Month: June 2024

StanChart loses bid to cut US sanctions breach claims from UK lawsuit

Sanctions
Standard Chartered on Monday lost a bid to cut from a London lawsuit allegations that it broke U.S. sanctions against Iran in a more widespread way than it has previously admitted. More than 200 investors are suing Standard Chartered at London’s High Court for allegedly untrue statements about its sanctions non-compliance between 2007 and 2019. The lawsuit comes after the London-based bank agreed to pay $1.1 billion in 2019 to U.S. and British authorities over transactions which breached sanctions against Iran and other countries. The 2019 deal extended by two years a 2012 deferred prosecution agreement with Standard Chartered, under…

CFTC Orders Trafigura to Pay $55 Million for Fraud, Manipulation and Impeding Communications with the CFTC

Fraud, Whistleblowing
The Commodity Futures Trading Commission today issued an order simultaneously filing and settling charges against Trafigura Trading LLC, a global commodities merchant with its principal place of business in Houston, Texas, for multiple violations of the Commodity Exchange Act (CEA) and associated CFTC regulations. The order requires Trafigura to pay a $55 million civil monetary penalty and implement certain remedial measures to ensure future compliance with the CEA. The order includes three violations:   “As reflected in today’s Order, Trafigura misappropriated material non-public information and engaged in manipulative conduct that affected published benchmark rates,” said Director of Enforcement Ian McGinley.  “This…

FINMA proceedings: HSBC Private Bank (Suisse) SA violated money laundering regulations

Money Laundering
HSBC Private Bank (Suisse) SA breached its obligations in the prevention of money laundering in connection with two politically exposed persons and thereby seriously violated financial market law. This was established in the context of enforcement proceedings by the Swiss Financial Market Supervisory Authority FINMA, which has imposed measures to ensure that compliance with the law is restored. The decision orders that, until these measures have been implemented in full, the bank may not enter into any new business relationships with politically exposed persons. In December 2021, FINMA opened enforcement proceedings against HSBC Private Bank (Suisse) SA in connection with…

Drug Traffickers Producing More Cocaine in Europe: EU Report

Drug Trafficking
Some cocaine production has shifted from Latin America to Europe, as criminal groups explore new trafficking methods and authorities boost transatlantic cooperation, according to the latest EU drug report. Both drug seizures and drug use keep increasing in Europe, according to findings published by the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) on June 11.  “While seizures are up, purity remains high, and prices are stable, showing that huge amounts of cocaine are available,” Ylva Johansson, European Commissioner for Home Affairs, said during the launch of the drug report. Cocaine Production Expands in Europe Traditionally, traffickers turned coca…

Combatting corruption: Council adopts position on EU law

Corruption
In order to step up efforts in the fight against corruption, the Council today agreed its position on an EU law that sets minimum standards for the definition and sanctioning of corruption offences, preventive measures and rules for more effective investigation and prosecution. The law’s main novelty is that, for the first time at EU level, it brings together in one legal act rules on corruption in the public and private sectors. Paul Van Tigchelt, Belgian Deputy Prime Minister and Minister of Justice and the North Sea Corruption corrodes trust in the public sector, harms the economy and damages the…

‘Sanctions hole’: how secretive routes supply Russia with western tech and consumer goods

Sanctions
Since Vladimir Putin’s invasion of Ukraine, the west has imposed thousands of sanctions on Russia, and handed it the dubious distinction of being the most heavily sanctioned country on Earth. Targeting everything from the finances of individuals to the major industries of its economy, international sanctions have aimed to isolate Russian consumers, with major brands such as Apple and McDonald’s ceasing their operations in the country. But two years on, Russia’s economy is showing surprising resilience and is forecast to grow faster than most of the world’s advanced economies, although experts say that it is unsustainable in the long term.…

Money laundering gang jailed over £1.2m IT fraud

Money Laundering, Prosecutions
Five people who helped launder the proceeds of a £1.2m computer scam have been jailed. The fraud targeted elderly and vulnerable people, tricking them into paying out thousands of pounds each to fix non-existent IT problems. Between May 2015 and November 2019 the gang transferred £1,289,837 to two brothers based in India, who had been posing as representatives of HP, Microsoft Norton and Epson to defraud their victims. Amanda Grigg, 66, of Truro, Gena Harrington, 39, of Birmingham, Bindu Devasia, 49, of Kent, Nicholas Alcide, 40, of Birmingham, and Jose Kuriakose, 50, of Kent, were sentenced at Leeds Crown Court…

FinCEN’s 2023 Report Highlights Robust Compliance Enforcement and the Power of Financial Data in Fighting Crime

Financial Crime, FinCEN
The Financial Crimes Enforcement Network (FinCEN) has released its Year in Review for Fiscal Year 2023, underscoring the critical role of regulatory compliance and enforcement in safeguarding the U.S. financial system. The report showcases how the bureau leverages the Bank Secrecy Act (BSA) data to combat money laundering, terrorism financing, and other financial crimes, while holding non-compliant entities accountable. In FY 2023, FinCEN’s enforcement actions resulted in four civil money penalties totaling $60,780,829. These penalties serve as a stark reminder to financial institutions of the cost of non-compliance with BSA regulations. The message is clear: failure to adhere to reporting…

Moldova Arrests Officials For Helping Criminals Bypass Interpol Red Notices

Bribery, Corruption
Moldova detained Tuesday four allegedly corrupt officials tied to an international conspiracy that has allowed criminals to escape Red Notice arrest warrants issued by Interpol. The officials are believed to have accepted bribes totalling several million U.S. dollars in exchange for offering criminals safe harbor in Moldova from Red Notices issued in their names, or for deleting the arrest warrants altogether. Moldova’s Anti-corruption Prosecution Office ordered raids on 33 locations to seek out and detain the suspects, as part of a multilateral investigation that includes federal authorities across the U.K., the U.S., France, and Spain. The conspiracy was revealed by the U.S.…

Singapore Unveils Updated Risk Assessment on Money Laundering

Money Laundering, Risk Assessments
Singapore recently published its updated Money Laundering (ML) National Risk Assessment (NRA). This comprehensive assessment, a collaborative effort involving supervisory and law enforcement agencies, the Suspicious Transaction Reporting Office (STRO), private sector entities, and international counterparts, synthesizes the current ML risks facing the nation. Since the last assessment in 2014, Singapore has been diligently monitoring money laundering risks, conducting thematic assessments on the misuse of legal persons, virtual assets, and environmental crime. These efforts ensure timely identification and mitigation of risks by relevant stakeholders. Exposure Due to Economic Openness Singapore’s status as a global financial center and trading hub exposes it to…

Banana giant held liable for funding paramilitaries

Counter Terrorist Financing, Terrorism
A court in the United States has found multinational fruit company Chiquita Brands International liable for financing a Colombian paramilitary group. The group, the United Self-Defence Forces of Colombia (AUC), was designated by the US as a terrorist organisation at the time. Following a civil case brought by eight Colombian families whose relatives were killed by the AUC, Chiquita has been ordered to pay $38.3m (£30m) in damages to the families. Chiquita said in a statement that it intended to appeal against the jury’s verdict, arguing that there was “no legal basis for the claims”. The jury in the case,…

EU ushers in new anti-money laundering era

Money Laundering, Regulation
The EU is revolutionising its approach to money laundering and the financing of terrorism with the creation of a new bloc-wide body and a raft of new regulations. In a decisive move designed to beef up its defences against the ever-present scourge of , on Thursday (19 June) the European Union unveiled its comprehensive Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) legislative package. The package, which was formally adopted by the European Parliament in May, establishes a new EU Anti-Money Laundering Authority (AMLA) and introduces stricter regulations aimed at enhancing transparency and accountability across the financial system. The new…

Epoch Times CFO charged in $67m money-laundering plot

Money Laundering, Prosecutions
The chief financial officer of the Epoch Times news outlet has been arrested over his alleged involvement in a massive money-laundering scheme.  Federal prosecutors allege that Bill Guan, 61, participated in a global plot to launder at least $67m (£52m) of illegal cash to benefit himself and the Epoch Times. According to the indictment, Mr Guan led the outlet’s “Make Money Online” team, which used cryptocurrency to purchase tens of millions worth of crime proceeds.  Mr Guan has not yet entered a plea. If convicted, he could spend more than 30 years in prison.  In a statement on Monday evening,…

New UK sanctions to crack down on Putin’s war machine

Sanctions
UK announces 50 new sanctions designations and specifications to degrade Putin’s war machine, in co-ordinated action with G7 partners to support Ukraine.  New targets include ships in Putin’s shadow fleet, institutions at the heart of Russia’s financial system and suppliers supporting Russia’s military production.   These new sanctions, announced while the Prime Minister attends the G7 Leaders Summit in Italy, will bear down on Russia’s ability to fund and equip its war machine and show the UK’s steadfast support for Ukraine. Today’s action includes the UK’s first sanctions targeting vessels in Putin’s shadow fleet, used by Russia to circumvent UK and…