Episode 247

4th May – 7th May 2026

Sanctions

UK Announces New Sanctions Targeting Russian Drone Production and Migrant‑Exploitation Networks

The UK government has introduced a new set of sanctions against 35 individuals and entities linked to Russia’s drone manufacturing supply chain and to networks accused of exploiting vulnerable migrants to support Russia’s military operations in Ukraine. The measures focus on disrupting human‑trafficking routes which allegedly funnel foreign migrants into frontline roles or defence‑industry work, as well as restricting access to components used in Russian drone production. Targets include individuals involved in recruitment schemes and companies supplying critical technology from third countries. Officials stated that the sanctions aim to increase pressure on Russia’s military capabilities and reinforce the UK’s ongoing support for Ukraine.

Money Laundering

FATF finds Singapore’s AML/CFT regime strong but urges sharper, more risk‑focused results

The FATF–APG mutual evaluation of Singapore, based on a July 2025 on‑site review, concludes that the country has a highly coordinated and generally effective system for combating money laundering, terrorist financing and proliferation financing, but still needs to deliver more consistent, risk‑based outcomes. Singapore’s open economy and role as a global financial and trade hub expose it to significant threats, particularly cyber‑enabled fraud, yet authorities demonstrate strong domestic and international cooperation, robust supervision of financial institutions and VASPs, and substantial asset‑recovery results, including SGD 6.3 billion seized over five years. However, the report highlights gaps such as limited enforcement actions, insufficient focus on high‑risk crimes such as tax offences and corruption, challenges converting investigations into prosecutions, and weaknesses in beneficial ownership accuracy and proliferation‑financing mitigation. Singapore has been placed in regular follow‑up and given a three‑year roadmap of priority actions. A joint response from the Monetary Authority of Singapore, the Ministry of Home Affairs, and the Ministry of Finance, is available here.

Fraud

Two Georgia Men Sentenced in $522 Million Genetic Testing Fraud Targeting Federal Health Programmes

A Georgia laboratory owner and his associate were sentenced to federal prison for orchestrating a scheme which generated more than $522 million in fraudulent claims for medically unnecessary genetic tests obtained through illegal kickbacks and deceptive marketing tactics. Reyad Salahaldeen received a 151‑month sentence for directing the operation across multiple laboratories and falsifying medical documents, while Mohamad Mustafa was sentenced to three years for paying kickbacks to obtain DNA samples and fraudulent test requisitions. The scheme involved telemarketing, door‑to‑door solicitation, and sham contracts to disguise bribe payments, resulting in approximately $84 million in payouts from Medicare, Medicaid, and private insurers. Eleven co‑conspirators had previously pleaded guilty, and both defendants were ordered to pay substantial restitution.

FSCS warns consumers to watch for common scam red flags as fraud tactics grow more sophisticated

The Financial Services Compensation Scheme (FSCS) has outlined how increasingly convincing scams attempt to pressure people into sharing personal information or money, highlighting warning signs such as spelling errors, urgent demands, unfamiliar email addresses, and requests for bank details. Using a recent case of a cloned number plate which triggered £8,500 in false ULEZ fines, the FSCS illustrates how fraudsters exploit confusion and intimidation. The guidance stresses that FSCS will never ask for passwords or money, only uses @fscs.org.uk email addresses, and does not protect crypto assets, urging consumers to pause, verify messages through official channels, and stay alert to protect themselves.

Bribery and Corruption

OSCE Hosts Youth‑Focused Anti‑Corruption Café on Virtual Asset Risks in Moldova

The Organisation for Security and Cooperation in Europe (OSCE), working with Moldova’s National Anticorruption Centre, held its third Anti‑Corruption Café in Chisinau to help young people and civil society understand virtual assets, their legitimate uses, and the corruption and money‑laundering risks associated with emerging digital technologies. Participants, which included students, volunteers, practitioners, and technical experts, took part in discussions on blockchain fundamentals, illicit finance risks, and the role of digital literacy in strengthening resilience. The event forms part of two OSCE projects supported by several donor states and aims to build awareness and practical capacity among youth to address evolving corruption challenges.

Market Abuse

FCA arrests three in crackdown on suspected illegal financial promotions

The Financial Conduct Authority, working with the Eastern Regional Special Operations Unit, has arrested three individuals after searches in Chelmsford and Romford as part of an investigation into suspected unlawful financial promotions. The FCA warns that adverts from unauthorised firms are a common scam indicator and stresses that consumers dealing with such firms lack regulatory protections. All three suspects have been interviewed under caution, and the investigation continues. The FCA reminds the public that operating without authorisation or issuing unauthorised promotions can carry penalties of up to two years’ imprisonment, while making misleading statements can lead to sentences of up to ten years.

Other Financial Crime

Ultra Electronics to Pay £10m Under DPA After Admitting Failure to Prevent Bribery

The Serious Fraud Office (SFO) has secured a £10 million penalty from Ultra Electronics Holdings Ltd after the defence and aerospace supplier accepted responsibility for failing to prevent bribery linked to public sector contracts in Oman and Algeria. A judge approved a Deferred Prosecution Agreement requiring the company to pay an additional £4.8 million in investigation costs and undertake three years of monitored compliance reform. The case stems from a SFO investigation opened in 2018, and later expanded globally, focusing on the use of agents to pursue contracts worth up to £200 million, including two ultimately unsuccessful bids in Algeria. The agreement follows significant changes in the company’s ownership and leadership and brings the SFO’s criminal investigation to a close.

Council of Europe and Estonia Deliver First Joint Anti‑SLAPP Training for Judges and Journalists

The Council of Europe, together with the Supreme Court of Estonia and the Association of Estonian Journalists, held a two‑day training in Tartu on 29th to 30th April 2026 focused on countering Strategic Lawsuits Against Public Participation (SLAPPs). More than 25 judges and journalists took part in sessions based on the Council of Europe’s anti‑SLAPP curriculum, examining legal standards, case studies, and tools for identifying and responding to abusive litigation. The programme highlighted relevant European and domestic mechanisms, including Recommendation CM/Rec(2024)2 and the EU’s 2024 directive on protecting participants in public debate. Participants reported strong satisfaction with the training’s practical value, which forms part of the Council of Europe’s broader efforts to strengthen freedom of expression and support Estonia’s ongoing work on anti‑SLAPP initiatives.