Welcome to the April 2025 summary of news you can use as your bank or other financial institution attempts to stay up to date on the world of BSA/AML compliance. Our monthly series of curated news about FinCrime regulatory developments, resources and stories.
In this edition, three main stories emerge:
- Beneficial Ownership Data No Longer Required of U.S. Small Businesses
- Money Launderers Created 40 Small Businesses to Launder $126 Million
- Surprising Money Launderers in the U.K. – Barbershops
Beneficial Ownership Data No Longer Required of U.S. Small Businesses
U.S. small businesses, after suffering whiplash from opposing court rulings as to whether or not they must comply with FinCEN’s beneficial ownership information (BOI) reporting requirement, finally have an answer. It is “No.” However, the FinCen ruling arrived just barely before the March 21st deadline. And that means many small businesses had already paid accountants and lawyers to prepare their BOI filings. It’s yet another mark against the Corporate Transparency Act (CTA).
Jeff Brabant, VP of federal government relations at the National Federation of Independent Business, urged lawmakers to repeal the Corporate Transparency Act, which he said exposes smaller firms to data privacy threats as they report beneficial ownership data to FinCEN. “The federal database will be breached and it will be hacked. This is why Congress and the Treasury must immediately and permanently delete the records of the millions of U.S. small business owners who already filed their [reports],” he stated.
Brabant also noted that the small businesses — numbering about 33 million — filed details that could be accessed by government agencies without subpoenas or warrants.
Read more here:
Congress Urged to Repeal Corporate Transparency Act
Money Launderers Created 40 Small Businesses to Launder $126 Million
A civil forfeiture action filed April 1, 2025 connected to the 2024 federal raid at Fuyao Glass America’s Moraine plant describes a yearslong federal investigation of a sophisticated money laundering operation paid over $126 million by Fuyao to shell companies in Ohio’s Miami Valley. The shell companies were all created as LLCs (limited liability corporations).
In the new filing, federal prosecutors say at least 11 of the LLCs they named in court documents have received direct payments from Fuyao totaling more than $126 million.
The DOJ says the LLC owners used at least $10 million of that money to buy things like houses, cars, and luxury items and that using illegal immigrant workers helped their LLCs make money.
In court documents, investigators describe how they followed the money by connecting bank account transfers, common mailing addresses, and property purchases.
Read more here:
Civil forfeiture complaint details investigation tied to Fuyao Glass America raid
Surprise Money Launderers in the U.K. – Barbershops
On April 2, 2025, the HMRC (Her Majesty’s Revenue and Customs) Economic Crime Unit (ECU) collaborated with Police to seize more than £500,000 from barbershops being used as fronts for money laundering. Ironically, West Mercia covers Herefordshire, Shropshire, and Worcestershire – a combined area known for its idyllic, slow-paced life and picturesque towns and natural beauty, featuring places like The Forest Dean and cider country.
As it turns out, criminal gangs were using barbershops as fronts for fraud, money laundering, and the sale of illicit goods. Police and immigration officers arrested seven people during the raids.
Read more here:
West Mercia Police seize £500k in money laundering barbershop raids
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