Year: 2024

FCA secures convictions against two individuals for £1.5m fraud

Digital Currencies, Fraud
Between February 2017 and June 2019, Raymondip Bedi and Patrick Mavanga, defrauded at least 65 investors out of £1,541,799. The group cold-called consumers, directing them to a professional-looking website where they were offered high returns for fake investments in crypto. Raymondip Bedi pleaded guilty to conspiracy to defraud, conspiracy to breach the general prohibition under the Financial Services and Markets Act 2000 and money laundering offences at an earlier hearing. Patrick Mavanga pleaded guilty to conspiracy to defraud, conspiracy to breach the general prohibition under the Financial Services and Markets Act 2000 and possession of false identification documents with an…

King Charles’ godson had extensive business ties with a US defense contractor now accused of a massive tax evasion scheme, records show

Tax Evasion
Lord Charles Tryon, who is not accused of wrongdoing, held key positions in several firms prosecutors allege were part of the contractor’s efforts to conceal more than $350 million in profits. A godson of King Charles worked closely with an American financier accused by the U.S. government of evading taxes on more than $350 million in military contract profits, according to corporate documents. Lord Charles Tryon held positions at a number of companies tied to Douglas Edelman, a former defense contractor who was charged in May on 30 counts of tax evasion, conspiracy, and providing false information to U.S. authorities.…

Major Canadian Banks TD and RBC Hold Mortgages for Alleged Toronto Mafia Boss

Money Laundering
Angelo Figliomeni was at the center of a media storm when police brought organized crime and money laundering charges against him in 2019. But the charges were never tried in court, and two top banks continued to do business with him, documents show. With Toronto Dominion Bank already reeling from historic fines in the U.S. for conspiracy to commit money laundering, evidence has emerged that the bank continues to do business in Canada with alleged mafia boss Angelo Figliomeni. Property documents show that Toronto Dominion, better known as TD Bank, continues to provide financing for Figliomeni on two homes in…

Trade-based financial crime accounts for 31% of global fraud costs but just 0.1% of media coverage

Fraud, Trade Based Finance
Trade-based financial crime (TBFC) is responsible for an estimated $1.6 trillion in losses each year, nearly a third of the total cost of global fraud, which stands at $5.127 trillion annually. Yet, despite its massive economic impact, TBFC is alarmingly underreported in the media, making up just 0.1% of all fraud-related mentions in articles over the last year. Meanwhile, other smaller-scale types of fraud like Authorised Push Payment (APP) scams, projected to cost $6.8 billion annually by 2027, receive more media attention. Over the past year, APP scams were mentioned 17,121 times in the media – nearly twice as often…

UK Unleashes Sweeping Sanctions to Target Russia’s War Machine & Shadow Networks Across the Globe

Sanctions
The UK has escalated its pressure on Vladimir Putin, announcing its largest package of sanctions since May. This new wave targets the Kremlin’s sprawling web of military supply chains and the shadowy mercenary groups doing Moscow’s bidding from Ukraine to Africa. With these measures, the UK aims to choke off Putin’s lifelines, hitting Russia where it hurts most: its ability to sustain the prolonged—and increasingly desperate—war in Ukraine. In a statement that underscored the UK’s determination, Foreign Secretary David Lammy said, “Putin is nearly 1,000 days into a war he thought would only take a few. He will fail, and…

OPINION: It’s not the system, it’s the people – TD Bank scandal through a different lens

Money Laundering, Prosecutions
Stop blaming inferior AML software and arrest the individual responsible for the crime, says former federal agent Robert Mazur. TD Bank and its employees had no idea their crimes would be revealed in May of 2021 when Special Agents of the IRS and DEA arrested Da Ying Sze (AKA David). Six years before his arrest, David had began laundering mountains of cash generated from the sale of drugs, including deadly fentanyl, that killed tens of thousands of residents in the United States. Most of the $653m in currency he cleaned went through the TD Bank laundromat, but six other banks…

Bitcoin Fog Operator Sentenced for Money Laundering Conspiracy

Digital Currencies, Money Laundering, Prosecutions
Operator of Notorious Darknet Cryptocurrency “Mixer” Laundered $400M in Cryptocurrency since 2011A dual Russian-Swedish national was sentenced today to 12 years and six months in prison for his operation of the longest-running bitcoin money laundering service on the darknet. According to court documents and evidence presented at trial, from 2011 through 2021, Roman Sterlingov, 36, was involved in operating Bitcoin Fog, the darknet’s longest-running cryptocurrency “mixer.” Over the course of its decade-long operation, Bitcoin Fog gained notoriety as a go-to money laundering service for criminals seeking to hide their illicit proceeds from law enforcement and processed transactions involving over 1.2…

Luxembourg Bank ‘Central’ to Purchase of High-End British Real Estate with Embezzled Azerbaijan Funds, U.K. Police Say

Money Laundering
The U.K.’s National Crime Agency successfully argued in a High Court case in London that accounts at the Banque Internationale à Luxembourg were used to move millions from a high profile embezzlement case in Azerbaijan into expensive properties. Accounts at a major Luxembourg bank played a “central” role in moving funds from an embezzlement scheme that led to the imprisonment of the former chairman of the International Bank of Azerbaijan, Jahangir Hajiyev, according to the U.K.’s National Crime Agency (NCA). The claim by the NCA sheds light on how tens of millions of dollars stolen from Azerbaijan’s most important state-owned…

Telefónica Venezolana to Shell Out $85 Million to Settle U.S. Bribery Probe Amid Venezuelan Currency Scandal

Bribery, Prosecutions
Venezuela’s Telefónica Venezolana—a subsidiary of Spanish telecom giant Telefónica S.A.—has agreed to pay over $85 million to resolve allegations of bribery. The telecom firm admitted to a scheme involving payments to Venezuelan officials to gain preferential access to U.S. dollars through a government currency auction, a critical exchange in a nation with tight foreign currency controls. This DOJ settlement spotlights not only the costs of corporate corruption but also the lengths companies sometimes go to work around challenging market conditions in places like Venezuela. In a deferred prosecution agreement (DPA) filed in New York federal court, Telefónica Venezolana conceded to…

Ukrainian MP’s Family Linked to $1M Dubai Real Estate Amid War

Corruption
Family of Ukrainian MP purchased over $1 million in Dubai real estate as Russia’s invasion intensified, raising questions over funding sources and alleged ties to inflated military contracts. The family of Hennadiy Kasai, a Ukrainian parliament member from President Volodymyr Zelenskyy’s Servant of the People party, secretly acquired over $1 million in Dubai real estate during Russia’s full-scale invasion, the Radio Free Europe/Radio Liberty’s (RFE/RL) Ukrainian service revealed Tuesday in its investigation. Documents from United Arab Emirates public registers, obtained by Schemes, an investigative project from RFE/RL Ukrainian service, and verified with OCCRP, show that Kasai’s daughter and nephew purchased…

Sanctions and Evasion Updates: Insights from OCCRP

Sanctions
At OCCRP, we strive to shed light on the pressing issues surrounding sanctions and sanctions evasion. We are excited to share the latest stories from OCCRP and its partners, along with our efforts at the Global Anti-Corruption Consortium (GACC) to amplify their impact.‍Key Themes from Our ReportingRecent reporting exposed how: ‍ A Cyprus IntermediaryTogether with OCCRP, our partners from the Belarusian Investigative Center (BIC), Schemes (Ukraine), and Belsat (Belarus), uncovered how a mysterious Cyprus-based company with ties to a former Belarusian official is being paid millions of euros by the Belarusian government to facilitate its trade in potash through Russia’s…

Integrity and independence of criminal justice institutions in the Western Balkans

Law Enforcement
Despite reforms, political influence continues to affect prosecutorial and police services across Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia (collectively, WB6), hindering effective action against organized corruption. The report provides a detailed examination of police and prosecution services in the region and evaluates the integrity, operational independence, and oversight of these institutions, especially in their role against organized crime and corruption. WB6 countries face challenges like ineffective internal oversight, low conviction rates for high-ranking officials, and limited resources within dedicated anti-corruption divisions within police and prosecution services. This study emphasizes the need for reinforced accountability, resilience, and…

International operation leads to seizure of 2 000 fake works of art with potential losses of EUR 200 million

Art Dealers, Art Market, Fraud
Thirty-eight people have been indicted following an unprecedented operation supported by Eurojust against a criminal network for forging over 2 000 works of contemporary art. A year-and-a-half-long investigation by Italian authorities, in cooperation with Belgian, French and Spanish counterparts, led to the dismantling of the network, which would have caused economic damage of EUR 200 million. Fake art seizedThe fake art recovered by the authorities included forged works by famous artists such as Banksy, Andy Warhol, Pablo Picasso, Joan Miró, Francis Bacon, Wassily Kandinsky, Gustav Klimt, Claude Monet, Vincent van Gogh and Salvador Dalí. Investigations into the fake works revealed…

CTED Trends Tracker | Evolving Trends in the Financing of Foreign Terrorist Fighters’ Activity: 2014 – 2024

Counter Terrorist Financing, Terrorism
In its resolution 2178 (2014), adopted unanimously on 24 September 2014, the Security Council expressed particular concern over the acute and growing threat posed by foreign terrorist fighters (FTFs), in particular those recruited by Islamic State in Iraq and the Levant (ISIL or Da’esh), the Nusrah Front and Al-Qaida. It also underlined the need to disrupt financial flows supporting FTFs, while respecting international human rights law, international refugee law, and international humanitarian law. In that resolution, the Council also directed CTED to identify issues, trends and developments related to FTFs. In this regard, the Trends Tracker offers a brief examination…

Swiss Lawyers Won’t Face Duty to Flag Dirty Money: Minister

Money Laundering
Switzerland’s parliament is unlikely to adopt rules forcing lawyers to fight money laundering as many lawmakers are themselves attorneys, the country’s finance minister said. “It’s very difficult because there are a lot of lawyers in parliament and they really don’t feel that they have anything to do with that,” Karin Keller-Sutter said on Thursday at a Bloomberg event in Zurich. Her comments come as the Swiss parliament debates a draft law that would force companies to declare their real ownership and require lawyers to flag suspect transactions — or face criminal prosecution. With Switzerland’s traditional bank secrecy now notionally a…

New failure to prevent fraud guidance published

Fraud
Today we’ve published guidance that will provide organisations with important advice on the new corporate criminal offence of ‘failure to prevent fraud’, helping make sure they are taking action to prevent fraud. Introduced last year as part of the Economic Crime and Corporate Transparency Act (ECCT), the offence is intended to hold large organisations to account if they profit from fraud. Under the offence, which has cross-Parliament support, large organisations may be held criminally liable where an employee, agent, subsidiary, or other “associated person”, commits a fraud intending to benefit the organisation. Examples may include dishonest sales practices, the hiding…

Commission presents a new study on areas most at risk of corruption

Bribery, Corruption
No area is free from corruption, but certain areas may present higher risks than others. These are areas that involve management of significant public funds or access to critical services, such as health care. On 4 November 2024, the Commission published its study, High-risk areas of corruption in EU Member States: a mapping and in-depth analysis, which was contracted in 2023 to identify areas most at risk of corruption and provide an in-depth analysis of the nature of and reasons behind these risks. Six EU-wide sectors emerged as high-risk areas of corruption where the Commission will be prioritising actions: healthcare,…

TD Bank Pleads Guilty to $1.8 Billion in Criminal Penalties, Totaling Over $3 Billion in Regulatory & Civil Penalties

Money Laundering, Prosecutions
TD Bank, one of the largest financial institutions in North America, has pleaded guilty to multiple felonies and agreed to pay a staggering $1.8 billion in criminal penalties, in a resolution that also involves civil enforcement actions totaling over $3 billion. This marks the largest penalty ever imposed under the Bank Secrecy Act (BSA) and signals a significant shift in how U.S. regulators are addressing persistent compliance failures in the banking industry. In an unprecedented move, the U.S. Department of Justice (DOJ) applied the Bank Secrecy Act’s daily fine provision—$500,000 per day for violations—making it the first-ever daily fine levied…

Alleged Hong Kong Crypto Swindler Tied to Singapore Money Laundering Syndicate

Digital Currencies, Prosecutions
A Chinese national accused of stealing millions from investors after the collapse of a cryptocurrency exchange also owned companies with businessmen linked to major money laundering investigations in Southeast Asia — including one who has been convicted, and another suspect on the run. Hong Kong police have called Su Weiyi the “mastermind” behind Atom Asset Exchange (AAX), which had more than two million users before collapsing in 2022. Su Weiyi allegedly absconded with investors’ money, but returned to Hong Kong where he was arrested on July 18 and charged with theft. The charges have not been proven in court and…

Citigroup Ordered to Strengthen AML Compliance Amid Federal Scrutiny

Money Laundering
Citigroup Inc., one of the largest banking institutions in the United States, has been ordered to significantly overhaul its anti-money laundering (AML) compliance programs following deficiencies uncovered by federal regulators. A consent order, issued jointly by the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC), requires Citigroup to implement sweeping reforms across its subsidiaries to address critical lapses in its oversight and governance. Citigroup’s global operations, including its ownership of Citibank, N.A. in South Dakota and Banamex USA in California, are governed by stringent U.S. anti-money laundering laws. The Bank…

Popular golf course to be sold after fraud scandal

Fraud
A popular English championship golf course is set to be sold after becoming embroiled in a high-profile fraud scandal. Mill Ride Golf Club in Berkshire was one of a number of assets forfeited by the wife of a jailed banker following a six-year National Crime Agency (NCA) investigation into fraudulent acquisitions. Zamira Hajiyeva was forced to give up the Berkshire course – as well as a £14million Knightsbridge House – after the NCA concluded it was obtained as a “direct result of large-scale fraud and embezzlement, false accounting and money laundering.” Her husband Jahangir is the former chairman of the…

Raytheon to Pay Over $950 Million in DOJ Settlement for Defective Pricing, Foreign Bribery, & Export Control Violations

Bribery, Prosecutions
Raytheon Company, a defense giant and subsidiary of RTX, has agreed to pay over $950 million to settle criminal and civil investigations by the Department of Justice (DOJ). The hefty settlement addresses the company’s involvement in fraudulent pricing schemes, violations of the Foreign Corrupt Practices Act (FCPA), and breaches of export control regulations under the Arms Export Control Act (AECA). The DOJ has outlined two significant schemes. The first relates to Raytheon’s fraudulent pricing practices on U.S. Department of Defense (DOD) contracts, while the second involves foreign bribery in Qatar and the company’s failure to properly disclose such conduct in…

Kuwait’s measures to combat money laundering and terrorist financing

Counter Terrorist Financing, Money Laundering
Kuwait has an adequate legal and supervisory framework to address illicit finance, but has serious shortcomings delivering effective outcomes, including its understanding, investigation and prosecution of money laundering and terrorist financing. The FATF/MENAFATF mutual evaluation report of Kuwait assessed the effectiveness of Kuwait’s measures to combat money laundering, terrorist financing and proliferation financing, and their level of compliance with the FATF Recommendations. Kuwait is a high-income country with low levels of violent crime but that nevertheless faces money laundering risks from crimes that include fraud, corruption, forgery and offences committed abroad. The country is exposed to terrorist financing risks from…

Justice Department Unveils Comprehensive Strategy to Combat AI-Enabled Cybercrime, Emphasizes International Cooperation

Cyber Crime
The Department of Justice’s Criminal Division unveiled today a sweeping new framework for addressing cybercrime and artificial intelligence-enabled criminal activities, signaling a major evolution in the federal government’s approach to technology-enabled threats. Principal Deputy Assistant Attorney General Nicole M. Argentieri, speaking at the Computer Crime and Intellectual Property Section’s Symposium hosted by the Center for Strategic and International Studies in Washington, DC, detailed the division’s ambitious strategy to combat increasingly sophisticated digital threats while safeguarding civil liberties and promoting responsible innovation. The newly released Strategic Approach to Countering Cybercrime marks the Justice Department’s most comprehensive response yet to the challenges…

UK sanctions Russian troops deploying chemical weapons on the battlefield

Sanctions
Russian troops involved in the abhorrent use of inhumane chemical weapons on the battlefield in Ukraine have been targeted by new UK sanctions. Russia’s Radiological Chemical and Biological Defence (CBR) troops and their commander have been sanctioned for the deployment of barbaric chemical weapons in UkraineUK calls out Russia’s flagrant violation of the Chemical Weapons Convention (CWC) and urges Russia to immediately cease all such activityaction continues the Foreign Secretary’s personal mission to target the full spectrum of the Kremlin’s malign activity through our arsenal of sanctionsRussian forces have openly admitted to using hazardous chemical weapons on the battlefield, with…

OCC Cracks Down: October Enforcement Actions Highlight BSA/AML Failures & Insider Threats

Money Laundering, Prosecutions
The Office of the Comptroller of the Currency (OCC) has unveiled its latest round of enforcement actions for October 2024, cracking down on banks and individuals for a variety of compliance failures. This month’s actions cover a wide spectrum of issues, from severe violations in Bank Secrecy Act/Anti-Money Laundering (BSA/AML) programs to internal fraud by individual employees. The most significant penalty on the list goes to TD Bank, which received a hefty $450 million civil money penalty, coupled with a cease-and-desist order, for BSA/AML compliance deficiencies. This penalty continues to send shockwaves through the financial sector. It highlights that when…

Billion-dollar cyberfraud industry expands in Southeast Asia as criminals adopt new technologies

Fraud
A new report launched today has found that Asian crime syndicates have integrated new service-based business models and technologies including malware, generative artificial intelligence (AI), and deepfakes into their operations while establishing new underground markets and cryptocurrency solutions for their money laundering needs.The report, titled Transnational Organized Crime and the Convergence of Cyber-Enabled Fraud, Underground Banking, and Technological Innovation: A Shifting Threat Landscape, is the second in a series of ongoing threat analyses produced by the UN Office on Drugs and Crime (UNODC).“Organized crime groups are converging and exploiting vulnerabilities, and the evolving situation is rapidly outpacing governments’ capacity to…

DOJ’s New Corporate Compliance Blueprint: AI Risks, Whistleblower Protections, and Financial Accountability Take Center Stage

Whistleblowing
At the Society of Corporate Compliance and Ethics (SCCE) 23rd Annual Compliance & Ethics Institute, Principal Deputy Assistant Attorney General Nicole M. Argentieri delivered a keynote speech underscoring the U.S. Department of Justice’s (DOJ) evolving corporate enforcement landscape. Compliance professionals were at the center of her address, emphasizing their critical role in upholding corporate integrity. Argentieri’s speech wasn’t merely a high-level overview of DOJ priorities; it was a call to action for compliance officers and GRC professionals. With the increasing complexity of corporate crimes, driven in part by disruptive technologies like artificial intelligence, the DOJ’s message was clear: robust compliance…

New York Man Pleads Guilty in Crypto-Fueled $25M Money Laundering Case

Digital Currencies, Money Laundering, Prosecutions
The U.S. Attorney’s Office and the FBI announced on Friday that Yanbing Chen, a 30-year-old from Brooklyn, N.Y., pleaded guilty to his involvement in an international money laundering and drug trafficking conspiracy. The organization, led by Jin Hua Zhang of Staten Island, laundered over $25 million in drug proceeds and illegal funds. Chen delivered $50,000 in drug profits, which were converted to Tether, a cryptocurrency, and transferred to Zhang, minus a fee. The funds were traced to multiple countries, including Hong Kong, India, and Brazil. Additionally, Chen transported five kilograms of cocaine in two separate meetings under Zhang’s direction. Zhang…

UK-linked firms suspected of busting Russia sanctions

Sanctions
The government is carrying out 37 investigations into UK-linked businesses for potentially breaking Russian oil sanctions – but no fines have been handed out so far, the BBC can reveal.The identities of the businesses are unknown but it is understood some are likely to be maritime insurance firms.The Treasury said it would take action where appropriate, but pointed to the complexity of the cases as a reason they take considerable time.But Sir William Browder, a longstanding critic of Russian President Vladimir Putin, said it was an “embarrassment” that there had not been a single prosecution or fine for companies investigated…

UNODC report exposes escalating threat of organized crime in the Pacific

Environmental Crime
The Pacific is increasingly becoming an important transshipment hub and an operational and destination point for organized crime syndicates, according to a new report launched today by the UN Office on Drugs and Crime (UNODC).Titled Transnational Organized Crime in the Pacific: Expansion, Challenges, and Impact, the report provides a detailed analysis of the rapidly evolving organized crime landscape and related drivers. It highlights how foreign criminal groups are capitalizing on the region’s geographic isolation, infiltrating legitimate businesses and using new technologies to advance their illicit operations while evading law enforcement.“Transnational organized crime has become a significant security threat in the…

SFO recovers further £295,000 from convicted fraudster’s hidden pensions

Confiscation, Proceeds of Crime
The Serious Fraud Office (SFO) has recovered a further £295,000 from Virendra Rastogi, now known as Vareen Kumar or Veerain Kumarr, who was convicted for an international metal trading scam. The money was recovered from two pension funds as part of an ongoing proceeds of crime investigation into Rastogi’s assets, which has recovered nearly £6 million to date including from the sale of his Marylebone home and via the seizure of money and assets including valuable watches. Rastogi was one of three former directors of RBG Resources plc who was prosecuted by the SFO in 2008 for operating an international…

FCA fines Starling Bank £29m for failings in their financial crime systems and controls

Money Laundering, Regulatory Fines
The FCA has fined Starling Bank Limited £28,959,426 for financial crime failings related to its financial sanctions screening. It also repeatedly breached a requirement not to open accounts for high-risk customers. Starling grew quickly, from approximately 43,000 customers in 2017 to 3.6 million in 2023. However, measures to tackle financial crime did not keep pace with its growth. When the FCA reviewed financial crime controls at challenger banks in 2021, it identified serious concerns with the anti-money laundering and sanctions framework in place at Starling. The bank agreed to a requirement restricting it from opening new accounts for high-risk customers…

New York Regulator Fines Nordea $35 Million for Compliance Failures

Due Diligence, Prosecutions
The New York Department of Financial Services (DFS) has reached a $35 million settlement with Nordea Bank Abp over serious compliance failures and inadequate due diligence practices. The settlement, announced on August 27, 2024, by DFS Superintendent Adrienne A. Harris, follows an extensive investigation into the bank’s role in facilitating potentially illicit financial activities. The investigation, sparked by the 2016 Panama Papers leak, revealed Nordea’s involvement in helping hundreds of customers create tax-sheltered companies using offshore accounts. Further scrutiny uncovered the bank’s connections to major money laundering schemes, including the Russian Laundromat, the Azerbaijani Laundromat, and the Hermitage Capital Allegations.…

Secretive Cyprus-Registered Funds Were Used to Hide Megayachts and Luxury Real Estate Linked to Sanctioned Russian Banker

Uncategorized
In Cyprus, a new type of investment fund was marketed to clients as a way to avoid disclosing their ownership of assets. In one case, these funds were used to obscure the ownership of offshore companies that allegedly held luxury assets linked to powerful Russian banker Andrei Kostin, including two megayachts worth tens of millions. Key FindingsTwo megayachts linked to Andrei Kostin were hidden behind secretive investment funds in Cyprus, known as “registered alternative investment funds.”The funds were managed by a company called Inveqo, owned by the wife of a sanctioned Cypriot lawyer.Registered alternative investment funds, or RAIFs, were marketed…

Student Smishing Scams on the Rise

Fraud
At the start of the 24/25 academic year, the Students Loans Company (SLC) is reminding students to be vigilant of smishing scams. Scammers target students at this time of year as they receive their first maintenance loan payment. SLC is expecting to pay £2bn to students over the autumn term and last year it stopped £2.9m of maintenance loan payments being taken by smishing and phishing scams, where students received and acted on false communications. Smishing, which is fraud involving text messages, is currently the most popular form of scam, with students usually being asked to click a link to…

Wells Fargo Enters Agreement with OCC to Strengthen Anti-Money Laundering Controls

Money Laundering, Prosecutions
Wells Fargo Bank, N.A., has entered into a formal agreement with the Office of the Comptroller of the Currency (OCC) to address deficiencies in its anti-money laundering (AML) and financial crimes risk management practices. The agreement, announced today, outlines a comprehensive plan to enhance the bank’s compliance with the Bank Secrecy Act (BSA) and U.S. economic sanctions laws. The OCC identified several areas of concern, including violations related to internal controls, suspicious activity reporting, customer due diligence, and compliance with sanctions enforced by the Office of Foreign Assets Control (OFAC). In response, Wells Fargo has committed to implementing a wide-ranging…

UK Conservative Party Advisor Lobbied for Firm Founded by Russian Oligarchs

Corruption
The man who served as chief of staff under former British Conservative Prime Minister Liz Truss has been lobbying for a company part-owned by two sanctioned Russian oligarchs. Romania’s Logging Industry Continues to Cheat the Timber Tracing SystemSix months after the fraud was exposed and Romanian authorities promised to stop it, wood processing companies continue to cheat Europe’s most sophisticated timber tracing system, allowing illegally harvested wood to enter the legal market. EU Parliament Calls for Sanctions on Georgia and its LeadersThe European Parliament voted in favor of a resolution calling for the EU to stop funding the country of…

Four insights for UK firms in the year of the PEP

PEPs
The recent review by the Financial Conduct Authority (FCA), along with updates to the UK’s anti-money laundering regulations, has resulted in new requirements for firms: they must now classify ‘domestic’ PEPs as inherently lower risk compared to ‘non-domestic’ PEPs as long as there are no ‘high-risk indicators’ present. With the recent election completed and new MPs in office, UK firms are now facing the challenge of adjusting to these changes in guidance. As firms make operational adjustments in light of the UK’s regulatory update, the spotlight on PEPs presents an opportunity to reflect on four key insights. The FCA review…

SEC Charges Macquarie Investment Management Business Trust with $79.8 Million Fraud Settlement

Fraud, Prosecutions
The Securities and Exchange Commission (SEC) announced today that Macquarie Investment Management Business Trust (MIMBT), a registered investment adviser, has agreed to pay $79.8 million to settle charges of fraud. The case involves the overvaluation of illiquid assets and the execution of unlawful cross trades that favored certain clients over others. According to the SEC’s order, from January 2017 through April 2021, MIMBT managed the Absolute Return Mortgage-Backed Securities strategy, which primarily invested in mortgage-backed securities, collateralized mortgage obligations (CMOs), and treasury futures. The firm is accused of overvaluing approximately 4,900 largely illiquid CMOs held in 20 advisory accounts, including…