In a recent development that has drawn significant ire from both FinTelegram and the broader anti-money laundering community, a disconcertingly lenient settlement was reached with former executives of the payment processor Payvision, Rudolf Bookerand Cheng Liem Li. This resolution, which saw the individuals fined merely €180,000 and €150,000, respectively, is a striking illustration of a troubling leniency towards individuals implicated in facilitating cybercrime and money laundering activities on a global scale.
The core of the controversy stems from the executives’ roles in what has been described as “structural and thus willful violation” of Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, alongside breaches of financial laws. These are not minor oversights but serious offenses that have enabled fraudulent activities, including scams orchestrated by cybercrime organizations led by figures such as Uwe Lenhoff and Gal Barak. These schemes defrauded tens of thousands of individuals and laundered millions through Payvision, making the executives complicit in significant financial crimes.
Read the FinTelegram opinion on the Amsterdam Payvision settlement here.
Peter van Leusden, an anti-fraud and anti-corruption expert, highlighted the anomaly of offering a settlement to natural persons in cases where the legal entity itself has committed criminal offenses. This move by the Amsterdam prosecutors signals a worrying precedent, suggesting a potential underestimation of the gravity and impact of these crimes. It raises questions about the rationale behind opting for settlements with individuals who, given the severity of their actions, could feasibly face more stringent legal repercussions, including imprisonment.
What exacerbates this situation is the revelation that Rudolf Booker, the then CEO of Payvision,was not only aware of the fraudulent nature of the transactions processed by his company but also personally engaged with known cybercriminals, even offering advice on laundering their ill-gotten gains through offshore structures. His direct involvement and personal connections with key figures in these criminal enterprises underline a blatant disregard for ethical business practices and the law.
Rudolf Booker even went on vacation with Uwe Lenhoff and visited his birthday party. Lenhoff and Booker were introduced by the Amsterdam real estate investor Dirk-Jan Bakker, whose role in the cybercrime organization of Lenhoff and the joint Veltyo Group in the UK has not yet been investigated by law enforcement. However, this Amsterdam connection was responsible for defrauding tens of thousands of victims in many jurisdictions of more than €200 million.
Read the Veltyco reports here on FinTelegram.
This case sheds light on a broader issue within the financial sector, where the enforcement of regulations and the punishment of violations remain inconsistent. The relatively minor fines imposed on Booker and Li send a dangerous message to money launderers and cybercrime organizations worldwide, seemingly minimizing the seriousness of their actions. It inadvertently signals that the repercussions for facilitating large-scale fraud may be inconsequential in comparison to the profits that can be garnered from such illicit activities.
This settlement not only undermines the efforts of law enforcement and regulatory bodies to combat cybercrime and money laundering but also poses a significant risk to the integrity of the financial system. It is a clear call to action for regulators and prosecutors globally to reassess their approach to penalizing and deterring financial crimes. Such leniency serves neither the victims of these crimes nor the goal of establishing a secure and trustworthy financial environment. The decision by the Dutch prosecutors must be critically reevaluated, and a stronger stance should be taken to ensure that justice is served and future crimes are deterred.