Month: May 2024

Fiji’s former Prime Minister Frank Bainimarama jailed for a year

Bribery, Corruption, Prosecutions
Frank Bainimarama, who was Fiji’s prime minister for some 15 years until losing power in 2022, has been jailed for a year after he was found guilty of using his position to shut down a corruption investigation into a prominent university. Once armed forces chief, Bainimarama seized power in a 2006 coup and later won democratic elections in 2014 and 2018. The 70-year-old narrowly lost the December 2022 election to a coalition of parties led by the current prime minister, Sitiveni Rabuka, but remains a popular figure. Outside the court in Suva on Thursday, a crowd of supporters gathered ahead…

Bribery Rocks Russian Defense Ministry, Senior Officials Detained

Bribery, Corruption
Russian authorities detained a senior Defense Ministry official, alleging his involvement in a large-scale bribery scheme exceeding 100 million Russian rubles (just over US$1 million), the Russian Investigative Committee stated Tuesday on its Telegram channel.The Main Investigation Department of the Committee (Следственный комитет Российской Федерации – SLEDKOM) said it has opened “a criminal case against the head of the personnel department of the Defense Ministry, Yury Kuznetsov.”“The investigation reveals that between 2021 and 2023, while serving as the head of the 8th Directorate of the General Staff of the Russian Armed Forces, Kuznetsov allegedly accepted bribes from representatives of commercial…

Treasury Unveils 2024 Strategy to Combat Illicit Finance Amid Evolving Threats

Terrorism
The U.S. Department of the Treasury today issued its 2024 National Strategy for Combating Terrorist and Other Illicit Financing, outlining the government’s priorities to disrupt money laundering, terrorist financing, and other financial crimes. The 2024 Strategy provides a comprehensive blueprint to address key illicit finance risks identified in recent national risk assessments, including large-scale fraud, ransomware attacks, the opioid crisis, terrorism, corruption, and exploitation of new financial technologies. “In this critical moment for our national and economic security, we need to continue to close the pathways that illicit actors seek to exploit for their schemes,” Under Secretary of the Treasury…

Singapore Money Laundering Suspects Invested Huge Sums in Dubai Property

Money Laundering
Three people arrested in a raid on an alleged money laundering ring in Singapore invested over $30 million in Dubai real estate, leaked data reveals. One of the suspects, who was wanted in China at the time, was behind a property broker that became a major sales agent for the city’s largest real estate developer, part-owned by Dubai’s ruler. Key FindingsSu Jianfeng, in detention in Singapore awaiting trial for charges of money laundering and fraud, is an owner of Dubai-based broker Fidu Properties DMCC. That firm was part of the Fidu Property Real Estate Brokerage, a top partner for Emaar…

Canada’s anti-money laundering agency imposes $6.7 mln fine on TD Bank

Money Laundering, Prosecutions
May 2 (Reuters) – Canada’s anti-money laundering agency said on Thursday it had imposed its biggest-ever penalty of nearly C$9.2 million ($6.71 million) on TD Bank (TD.TO) The bank has been grappling with regulatory probes over its AML compliance program both at home and in the United States, which have been a drag on the stock’s performance.The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) said the administrative monetary penalty on TD Bank was imposed on April 9 following a compliance examination in 2023. FINTRAC said it found that TD Bank had failed to submit suspicious transaction reports as…

Audit Firm BF Borgers and Owner Charged with Massive Fraud

Fraud, Prosecutions
The Securities and Exchange Commission (SEC) has leveled charges against audit firm BF Borgers and its owner, Benjamin F. Borgers. The SEC alleges “deliberate and systemic failures” by the firm to maintain compliance with the Public Company Accounting Oversight Board (PCAOB) in over 1,500 SEC filings. The SEC’s investigation revealed a pattern of misconduct, including false representations to clients about compliance with PCAOB standards, fabrication of audit documentation, and misleading statements in audit reports included in more than 500 public company SEC filings. As part of the settlement, BF Borgers agreed to pay a substantial $12 million civil penalty, with…

AUSTRAC and SkyCity agree to proposed $67 million penalty

Money Laundering, Regulatory Fines
SkyCity Adelaide Pty Ltd (SkyCity) and AUSTRAC have filed joint submissions with the Federal Court of Australia, proposing a $67 million penalty over the casino’s contravention of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). A court hearing has been set down for 7 June 2024, at which Justice Lee will consider the parties’ proposed settlement. While AUSTRAC and SkyCity agree that a $67 million penalty is appropriate in all the circumstances, it is a matter for the court to determine the appropriate penalty. In reaching this agreement, SkyCity has admitted that it operated in contravention of the…

Nearly 40% of dirty money is laundered in London and UK crown dependencies

Money Laundering
Deputy foreign secretary urges Cayman and British Virgin Islands to implement UK law requiring public registers of funds Nearly 40% of the dirty money in the world is going through the City of London and other crown dependencies, the UK’s deputy foreign secretary has said. Andrew Mitchell added the crown dependencies and overseas territories will face fresh demands from the Foreign Office to comply with UK laws setting up public registers of beneficial share ownership. Since legislation was passed in the House of Commons in 2016 the UK has faced prevarication from overseas territories which are reluctant to set up…

Fraud rife on secondhand marketplaces Depop, Preloved and Shpock

Fraud
Consumers have been encouraged to be vigilant when shopping online after research showed fraud was rife on secondhand marketplaces, with Depop, Shpock and Preloved named the worst sites, and problems also discovered with industry giants Amazon and eBay. A survey of 1,300 buyers by Which?, the consumer champion, found that 32% had been scammed on a secondhand marketplace in the two years to January. The most common ruse involved consumers receiving incorrect goods or nothing at all, while others were delivered an empty package or counterfeit goods. The survey comes as an international investigation by the Guardian, Die Zeit and…

FINTRAC imposes an administrative monetary penalty on Binance Holdings Limited

Money Laundering, Uncategorized
FINTRAC announced today that it has imposed an administrative monetary penalty on Binance Holdings Limited, also operating as Binance Holdings (IE) Ltd., Binance.com, Binance Global and Binance. This foreign money services business was imposed an administrative monetary penalty of $6,002,000 on May 7, 2024 for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations. Binance Holdings Limited was found to have committed the following administrative violations: Quote “Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime is in place to protect the safety of Canadians and the security of Canada’s economy. FINTRAC will continue…

Urgent action needed to fight money laundering and terrorist financing, say heads of FATF, INTERPOL and UNODC

INTERPOL, Money Laundering
Vienna (Austria), 13 May 2024 – Countries need to urgently step up their efforts to target the huge illicit profits generated by transnational organized crime that facilitate conflicts, fund terrorism, and negatively impact vulnerable populations.This was the unprecedented call to action from the heads of the Financial Action Task Force (FATF), INTERPOL and the UN Office on Drugs and Crime (UNODC) in Vienna today at a high-level side event on the first day of the 33rd session of the Commission on Crime Prevention and Criminal Justice (CCPCJ).By focussing on the proceeds of crime and the illicit financial networks behind them,…

Chinese takeaway worker Jian Wen jailed for money laundering after £3bn Bitcoin seizure

Money Laundering
A former Chinese takeaway worker found guilty of money laundering after police seized more than £3bn worth of Bitcoin has been jailed for more than six years. Jian Wen, 42, came to the attention of police when she tried to buy some of London’s most expensive properties, including a £23.5m seven-bedroom Hampstead mansion with a swimming pool and a nearby £12.5m home with a cinema and gym. The investigation led to the UK’s biggest-ever cryptocurrency seizure when more than 61,000 Bitcoin were discovered in digital wallets. The cryptocurrency was worth £1.4bn at the time but its value has now risen…

NCA secures first Unexplained Wealth Order in Northern Ireland

Money Laundering, Prosecutions
The National Crime Agency (NCA) has secured the first Unexplained Wealth Order in Northern Ireland against a man suspected of involvement in serious organised crime. The Order compels the man and his wife to explain the source of funds used to construct a property in County Armagh worth approximately £275,000. It was obtained at the High Court in Belfast on Friday (17 May) as part of an ongoing NCA civil recovery investigation.                           NCA investigators believe that the man, who is now resident in the Republic of Ireland, has…

ACCA report reveals the hidden cost of bribery for SMEs

Bribery
A new report from the Association of Chartered Accountants (ACCA) has revealed the pervasive impact of bribery and corruption on small and medium-sized enterprises (SMEs) worldwide. The report’s research, titled Bribery and corruption: The hidden social evil on your doorstep, underscores the urgent need for increased transparency and robust regulatory frameworks to combat these issues. It shows a high prevalence and deep concern about the damaging impact of bribery and corruption on SMEs, with more than half (59%) of SMEs and their advisers believing that standing up to bribery and corruption will cost them business trade or opportunities. The UK…

New EU rules criminalising the violation of EU sanctions enter into force

Sanctions
As from 19 May, new rules to harmonise criminal offences and penalties for the violation of EU restrictive measures enter into force. The new rules will ensure that such violations can be criminally investigated and prosecuted in all Member States. They include a list of criminal offences related to the violation and circumvention of EU sanctions, such as for example: failing to freeze assets; breaching travel bans and arms embargoes; providing prohibited or restricted economic and financial services, transferring funds that should be frozen to a third party or providing false information to conceal funds that should be frozen. The…