Month: November 2020

G20 Leaders Agree to Follow FATF’s Anti-Money Laundering Measures

Money Laundering
Leaders of the G20 reiterated their commitment to following anti-money laundering policy measures recommended by the Financial Action Task Force (FATF), which stressed their importance amidst the COVID-19 pandemic at a summit over the weekend hosted by the Saudi presidency. “We support the Anti-Money Laundering (AML)/Counter-Terrorist Financing (CFT) policy responses detailed in FATF’s paper on COVID-19, and reaffirm our support for the FATF, as the global standard-setting body for preventing and combating money laundering, terrorist financing and proliferation financing,” a G20 leaders’ declaration published on Sunday stated. The anti-money laundering authority reminded G20 leaders in a prepared written statement that…

2020 annual report on the SAR regime

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The 2020 Suspicious Activity Report (SARs) Annual Report has been published today (19 November). Read the report. The UK Financial Intelligence Unit (UKFIU) saw another record number of SARs, receiving and processing 573,085 (a 20% increase on the previous period of 478,437), with an 81% increase in requests for a defence against money laundering or terrorist finance (62,408). The UKFIU continued its efforts to provide law enforcement agencies with focused asset recovery opportunities as a result of Defence Against Money Laundering (DAML) requests. Over the year £172m was denied to suspected criminals as a result of DAML requests – up…

SWIFT: Focus on financial crime compliance

Compliance, Money Laundering
Tackling financial crime, and ensuring compliance with anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations remains one of the biggest overall challenges for the financial services community. This year, this has been particularly apparent, as the quick shift to enable a remote working environment in the wake of the pandemic put additional pressure on the fraud defences financial institutions have spent time and money investing in. The ever more connected and instant digital world also poses questions for how banks and financial institutions can ensure they meet their compliance requirements in real-time. In one of two risk…

Apple’s Chief Security Officer charged with bribery

Corruption
Apple’s head of global security has been indicted on felony charges for allegedly offering bribes to California police officers in exchange for concealed firearms licenses, the Santa Clara district attorney’s office announced in a press release published on Monday. According to an indictment issued by a grand jury, Thomas Moyer, 50, is accused of offering to donate 200 iPads worth roughly US$70,000 to the local police force in exchange for four licenses that are required for individuals looking to carry a gun without revealing it. The deal was apparently “scuttled at the eleventh hour” last year, when police officers became…

Over US$427 billion is lost to tax havens every year

Tax Evasion
As governments around the globe face budgetary pressures due to the COVID-19 public health crisis, the urgency to crack down on tax havens – responsible for an estimated loss of over US$ 427 billion each year – has become even more crucial, experts said in response to new findings. A new annual report, published on Friday by the Tax Justice Network, reveals how much each country loses each year, totalling $245 billion directly lost through tax abuse by multinational corporations, and a remaining $182 billion from wealthy individuals that hide their money from local authorities through the use of secretive…

European authorities crack down on arms traffickers

Corruption, Money Laundering, Organised Crime
Police in Europe cracked down on the illegal arms trade across the continent in two separate operations that saw 18 arrests, dozens of objects raided, nearly 200 firearms and millions in assets seized across the continent. Spanish authorities arrested seven suspects, seized 18 properties worth about 10 million euro (US$11.8 million) and froze over 50 financial products from a large organised crime group that transported armaments as large as tanks across the Mediterranean, and even once managed to break a compatriot out of a Greek prison. “The criminal network, made up of Latvian, Spanish and Ukrainian members, illegally transported Russian…

UK seizes $1.58 million linked to flat bought with graft money

Money Laundering, Organised Crime
The U.K. Serious Fraud Office (SFO) said it has secured nearly £1.2 million (US$1.58 million) last week from the Brazilian owner of a luxury apartment in West London, which is believed to have been purchased with money stemming from Latin America’s biggest corruption scandal, Brazil’s Operation Car Wash. The amount was seized from Julio Faerman, “the owner of a £4.25 million ($5.6 million) luxury apartment in West London which the SFO suspected to have been partly purchased with the corrupt funds of its owner’s criminal conduct,” the anti-fraud agency said. Faerman was implicated in the corruption scandal that uncovered systematic…

Legal monitors tell Deutsche Bank to quit Russia

Money Laundering, Sanctions
NEW YORK STATE-appointed monitors want Deutsche Bank to pull out of business in Russia completely, according to new reports. The advice comes despite the bank’s ambitions for expansion in the country – although its relationship with Russia has not been void of scandal or allegations of wrongdoing in recent years. The monitors told senior executive leaders at Deutsche that efforts to minimise financial crime risks would not be enough to offset those that came with certain Russian clients, the Wall Street Journal reported Thursday after speaking to a source familiar with the communications. Both monitors are attorneys from Chicago-based law…

6 key takeouts from the FATF President’s address to the G20

Compliance
On Friday, FATF President Dr Marcus Pleyer spoke to G20 leaders and central bank governors on the threats of financial crime. He addressed colleagues from nations across the world, who are all nearing their first anniversary of COVID restrictions and lockdowns. His main message was simple: the fight against dirty money matters now more than ever. But here’s a more thorough run-down of what his comments mean for those efforts – and what their future looks like as the pandemic still rages. 1. FATF will not let COVID regulate their work to the back seat – and the G20 are…

Swiss private bank charged with money laundering

Money Laundering
MONEY LAUNDERING CHARGES are being brought against a private bank in Switzerland which is already in the process of winding down operations. Falcon Private Bank – based in Zurich but with a presence in Luxembourg, London and Dubai – has been charged with money laundering by the Swiss Attorney General. These charges are understood to relate to an instance of organisational deficiencies in relation to a corporate criminal case, Swiss media outlet Handelszeitung reported Thursday. Former Falcon Bank chief executive Eduardo Leemann has also been charged in connection with the case and will appear in court next year. His spokesperson…

Belgium looks to follow Netherlands as top banks push for money laundering information sharing

Compliance
Belgian banks have joined forces to push for a centralised platform for information-sharing to combat financial crime. The calls are coming directly from the CEOs of ING Belgium, KBC, Belfius and BNP Paribas Fortis – the four biggest banks in the country by market share, assets and branches. A central channel was vital to allow banks the opportunity to share information with each other, and with court officials, police and government financial watchdogs, the four chief executives told a parliamentary finance committee hearing. “We are asking to engage as a real partner in the fight against money laundering,” said Belfius…

Online payments company receives €370k fine for “significant shortcomings” in AML practices

Money Laundering
A fine of €370,000 has been handed down to Lithuanian online payment company Paysera LT for failing to comply with AML rules. The fine, issued by the Bank of Lithuania, was decided after a two-month inspection revealed “significant shortcomings related to compliance and anti-money laundering and terrorist financing requirements.” Paysera LT has challenged the scale of the fine. According to the Bank of Lithuania, the company had failed to properly assess money laundering and terrorism financing risks. It also failed to implement adequate standards in customer identification and due diligence, in line with current Lithuanian law. “The company has failed…

SFO secures £1.2m following investigation into West London property linked to Brazilian bribery scandal

Corruption
The SFO has today secured £1,198,424.78 from Julio Faerman, the owner of a £4.25m luxury apartment in West London which the SFO suspected to have been partly purchased with the corrupt funds of its owner’s criminal conduct. The Brazilian national was implicated in Brazil’s ‘Operation Car Wash’, which uncovered systematic bribery to win contracts from the Brazilian state oil company Petrobras. While under investigation by Brazilian prosecutors, Faerman admitted paying bribes to win contracts for the Dutch company SBM Offshore NV, for whom he acted as an agent. He is subject to a co-operation agreement with the Brazilian prosecuting authorities,…

FinCEN clarify BSA due diligence expectations for charities and non-profit customers

Compliance, Download
WASHINGTON—In coordination with the Federal Banking Agencies, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) today issued a joint fact sheet to provide clarity to banks on how to apply a risk-based approach to charities and other non-profit organizations (NPOs). The joint fact sheet highlights the importance of ensuring that legitimate charities have access to financial services and can transmit funds through legitimate and transparent channels, especially during the current COVID-19 pandemic. Also, the joint fact sheet reminds banks to apply a risk-based approach to customer due diligence (CDD) requirements when developing the risk profiles of charities…

Companies House Reform

Money Laundering
Having announced measures to verify the identity of individuals forming UK companies through the Companies House reform bill, it appears the government is now taking money laundering seriously, writes Michael Harris, director of financial crime compliance at LexisNexis Risk Solutions. There is no doubt that the proposed Companies House reform is a positive move, especially given that the National Crime Agency estimates that money laundering costs the UK economy £37bn ($48.2bm) a year – a huge sum that indicates there is still much to do in the fight against financial crime. The new Companies House rules come in amid proposals…

Gambling Commission fine of BoyleSports (£2.8m) for AML failings

Money Laundering
BoyleSports is the latest UK sportsbook operator to be issued a fine by the Gambling Commission over anti-money laundering (AML) failings. The UK Gambling Commission has fined BoyleSports £2.8m and imposed a set of tougher conditions on its licence after an investigation revealed a series of money laundering failures. BoyleSports’ £2.8m fine During an investigation carried out by the Gambling Commission, BoyleSports Enterprise was found to have breached Commission rules intended to prevent money laundering on its Boylesports.com and Boylecasino.com websites. The Gambling Commission said that the operator “failed to have an appropriate money laundering risk assessment in place” and…

EU to create new bloc-wide Financial Crime Compliance Sentinel (AML regulator)

Compliance
The European Union after approval from member state finance members will move forward in creating a bloc-wide financial crime compliance sentinel to directly oversee country regulators and financial institutions – with power to engage in direct reviews, request information and levy monetary penalties. The agreement at the EU Council will form the foundation for more formal legal edicts expected to take force early next year, a widely-watched initiative by global watchdog groups and partner world powers after embarrassing Baltic and Nordic banking scandals shattered the perception of strong union anti-money laundering and counter-financing of terrorism (AML/CFT) oversite with the estimated…

COVID increases fraud rate by 60%

Fraud
Top 3 Global Fraud Contributors in 2020: Card cloning, High-Speed Ordering/Spending, and High-Risk Merchant Category Code 34% increase in card cloning fraud rate across industries and regions 13% increase in sporting goods purchases compared to last holiday season due to social distancing and prohibited indoor gatherings 36% decrease in fuel purchases compared to Q1 and 89% Drop in Transportation Sector Transactions 75% of customers plan to maintain new digital banking habits SAN MATEO, Calif., Nov. 24, 2020 (GLOBE NEWSWIRE) — Feedzai, the world’s leading risk management platform, has announced its Quarterly Financial Crime Report which contains financial crime indicators and…

Dr Marcus Pleyer (FATF) addressing virtual G20

Money Laundering, Organised Crime
The Financial Action Task Force is committed to working with the G20 to ensure a strong, sustainable economic recovery from the COVID-19 crisis, FATF President Marcus Pleyer emphasised in remarks to the G20 Leaders’ Summit and G20 Finance Ministers and Central Bank Governors meeting. Addressing G20 leaders, the FATF President said that crime and money laundering undermines just competition, hampers growth, deepens inequality, and erodes confidence in the integrity of the global financial system. It remains critical that jurisdictions continue to actively identify, assess, and understand how criminals and terrorists can exploit the COVID-19 pandemic and stop money illicitly flowing…