Month: June 2023

£5m Surrey Mansion at the centre of row over Russian bank sanctions loophole

Sanctions
The £5.3m sale of a 12-bedroom mansion in Surrey involved in a case of alleged banking fraud is heading for the high court in a bid by lawyers to send some of the proceeds to one of Russia’s state-controlled banks. Lawyers believe some of the money can be transferred to one of Vladimir Putin’s state-controlled banks, the National Bank Trust, without any breach of sanctions. They are seeking a court order to allow the transfer. Ministers now face questions over why the bank has escaped sanctions to date, with a former boss at the bank claiming the money could be…

Settlement Agreement between the US Department of the Treasury Office of Foreign Assets Control and Swedbank AS

Sanctions
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today announced a settlement with Swedbank AS (Latvia) (“Swedbank Latvia”), a subsidiary of Swedbank AB (publ), headquartered in Stockholm, Sweden. Swedbank Latvia has agreed to remit $3,430,900 to settle its potential civil liability for 386 apparent violations of OFAC’s Crimea sanctions. Throughout 2015 and 2016, a customer of Swedbank Latvia used Swedbank Latvia’s e-banking platform from an internet protocol address in Crimea to send payments to persons in Crimea through U.S. correspondent banks. The settlement amount reflects OFAC’s determination that Swedbank Latvia’s apparent violations were not voluntarily self-disclosed…

UK Authorities Bust Northern Ireland’s Largest-ever Tax Evaders

Tax Evasion
The United Kingdom’s tax, payments, and customs authority said Wednesday that the ringleaders of a group that prompted Northern Ireland’s largest ever tax probe have been imprisoned, following the discovery of covertly recorded talks in a tapped accountant’s office. “The decade-long investigation into the £5 million (US$6.4 million) tax fraud ended yesterday (13 June 2023) with prison sentences issued to gang leaders 58-year-old Francis Devlin and 56-year-old Paul McStravick for a combined total of eight years [four years each],” HM Revenue and Customs (HMRC) said in a statement.Another 25 accomplices were sentenced to suspended jail terms, as the majority of…

More Action to fight fraud, Bribery and other economic crime

Corporate Liability
Businesses who commit fraud, money laundering and bribery will be subject to stricter scrutiny under new Home Office plans. The government has collaborated with prosecutors, the Law Commission, and the private sector to introduce the biggest reform of the identification doctrine – legislation used to hold companies criminally liable for offences – in more than 50 years. Under the proposal, added to the Economic Crime and Corporate Transparency Bill today, senior managers will be brought within scope of who can be considered the ‘directing mind and will’ of a business. It means if they commit an economic crime, the company…

Majority of law firms submitting no Suspicious Activity Reports – Study

Law Firms, Money Laundering
New research has revealed that just two in five law firms submitted any Suspicious Activity Reports (SARs) over the last two years on average. The study – conducted by risk management platform Thirdfort – found solicitors in the UK submitted 3,436 SARs in 2021/2022. Meanwhile, there were 9,813 registered law firms at the end of March 2022, according to the Solicitors Regulatory Authority. So, if each firm were to submit just one SAR, this would account for just 35% of law firms. Yet if certain firms are submitting numerous SARs, the actual proportion of firms submitting reports could be “significantly…

Older people hired as ‘money mules’ by gangs as cost of living crises bites

Money Laundering
More people in their 50s and 60s are being recruited to allow their bank accounts to be used in scams. A growing number of people aged in their 50s and 60s are allowing their bank accounts to be used to move money illegally. Fraud experts say that among the increasing number being recruited as “money mules” – those who allow their bank details to be used to transfer criminals’ cash – are older account holders, as well as business owners who use company bank accounts. Money mules are often not actually involved in crime, but allow their accounts be used…

HMRC issues £3.2 million in Money Laundering penalties

Money Laundering, Regulatory Fines
Hundreds of businesses fined a total of £3.2 million for breaching anti-money laundering rules have been named by HM Revenue and Customs (HMRC). The 240 supervised businesses named today were fined between 1 July and 31 December 2022 by HMRC for breaching Money Laundering Regulations aimed at preventing criminals from exploiting illicit cash. Certain types of business are required to register with HMRC which is a supervisory body for Money Laundering Regulations. Xpress Money Services Ltd, based in London, was hit with a large fine of £1.4 million for failing to carry out risk assessments, not having appropriate anti-money laundering…

Four Questions: Understanding Sanctions Imposed Against Russia

Sanctions
Russia’s invasion of Ukraine and the subsequent sanctions that the U.S., European Union (EU) and other countries imposed against Russia in the wake of this act of aggression have been the focus of worldwide media attention since February 2022. In this installment of our Four Questions column, ACAMS Today speaks to George Voloshin, CAMS, CGSS, ACAMS’ global subject-matter expert (SME) on anti-financial crime (AFC), about potential scenarios for the Russian war. Voloshin, who specializes in sanctions, also discusses such topics as the effectiveness of the sanctions imposed against Russia, Russia’s complicated relationship with China and developments AFC professionals should look…

UK SFO delays decision on whether to charge Glencore staff until year-end

Bribery
The SFO is investigating former employees of Glencore’s UK subsidiary Glencore Energy UK Limited over potential criminal offences in relation to its operations in West Africa. The SFO’s decision has been delayed before. The agency said in October it aimed to make a decision in relation to 11 individuals employed by or associated with Glencore by April, but this was pushed back earlier this year. The SFO now hopes to make a decision on bringing criminal charges by the end of 2023, its lawyer Alexandra Healy said at a hearing at London’s Southwark Crown Court on Monday. The ex-Glencore employees…

Silver pound swindlers: UK’s senior population lose more than £12.6 million in the last year to courier fraudsters

Fraud
People over the age of 70 are being disproportionately targeted by courier fraud, new data from the City of London Police reveals. Data from the National Fraud Intelligence Bureau, run by the City of London Police, the national lead force for fraud, revealed that people in their 70s or older lost more than £12.6 million to courier fraud last year, 77 per cent of all money stolen by this type of fraud. The split of fraud reports made by men and women aged 70 or above was 37 per cent and 63 per cent. Shockingly, data shows 153 reports were…

Your 5-minute snapshot of all the latest fincrime developments in the US

Financial Crime
Last year, the US published its 2022 National Illicit Finance Strategy, providing a roadmap to close the loopholes that criminals and illicit actors exploit. It outlines four main priorities and 14 supporting actions: Increase transparency and close legal and regulatory gaps in the US AML/CFT frameworkMake AML/CFT regulatory framework for financial institutions more efficient and effectiveEnhance operational effectiveness in combating illicit financeSupport technological innovation and harness technology to mitigate illicit finance risksIn this article, I’m going to look at the latest developments across the US AML/CFT regime which it can be argued remains a model of effectiveness and innovation. Treasury…

Brazilian Former President Collor Sentenced for Corruption

Corruption, Prosecutions
Brazil’s top court sentenced Brazilian former President Fernando Collor de Mello to eight years and ten months in prison for “passive corruption and money laundering” linked to the Brazilian fuel retailer during his time as senator. The country’s Supreme Court found that Collor received the equivalent of over US$4 million in bribes to secure contracts for the construction company UTC Engenharia with BR Distribuidora, the country’s largest fuel distributor.Collor attempted to conceal part of his illicit gains by registering luxury cars under the names of shell companies. Brazilian investigators discovered at least five high-end vehicles, including models like Ferrari 458…

Russia has been using the Chinese yuan to get around sweeping Western sanctions — but this side door may be closing

Sanctions
Bank of China has restricted yuan transactions between Russian clients and Western banks, per RBC. The bank made the move over fears of secondary sanctions from the West, a source told RBC. Russia has been using the Chinese yuan to get around Western sanctions. Russia has been using China’s yuan to get around sanctions — but at least one major Chinese bank has restricted transfers from Russia over fears of secondary sanctions from the West. The Bank of China, a major Chinese lender, has started restricting transactions using the yuan between Russian clients and lenders in the US, the European…

‘Currency traders’ had ‘wined and dined’ man into money-laundering operation, court told

Money Laundering, Prosecutions
Judge Helen Boyle said a common feature of money-laundering cases was that people hoped to emulate the high life apparently enjoyed by others. A young man was wined and dined in Dublin by “currency traders” but when they told him to make “no noise” about €10,000 landing in his bank account he found himself at the centre of a money-laundering investigation. Judge Helen Boyle told the young man that people involving themselves in this crime often believed there was easy money to be made but she said that everyone had to work for their income. Detective Garda Michelle Quinn said…

UK Crypto, Stablecoin Laws Approved by Parliament’s Upper House

Digital Currencies, Regulation
The Financial Services and Markets Bill stands to recognize crypto as a regulated activity and stablecoins as a means of payment under existing laws. U.K. parliamentarians have voted through a new bill that could recognize crypto as a regulated activity in the country.The approval of the Financial Services and Markets Bill (FSMB) on Monday by Parliament’s upper chamber, the House of Lords, means the bill is going to enter the final stages before it is put into law. The wide-ranging bill, spanning over 340 pages, was introduced in July to take advantage of Brexit freedoms and give regulators more power…

Food, Car Companies Used by ‘Ndrangheta Targeted in Raids Across Italy, Belgium and Germany

Money Laundering, Prosecutions
POLICE in Italy, Belgium and Germany today carried out joint operations against the food and car companies used by the Italian mob to launder money and traffic drugs. The operation on Monday led to 31 arrests of ‘Ndrangheta suspects who allegedly used its well-established network to transport mainly cocaine from South America to Germany and Italy via several European ports. “To this end, the organised crime group (OCG) set up businesses in Germany to facilitate the drug smuggling. To cover its drug transports, the OCG used international companies trading in cars and food,” Europol said. During the joint action day,…

Access to Public Information is too Restrictive in some European States

Regulation
The Group of States against Corruption of the Council of Europe (GRECO) today expressed concern about the restrictive access to public information in European states. In its annual report for 2022, GRECO recalls the role that access to information plays in ensuring public transparency and in facilitating the pursuit of corrupt behaviour. It regrets that in some countries, governments are still accorded a broad margin of discretion for determining what is in the public domain and whether to exclude certain documents from free access. “Government entities are often reluctant to disclose information and prefer to apply exceptions enabling them to…