Year: 2022

Money Laundered Millions Seized in Jersey to be Sent to Kenya

Corruption, Money Laundering
Millions of pounds that was seized in Jersey from money laundering is being returned to Kenya in a world first. The £3million was confiscated in 2016 following the conviction of Jersey-registered company Windward Trading Ltd. for money laundering offences. The money originated in Kenya, and was being fed through the Jersey company. Despite the 2016 conviction of the company, two individuals from Kenya linked to the company are still awaiting trial. Now, Jersey has agreed to send the money back after Her Majesty’s Attorney General for Jersey signed an Asset Recovery Agreement (ARA) with the Kenyan government. The money will…

Deutsche Bank to Wind Down in Russia, Reversing Course After Backlash

Financial Crime
FRANKFURT, March 11 (Reuters) – Deutsche Bank (DBKGn.DE), which faced stinging criticism from some investors and politicians for its ongoing ties to Russia, said on Friday in a surprise move that it would wind down its business in the country. Deutsche joins the ranks of Goldman Sachs (GS.N) and JPMorgan Chase (JPM.N), which were the first major U.S. banks to exit after Moscow’s invasion of Ukraine. Those moves put pressure on rivals to follow. read more . Deutsche had resisted pressure to sever ties, arguing that it needed to support multinational firms doing business in Russia. But on Friday evening…

New Financial Sanctions Measures in Relation to Russia

Sanctions
Following the Prime Minister’s statement to the House of Commons on 22 February 2022, the UK announced a tranche of sanctions on Russia. The Prime Minister announced further measures on 24 February 2022 which are available on the Foreign, Commonwealth & Development Office website. If you require a licence to permit any activity which would otherwise be prohibited by sanctions regulations, you must contact the relevant department. We expect firms to have established systems and controls to counter the risk that they might be used to further financial crime and this includes compliance with financial sanctions obligations. Where the FCA…

U.S. Officials Fear Russian Money is ‘Entrenched’ in London and Warn ‘Leverage Against Putin Could be Lost’

Money Laundering
As the Western world waits with bated breath on a potential Ukraine invasion by Russian military, American officials have revealed their fears of ineffective economic sanctions against Russia. US State Department officials are believed to have expressed “dismay and frustration” at the British government’s perceived failure to tackle dirty Russian money sloshing around London. “The fear is that Russian money is so entrenched in London now that the opportunity to use it as leverage against Putin could be lost,” one US diplomatic official was reported as telling The Times. “Biden is talking about sanctioning Putin himself but that can only…

Pressure Mounts for Action Against ‘Enablers’ of Russian Regime

Money Laundering
The role of English law firms acting for powerful Russian clients has come under growing political scrutiny as the government prepares to announce long-delayed legislation against the flow of ‘dirty money’ to the UK. Writing in today’s Financial Times, Cabinet Office minister Andrew Griffith called on law firms to ‘go further, faster, wherever they can’ to ensure that sanctions bite. His comments followed claims that the government has received threatening letters from City law firms acting for clients facing sanctions following the Russian invasion of Ukraine. Foreign secretary Liz Truss briefed MPs over the weekend that law firms were holding…

Charity Urges Crackdown on £1.5bn Worth of U.K. Property Linked to Kremlin and Financial Crimes

Money Laundering
A charity has urged the British Government to fast-track measures to crack down on dirty money following the Prime Minister’s announcement of new Russia sanctions. Their remarks come after the prime minister announced sanctions on five Russian banks and three Kremlin-linked individuals earlier today. Analysis from Transparency International UK has identified at least £1.5 billion worth of UK property owned by Russians accused of financial crime or with links to the Kremlin. Most of this property is held by secretive offshore companies. The true figure for illicit wealth invested in the UK is likely to be far higher, with almost…

Boris Johnson Promises U.K. Property Register to Expose Kleptocrat Money

Money Laundering, Regulation
As the government acts to squeeze Russian oligarchs in the wake of Vladimir Putin’s invasion of Ukraine, Boris Johnson has promised to rush forward plans for a new public register, revealing the ultimate owners of properties across the UK. The government had previously failed to act, despite the vast offshore leak known as the Pandora Papers revealing last year the details of 1,500 UK properties owned through secretive offshore companies, some of them connected to senior Russian figures. The data showed that the family of Russian oligarch Mikhail Gutseriev – who was placed under sanctions by the UK, EU and…

UK Second in Money Laundering Hall of Shame

Money Laundering
The second-highest amount of money is laundered each year in the UK, with an estimated £88bn worth of money cleaned by criminals annually. Only the US sees more, with £216.5bn laundered annually, while France (£54.5bn), Germany (£51.3bn) and Canada (£25.6bn) also rank among the top five countries in terms of value of money laundered. The figures, from identity verification software maker Credas Technologies, put together using OECD data, also revealed that about £1.8tn is laundered globally each year, some 3% of total GDP. Money laundering, and its links to organised crime, is a serious global problem that banks find themselves…

‘Credit Suisse Papers’ Leak Shows How Lender Banked Criminals and Tyrants with Little Due Diligence

Due Diligence, Money Laundering
TROUBLED Switzerland banking giant Credit Suisse was thrown into further crisis today as a massive data leak revealed a client list involved in money laundering, torture, drug trafficking and corruption. The data dump shows up massive failures of due diligence by Credit Suisse despite repeated promises by the bank that it would end relationships with dodgy clients and illicit funds. The Suisse Papers also shed light on one of the world’s largest and most secretive financial centres, based out of Geneva and Zurich, and grown used to operating in the shadows. Swiss financial institutions manage about 7.9tn CHF (€7.56tn) in…

Leak Exposes Credit Suisse’s Criminal Clients as AML Whistleblower Law Awaits Reform

Money Laundering, Whistleblowing
A whistleblower recently leaked data from Credit Suisse revealing that the bank opened accounts for and served numerous individuals with criminal ties, including sanctioned businessmen and human rights abusers. The leaked data includes information on more than 18,000 bank accounts, collectively holding more than $100 billion. It has increased scrutiny of the Swiss banking system and has renewed calls for stronger anti-money laundering laws. According to the New York Times, “among the biggest revelations is that Credit Suisse continued to do business with customers even after bank officials flagged suspicious activity involving their finances.” The Times reports that these customers…

‘Swiss Secrets’: What Would E.U. Blacklisting Mean for Switzerland?

Money Laundering
The Swiss Secrets scandal threatens to shift the country back to the European Union’s blacklist – but what does that mean for Switzerland? In view of a recent data leak showing that Credit Suisse bank accepted money from illicit sources, the European People’s Party (EPP) has called on the EU to “re-evaluate Switzerland as a high-risk money-laundering country” and add it to the list of nations at high risk for financial crime. Credit Suisse bank held tens of billions of euros of dirty money for decades, a new cross-border media investigation claimed Sunday. The investigation was coordinated by the Organised…

Credit Suisse Faces Money Laundering Charges in Bulgarian Cocaine Traffickers Trial

Drug Trafficking, Money Laundering
ZURICH, Feb 7 (Reuters) – Credit Suisse faced charges in a Swiss court on Monday of allowing an alleged Bulgarian cocaine trafficking gang to launder millions of euros, some of it stuffed into suitcases. In the first criminal trial of a major bank in Switzerland, Swiss prosecutors are seeking around 42.4 million Swiss francs ($45.86 million) in compensation from Credit Suisse (CSGN.S). They say the country’s second-biggest bank and one of its former relationship managers did not take all necessary steps to prevent the alleged drug traffickers from hiding and laundering cash between 2004 and 2008. “Credit Suisse unreservedly rejects…

Why the U.K. Needs to Accelerate its AML/CTF Efforts on Crypto Assets

Digital Currencies, Money Laundering, Terrorism
As money-laundering risks rise with the increased adoption of cryptocurrencies, the UK needs to accelerate its response to maintain its future as a centre for financial innovation. It’s been two years since the UK rolled out its anti-money laundering and countering the financing of terrorism (AML/CFT) regime for cryptoassets. And there’s been one clear lesson in that time: getting it right isn’t easy. As the Treasury Select Committee report on Economic Crime (TSC Report) launched on 2 February noted, ‘registration of crypto-asset firms for money laundering has been slow’, leading the Committee to urge quicker progress. However, UK progress should…

Estate Agents See 64% Rise in AML Registrations

Money Laundering, Terrorism
With the property market long being a target for money laundering, new data reveals that UK estate agents are stepping up to the challenge and have seen the largest annual increase in the number of newly AML registered businesses. The government’s latest risk assessment of money laundering and terrorist financing increased the risk score for money laundering within the UK property market to high, with the specific risk to both estate and letting agents also increasing. Despite this risk, HMRC revealed that estate agents had been slow out the blocks when it came to AML compliance, estimating back in 2019…

Court Approves £5.6m Seizure Over Money Laundering

Money Laundering
The National Crime Agency can seize £5.6m from a sophisticated global money laundering scheme involving UK companies, a court has ruled. Financial investigators can take the money from the London-based family of Javanshir Feyziyev, an MP in the Azerbaijan parliament. The NCA had hoped to seize over £15m but hailed Monday’s ruling a success. It comes as campaigners criticise the government for delaying new laws to target allegedly dirty money in the UK. The investigation was launched after the exposure of a corruption scandal dubbed the Azerbaijani laundromat. The NCA pored over thousands of leaked documents from Den Danske Bank,…

Fraudster in £100k Diamond Ring Who Made Millions Out of Others’ Misery

Fraud
Lorraine McLaren and her husband Edwin were seen as “saviours” to the cash-strapped homeowners who turned to them in desperation when financial difficulties struck. But really Edwin used his financial know-how to dupe unsuspecting victims into signing over their houses, which were then sold from under them. And Lorraine benefited from her husband’s fraudulent scheme to live it up in a £762,000 home in Bridge of Weir, Renfrewshire, with lavish holidays in Dubai and private schools for her kids. Shameless Lorraine even splashed out on a ring worth £100,000 while her victims were left homeless. The duplicitous pair were only…

Kazakh Ex-Dictator Used U.K. Company to Protect Empire

Corruption
Kazakhstan’s former dictator used the UK to help safeguard a multibillion-dollar business empire built during his three-decade rule, the Bureau of Investigative Journalism and the Telegraph can reveal. Foundations controlled by Nursultan Nazarbayev, a notorious autocrat who was in office until 2019, controlled $7.8bn in assets via Jusan Technologies. One of the company’s subsidiaries, a Kazakh bank, received a multi-billion dollar state bailout and went on to hand a dividend to its parent. It is registered in the UK, where it has just one employee. Documents from October 2021 showed Jusan Technologies at the centre of a sprawling corporate operation…

No 10 Pressured Me to Drop Anti-Money Laundering Measures, Says Ex-Minister

Money Laundering, Regulation
A former Conservative minister, once at the heart of efforts to clamp down on money laundering in London, has revealed that during Theresa May’s premiership, No 10 “leant on him” when he tabled amendments to introduce a public register of overseas property owners. Lord Faulks said he had first tried to put the register into the criminal finances bill in 2017 and then again into a government bill on money laundering in 2018. He had described the overseas ownership of “dirty money” in London as an obscenity. Faulks, a distinguished barrister and now an independent peer, told the Guardian he…

HMRC Seizes NFT for First Time in £1.4m Fraud Case

Digital Currencies, Fraud
The UK tax authority has seized three Non-Fungible Tokens (NFT) as part of a probe into a suspected VAT fraud involving 250 alleged fake companies. HM Revenue and Customs (HMRC) said three people had been arrested on suspicion of attempting to defraud it of £1.4m. The authority said it was the first UK law enforcement to seize an NFT. NFTs are assets in the digital world that can be bought and sold, but which have no tangible form of their own. The digital tokens, which emerged in 2014, can be thought of as certificates of ownership for virtual or physical…

Online Investment, Call Center Scams Prey on Desire for ‘Easy’ Money

Fraud
Fake it till you make it? Financial fraudsters are setting up fake websites and posing as financial consultants from call centers. Late last month, Bulgarian police took down a financial crime ring that was responsible for stealing at least €10 million. Experts say that this could be happening here, too, targeting financial customers. According to CSC’s Domain Security Report, “Internet fraud is typically targeted, using a variety of threat vector forms, and is a systemic issue,” said Ihab Shraim, chief technology officer, Digital Brand Services at CSC. “These threat vectors start with a fraudulent domain containing a look-alike brand name,…

U.K. Seizes Millions from Lawmaker Linked to the Azerbaijani Laundromat

Money Laundering
The U.K. authorities have seized from an Azerbaijani lawmaker 5.6 million pounds (US$7.56 million) derived from a sophisticated international money laundering scheme that was revealed by the OCCRP and its partners in 2017, the National Crime Agency (NCA) said in a statement on Monday. Based on the results of an investigation conducted by the agency, a court ruled that the money can be seized from six bank accounts belonging to Javanshir Feyziyev, his wife, one of his children and a nephew. Feyziyev is a serving member of Azerbaijan’s Parliament, Chair of the UK-Azerbaijan All Parliamentary Cooperation Committee, and Co-chair of…

GMP Returning Millions to Crypto Currency Scam Victims

Digital Currencies, Fraud
The case marks a rare achievement for law enforcement in returning cryptocurrency funds to victims who have been duped by an international scam. More than £4m has been returned to the victims of a global cryptocurrency scam after specialist officers in Manchester acted on intelligence to track down two suspects – and police say £7m is yet to be claimed. A 23-year-old man and a 25-year-old woman have been arrested for fraud and money laundering offences after Greater Manchester Police (GMP) received intelligence that those running the scheme had been in the city for a limited time. In all 150…

UK Treasury Committee Calls for government Action on Fraud and Scam Surge

Fraud
A new report by the UK’s Treasury Select Committee has called on the government to work harder to tackle the ‘growing fraud epidemic’ in the UK. The report – which focuses on Economic Crime – urges the government to legislate against online fraudulent adverts and to consider whether online giants should reimburse those who fall victim to scams on their platforms. The Committee also called on the government to make reimbursement for victims of authorised push payment fraud mandatory. Amongst a number of recommendations, the report called on law enforcement to be resourced appropriately to tackle the scale of the…

Towards a stronger AML/CTF framework in the EU

Money Laundering, Terrorism
The EU framework for the prevention of the use of the financial system for the purposes of money laundering and terrorist financing already has a long history. It is more than 30 years now since the first Anti-money Laundering Directive was published in June 1991. Since then, the framework has undergone many improvements, with the previous – fifth – AML Directive being published in May 2018. The framework grew both in terms of the number and the forms of the regulatory instruments involved, incorporating both regulations and directives, as well as regulatory technical standards and guidelines developed by the European…

Money Laundering via Cryptocurrencies up 30% in 2021

Digital Currencies, Money Laundering
Money laundering via cryptocurrencies increased in 2021 by 30% and is estimated to account for US$8.6 billion, claims a report recently published by blockchain analysis firm Chainalysis. Although only 0.05% of all cryptocurrency transactions worldwide are linked to the laundering of money, Europol says it could get much worse in the future. Criminals are becoming more sophisticated in their use of cryptocurrency transactions and their money laundering schemes are becoming increasingly complex, the European police agency said. The Chainalysis report indicates the origin of money being laundered to stem from darknet sales and potential ransomware attacks. Cryptocurrency transactions are supposed…

DOJ Promises Robust Anti-Bribery Enforcement Despite Dip in Cases

Bribery, Corruption
A senior Justice Department official cautions against reading too much into a decline in the number of corporate Foreign Corrupt Practices Act cases A senior DOJ official said the department has a robust pipeline of cases and he would expect some significant resolutions in the next year. The U.S. Justice Department’s enforcement of a key antibribery law appeared to ebb last year, with prosecutors levying fines against only three companies for violations of the Foreign Corrupt Practices Act. However, a senior Justice Department official is seeking to dispel the notion that prosecutors have taken their foot off the pedal. “I…

EBA Unveils New Central Database for AML and CFT

Money Laundering, Terrorism
The European Banking Authority (EBA) has launched EuReCA, a new central database for anti-money laundering and counter-terrorism financing. According to the EBA, EuReCA will be central to coordinating efforts by competent authorities and the EBA to prevent and counter money laundering and terrorist financing risks in the EU. EuReCA will hold information on material weaknesses in individual financial institutions in the EU that competent authorities have previously identified. Competent authorities will also be reporting the measures they have imposed on financial institutions to rectify those weaknesses. Such weaknesses include the lack of adequate AML/CFT policies and procedures including the absence…

The Contract Factory – Inside Danske Bank Estonia Money Laundering Machine

Money Laundering
Skype user Maxim.Canning was a veritable one-stop-shop for anyone looking to launder illicit funds. For a fee, he would not only sell you a company registered on an offshore paradise island, but also help you to disguise who really owned it. If you needed to transfer suspect money, he could make fake contracts to give it a semblance of legality, or rapidly funnel the cash through dozens of offshore accounts. “Maxim” could even find you proxy directors to add to company paperwork — for a price. “We have for 1000 euros per piece a Kazakh until 2022,” he wrote to…

SEC Says it Won’t Limit Whistleblower Payouts

Whistleblowing
Regulator proposes changes to two amendments adopted during Trump administration that it says could have been used by future commission to reduce awards ‘These amendments, if adopted, would help ensure that whistleblowers are both incentivized and appropriately rewarded for their efforts in reporting potential violations of the law,’ SEC Chairman Gary Gensler said Thursday. The Securities and Exchange Commission said Thursday that it was revising two amendments governing the rules of its whistleblower program to address concerns that they would discourage tipsters from coming forward. The two amendments were adopted in September 2020, during the Trump administration. SEC Chairman Gary…

Ex-Goldman Banker: ‘Bribes’ Made 1MDB Business Possible

Bribery
Former Goldman Sachs banker Tim Leissner, once hailed for bringing the bank lucrative Malaysian business, has told a court that “bribes and kickbacks” made the deals possible. Mr Leissner was testifying in the trial of his former colleague, Roger Ng. Prosecutors say the two men helped divert billions from Malaysia’s 1MDB sovereign wealth fund to be used in bribes for politicians and others. Mr Ng, who is on trial over the matter, has denied wrongdoing. Mr Leissner, the former boss of Goldman’s Southeast Asia unit, told a New York courtroom on Wednesday that Mr Ng was a key banker for…

Barclays Freezes £22m Worth of Bonus for Ex-Boss Staley amid Epstein Inquiry

Human Trafficking
Barclays has announced record profits and raised its bonus pool to nearly £2bn, in a high pay bonanza that the bank said was spurred by a battle for talented staff. The London-headquartered lender increased the bonus pool for its existing staff by more than 17% to £1.3bn, after annual profits more than doubled thanks to the release of cash originally put aside to cushion the blow of the Covid crisis. Including deferred bonuses, the total bonus pot grew 23% to £1.9bn. Barclays said it had 700 bankers on its payroll who were paid more than €1m a year (£834,365), 33…

$97.8m Worth of Fake Sports Memorabilia Seized in Run-Up To Super Bowl

Fraud
Thousands of counterfeit Super Bowl-related merchandise seized from vendors from all over Southern California is worth an estimated $97.8 million, federal authorities said Thursday. Operation Team Player – an effort involving several federal agencies, the Los Angeles County Sheriff’s Department, and the NFL – has been cracking down all year on the illegal importation of counterfeit sports apparel and merchandise. The joint task force has been scouring online marketplaces, local flea markets such as the Santa Fe Springs Swap Meet, and Santee Alley in Downtown L.A.’s Fashion District, looking for fake jerseys, hats, rings, T-shirts, jackets, tickets, souvenirs, and other…

Highlights of the FCA’s New Approach in 2021

FCA
The Financial Conduct Authority’s (FCA) mission is to protect consumers from harm, enhance the integrity of the UK’s financial system and promote competition. The regulator is continuing to pursue these objectives while also working to become a more innovative, adaptive and assertive regulator. This approach will enable the FCA to meet the challenges of the increasingly data-driven financial services sector in the UK, the shift to a net-zero economy, the continuing effects of the pandemic, and help build a new regulatory regime after Brexit. Protecting consumersIn January, the Supreme Court delivered its judgment in a case brought by the FCA…

FCA Fined U.K. Financial Organisations £568m in 2021

FCA, Regulatory Fines
The Financial Conduct Authority (FCA) has fined financial organisations in the UK for a total of £568m in 2021. This total is made up by fines against major banks and action against individuals for insider dealing, non-financial misconduct and carrying-out activities without authorisation. Experts believe the emergence of new forms of financial crime during the pandemic explain the high quantity of financial penalties. Encompass Corporation leading regulation expert Dr Henry Balani says: “The pandemic has provided criminals with the opportunity to defraud, launder and perpetrate other forms of financial crime with more efficiency than ever before. “Lockdown, and the resulting…

First U.K. Annual Sanctions Report

Sanctions
The UK’s Annual Sanctions Report for 2021 details, for the first time, the full extent of its new autonomous sanctions since exiting the European Union. the Foreign, Commonwealth & Development Office Sanctions Annual Report for 2021 has been published, which shows that, in its first full year since leaving the EU, the UK has imposed sanctions against 160 individuals and entities individuals and entities sanctioned for, among other activities, corruption and human rights abuses, are from a number of countries, including Myanmar, China, Belarus, Pakistan and Venezuela the report shows that since leaving the EU, the UK is more agile…

Will 2022 be a Year of Action on Illicit Finance?

Bribery, Corruption, Fraud, Money Laundering
The US Strategy on Countering Corruption promises a step change in its response to illicit finance. Can the UK government step up too? There was a time in the not so distant past when the UK was genuinely a leader in the global response to illicit finance. Yes, the country has been a magnet for dirty money and its beneficiaries for decades as a result of policy decisions (for example, investor visas) and neglect (such as underinvestment in the policing response, the national Financial Intelligence Unit and suspicious activity reporting system). But awareness of the challenges posed by illicit finance…

French Private Equity Company Agrees to Buy U.S. Based ACAMS for $500M

Training
A French private equity company has agreed to purchase ACAMS, the financial training company, for $500M, it’s been announced. Paris-based Wendel said it has entered into an agreement alongside Colibri Group to purchase the Financial Services segment of ACAMS parent Adtalem Global Education. As part of the deal Wendel will acquire the Association of Certified Anti-Money Laundering Specialists (ACAMS), with ACAMS President and Managing Director, Scott D. Liles will now take the reins as CEO of the Chicago based training company. The deal worth $500M, will include an equity investment from Wendel of $355M, for a 99% stake in ACAMS,…

Over £5.5bn of Covid Support Funds Lost to Fraud or Error

Fraud
HMRC says nearly 9% of furlough scheme was fraudulently claimed or otherwise wrongly paid out last year More than £5.5bn of taxpayer money from the government’s coronavirus assistance schemes including furlough, self-employed support and “eat out to help out” was paid out to fraudsters or given out incorrectly. It emerged on Thursday that £5.2bn paid out by the government under the coronavirus job retention scheme, widely known as furlough, ended up in the hands of fraudsters or was paid in error. HM Revenue and Customs acknowledged in its annual report that about 8.7% of the £60bn it paid out under…

A ‘Gift’ For Scammers: the True Cost of Furlough Fraud

Fraud
With “Partygate” still dominating the headlines it was always going to be a tough start of the working week for Boris Johnson. The prime minister’s Monday, however, got even worse when his counter-fraud minister quit over the government’s decision to write off £4.3bn in fraudulent Covid loans. At the dispatch box in the House of Lords yesterday, Theodore Agnew “staged a dramatic public resignation”, The Guardian said. Lord Agnew, who was a Treasury and Cabinet Office minister, said his decision was not an attack on the PM, but the row will leave Johnson “fighting Conservative anger on yet another front”,…

Judge Demands Investigation After Crime Gang Successfully Applied for £145,000 in Covid Bounce Back Loans

Fraud
A judge has demanded an investigation after two members of an organised crime gang were able to successfully apply for £145,000 in Covid ‘bounce back’ loans. Asif Hussain, the ringleader of an international ‘chop shop’ ring, which exported stolen Range Rovers and other expensive cars to Dubai, was able to secure £50,000 in funding offered by the Government to help businesses struggling during the pandemic. Another gang member, Ibraaz Shafique, was able to receive two huge loans, firstly for £50,000 then for £45,000. The maximum loan available was £50,000. Both men had previous criminal convictions. A judge said ‘the most…