AML


Money

Analysis: When clean money is used for dirty purposes

2020-07-10T16:28:00+01:00By

There are times when it is a necessary to consider where clean money is going to as much as where dirty money may have come from, writes financial crime expert Martin Woods.

ICA, AMPEC partner on Mexico expansion

2020-07-09T15:37:00+01:00By GRC Announcements

The International Compliance Association announced a partnership with the Mexican Association of Ethics and Compliance Professionals to offer the ICA’s full suite of accredited qualifications in Mexico.

PhoneInvestigator

Analysis: Following the telephone trail to detect fraudsters

2020-07-06T14:21:00+01:00By

One way to thwart money launderers is to take a page from the government’s playbook and examine smartphone applications when the contamination of fraud or money laundering is discovered.

Money laundering

Managing emerging trade-based money laundering risks

2020-07-02T14:38:00+01:00By Jake Plenderleith, International Compliance Association

Trade-based money laundering was already happening prior to the coronavirus pandemic, but now its nature has shifted. The ICA offers key considerations for managing emerging risks.

MexicoAntiCorruption

Mexico’s war on corruption an uphill battle for compliance officers

2020-06-29T15:34:00+01:00By

Companies doing business in Mexico face an uphill battle with their anti-corruption compliance efforts as the country’s government struggles to control—and, in many cases, contributes to—its endemic corruption problem.

SEB

Following $107M fine for lax controls, SEB shares AML efforts

2020-06-26T16:52:00+01:00By

Sweden’s financial watchdog was fined SEB $107 million for weak governance practices related to the bank’s anti-money laundering controls in its Baltics subsidiaries.

Money laundering

Analysis: Learning to learn from our mistakes with AML

2020-06-19T14:40:00+01:00By

Scientists and doctors cannot succeed or make medical breakthroughs without being prepared to fail. The same approach should be taken to combating anti-money laundering, writes financial crime expert Martin Woods.

Commerzbank

FCA fines Commerzbank London $47.4M for AML failures

2020-06-17T16:45:00+01:00By

Commerzbank London will pay a £37.8 million (U.S. $47.4 million) penalty in a settlement with the U.K. Financial Conduct Authority for anti-money laundering systems and controls failures.

Money laundering

Analysis: Path to effective AML is doing less with more

2020-06-16T16:28:00+01:00By

The answer to being more effective at stopping money launderers is to challenge the value of processes that are clearly failing. Financial crime expert Martin Woods explains.

Westpac

Analysis: Let Westpac’s missteps be a cautionary tale

2020-06-12T16:24:00+01:00By

By balking at original allegations, Westpac opened itself to infinitely more harm, writes financial crime expert Martin Woods.

Danske

Danske faces criminal complaint over market abuse violations

2020-06-11T17:18:00+01:00By

Denmark’s financial regulator has filed a criminal complaint against Danske Bank for violating market abuse regulations concerning inadequate market monitoring and opposite trades.

LatinAmericaFlags

A country-by-country analysis of anti-corruption efforts in Latin America

2020-06-10T19:44:00+01:00By

CCOs looking to navigate the fluid corruption risk environment in Latin America will want to review a newly released report on how countries are uncovering, punishing, and deterring corruption—particularly now, amid a pandemic.

Jet plane

Analysis: Don’t ignore financial misconduct in ‘plane’ view

2020-06-09T17:02:00+01:00By

Compliance officers must let go of the fear that often accompanies respect for big money (or luxurious aircrafts) and hold the difficult conversations when ferreting out bad actors, writes financial crime expert Martin Woods.

Europol

Europol launches new financial and economic crime body

2020-06-08T16:33:00+01:00By

Europol has created the new European Financial and Economic Crime Center, with the aim of enhancing operational support to EU member states and EU bodies in the fields of financial and economic crime.

Westpac

Westpac outlines compliance failures that led to AML breaches

2020-06-05T16:27:00+01:00By

An internal report outlining compliance failures by Australia-based financial institution Westpac that led to 23 million breaches of the country’s AML/CTF laws concluded “a mix of technology and human error” were to blame.

Fraud cartoon

How to scour your organization for pandemic fraud risks

2020-06-04T15:40:00+01:00By

“Only when the tide goes out do you discover who’s been swimming naked,” said Warren Buffett. With the pandemic tide out, here are some related frauds that are likely already occurring that corporations should be watching for.

DangledCarrot

Analysis: When a bonus becomes less incentive, and more compromise

2020-06-02T16:17:00+01:00By

Financial crime expert Martin Woods explores what happens when the annual bonus causes employees to disregard their values for want of a dollar.

EY

Investigation into EY’s audit of Danske Bank dropped

2020-06-01T17:40:00+01:00By

Denmark’s state prosecutor has dropped its investigation into whether Big Four firm EY violated anti-money laundering laws in connection with its audit of Danske Bank.

Westpac

Westpac announces more executive changes amid investigation

2020-05-20T19:00:00+01:00By

Amid a money-laundering investigation and faced with allegations of facilitating child exploitation in the Philippines and Southeast Asia, Westpac has appointed a new head of financial crime compliance.

AML-Europe

Analysis: Fraud in Germany propels new European AML plan

2020-05-18T15:54:00+01:00By

Financial crime expert Martin Woods reviews the “cum-ex” scandal and how a recent action plan from the European Banking Authority aims to help stop such schemes from burgeoning.

EU-AML

EC unveils six-point plan to tackle money laundering

2020-05-13T17:49:00+01:00By

The European Commission’s new six-point plan highlights what measures the agency will take to enforce, supervise, and coordinate EU rules on combating money laundering and terrorist financing.

PayTheMan

Justice Department to recover more than $49M involving 1MDB

2020-05-07T15:18:00+01:00By

The Department of Justice reached a settlement to recover more than $49 million in assets associated with the international money laundering and bribery scheme involving Malaysia’s state development fund 1MDB.

bitcoin laundering

Cyber-criminals have supply chains, too

2020-05-06T20:02:00+01:00By

All cyber-attacks leave a trail. These trails can be complex, of course, but the criminals cannot avoid them. Thus, they leave a supply chain of intelligence and data.

Westpac

Lesson from Westpac: If you can’t do the simple things correctly, watch out

2020-05-05T16:59:00+01:00By

If a bank or a firm cannot execute on the simple things, such as cash transaction reporting, there is little reason to be confident of compliance in other more complex and challenging areas.

MoneyFine

Bank Hapoalim’s bad day: $904M in tax evasion, FIFA fines

2020-05-01T18:05:00+01:00By

Israel’s largest bank and its Swiss subsidiary will pay a total of $904 million in separate DOJ settlements related to (1) a massive tax-evasion scheme and (2) its role in a money-laundering conspiracy with FIFA.

Sanctions

Industrial Bank of Korea to pay $86M for sanctions compliance failures

2020-04-22T18:20:00+01:00By

The Industrial Bank of Korea and its New York branch will pay a total of $86 million to resolve charges for systemic sanctions compliance failures that allowed more than $1 billion to be illegally transferred to the government of Iran.

Libra global

Back against wall, Libra turns to compliance

2020-04-21T14:45:00+01:00By

Looking to get back on track for its planned 2020 release, Libra is pushing a new word at the forefront of its latest attempt to get critics on board with its digital currency mission: compliance.

EY

U.K. court orders EY to pay $11M to whistleblower, a former partner

2020-04-17T18:57:00+01:00By

A former EY partner who blew the whistle on a massive money laundering scheme was awarded nearly $11 million by a U.K. judge, settling a lawsuit in which he claimed EY buried an audit that uncovered wrongdoing by a client.

Westpac

Westpac sets aside $570M to resolve money laundering violations

2020-04-15T19:56:00+01:00By

Westpac has set aside AUS$900 million (U.S. $570 million) for a potential fine with Australian enforcement authorities related to a money laundering scandal and for allegations of facilitating child exploitation in the Philippines and Southeast Asia.

Gloom to Boom cover

My Compliance Library: ‘Crude Intentions’ gets at the why of compliance

2020-04-13T20:40:00+01:00By

A reading of “Crude Intentions” can go a long way toward educating those who work in high-risk regions as to the ramification of their misguided decisions.

Financial fraud

Pandemic, government money create perfect storm for financial fraud

2020-04-10T16:27:00+01:00By

A global pandemic, an unprecedented flow of government money, and a weakening of lending controls could create a perfect storm of opportunity for fraudsters.

Bank

FinCEN, OCC offer BSA compliance relief amid pandemic

2020-04-07T15:48:00+01:00By

Two federal agencies that oversee Bank Secrecy Act requirements have notified financial institutions they will agree to “reasonable delays” in the filing of required reports if institutions can show the delays are necessary due to the coronavirus pandemic.

Money laundering

Study: Europe blows U.S. away in financial crime spending

2020-04-07T14:44:00+01:00By

A new report found financial institutions spent $181 billion on financial crime compliance worldwide last year, with European firms spending three to four times more than their counterparts in North America.

SEB

Swedish regulator delays SEB money laundering probe

2020-03-26T20:28:00+00:00By

Sweden’s financial regulator announced it will wait until June to conclude its money laundering investigation into Scandinavian Enskilda Banken AB (SEB) due to the coronavirus pandemic.

VenezuelaCocaineTrafficking

DOJ indicts Venezuela President Maduro, others in regime

2020-03-26T18:28:00+00:00By

The DOJ unsealed indictments against Venezuelan President Nicolás Maduro and several high-ranking former and current members of his regime for alleged drug trafficking and money laundering crimes, as well as violations of the FCPA.

Swedbank

Swedbank cuts ex-CEO’s severance following AML probe

2020-03-23T16:22:00+00:00By

Swedbank has canceled the severance pay of its former CEO and accepted a record fine of 4 billion Swedish Krona (U.S. $390 million) in the wake of the findings of an independent investigation into its anti-money laundering deficiencies.

Data money

U.K. AML report: Data analysis of risks lacking

2020-03-20T16:57:00+00:00By

Implementation of risk-based processes and the data analysis that sits behind them are among the biggest weaknesses laid out in a review of AML efforts in the accounting and legal sectors conducted by the U.K.’s financial watchdog.

Swedbankcrop

Swedish regulator fines Swedbank record $390M for AML deficiencies

2020-03-20T15:07:00+00:00By

Swedbank AB has been issued a record 4 billion Swedish Krona (U.S. $390 million) administrative fine for what Sweden’s financial watchdog called “serious deficiencies in its management of the risk of money laundering in its Baltic operations.”

hitachi 300x200

Webcast: Can KYC compliance and customer experience coexist?

2020-03-19T14:10:00+00:00Provided by

Remaining competitive in the modern financial world requires staying ahead of increasingly sophisticated financial crimes and fluid regulations across multiple jurisdictions.

Swedbank_Automat

Swedbank announces new risk chief as probe nears end

2020-03-17T16:31:00+00:00By

Swedbank announced the appointment of Rolf Marquardt as chief risk officer just over a week prior to the expected announcement of the findings of a probe into its AML shortcomings conducted by law firm Clifford Chance.

Jail

Ex-Alstom exec gets 15 months in prison on money-laundering charges

2020-03-09T16:35:00+00:00By

Lawrence Hoskins, a former executive of French power and transportation company Alstom, was sentenced to one year and three months in prison for his role in a money-laundering scheme that prosecutors say was designed to promote violations of the FCPA.

Bank fail

Former U.S. Bank risk officer pays $450K for AML compliance failures

2020-03-04T19:44:00+00:00By

The former chief operational risk officer at U.S. Bank has agreed to pay a $450,000 penalty for his role in the bank failing to implement and maintain an effective anti-money laundering compliance program.

SoccerWhistleEuro

Fictitious soccer players at center of money laundering scheme

2020-02-25T17:31:00+00:00By

Europol, the European Union’s law enforcement agency, announced it has uncovered more than €10 million (U.S. $11 million) from fictitious soccer player transfers in a money laundering and tax evasion scheme.

Money laundering

Compliance lessons from Julius Baer’s ‘serious AML failings’

2020-02-21T15:52:00+00:00By

Compliance officers can learn a lot from the anti-money laundering compliance shortcomings at Julius Baer Group, as well as from what the bank is now doing to enhance its risk management and AML compliance controls.

KYC

Understanding the why in CDD

2020-02-13T20:05:00+00:00By Jake Plenderleith, International Compliance Association

Compliance practitioners might know how to undertake customer due diligence, but may never ask themselves why and might have limited knowledge of other anti-money laundering areas.

Fines

Study: Post-financial crisis fines against financial institutions hit $36B

2020-02-11T19:39:00+00:00By

Global fines and penalties against financial institutions hit $36 billion last year, as ramifications from the financial crisis continue to reverberate throughout the financial services industry, according to a new report.

Brexit star

Experts weigh in on Brexit consequences for GDPR, AML, more

2020-02-10T18:40:00+00:00By

The wheels to the United Kingdom’s exit from the European Union are finally in motion, but the hard work still remains as to what kind of future trading relationship the country has with the single market.

Money

Effective AML training: Four questions to answer

2020-01-30T18:45:00+00:00By Simone Jones, International Compliance Association

There are a multitude of factors that need to be established when determining training requirements. What is clear is that a one-size-fits-all approach doesn’t work.

columnist icons

Top ethics and compliance failures of 2019

2019-12-27T17:13:00+00:00By

From antitrust and privacy concerns in the tech world to compliance officer liability in the pharmaceutical industry to unethical practices in the banking and accounting professions, more than a dozen companies made Compliance Week’s list of the biggest compliance fails in 2019.

GoldmanFeature

SEC bars former Goldman Sachs director over 1MDB scandal

2019-12-17T15:50:00+00:00By

Former Goldman Sachs Group executive Tim Leissner has settled charges brought by the SEC for alleged violations of the Foreign Corrupt Practices Act. His settlement includes a permanent bar from the securities industry.