Archive for the ‘Anti-Money Laundering News’ Category

FATF removes Kenya from blacklist

Tuesday, July 8th, 2014

The Global Financial Action Task Force has removed Kenya from its monitoring process under the ongoing Anti-Money laundering and combating the Financing of Terrorism AML/CFT regime that has been under review since June 2009.

In a statement Treasury Cabinet Secretary Henry Rotich says that the Financial Action Task Force (FATF) team is satisfied with the way Kenya has substantially addressed its action plan on addressing money laundering, combating the financing of Terrorism and proliferation. Also, the team is satisfied with political commitment and institutional capacity to continue implementing the Task Force’s reforms in Kenya.

On the basis of an on-site visit the team, the global body established in 1989 to set international standards on money laundering and combating the financing of terrorism concluded that Kenya has established the legal and regulatory framework in order to address deficiencies identified in February 2010.

Germany seizes tax evasion info

Sunday, June 22nd, 2014

German customs authorities in the Port of Hamburg have confiscated documents that may contain information about the accounts of suspected tax evaders. This was reported by German media on June 21.

Two containers with around 14,000 documents inside were confiscated at the end of May, with some coming from a branch of private bank Coutts, a subsidiary of the Royal Bank of Scotland, in the Cayman Islands, newspaper Welt am Sonntag said in an advance copy of an article due to be published on Sunday.

It was also reported that customs authorities confiscated a container of Coutts documents from the Cayman Islands on May 20. Since then, finance experts had been evaluating the information and searching for evidence of tax evasion.

A spokesperson for Coutts told Reuters: “We are not aware of any investigation into our Trust Company or its papers and we are working with the authorities to allow these papers to continue on their way.”

US to toughen Money Laundering Sanctions against North Korea

Saturday, May 31st, 2014

US lawmakers moved to toughen sanctions against North Korea by targeting money laundering and human rights violations, voicing impatience with the hardline regime.

The House Foreign Affairs Committee approved the bill hours. Previously, Japan, a US ally that has usually championed a hard line on North Korea, unexpectedly eased sanctions after talks.

The House bill would create a blacklist of officials judged to be involved in human rights abuses after a damning report by a UN commission likened abuses by Kim Jong-Un’s regime to those under Nazi Germany.

While the United States already maintains sweeping sanctions against North Korea, the proposed law would seek to make the totalitarian state radioactive for banks from third countries by asking the Treasury Department to consider designating Pyongyang a money-laundering concern.

This move is inspired by the freezing of USD 25 million in North Korean funds in 2005 on US money-laundering and counterfeiting charges at the Banco Delta Asia in the Chinese territory of Macau. Hard-up Pyongyang refused to comply with a denuclearization deal until it received the funds.

The sanctions bill would also re-impose strict restrictions on export licenses that were loosened in 2008 when the President Bush controversially took North Korea off a list of state sponsors of terrorism because he intended to sign a final denuclearization agreement.

Ex-Guatemala President sentenced in US for Money Laundering

Monday, May 26th, 2014

Former Guatemalan President Alfonso Portillo has been sentenced to 5 years and 10 months in prison for money laundering.

Besides the prison sentence, Portillo will have to return the USD 2.5 million he accepted as a bribe from the Government of Taiwan so that Guatemala would maintain diplomatic relations with Taipei. Also, he will have to pay a fine of up to USD 500,000.

Portillo was extradited to New York in May 2013 from Guatemala to face charges of conspiring to launder money he obtained illegally during his 2000-2004 mandate.

Portillo laundered the bribe money through U.S. and European banks.

Having initially denied the accusations, he entered a guilty plea in March after reaching an agreement with prosecutors. This agreement allowed him to avoid a 20-year prison term.

Portillo, 62, had received the money from Taiwan between December 1999 and August 2002. The USD 2.5 million was paid to him through 5 cheques.

Of the money, USD 1.5 million were deposited in accounts that he, his wife and daughter had in Spain’s BBVA bank in Paris. Part of that money was later laundered through banks in Switzerland, Luxembourg and other offshore jurisdictions.

Vatican says bank needs ‘corrective measures’

Monday, May 19th, 2014

The Vatican’s financial watchdog agency said that “corrective measures” were necessary at the Holy See’s troubled bank to continue the path toward financial transparency and compliance with international anti-money laundering norms.

According to Financial Intelligence Authority Director Rene Bruelhart, a long-awaited investigation of the bank, known as the Institute for Religious Works, included looking into its practice of not disclosing the names of the true account holders in its transactions with Italian banks. He said that the main problems identified in the inspection concerned the bank’s procedures for identifying high-risk activities, and that more detail was necessary.

He said over the coming weeks, he would discuss a proposed action plan with bank managers “to take certain corrective measures to have a full implementation (of the Vatican’s anti-money-laundering law) in the IOR.”

The majority of the 202 new cases stemmed from transactions at the Vatican bank, which is reviewing each of its accounts to make sure it is clean and that the bank has complete information on the client.

FATF moves meeting from Moscow

Monday, May 5th, 2014

The Financial Action Task Force (FATF) announced its decision not to hold a planned meeting in Moscow in June due to the continuing Ukraine crisis.

A summit meeting of the Paris-based Financial Action Task Force (FATF) was to be held in Moscow in June, in part because the group’s current head is Vladimir Nechaev, chief of Russia’s anti-money laundering agency. However, on May 4, national anti-money laundering agencies belonging to FATF received a notice from the group saying the meeting would be held in Paris instead.

According to the announcement, “It became apparent that it would be difficult to ensure full attendance of FATF delegations at the scheduled plenary in Moscow but there was widespread support for the work of the FATF to continue uninterrupted”.

The meeting will now take place during the week of June 22 to 27 at the Paris conference center of the Organization for Economic Cooperation and Development.

Offshore Deal Activity increases in 2013

Thursday, February 20th, 2014

According to Appleby’s latest Offshore-i report, offshore deal volumes rose steadily throughout 2013 reaching a total 12-month value surpassed only 3 times in the last decade.

The total value of deals in 2013 hit USD 151 billion. Out of this USD 151 billion, USD 47.9 billion was recorded in the 4th quarter – up 32% from the previous quarter.

There were 11 USD 1 billion+ deals in Q4 2013, almost double the number in the previous quarter, including 2 worth over USD 2 billion. The average deal size in the final quarter of last year was USD 79 million.

Q4 2013 was a breakout year for Bermuda with the value of deals done on its shores doubling; its full-year total nearly equalled that of the Cayman Islands.

Offshore ranks 6th among world regions for deal volume in Q4 2013, 5th for deal value, and 3rd for average deal size. Only North America and South and Central America record larger average deal sizes.

Appleby pointed out that 29% of deals are completed by offshore buyers, 47% by investors, and 25% by companies from the rest of the world.

Banks face new US Anti-Money Laundering Measures

Thursday, January 9th, 2014

The Justice Department has put Wall Street on notice that it intends to introduce additional enforcement actions against banks that have not done enough to fight the flow of illicit funds into the United States’ financial system.

A top Justice Department official said that banks have stepped up efforts to guard against money laundering in the wake of several high-profile federal enforcement actions, but the United States is still finding problems as it investigates banks.

Banks have come under increasing pressure from regulators and law enforcement to bolster their anti-money-laundering efforts as part of a broad attempt to eradicate money laundering by going after the financial institutions they say enable such activity.

In 2012, HSBC Holdings PLC paid $1.9 billion after admitting violations of the Bank Secrecy Act and other laws. Regulators also reached a smaller settlement with Standard Chartered PLC and cited Citigroup Inc. and J.P. Morgan Chase & Co. for deficient money-laundering controls. Citigroup and J.P. Morgan said they are working to fix the issues. Last year, the Federal Reserve cited problems with the anti-money-laundering program at M&T Bank Corp., delaying a proposed merger.

The increased focus on banks is a shift for law enforcement, which traditionally added money-laundering charges when prosecuting alleged drug dealers or mobsters for other crimes. It also went after specific individuals or institutions that allegedly helped them launder money in specific instances.

Republic Bank on Guyana and Belize blacklisting

Thursday, January 2nd, 2014

A regional anti-money laundering body has called on Caribbean countries to “consider implementing counter measures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from Belize and Guyana.”

The counter measures amount to a financial blacklisting of the countries. These means that all financial transactions between T&T and Guyana and Belize will be placed under much greater scrutiny. Also, wire transfers and other payments could be delayed or denied.

Republic Bank executive director, Nigel Baptiste, answered the questions on the impact of the counter measures on trade and payments between T&T and the affected countries: “These measures will undoubtedly negatively affect trade and payments between the countries as the enhanced monitoring will result in longer turnaround time, higher costs and possibly the refusal of accepting payments where information requirements are not met.

He said: “Where correspondent and other banks or parties restrict the types of business being done, this will negatively affect trade income and payments and may lead to investors withdrawing from Guyana and Belize.”

The virtual blacklisting of Belize and Guyana is a directive of the Caribbean Financial Action Task Force (CFATF), an organisation comprising 29 jurisdictions in the Caribbean Basin region that have agreed to implement international standards on Anti-Money Laundering and Combating the Terrorist Financing.

Global AML Software Market 2013 Report published by Research and Markets

Sunday, July 7th, 2013

Research and Markets has announced the addition of the “Global Anti-money Laundering Software Market 2012-2016” report to their offering.

According to the report, global AML Software Market is expected to grow at a CAGR of 11.3% over the period 2012-2016. This report has been prepared based on an in-depth market analysis with inputs from industry experts. It covers the Americas, and the EMEA and APAC regions analyzing the Global Anti-money Laundering Software market landscape and its growth prospects in the coming years. The report also discusses the key vendors operating in this market.

Commenting on the report, an analyst from TechNavio’s Enterprise Computing team said: ”The Global Anti-money Laundering Software market is witnessing a trend where many AML software vendors are focusing on enhancing their product features. Many vendors, which earlier offered single-purpose applications such as transaction monitoring or compliance reporting, are adding various other modules including KYC, entity resolution, case management and reporting, investigation tools, and customer due diligence checks to provide end-to-end AML compliance functionality. In addition, many vendors are developing sophisticated capabilities such as network analysis and historical profiling, and advanced analytics such as Bayesian learning and neutral networks.”

The report says that the technological advancements in financial institutions are the major drivers in the Global Anti-money Laundering Software market.