Financial Crime

29th April 2020

How Banks Are Using Behavioral Science to Prevent Scandals

Efforts to deal with corporate malfeasance, employee misconduct, and ethical failings are falling short. Nowhere is this more visible than in the financial sector. More than $400 billion has been paid in fines since the 2008 financial crisis. But one corner of the industry offers hope: It is using behavioral… Read More

24th April 2020

COVID-19: A perfect storm for the corrupt?

Around the world, governments are intensifying their efforts to combat the global spread of the coronavirus by enacting various measures to support public health systems, safeguard the economy and to ensure the safety of citizens. At the same time, criminals have been quick to seize opportunities to exploit the crisis. Read More

16th April 2020

Reforming the Response to Financial Crime: Making the Most of a Crisis

In mid-March, the US Financial Intelligence Unit (FinCEN) posted a short news release encouraging financial institutions to remain alert to COVID-19-related illicit financial activity, listing a series of potential scams and the steps FinCEN expects banks to take in response. In the UK, law enforcement agencies have likewise… Read More

15th April 2020

Westpac expects $900 million penalty for breaching money laundering laws

Westpac has revealed it will suffer a massive $1.4 billion hit to its first-half earnings. In a statement, Australia’s second-largest bank said the bulk of these “increased provisions” and write-downs related to the AUSTRAC money laundering scandal. The bank estimated that it might receive a $900 million fine for… Read More

13th April 2020

How ‘Memo Fantasma’ Sold Property to Colombia VP’s Family Company

InSight Crime — In October 2019, InSight Crime conducted a telephone interview with Álvaro Rincón, the husband of Vice President Marta Lucía Ramírez. The topic was Guillermo León Acevedo Giraldo, alias “Memo Fantasma” or “Sebastián Colmenares,” the elusive drug trafficker, turned-paramilitary commander, turned-money launderer. By then, InSight Crime had pieced together… Read More

10th April 2020

Financial-Crime Worries Rise in the Middle East

Exclusion from international financial markets is the greatest fear for any bank. In the Middle East it is a daily concern, as instances of compliance failures continue to make headlines. Last year, a group of US citizens sued 11 Lebanese banks for aiding Hezbollah, despite its terrorist classification by the… Read More

9th April 2020

Europol hold nine over €90m investment fraud

An international crime ring that conned hundreds of people out of millions of pounds has been broken up in police raids across Bulgaria and Serbia. Nine people were arrested in an operation co-ordinated by Europol and conducted by police in the two countries, as well as in Germany and Austria. Read More

9th April 2020

Global bank HSBC owns up to potential anti-money laundering law breaches

Global banking giant HSBC has quietly outed itself to Australia’s financial crime agency for potential breaches of anti-money laundering laws by failing to report transfers to foreign banks and institutions. The disclosure by HSBC’s Australian arm makes it the latest bank embroiled in money laundering scandals after Westpac was implicated… Read More

8th April 2020

Crumbling Economies Must Tackle Tax Evasion To Meet Coronavirus Crisis, Experts Warn

As emergency coronavirus medical and social programs lay bare economic and social deficiencies around the world, experts are calling for a more forceful tax response to the crisis. They said the dramatic spike in jobless claims combined with the vast additional burden on health systems should be a… Read More

8th April 2020

HKMA Encourages Remote Onboarding to Manage Covid-19 Challenges

The HKMA (Hong Kong Monetary Authority) has issued circulars to authorised institutions and SVF (stored value facility) licensees encouraging the use of technology to enable remote onboarding and account opening services. “We believe the use of FinTech will provide significant opportunities to manage some of the challenges presented by the… Read More