Month: February 2023

The Financial Conduct Authority Is Investigating Suspected Money Laundering Failings At Barclays

Money Laundering, Regulation
Barclays Bank is being investigated by the Financial Conduct Authority (FCA) for suspected failings in its compliance and anti-money laundering (AML) systems. The UK regulator requested an independent review of Barclays’ internal systems under Section 166 of the Financial Services and Market Act 2000. This involves asking an independent firm of experts to review and report on Barclays’ systems and provide recommendations to improve practices in line with AML regulations. The Financial Times reported that there had been a number of incidents where the bank had failed to conduct thorough know your customer (KYC) and AML checks. Although the incidents…

North West group arrested in suspected property fraud where victims lost life savings

Fraud
Five men have been arrested across the North West and London in an NCA investigation linked to property investment fraud and money laundering. Man in his dressing gown being arrested by the NCANCA officers arrested a 68 year-old man at an apartment in Central London on Thursday [23 Feb] morning. He is suspected of being involved in the fraud that targeted victims with promises of investment returns on North West property developments. Would-be investors were approached to purchase apartments advertised as off plan with offers of high rates of guaranteed rental income when completed. The projects were never completed resulting…

Three Russians under sanctions own UK property via overseas entities

Sanctions
Three Russian oligarchs under sanctions are among those to declare they own more than £35m of UK property through the British Virgin Islands, Cyprus and Russia, the Guardian has found. Alexander Frolov, a billionaire and associate of Roman Abramovich, is revealed as the owner of a mansion in Weybridge in Surrey bought for £9.8m in 2008 and a flat in Knightsbridge bought for £15.4m via the BVI. Frolov, who owns an estimated 10% stake in Evraz, a UK-incorporated mining company, was placed under sanctions last year along with co-owners Abramovich and Alexander Abramov. The UK government said he was involved…

Swiss regulator investigates 12 banks in Lebanese central banker corruption case

Bribery, Corruption, Regulation
ZURICH (Reuters) -Switzerland’s financial regulator has investigated 12 banks and launched enforcement proceedings against two of them in relation to corruption charges against longtime central banker Riad Salameh, it said on Monday. Lebanese authorities charged Salameh, his brother Raja and one of his assistants on Thursday with money laundering, embezzlement and illicit enrichment after months of delay in the high-profile case. The Salameh brothers have denied wrongdoing throughout the process. The governor insisted on his innocence to Reuters last Thursday, saying the charges were “not an indictment” and pledged to abide by judicial procedures. The charges are the product of…

Report: $3.8 Billion in Crypto Stolen Last Year, Mostly by North Korea

Digital Currencies
Hackers stole US$3.8 billion worth of cryptocurrency last year, surpassing the $3.3 billion record registered in 2021 despite a dramatic fall in the crypto market’s value, according to a new report by blockchain analysis firm Chainanalysis. North Korean hackers stole most of it. Crypto theft peaked in March and October, which alone saw equivalents of $732 and $776 million stolen. Elaborate encryption mechanisms underlying blockchains — public ledgers recording transactions in blockchain networks — make them nearly invincible to hacker attacks. There are still weak spots that can be exploited, however. The report said that over 82% of all cryptocurrency…

Treasury Targets Global Sanctions Evasion Network Supporting Russia’s Military-Industrial Complex

Sanctions
WASHINGTON – Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed full blocking sanctions against 22 individuals and entities across multiple countries related to a sanctions evasion network supporting Russia’s military-industrial complex. Today’s action, taken pursuant to Executive Order (E.O.) 14024, are part of the U.S. strategy to methodically and intensively target sanctions evasion efforts around the globe, close down key backfilling channels, expose facilitators and enablers, and limit Russia’s access to revenue needed to wage its brutal war in Ukraine. Over the last year, Treasury has sanctioned over 100 individuals and entities engaging in…

Experts warn UK businesses of imminent changes to anti-money laundering regulations

Money Laundering, Regulation
Legal experts have urged UK businesses to pay close attention to upcoming changes to the 2017 Money Laundering Regulations (MLRs) that will impose further compliance requirements on in-scope firms. In line with the 2022 Money Laundering and Terrorist Financing (Amendment) (No.2) Regulations, from 1 April 2023, businesses subject to the MLRs will have to comply with checks of the register of overseas entities (ROE) at Companies House for dealings with corporate entities. For dealings with trust entities, businesses subject to the MLRs will have to comply with checks of the trust registration service (TRS) that is maintained by HM Revenue…

Britain Sets Out Plans to Regulate Crypto Industry in Wake of FTX Collapse

Digital Currencies, Regulation
The U.K. formally laid out plans to regulate the cryptocurrency industry, with the government looking to rein in some of the reckless business practices that emerged over the past year and contributed to the demise of FTX. In a widely-anticipated industry consultation launched Tuesday, the government proposed a number of measures aimed at bringing regulation of crypto asset businesses in line with that of traditional financial firms. Among the proposals unveiled Tuesday was a move that would strengthen rules targeting financial intermediaries and custodians that store crypto on behalf of clients. A big theme that emerged in 2022 was the…

Police arrest 20 money launderers in Spanish probe into fake invoices, loans and luxury property to channel dirty money

Money Laundering
POLICE have arrested 20 suspected money launderers and drug traffickers and seized more than €5.5M in assets, it’s been announced. The operation was led by the Spanish Guardia Civil, with support from the Italian Central Directorate for Anti-Drugs Services (Direzione Centrale Servizi Antidroga), and resulted in the assets and more than 2 tons of drugs. Based in the South of Spain, the criminal network was composed of Albanian, Italian, Spanish and Moroccan nationals, and was led by Italian nationals who evaded capture using forged identity documents. The criminal network used a variety of money laundering methods to obfuscate their drug…

Man Extradited from Peru on International Money Laundering Charges

Money Laundering, Prosecutions
ALEXANDRIA, Va. – A Belize City, Belize, man was extradited to the United States Tuesday on charges of laundering tens of millions of dollars of drug proceeds on behalf of notorious international drug trafficking organizations. According to court documents, Jianxing Chen, 42, led and controlled a network of couriers who transported cash generated by the domestic sale of controlled substances. Some of the cash came from cocaine sales throughout the United States – including Chicago, Houston, Los Angeles, New York, Atlanta, as well as in the Eastern District of Virginia.  At Chen’s direction, couriers transported drug money across the country…

City fund managers sentenced to 12 years for $8m fraud

Fraud, Prosecutions
Three fund managers have been sentenced to a total of 12 years and 3 months following their conviction for a fraud which resulted in losses of $8.45 million to the Libyan Sovereign Wealth Fund. A seven year NCA investigation, which began after one of the fund managers, Frederic Marino, walked of a 2014 meeting with financial auditors and fled to Norway, found that Yoshika Ohmura, Aurelien Bessot and Marino had abused their positions to conduct fraudulent trades whilst managing the fund worth around 822m. Today, Marino and Ohmura were sentenced to 7 years 6 months and 3 years 6 months…

Handbook of good practices in the fight against corruption

Bribery, Corruption
The goal of this Handbook is to map a variety of anti-corruption practices in EU Member States (MS) that have proved to be useful in solving problems related to corruption, and which can inspire similar initiatives elsewhere. For this purpose, one good anti-corruption practice either established or innovative, with positive impact aspirations in each EU Member State was selected, and clustered into eight types of anti-corruption approaches. The Handbook is structured along these identified types. Each chapter consists of a theoretical part about the respective type of anti-corruption approach and is illustrated by corresponding case studies. To ensure transferability, analysis…

Fraud targeted thousands across UK and abroad

Fraud
More than 700 potential UK victims have been identified, among thousands worldwide targeted by a boiler room fraud that was run from Romania. National Crime Agency investigators believe the fraud, primarily offering false investments, was being carried out on a mass scale before it was closed down in September last year.Computer image web Three Romanian nationals were detained during a series of searches by NCA investigators and Romanian Police officers at apartments in north Bucharest. Since September, work has been underway to identify victims of the fraud. So far, a potential 700 plus UK victims have been identified and a…

No questions asked: money laundering thrives in Australia because of professionals willing to facilitate it

Money Laundering
Lawyers, accountants and real estate agents can face little scrutiny and there is as yet no action from government to increase regulation. Raids earlier this month by the Australian federal police provided a rare window into the shady world of international money laundering. Australia is far from a model global citizen when it comes to cracking down on money laundering – and property has become a favoured vehicle for organised crime to hide and transfer dirty money. The AFP arrested nine people, including the alleged head of the money-laundering organisation, Stephen Xin, at his Vaucluse home. They have now been…

Watchdog and West Yorkshire police raid crypto ATM operators in UK first

Digital Currencies
Authorities have raided several sites around Leeds as part of what is believed to be the UK’s first crackdown on illegally operated crypto ATMs. Evidence was gathered from multiple sites around the city that were suspected to be hosting machines allowing customers to buy or convert traditional currencies into cryptoassets including bitcoin. The raids follow a joint investigation between the Financial Conduct Authority and the West Yorkshire police force’s digital intelligence and investigation unit. “The FCA will review evidence gathered during these visits and consider further potential enforcement action,” the regulator said. While the FCA does not regulate cryptoassets, it…