 2.0, has resulted in 651 arrests, the recovery of more than $4.3 million, and the dismantling of multiple transnational scam networks responsible for over $45 million in losses. Conducted between December 2025 and January 2026, the operation targeted high‑yield investment frauds, mobile money scams, and fraudulent loan apps, leading to the seizure of over 2,300 devices and the takedown of 1,442 malicious IPs, domains, and servers. National successes included Nigeria disrupting major phishing and identity‑theft rings, Kenya arresting 27 suspects involved in fake investment schemes, and Côte d’Ivoire seizing hundreds of devices linked to predatory loan fraud. INTERPOL supported real‑time intelligence sharing and digital forensics, highlighting the growing effectiveness of collaborative international action against cybercrime.

Seven Suspected Fraudsters Arrested in Nigeria After NCA Intelligence Uncovers Online Investment Scam Hub

Seven men in Agbor, Nigeria, have been arrested after intelligence shared by the UK’s National Crime Agency (‘NCA’), Meta, and the Nigerian Police uncovered an online investment scam compound targeting victims in the UK and US. The group allegedly used hundreds of fake Facebook accounts to impersonate cryptocurrency traders, post fabricated positive reviews, and lure victims on legitimate investment platforms into sending them money. The compound was reportedly also training young recruits to conduct future investment and phishing scams. During the 13th January operation, authorities seized 26 phones, 42 SIM cards, and a laptop. The NCA described the arrests as a major step in disrupting overseas fraud networks, while the UK government emphasised that international cooperation is essential to protecting the public from global online fraud.

Market Abuse

ESMA Launches Consultation to Simplify Market Abuse Disclosure Rules Ahead of 2026 Reforms

The European Securities and Markets Authority (‘ESMA’) has opened a consultation on proposed amendments to its Market Abuse Regulation (‘MAR’) guidelines, aiming to streamline and clarify rules on delaying the disclosure of inside information in line with changes introduced by the EU’s Listing Act. From June 2026, issuers will no longer be required immediately to disclose inside information relating to ongoing, protracted processes, prompting ESMA to remove related provisions and instead highlight new legitimate grounds for delay, including requests from public authorities, the need for additional data gathering, and involvement in multiple similar procurement processes. ESMA also proposes removing the “no misleading the public” condition, replacing it with a requirement that delayed disclosures must not contradict an issuer’s most recent public statements. Stakeholders are invited to respond by 29th April 2026, with a final report expected in Q4 2026.

Other Financial Crime

Tribunal Upholds FCA Bans and Fines Over Reckless Pension Investment Failures

The UK Upper Tribunal has upheld the Financial Conduct Authority’s bans and financial penalties against Stephen Burdett and James Goodchild, finding both men acted recklessly in exposing pension holders to unsuitable, high‑risk investment portfolios managed at Synergy Wealth and Westbury Private Clients. The Tribunal agreed that Burdett misled customers about risk levels, directed pension switches into portfolios he knew were inappropriate, and operated as a director without FCA approval, while Goodchild constructed portfolios with significant concentration in a single offshore property developer and used terms such as “cautious” and “balanced” despite the underlying risk. The FCA’s intervention in 2016 led both firms into liquidation, and the Financial Services Compensation Scheme has since paid out more than £1.4 million to affected consumers. The Tribunal decision is here.