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World Money Laundering Report

The Monetary Authority of Singapore has today announced that it has made prohibition orders against a former Goldman Sachs director and plans to make orders against three other persons as a result of their involvement in the 1MDB scandal.

We would love to know more about this: an individual apparently in France, wants to raise GBP60,000 to hire two developers to produce software that he hopes he will be able to sell to banks

Continuing World Money Laundering Report's Analysis of the USA's review of 2016 for its 2017 International Narcotics Control Report. In this Part: selected Country Notes. Comment and commentary, not simply reportage.

IN THIS PART: Afghanistan, Albania, Algeria.

For all articles in this series, see US-INCR2017

Every year, on 1 March, the US Department of State presents to Congress its annual International Narcotics Control Report. In two volumes, one relates to drugs and related products and the other to money laundering and financial crimes, it provides an analysis of its reviews in 2016. It is largely free from politics, despite its source, being a factual analysis of legislation and enforcement in many countries, and is a valuable indicator of risk for Financial Crime Risk Officers. Here are some of the things World Money Laundering Report has found especially interesting in the 2017 report, including a shameful omission.

For all articles in this series, see US-INCR2017

Chinese telecommunications giant ZTE and its subsidiaries and associates were investigated for "apparent" breaches of US sanctions, in particular a trade embargo with Iran.

Zhongxing Telecommunications Equipment Corporation is incorporated in China and has subsidiaries and "affiliates throughout the world that conduct business on ZTE and on its behalf," according to OFAC.

A civil penalty has been applied. No prosecution will take place. There is a finding of no fault despite what OFAC calls "an egregious case."

In an excellent, and enterprising, initiative, New York has used some USD58 million of the vast fines and penalties it has applied to foreign banks to help in an innovative crime prevention scheme aimed at young people who, in the absence of help, are more likely to rob banks than to work in them.

In 2015, the UK's Financial Conduct Authority fined Barclays Bank its then largest penalty for failings in its financial crime management obligations. Barclays had been one of the first major banks to install company-wide money laundering management software. But it doesn't help when those within the bank don't feed it the information it needs.

PART One of this article appears at http://www.pleasebeinformed.co...

In its Conclusion the Joint Opinion implies a monumental failure of the European machine. And it has little to say beyond that already known and widely not acted upon.

The European Union's Fourth Money Laundering Directive recognises the financial sector regulatory framework created in response to the global financial crisis. The three headline bodies are required to work jointly in a number of areas and, in relation to money laundering and terrorist financing, to produce a "Joint Opinion" every two years. Yesterday, it released the first. Here is our first look and, starting only four lines into the Executive Summary, there are important points to consider.

Around the turn of this decade, Nigel Morris-Cotterill had surprisingly open access to the Embassy of North Korea in Kuala Lumpur. His experiences are instructive and fascinating.

When India decided to remove, without warning, two large value notes from circulation and cancel their legality, Economists chugged their drinks and were delighted that India would be pulling back into some kind of order the unsustainable position that the vast majority of the money in circulation was held outside the banking sector, in cash. But behind the scenes, there was a shadow hunting through the depths of the data that the exercise generated. And now that shadow is found to have some large and sharp teeth.

 

Prosecutors in Panama have secured the remand, in custody, of Jürgen Mossack and Ramón Fonseca, the founders of Mossack Fonseca, the legal and professional services group at the heart of the so-called "Panama Papers."

Their arrest last week does not relate to that but rather to allegations of money laundering related to political bribes in Brazil.

 

Economic and Financial Crimes Commission, EFCC, really has got the bit between its teeth in a way that few other anti-corruption bodies have managed elsewhere in the world. Yesterday, it brought two very high-profile figures before the court: a Senior Advocate of Nigeria (SAN), Muhammed Dele Belgore and a former minister, Professor Abubakar Sulaiman. They have pleaded not guilty in a case that has already tested the will of government to let the EFCC act independently and will now test the judiciary with which both defendants have a long and close history.

The Law Society's Gazette is reporting that Mischon de Reya, a London law firm has been ordered to pay damages to its client which purchased a property from a fraudster. The case is going to appeal. Nigel Morris-Cotterill looks at the first instance judgment of a case that has enormous implications for KYC/Due Diligence for financial institutions. Part 1.

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