Year: 2022

Soldiers Arrested on Drug and Money Laundering Offences

Money Laundering
Six soldiers and a veteran have been arrested on suspicion of drug, money-lending and money-laundering offences, the Ministry of Defence has said. The MoD said six Irish Guards troops and a Coldstream Guardsman veteran were arrested by the Royal Military Police as part of a “planned operation”. The 1st Battalion Irish Guards are set to lead Thursday’s Trooping the Colour for the Queen’s Platinum Jubilee. The MoD said none of the soldiers under investigation would take part. A defence source confirmed to the BBC that items suspected to be drugs were seized in a raid at Mons Barracks in Aldershot…

Defining Cryptocurrency Regulation Important for the Industry to Grow

Digital Currencies, Regulation
A united government may make it easier for new crypto laws to be agreed upon, and to “follow the spirit of Biden’s executive order” in keeping the U.S. at the vanguard of innovation, Morgan Stanley (MS) said in a report Wednesday looking at the implications of midterm elections for the cryptocurrency sector. According to the bank’s public policy analysts, legislation concerning tech regulation, cryptocurrency, pricing of prescription drugs, tax increases and China competition will have varying chances of passage by the end of 2023, depending on the outcome of the November elections. Defining regulation for digital assets is important for…

EU Considers Blacklisting UAE After ‘Dubai Uncovered’ Leaks

Corruption, Sanctions
Following revelations of how criminals, sanctioned Russian oligarchs, and corrupt officials are big property investors in Dubai, European Parliament members have suggested that the United Arab Emirates should be blacklisted in the same manner as North Korea, Burkina Faso and Iran. Last week, OCCRP and investigative journalists from 20 other outlets uncovered how Russian politicians, sanctioned oligarchs, and criminals have poured their ill-gotten gains into luxury properties in Dubai. The ‘Dubai Uncovered’ investigation, based on a 2020 leak by the Center For Advanced Defense Studies (C4ADS) into the emirate’s housing market, has drawn calls from EU politicians for tougher anti-money…

UK Middlemen Paid £9.7m in Bribes to Saudis for Contracts

Bribery, Prosecutions
Two men funnelled bribes totalling millions of pounds to a Saudi prince and other high-ranking officials to secure lucrative commercial contracts, the opening day of a trial has heard. The Serious Fraud Office alleges that a total of £9.7m was paid to Prince Miteb bin Abdullah and a group of senior Saudi officials to land the contracts for a British subsidiary of the European aerospace group Airbus. Mark Heywood QC, for the prosecution, said British middlemen for years had regularly paid bribes to “highly placed” Saudis through offshore companies and Swiss bank accounts in what amounted to “deep corruption”. Jeffrey…

U.S. Says it Imposes Sanctions on Moscow Backed Iranian Oil Smuggling Network

Money Laundering, Sanctions
The United States on Wednesday imposed sanctions on what it described as a Russian-backed oil smuggling and money laundering network for Iran’s Revolutionary Guards’ Quds Force, even as Washington tries to revive nuclear deal with Iran. The U.S. Treasury Department said the network was led by current and former Quds Force figures, “backed by senior levels of the Russian Federation government” and included Chinese companies and a former Afghan diplomat. It had raised hundreds of millions of dollars for Iran’s Quds Force and Tehran’s Lebanese allies Hezbollah, and helped Tehran support proxy militant groups, Treasury said. The Quds Force is…

Global Crypto Regulatory Body Is Coming Soon

Digital Currencies, Regulation
A joint body tasked with coordinating crypto regulation globally is sorely needed and could become a reality within the next year, according to Ashley Alder, chair of the International Organization of Securities Commissions (IOSCO), an association of market regulators. Alder was speaking at an online conference organized by the think tank Official Monetary and Financial Institutions Forum (OMFIF). Alder, who is also the CEO of Hong Kong’s Securities and Futures Commission, said the growth of digital currency markets and their increasing connection to mainstream finance has made crypto a top focus area for regulators around the world. “Crypto has obviously…

Bankers Support Switzerland’s Decision not Change Banking Secrecy Law

Money Laundering
Swiss bankers defended on Tuesday the decision of a parliamentary commission not to strike down the controversial article 47 from the country’s banking secrecy law that has been criticized by the UN, journalists and human rights advocates as violating press freedom. After meeting last week to deliberate the subject, Swiss lawmakers chose not to touch the article of the Federal Act on Banks and Savings Banks that prescribes a prison sentence of up to three years and a fine for whoever discloses confidential banking information about a Swiss bank’s client. “From the point of view of the majority of the…

KPMG Hit by Latest in String of Fines Over Rolls-Royce Bribery Scandal

Bribery
KPMG UK is facing the latest in a litany of multimillion pound fines for failings in its supervision of the accounts of Rolls-Royce Holdings, the aircraft engine manufacturer. Sky News has learnt that the big four auditor could be hit with a roughly-£4.5m penalty as soon as this week over work dating back more than a decade. One source familiar with the situation said the £4.5m was expected to be discounted to reflect KPMG’s co-operation with the inquiry led by the Financial Reporting Council (FRC). The fine relates to the firm’s work on Derby-headquartered Rolls-Royce, which in 2017 paid more…

U.S. Issues Charges in First Criminal Cryptocurrency Sanctions Case

Digital Currencies, Prosecutions, Sanctions
The Justice Department has launched its first criminal prosecution involving the alleged use of cryptocurrency to evade U.S. economic sanctions, a federal judge disclosed Friday. In an unusual nine-page opinion, U.S. Magistrate Judge Zia M. Faruqui of Washington, D.C., explained why he approved a Justice Department criminal complaint against an American citizen accused of transmitting more than $10 million worth of bitcoin to a virtual currency exchange in one of a handful of countries comprehensively sanctioned by the U.S. government: Cuba, Iran, North Korea, Syria or Russia. In the ruling, the judge called cryptocurrency’s reputation for providing anonymity to users…

The Sanctioned Oligarch’s Son and a £160m London Property Empire

Sanctions
The son of a Russian billionaire facing sanctions for supporting the dictator who runs Belarus has been linked to a £160m portfolio of London properties. Said Gutseriev, a 34-year-old businessman with British and Russian nationality, appears to have spent years amassing a collection of at least seven properties in central London. They range from large office buildings in the City to a pair of £17m townhouses in south Kensington knocked together to make one residence. Said’s father, Mikhail Gutseriev, was blacklisted last year, by the EU in June and the UK in August, months after the violent repression of protests…

Money Lost to COVID Fraud and Error is More Than the 10 Biggest Heists in History Put Together

Fraud
The money lost to Covid fraudsters and civil service blunders is more than 10 times all the biggest heists in history combined, Labour analysis has shown. The Treasury has had to write off £11.8bn in public funds which were wrongly claimed by fraudsters under the various Covid support schemes, or lost by mistake. By contrast, the top 10 heists in British history amount to only £1.1bn in today’s terms when adjusted for inflation. Labour accused Rishi Sunak of a “great Covid robbery”. The Great Train Robbery of 1963 led to the loss of £2.6m, while the most lucrative heist of…

A Museum Could be in Breach of Sanctions if it Returns a Fabergé Egg to its Russian Oligarch Owner

Sanctions
The Victoria and Albert Museum is in possession of a Fabergé Egg belonging to a sanctioned oligarch. The ornament, owned by Viktor Vekselberg, is on loan to the London museum. The institution could end up breaching sanctions if it’s returned to Vekselberg, however. A UK museum, which is in possession of a Fabergé Egg belonging to a sanctioned Russian oligarch, could breach sanctions if it returns it to him. iNews reported the story first. Viktor Vekselberg acquired the very first Fabergé Egg – an elaborately decorated ornament – in 2004, according to The Art Newspaper. It was commissioned in 1885…

Britain Must Do More to Tackle Corruption in Politics and Finance, Lawmaker Says

Corruption, Regulation
Britain has lost its moral compass and must act to tackle “dirty money” and protect the integrity of its democracy, a senior opposition lawmaker said in a report published on Monday by King’s College London. Margaret Hodge, a Labour lawmaker for 28 years and former head of parliament’s Public Accounts Committee, said a culture of deregulation and light-touch enforcement had allowed financial malpractice to flourish and this was seeping in to politics. “Unacceptable behaviour is in danger of becoming commonplace,” Hodge, who chairs a cross-party parliamentary group on anticorruption and responsible tax, said in the report for the Policy Institute.…

EU Proposes New Rules to Confiscate Assets of Criminals and Oligarchs Evading Sanctions

Sanctions
Today, the Commission proposes a new Directive on Asset Recovery and Confiscation. It includes rules on asset recovery from tracing and identification, through freezing and management, to confiscation of assets. The Asset Recovery and Confiscation Directive proposes to modernise EU rules on asset recovery and confiscation by: Ensuring that financial investigations aimed at tracing illicit assets are swiftly launched in all complex criminal investigations against organised crime. Providing Asset Recovery Offices with the powers and information to swiftly trace and identify criminal assets, including by urgently freezing property. Establishing Asset Management Offices to ensure that frozen property does not lose…

SEC Charges Wells Fargo Advisors with Anti-Money Laundering Related Violations

Money Laundering, Prosecutions
The Securities and Exchange Commission today announced charges against Wells Fargo Advisors for failing to file at least 34 Suspicious Activity Reports (SARs) in a timely manner between April 2017 and October 2021. Wells Fargo Advisors, the St. Louis-based broker-dealer, has agreed to pay $7 million to settle the charges. According to the SEC’s order, due to Wells Fargo Advisors’ deficient implementation and failure to test a new version of its internal anti-money laundering (AML) transaction monitoring and alert system adopted in January 2019, the system failed to reconcile the different country codes used to monitor foreign wire transfers. As…

EU Plans to Stop Russians From Buying Property in Europe

Sanctions
An EU-wide ban on property transactions with Russian nationals has been added to the Commission’s sixth package of sanctions. In the proposal, the European Commission intends to stop property deals with Russian individuals, residents and entities — prohibiting the sale or transfer, directly or indirectly of ownership rights in property in the bloc. It is designed to apply to land and dwellings located “within the territory of the Union or units in collective investment undertakings providing exposure to such immovable property.” The latest EU action targets both the Russian state and oligarchs and for the first time specifically targets the…

UK Financial Conduct Authority Acts to Improve Financial Crime Issues at Challenger Banks

FCA, Financial Crime Controls
The U.K. Financial Conduct Authority has published the findings of its multi-firm review into financial crime controls at challenger banks. The FCA undertook the review in 2021 in response to the 2020 National Risk Assessment of money laundering and terrorist financing, which highlighted the risk that quick onboarding processes advertised by challenger banks could appeal to criminals. The FCA’s review revealed that technology is being used well to identify and verify customers quickly and that there are not many differences between the financial crime risks facing challenger banks and those posed to traditional retail banks. However, there are several areas…

US Commission Accuses Switzerland Of Hiding Russian Assets

Sanctions
The Commission for Security and Cooperation in Europe, otherwise known as the Helsinki Commission, has issued hard-hitting criticism of Switzerland’s perceived role in hiding Russian assets. “Long known as a destination for war criminals and kleptocrats to stash their plunder, Switzerland is a leading enabler of Russian dictator Vladimir Putin and his cronies. After looting Russia, Putin and his oligarchs use Swiss secrecy laws to hide and protect the proceeds of their crimes,” the body stated. The Commission’s hearing on Thursday heard testimony from Pieth, Miranda Patrucic, deputy editor in chief at the Organized Crime and Corruption Reporting Project and…

Stricter Controls on Lawyers, Accountants and Other ‘gatekeeper’ Professionals Who Enable Money Laundering

Money Laundering
STRICTER AML regulations and supervision must be placed on the professional “gatekeepers” who enable money laundering, the Council of Europe’s AML body said today. MONEYVAL also said governments need to step up their efforts and coordination to combat money laundering and terrorist financing by adopting stricter regulation and supervision of the crypto and virtual assets sector. The group called out “the specialised ‘gatekeeper’ professions, such as lawyers, accountants and other services providers who often help launderers” as requiring more oversight. MONEYVAL is the Council of Europe’s anti-money laundering and counter-terrorist financing body. The emerging virtual assets sector and the increasing…

Strikes at UK Financial Regulator Due to Start This Week

FCA
Unionized staff at the Financial Conduct Authority will mount the first strike in the chief UK financial regulator’s nine-year history this week over a dispute over pay and working conditions. Staff will go on strike on Wednesday and Thursday following a protracted battle with management over restructuring plans that Unite claims would amount to pay cuts for many employees. The industrial action is the first of a series, with further strikes earmarked for June and July, although fewer than 300 of the watchdog’s 4,000 workers are expected to take part this week. Unite disclosed last month that it had 640…

5 U.S. States Order a Metaverse Casino With Alleged Ties to Russia to Halt Sale of NFTs

NFTs, Sanctions
Regulators in five states simultaneously filed emergency orders Wednesday against a virtual casino they say has ties to Russia and that has been operating in the metaverse, a digital world where participants can interact with each other, purchase products and even gamble. State law enforcement officials say Flamingo Casino Club’s operators failed to disclose its Russian ties and claimed it had partnerships with legitimate businesses when it didn’t. The civil filing represents a new and coordinated effort by state regulators to police some of what is going on amid the explosive growth of the metaverse, where innovation and speculation have…

Fraud Scheme of at Least €440m in Italy Halted

Fraud
Italian and Austrian authorities have dismantled a massive fraud scheme set up by a criminal network that used Italian companies to simulate business leases and false tax credits. The perpetrators deprived the Italian authorities of at least EUR 440 million. With the help of Eurojust, approximately 90% of the proceeds have been recovered and 12 suspects have been arrested. The arrested suspects allegedly belong to an organised crime group (OCG) that defrauded the Italian State of at least EUR 440 million. The OCG used Italian companies to sell false tax credits, to simulate business leases in order to obtain COVID-19-related…

Online Financial Attacks up 233%

Fraud
The rate of fraudulent online financial attacks jumped 233% between 2019 and 2021, according to an analysis of 18 billion global banking transactions carried out by Portuguese technology company Feedzai, which specializes in fraud prevention. According to the new Financial Crime Report “The RiskOps Age”, the number of frauds has grown at a faster rate than the rate of legitimate online transactions, reflecting a substantial increase in risk. Low risk, high reward “Living a digital lifestyle brings a world of convenience, but it also offers a low-risk, high-reward environment for fraudsters,” said Jaime Ferreira, vice president of global data science…

New ‘fraud squad’ will crack down on criminals who steal taxpayer money

Fraud, Investigation
A new £25 million central government taskforce that will enlist an elite team of experts to crack-down on fraudsters who attempt to steal taxpayers’ cash will be operational by the summer, the Chancellor will announce today (27 April). The Chancellor has announced that a new fraud squad, recruited from data analytics experts and leading economic crime investigators, will crack down on criminal gangs who rip off the taxpayer. Operational in July and based in the Cabinet Office, the new £25 million “Public Sector Fraud Authority” will double funding for the Government’s central counter fraud capacity. More details of the new…

Mexico’s surge in ecommerce fraud attacks calls for cutting-edge response

Fraud
Mexico experienced a 220% increase in attempted ecommerce fraud attacks during its pandemic peak, calling for new strategies from public and private sectors through 2022. Not only have there been more reported instances of online fraud, but the worrying trends are growing in unanticipated ways, causing events such as account takeover and kiosk fraud, a new report finds. The revelations are worrying for online retailers in Mexico who have battled to stay afloat through two years of unprecedented industry pressures. Companies are now steeling themselves to increase online revenues even as web-based fraud attacks increase. Cyber-fraud reached its pandemic peak…

Crypto-crimewave forces police online to pursue ill-gotten assets

Digital Currencies, Fraud
Scams relating to digital ‘coins’ are growing – but data reveals authorities are making record seizures of assets too In July 2021, specialist police officers in Manchester swooped on an international cryptocurrency scam, seizing USB sticks and an online safe containing £16m worth of digital coins, mostly Ethereum. A month earlier, Leicestershire police had confiscated 10 types of cryptocurrency after raiding the home of a drug dealer who used digital assets to buy and sell class A drugs. Both operations pale in comparison to the Metropolitan police’s record crypto haul of the same year, worth £180m. But all three, and…

Report on the State of Effectiveness and the Compliance with the FATF Standards

FATF, Money Laundering, Terrorism
This landmark report gives a comprehensive overview of the state of global efforts to tackle money laundering, terrorist and proliferation financing. The report is based on data from FATF and FSRB mutual evaluation reports since 2013, which assessed the strengths and weaknesses of national frameworks to tackle these crimes. Overall, the report finds that countries have made huge progress in improving technical compliance by establishing and enacting a broad range of laws and regulations to better tackle money laundering, terrorist and proliferation financing. This has created a firm legislative basis for national authorities to ‘follow the money’ that fuels crime…

In Istanbul and Dubai, Russians Pile into Property to Shelter From Sanctions

Sanctions
Wealthy Russians are pouring money into real estate in Turkey and the United Arab Emirates, seeking a financial haven in the wake of Moscow’s invasion of Ukraine and Western sanctions, according to many property companies. “We sell seven to eight units to Russians every day,” said Gul Gul, co-founder of the Golden Sign real estate company in Istanbul. “They buy in cash, they open bank accounts in Turkey or they bring gold.” In Dubai, Thiago Caldas, CEO of the Modern Living property firm, has hired three Russian-speaking agents to meet Russian interest, which he says has leapt tenfold. Sanctions imposed…

Navalny’s Foundation Lists Putin’s 6,000 Bribe Takers and Warmongers

Bribery, Corruption
In another act of defiance against the Kremlin, the Anti-Corruption Foundation (FBK) published Tuesday a list of over 6,000 bribe takers and warmongers who it says enabled Russian President Vladimir Putin’s illegal invasion of Ukraine. Founded by Russian activist Alexei Navalny, FBK is a non-profit organization that investigates acts of corruption by high-ranking Russian government officials. Leonid Volkov, FBK’s Chief of Staff, posted on Twitter that the publication unmasks “The ones who started the war. Those who helped Putin usurp power. Those who financed the war. The ones who stole,” and “those who repressed the dissenters” against the Kremlin. Over…

What are Wash Trading and Money Laundering in NFTs

Digital Currencies, Money Laundering
What is wash trading crypto? Wash trading occurs when a trader or investor buys and sells the same securities multiple times in a short period to deceive other market participants about an asset’s price or liquidity. As mentioned, wash trading involves an act in which the same asset is sold and purchased within a short time. To influence an asset’s trading activity and price, traders use wash trading as a market manipulation technique. Typically, one or more colluding agents undertake a series of trades without considering market risks, resulting in no change in the antagonistic agents’ original position. In October…

EU Crypto Firms Protest ‘Alarming’ Anti-Money Laundering Laws

Digital Currencies, Money Laundering, Regulation
The companies are joining forces to try to limit the impact of new proposals to identify crypto users and regulate stablecoins. The crypto sector has written to European Union finance ministers and lawmakers to urge a rethinking of anti-money laundering rules the industry regards as “burdensome” and “alarming.” The letter, seen by CoinDesk and signed by academics, lobby groups and senior executives from companies such as Ledger, Aave and Blockchain.com, says current proposals to identify crypto users, known as the travel rule, endanger privacy and innovation in the EU. “The proposals from the European Parliament, by leading to the public…

HMRC Should be Tougher on Letting Agency AML Checks

HMRC, Money Laundering
A technology platform claims that as many as a third of lettings agencies that should be compliant with anti-money laundering regulations are in fact non-compliant. From October last year, letting agents who deal in rental properties worth more than €10,000 or £8,300 a month must be registered for AML purposes with HM Revenue and Customs. Now Credas Technologies has surveyed 1,000 property professionals and claims the vast majority would like to see HMRC act more proactively to deter money laundering, as almost a third believe their own AML compliance procedures would fail. In the survey, when asked about the importance…

U.S. Sanctions Guatemalan Gang Leaders with Links to Mexican Drug Cartels

Drug Trafficking, Sanctions
The United States sanctioned seven suspected high-ranking members of the Los Huistas, Guatemala’s prominent criminal gang, accusing them of global illicit drug trade and cooperation with Mexico’s deadly Sinaloa and Jalisco cartels, the U.S. Department of the Treasury said. The sanctions mean that U.S. citizens and companies are now prohibited from doing business with them, and their U.S. assets will be frozen. The move came after Operation Guerrilla Unit, a long-term U.S. investigation that targeted several high-ranking Guatemalan drug traffickers and their suppliers operating out of northwest Guatemala. It is one of the “most significant, comprehensive and large-scale drug trafficking…

OFAC Sanctions Hydra Following Law Enforcement Shutdown of the Darknet Market

Digital Currencies, OFAC, Sanctions
Today is a big day in the fight against crypto crime. Following a joint operation involving several U.S. law enforcement agencies, Germany’s federal police shut down the Russia-based Hydra Market, the world’s largest darknet market by revenue. Later in the day, the Justice Department followed up by indicting one of Hydra’s key operators, and the U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Hydra, adding more than 100 of its cryptocurrency addresses to the SDN list as identifiers. Concurrently, OFAC also sanctioned a Russian cryptocurrency exchange Chainalysis has previously investigated for its role in money laundering: Garantex. All of…

Sanctioned Russian Oligarchs Linked to £800m Worth of U.K. Property

Bribery, Corruption
A dozen sanctioned Russians are linked to an estimated £800m worth of property in the UK, analysis by the BBC reveals. Multi-million pound country manors in the south of England and luxury flats in London’s most expensive areas are among the homes which have been snapped up by figures linked to Vladimir Putin. Some of the individuals deny ownership of the mansions, which may mean they are beyond the reach of the sanctions. To get to the bottom of who owns what, we carried out a detailed trawl of leaked offshore documents, the Land Registry and court papers – as…

Financial Crime Investigators Granted More Time

Investigation, Money Laundering
Law enforcement agencies probing suspected financial crimes have the right to additional time when necessary to properly investigate, a Scottish court has ruled. The landmark decision handed down by the Sheriff Appeal Court underlines the emphasis placed by courts on “allowing law enforcement the time and space to complete their inquiries”. It comes after the Appeal Court unanimously held that Italian chef Cristian Picco had been validly excluded from a hearing on whether his bank account should remain frozen while investigators probed suspected money laundering. The court heard that Picco first had his TSB account frozen in April 2019 after…

Sanctions Against Ireland’s Top Drug Trafficker May end “Super Cartel’ Allegations

Sanctions
Recent sanctions imposed by the United States on the Kinahan Clan, arguably Ireland’s most powerful organized crime group, have brought to the fore this group’s role in cocaine trafficking between South America, the United States, Europe and beyond. On April 11, the US Treasury Department designated Irish national Daniel Kinahan and six of his associates for smuggling cocaine from South America to Europe as part of the powerful drug trafficking syndicate known as the “Kinahan Clan,” among other things. “Daniel Kinahan, who sources large quantities of cocaine from South America, plays an integral part in organizing the supply of drugs…

How Procurement at Coca-Cola Enterprises Unearthed a £1.5m Bribery Scam

Bribery, Corruption, Prosecutions
An investigation initiated by the procurement team at Coca-Cola Enterprises Ltd (CCE) led to the discovery of a nine-year contracts-for-bribes scam. Noel Corry – who was on £62,500 in his role as electrical and automation manager at CCE – took bribes of £1.5m in exchange for confidential information to help favoured bidders win contracts, Southwark Crown Court was told. Corry has pleaded guilty to five counts of corruption and was due to be sentenced yesterday (13 April). He ensured large volumes of work at CCE went to Boulting Group Limited (now known as WABGS), Tritec Systems Limited, and Electron Systems…

Police Raid Trade Union Headquarters as Part of Bribery and Fraud Investigation

Bribery, Fraud, Investigation, Money Laundering
Police have raided the headquarters of Unite, one of the UK’s largest and most powerful trade unions, as part of a bribery, fraud and money laundering investigation. Sky News understands 15 to 20 officers attended the search yesterday at the union’s central London headquarters and left the building with boxes of files, paper and a computer. A Unite spokesman confirmed to Sky News: “A Unite employee is subject to a criminal investigation by the police. “On Wednesday 6th April, the employee’s office at Unite HQ, in Holborn, London, was accessed and searched by the police under warrant.” The raid was…

Trio Jailed for Trying to Launder Crime Gang Cash

Money Laundering, Prosecutions
THREE people who came to Jersey to try to launder thousands of pounds of criminal cash have been jailed for a combined total of ten years. The Royal Court heard yesterday that Muhiddin Umurzokov (50), Anvarjon Eshonkulov (49) and Batsukh Bataa (52) came to the Island in October in an attempt to spend or exchange money that they knew had come from crime. They admitted 22 separate charges of laundering or attempting to launder money. Umurzokov was jailed for four years and Eshonkulov and Bataa were jailed for three years each. They changed some of the money into US dollars…