Category: Money Laundering

Ex-bank Director and Minister Jailed in Portuguese Money Laundering Case

Money Laundering, Prosecutions
Armando Vara, a former director of Portugal’s state-owned Caixa Geral de Depositos bank and ex-government minister, has been imprisoned for two years for money laundering. He is already behind bars for a separate offence. The public prosecutor told Lisbon criminal court of a complex financial circuit of accounts in Switzerland and offshore companies, with Vara as the true beneficiary, and mentioned around €2m ($2.37m) being transferred to a Swiss account in the name of Vama, an offshore company of which Vara was ultimate beneficiary. When questioned by the criminal investigation judge in 2009, Vara admitted ownership of all the accounts…

Corruption and Cybercrime Top List of U.S. Anti-Money-Laundering Concerns

Money Laundering
The U.S. Treasury Department on Wednesday issued a wide-ranging set of national anti-money-laundering priorities, naming corruption and cybercrime among the areas where financial institutions should focus their compliance resources. The list is the first created by the Treasury’s Financial Crimes Enforcement Network, or FinCEN, following a major overhaul of U.S. anti-money-laundering laws in January. Legislation passed by Congress required FinCEN to develop a national strategy for countering money laundering and terrorism financing and to issue a list of priorities every four years. Financial industry groups had advocated to make the prioritization effort a part of the anti-money-laundering act, hoping it…

HSBC faces questions over disclosure of alleged money laundering to monitors

Money Laundering, Prosecutions
Bank was under supervision by US Department of Justice-appointed team because of previous violations HSBC discovered a suspected money laundering network that received $4.2bn (£3bn) worth of payments, it has emerged, raising questions over whether it disclosed the information to US monitors who at the time were ensuring the bank cleaned up its act. Insiders who spoke to journalists as part of a joint investigation by the Guardian and the Bureau of Investigative Journalism, have suggested that HSBC may not have appropriately shared the information with the monitoring team installed by US regulators in 2012 after HSBC allowed drug cartels…

Nigerian influencer pleads guilty to money laundering

Money Laundering, Prosecutions
Nigerian influencer Ramon Abbas – also known as Hushpuppi – has pleaded guilty to money laundering in a US court. Hushpuppi, 37, is known for posting photos of his lavish lifestyle on Instagram, where he has 2.5m followers. Court documents filed in California said Hushpuppi’s crimes cost victims almost $24m (£17m) in total. In one scheme, Hushpuppi attempted to steal more than $1.1m from someone who wanted to fund a new children’s school in Qatar, the documents said. Court records unsealed this week show he pleaded guilty to this charge on 20 April. The documents state that between 18 January…

Money Laundering Case Against Lionel Messi Dismissed

Fraud, Money Laundering, Prosecutions
Fresh allegations accusing top footballer Lionel Messi of fraud, embezzlement and money laundering have been dismissed by a Spanish court. The national court ruled that after two years of investigation “no criminal act on the part of the people targeted by the complaint could be proven,” Agence France-Presse news agency reported. Federico Rettori, an Argentine national living in Spain, claimed he formerly worked for Messi’s charity and alleged funds received by the foundation which should have been directed to social causes went instead “towards various private activities or bank accounts that differed from those that were declared by the foundation”.…

Tara Hanlon jailed for over £5m money laundering offences

Money Laundering, Prosecutions
A woman has been jailed for 34 months after being found at Heathrow Airport with five suitcases stuffed with nearly £2m in cash. Tara Hanlon, 30, of Pelham Court, Leeds, pleaded guilty at Isleworth Crown Court in June to money laundering offences worth more than £5m. She was arrested as she tried to board a flight to Dubai on 3 October 2020 with more than £1.9m in cash. Hanlon previously claimed to have “the perfect life” due to her job. Border officials said the find was the largest individual cash seizure at the UK border in 2020. Hanlon previously admitted…

Jet-setting DJ, and cousin of Azerbaijan’s president Aliyev, accused of receiving millions in suspicious funds

Money Laundering
“Mikaela Jav” made a name for herself as a DJ, spinning infectious electronic beats on the Spanish island of Ibiza, long famed for its fervent nightlife. The host of “Mikaela & Friends” parties, which kicked off on Saturday nights in the summer of 2015, also had an active presence on Facebook, where she posted sultry, jet-setting photos in Greece, Thailand, and Las Vegas. In Spanish press interviews, DJ Mikaela gushed about her love for Ibiza, her musical inspiration, and her life in Russia, which she described as her home. In fact, OCCRP can reveal in this joint investigation with Transparency…

Anti-money laundering expert convicted of money laundering

Money Laundering, Prosecutions
The former chairman of a UK group that represents the payment services industry has been convicted of laundering the proceeds of an investment fraud worth £850,000 and involving more than 60 victims. Dominic Thorncroft, 56, was found guilty at Southwark Crown Court of one count of money laundering, one count of breaching money laundering regulations and four counts of retaining a wrongful credit. Thorncroft was the former chair of the Association of UK Payment Institutions who worked with lawmakers and financial regulators providing anti-money laundering advice and training. An investigation by the Metropolitan Police, which began in 2016, found evidence…

Environmental crime is money laundering threat says FATF

Money Laundering
Countries should view environmental crimes such as illegal forestry, mining, land clearances and waste trafficking – and the associated trading – as a money-laundering (ML) risk, according to the Financial Action Task Force (FATF). “Anti-money laundering is often not part of the public policy dialogue on environmental protection,” the Paris-based organisation says in a new report, Money Laundering from Environmental Crimes. “Despite the significant proceeds involved in many cases, jurisdictions are mostly addressing environmental crime as a conservation issue rather than a serious financial crime.” Yet the report cites UN studies showing that the proceeds from environmental crimes are of…

‘High level’ crime gang member admits money laundering

Money Laundering, Prosecutions
A high-level member of an “transnational crime organisation” will be sentenced next month after he was caught with more than €350,000 in criminal proceeds. Jason Reed (40) was also found to have five Rolex watches, an encrypted Aquarius phone and to have purchased a mobile home for cash, despite having no source of income. Reed, of Maelduin, Dunshaughlin, Co Meath, pleaded guilty to money laundering after €32,330 and £390 (€441) was found at his home on May 11th, 2020. Reed also pleaded guilty to money laundering and possessing the proceeds of crime at a car park on Donore Road, Drogheda,…

Tara Hanlon admits £5m money laundering offences

Money Laundering, Prosecutions
A woman has pleaded guilty to money laundering offences worth over £5m after being found at Heathrow Airport with suitcases stuffed with cash. Tara Hanlon, 30, of Pelham Court, Leeds, was arrested as she tried to board a flight to Dubai on 3 October 2020 with more than £1.9m in cash. Appearing at Isleworth Crown Court by video-link, Hanlon admitted four of the five offences she was charged with. She was warned to prepare for a jail term when she is sentenced on 26 July. Border officials said the find in October was the largest individual cash seizure at the…

FCA: Many Crypto businesses fail to meet regulations

Digital Currencies, Money Laundering
A ‘significantly high number’ of cryptocurrency firms have failed to comply with the U.K.’s trading standards and are struggling to meet anti-money laundering rules, Britain’s financial regulator said last week. Since January 2020, crypto firms operating in the U.K. are required to register with the Financial Conduct Authority (FCA) and comply with local money laundering, terrorist financing and transfer of funds regulations. Additionally, last December the agency granted a temporary registration for existing firms that will allow crypto businesses to continue operating while their applications are still under assessment. The FCA has said many businesses have failed to meet the…

U.K. Police seize $160 Million In cryptocurrency In Money Laundering investigation

Digital Currencies, Money Laundering
British detectives seized around £114 million (around $158 million) worth of cryptocurrency as part of an ongoing money laundering investigation, the U.K.’s Metropolitan Police force announced Thursday, marking the largest ever seizure of crypto assets in the U.K. and one of the largest in the world. Key facts The force, which did not reveal what cryptocurrencies had been confiscated, said the seizure was carried out by detectives in its Economic Crime Command “on the back of intelligence received about the transfer of criminal assets.” Criminals must hide the origin of ill-gotten money or else risk it being taken by law…

Casinos: Title 31 compliance is just the beginning of better due diligence

Money Laundering
Among non-bank financial institutions, casinos top the list of businesses that federal regulators are scrutinizing for evidence of money laundering — and it’s not hard to see why. Gaming is still largely a cash business, after all, and it’s not unusual for a customer to exchange thousands of dollars in a single visit. Furthermore, a casino’s customers are often one-time visitors and people who move from state to state. And unlike a bank, casinos are not legally required to collect a great deal of personal information from their customers before exchanging large sums of money. For these and many other…

Italian organised crime using pandemic to build parallel credit systems to launder money

Money Laundering
Italy’s Parliamentary Anti Mafia Commission has warned how organised crime has found parallel credit systems and money laundering operations to operate during the Covid pandemic. “In the emergency pandemic increased parallel credit systems, money laundering through small and medium-sized enterprises, forms of violence and aggression,” says the Commission. The Commission also reports that the various mafia groupings in the course of the Covid-19 emergency are launching “a real attack on the State”. Anti Mafia Commission spokesman Sergio Nazzaro said the warnings in the report of the predatory activities by organized crime during the health emergency were approved unanimously. The reports…

EU takes Luxembourg to court over AML non-compliance

Money Laundering, Prosecutions
European Commission started infringement procedure against Luxembourg in 2016 over late adoption of EU rules The European Commission on Wednesday took Luxembourg to court, asking the European Court of Justice (ECJ) to impose a daily penalty on the country for failing to put new EU rules to stop money laundering into law. Without the rules on the freezing and confiscation of proceeds of crime, EU and national law enforcement authorities are unable to stop the proceeds from crime from flowing into the legitimate economy, the Commission said. It is also harder for the EU to recover profits from organised crime.…

Julius Baer admits in court to facilitating money laundering in FIFA case

Money Laundering
SWISS BANK JULIUS BAER has today admitted in court that it took part in a multi-million dollar laundering scheme connected to soccer’s governing body FIFA. The admission comes alongside the announcement of a final agreement between the medium-sized private bank based in Zurich, and the United States Department of Justice. It means the penalty payment of $79.7M originally announced in November of last year will go ahead as planned. “Julius Baer welcomes the final resolution of this legacy matter,” the bank said in a statement Thursday. “This marks another step in Julius Baer’s continued efforts to pursue the closure of…

Governance and ownership issues in football and its ties to economic crime

Money Laundering, Tax Evasion
Decades of self-regulation and rapid expansion has led the sport sector to lag behind other industries in corporate governance and policy implementation, as demonstrated by the consistent media exposure documenting scandals at football clubs, and at National and International Sport Federations. On Wednesday April 28th 2021, the Economic Crime Series: Governance and Ownership Issues in Football was held online. The event was organised and chaired by Prof. Lisa Jack who welcomed two speakers, Dr. Rob Wilson and Mrs. Christina Philippou. The Risk & Compliance Platform Europe also took part in this webinar and has subsequently covered it on its website.…

Police in London discovered more than £5m in cash in a flat

Money Laundering, Organised Crime
Police in London discovered more than £5m in cash (pictured) in a flat after a criminal gang reportedly “didn’t know what to do with it”. On Friday three men were sentenced following the London Metropolitan Police’s largest-ever single seizure of cash at the apartment in Fulham. Bundles of “dirty cash” were found hidden in plastic shopping bags under a bed and strewn on the floor, the force revealed. Police said the cash was stacked up at the flat because the gang “didn’t know what to do with it” and the Covid-19 pandemic had “really exacerbated their problem of how to…

Binance Holdings is under investigation by the Justice Department and Internal Revenue Services

Digital Currencies, Money Laundering, Tax Evasion
[NEW YORK] Binance Holdings is under investigation by the Justice Department and Internal Revenue Service, ensnaring the world’s biggest cryptocurrency exchange in US efforts to root out illicit activity that’s thrived in the red-hot but mostly unregulated market. As part of the inquiry, officials who probe money laundering and tax offenses have sought information from individuals with insight into Binance’s business, according to people with knowledge of the matter who asked not to be named because the probe is confidential. Led by Changpeng Zhao, a charismatic tech executive who relishes promoting tokens on Twitter and in media interviews, Binance has…

The UK is losing the fight on money laundering

Money Laundering
At the end of 2018, a softly spoken British executive matter-of-factly told the European Parliament how to clean tens of billions of dirty dollars. Howard Wilkinson’s voice shook slightly as he described to MEPs how money from the former Soviet Union was flushed through Danske Bank, where he once worked, into the international financial system. It had been Wilkinson who first blew the whistle on what was happening at the Danish institution, particularly its Estonian subsidiary. Investigators now believe some $200bn was funnelled through the accounts of Danske Bank’s customers. It may have been the biggest money-laundering machine ever uncovered.…

Germany orders Deutsche Bank to do more to prevent money laundering

Money Laundering
The German financial regulator BaFin has ordered Deutsche Bank to enact further safeguards to prevent money laundering, BaFin said on Friday, a blow to the nation’s largest lender as it tries to repair its reputation. In 2018, BaFin took the extraordinary step of installing the auditor KPMG as a special monitor at Deutsche to oversee progress on money-laundering controls. It was the first time that the German regulator had made such an appointment and followed a series of money laundering lapses. Now, BaFin is expanding KPMG’s mandate. BaFin said in a brief statement that it wanted improved controls particularly regarding…

How Dirty Money is now flowing through different channels

Money Laundering
Illicit funds are now flowing through new channels in Latvia following a major crackdown and reforms, the Baltic country’s FIU chief has revealed. Despite strict measures imposed by the Latvian authorities to combat dirty money, it has emerged that the flow of these illicit funds still continues through new channels today. In an interview, Ilze Znotina, director of the Latvian Financial Intelligence Unit (FIU) said: “Where are these flows now? They are definitely continuing to circulate in Europe and of course the world,” he told Bloomberg. “We unfortunately have to start to think a lot more about different financial services,…

Vietnam needs measures to curtail financial crimes

Money Laundering
Money laundering is becoming rampant in Vietnam, and if not curtailed, then money laundering criminals will soon find ways to legalize this money which then will find its way into reputable banks, or invested in projects in Vietnam. Mr. Thomas Hung Tran, a Forensic and Financial Crime expert, believes that laundered crime money is already circulating in society and used under cover of investors in our developing economy. In Vietnam, such activity can easily lie untraced. For instance, in one southwestern region, officials discovered a conspiracy to launder and legitimize almost US$ 200 million. The strategy of most emerging countries…

EU to Remove Ghana from Money Laundering Countries

Money Laundering
European Union has announced plans to remove Ghana from the list of countries that are deficient anti-money laundering and terrorism financing. The decision to remove Ghana from the list followed a two-day working visit by the President of Ghana, Nana Addo Dankwa Akufo-Addo to Brussels, Belgium from the 19th to 20th May, 2021. A statement by the Acting Director of Communications, Office of the President of Ghana, Eugene Arhin said Akufo-Addo met with the President of the European Council Charles Michel where he intimated the EU with efforts of his government in implementing the action plan of the International Country…

Anti-money-laundering: Identifying and closing the remaining loopholes

Money Laundering
The EU needs to take an ‘all-hands-on-deck’ approach to tackling money laundering, including the creation of an independent supervisory authority, argues Billy Kelleher. A quick scour through recent news sites is likely to produce several results of high-profile cases of money laundering with large-value seizures across the European Union. Money laundering is a crime that governments and authorities have been trying to tackle for centuries. The money both emanates from, and also funds, criminal activities. The crimes and the techniques for money laundering have evolved, but can range from the somewhat petty to – at their most serious – funding…

Norway’s DNB fined $48.1M for AML violations

Money Laundering, Regulatory Fines
DNB ASA, Norway’s largest financial services group, will pay a fine of NOK 400 million ($48.1 million) for failing to adhere to Norwegian Anti-Money Laundering Act standards. The Financial Supervisory Authority of Norway (Finanstilsynet) imposed the fine following an inspection of DNB’s anti-money laundering (AML) policies and procedures. Additionally, a separate investigation was conducted into its handling of customer accounts for Icelandic fisheries company Samherji. “The inspection revealed serious breaches in the bank’s compliance with the Anti-Money Laundering Act,” Finanstilsynet announced Monday in a press release. DNB announced last year the fine was imminent. The details: Finanstilsynet said it found…

Dubai gold trader fined Dh1.35m for failing to comply with anti-money laundering and terrorism financing laws

Money Laundering, Regulatory Fines
Unnamed company fined for a total of eight violations in Ministry of Economy inspection campaign A gold trader in Dubai has been fined a total of Dh1.35 million ($367,597) for eight separate breaches of laws governing money laundering and terrorism financing. The unnamed company was fined as part of the Ministry of Economy’s extensive inspection campaign into Designated Non-Financial Business and Professions (DNFBPs). DNFBPs are a group of non-financial businesses governed by money laundering rules, and include precious metals dealers, property brokers, auditors and corporate services providers that offer company formation services. “Three companies belonging to the group were issued…

How to Combat Money Laundering in Europe

Money Laundering
Good luck finding a major bank in Europe that hasn’t breached money laundering regulations. In Denmark, the two largest banks, Danske Bank and Nordea, are both currently subject to criminal investigations. BNP Paribas received the highest-ever fine in 2014, when it settled with U.S. authorities and had to pay $9 billion for sanctions violations. Many others — from HSBC and Standard Chartered in the U.K. to Deutsche Bank and UBS and Credit Suisse — have had to answer for offenses. These cases show that living up to money laundering regulations is difficult, but not doing so is one of the…

Recent AML Enforcement Trends in the U.K.

Money Laundering
IntroductionThe UK has stepped up its anti-money laundering (AML) enforcement approach in recent months, both issuing larger fines and looking to expand the scope of activities it regulates. Historically, the UK has consistently taken a robust approach to AML, and post-Brexit, we expect this trend to continue, as the government works with other regulators internationally in combating cross-border economic crime. BrexitPre-Brexit, the UK adopted the European Union’s extensive AML framework. However, as of 31 December 2020, the onus is now on the UK to ensure that it keeps up to date with the latest international AML regulations and developments. The…

The failure of ABN Amro and other systemic banks to control money laundering

Money Laundering
Following several fines imposed by national regulatory authorities on banks such as ING and ABN Amro, the systemic banks started a KYC-race (Know Your Customer) to investigate “suspicious” transactions by looking into the history of account holders and shareholders of companies, the private expenses and possessions of shareholders and even the backgrounds of company’s clients. In this race, the banks have hired hundreds of controllers, who are equipped with a very menacing weapon, namely that of being able to block a company’s corporate bank account or even terminate the relationship. These controllers, often with little to no experience from the…

Terrorists still raise money through crypto but the impact is limited

Digital Currencies, Money Laundering, Terrorism
Evidence suggests crypto’s role in terrorism remains relatively minor: “It has not yet become a primary means of terror financing.” We’re living today “amidst an explosion of risk related to fraud, money laundering, terrorist financing, and data privacy,” said United States Treasury Secretary Janet Yellen in February — and she specifically cited cryptocurrencies as a “tool to finance terrorism.” Yellen appeared to be flagging an important new turn in the war against terror, and it begged some questions: Is crypto in the hands of terrorists a real, present danger to governments and society? If so, should the cryptocurrency and blockchain…

U.K. money laundering enforcement – the political race to the bottom

Money Laundering
The last three years have seen some seismic changes in both EU and UK anti-money laundering legislation along with related enforcement reporting initiatives. Updated Money Laundering Regulations were enacted in 2017. In early 2018, the Treasury set up a new body; the Office for Professional Body Anti-Money Laundering Supervision (OPBAS), to act as a ‘supervisor’ of AML supervisors with the responsibility for monitoring money laundering activity. 2018 also saw the first ‘Unexplained Wealth Order’ (UWO’s). The EU Parliament brought into force the sixth AML Directive with some stark changes to both penalties and reporting and data sharing policies. At first,…

London used as ‘money-laundering base’, mafia trial prosecutor says

Money Laundering
In Italy’s largest mafia trial in three decades, the UK’s capital has been roped in as a potential hotspot for organised crime, particularly post-Brexit. The trial will see around 900 witnesses testify against more than 350 ’Ndrangheta defendants, including politicians and officials charged with being members of Italy’s most powerful criminal group. Defendants are set to respond to charges of money laundering through companies set up in the UK, with the alleged purpose of mimicking lawful economic activity. “’Ndrangheta interests in the UK have figured prominently as clans have used the country as an investment and money-laundering base,” the prosecutor…

Law profession has struggled with AML rules, says firm fined £10,000

Money Laundering
A Surrey law firm has been fined £10,000 for breaches of the anti-money laundering rules in its training, approach to risk assessment and in a conveyancing transaction which produced £850 in fees. QualitySolicitors Brett Holt accepted the fine by reaching an agreement with the Solicitors Regulation Authority (SRA) but said that a “significant proportion” of law firms had “struggled to achieve compliance” with the 2017 Money Laundering Regulations. In the agreement, approved by the Solicitors Disciplinary Tribunal, Brett Holt accepted that in a property transaction in late 2017 it failed to undertake identity checks and retain copies of address verification…

Biden was tough on drugs for decades. Now he faces challenges in fighting money laundering

Money Laundering
WASHINGTON — Decades ago, then-Sen. Joe Biden established himself as a sort of drug czar on Capitol Hill. In the 1980s, he helped launch the Office of National Drug Control Policy. And a decade later, Biden became one of the masterminds behind Plan Colombia, a $7.5 billion bilateral program focused on, among other things, fighting drug trafficking in the Americas. While running for president, he vowed to enforce “sanctions on international actors engaged in the trafficking of illicit drugs,” and Congress gave him a stronger anti-money laundering law that could help achieve that goal. But with the emergence of new…

FCA has increased surveillance over last 12 months

FCA, Money Laundering
The Financial Conduct Authority (FCA) has highlighted the importance of anti-money laundering (AML) and said that it has increased its surveillance. Two of its biggest sanctions in the last 12 months related to failures to address financial crime and AML risks. Speaking at the AML & ABC Forum 2021, Mark Steward, executive director of enforcement and market oversight at the FCA, said that the City regulator currently has 42 AML investigations ongoing – 25 into firms and 17 against individuals. These involve, for example, systems and controls over politically exposed persons, customers with significant cash-intensive operations, correspondent banking and trade…

What Is a Company Formation Agent?

Money Laundering
Put simply, a formation agent is a company that creates other companies on behalf of clients around the world. The process is quick, easy, and remarkably cheap. Although many turn to formation agents for legitimate business reasons, illicit actors might seek out their services to dodge taxes, hide their ownership of high-value assets, or squirrel away dirty money. It’s no coincidence that these firms are exceptionally popular in tax havens and financial secrecy jurisdictions. Even a cursory internet search turns up an abundance of eager firms in Belize, Panama, Luxembourg, Liechtenstein, Cyprus, Seychelles, Malta, the Cayman Islands, and the British…

Ireland to enforce AML checks for digital currency firms from April in line with 5AMLD

Digital Currencies, Money Laundering, Terrorism
Ireland will impose anti-money laundering (AML) and countering the financing of terrorism (CFT) requirements for digital currency firms starting April 2021. With the new regulations, the Irish central bank will have more oversight over the industry. Buyers and sellers of digital currencies will no longer be able to transact anonymously, local daily Irish Independent reports. Digital currency firms, also known as virtual asset service providers (VASPs), will now have to complete due diligence on their clients. This is after the European nation adopted the EU’s Fifth Anti Money Laundering Directive (5AMLD). 5AMLD is the EU’s latest legal framework for combating…

Cyprus to lift veil of secrecy with register of company owners

Money Laundering
NICOSIA (Reuters) – Cyprus plans to launch a register in coming months identifying the owners of thousands of companies on the island, lifting a veil of secrecy on opaque and complex corporate structures that campaigners say can help criminals seeking to hide their loot. Details of thousands of companies domiciled on the island, many thought to have Russian links, will be collected from March 16 to be entered in a so-called Ultimate Beneficial Owner (UBO) register. Supporters say the register, a requirement of European Union anti-money laundering (AML) regulations, could be a game changer for Cyprus, which activists say has…