Danske Bank settlement, European Parliament rocked by Qatari corruption scandal and US Prosecutors’ split on Binance causes delays.
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Danske Bank settlement, European Parliament rocked by Qatari corruption scandal, US Prosecutors’ split on Binance causes delays and Santander hit with ￡108M fine over AML failings
As part of a settlement to resolve one of the biggest AML scandals in recent years, Danske Bank of Denmark admitted defrauding US banks and agreed to pay a $2BN fine.
An investigation of billions of dollars in illicit payments flowing from high-risk clients in Russia and other countries led Danske to plead guilty Tuesday to bank fraud and forfeit $2 Billion.
The European Parliament has been rocked to its core this week, following revelations that one of its Vice-President’s has been charged with corruption.?
On Friday, Greek MEP Eva Kaili was arrested, along with five others in connection with a major investigation into alleged illicit influence by Qatar.
MEP Kaili was charged thereafter, along with three others. In a statement, the Belgian federal prosecutor’s office said it was suspected that individuals were paid “large sums of money or offered substantial gifts to influence Parliament’s decisions.”
Now European Parliament President Roberta Metsola has warned that European democracy was “under attack”.?
In an impassioned speech, President Metsola stressed: “The enemies of democracy for whom the very existence of this Parliament is a threat, will stop at nothing.”
She added: “These malign actors, linked to autocratic third countries have allegedly weaponised NGOs, Unions, individuals, assistants and Members of the European Parliament in an effort to subdue our processes.”
In other news, Prosecutors at the US Department of Justice are reportedly split on whether evidence gathered in relation to a criminal investigation into Binance is sufficient to conclude the criminal investigation.?
A number of US DOJ prosecutors involved in the case believe evidence already gathered justifies progressing further against the exchange.?
Meanwhile, several sources have indicated that the differences in opinion between prosecutors is delaying the conclusion of the long-running criminal probe.?
Finally, ICYMI, global lender Santander has been hit with an eye-watering ￡108M fine for AML failures in its business banking division.?
The FCA ruled the UK division of the Spanish bank had failed to manage its anti-money?laundering systems properly – affecting the way it dealt with 560,000 business customers.
Between 2012 and 2017 the bank’s systems were not able to verify properly information provided by customers about their businesses.
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Here are the top Anti-Financial Crime and AML stories so far this week:
PLEADING GUILTY:?DENMARK'S largest bank Danske Bank has?admitted?defrauding US banks and agreed to pay a $2BN fine to resolve one of the biggest AML scandals in recent years.
Danske pleaded guilty to bank fraud on Tuesday and agreed to forfeit the $2 Billion as part of an agreement with the United States following an investigation into billions of dollars in illicit payments that flowed from high-risk clients in Russia and elsewhere.
The announcement was made by the US Justice Department this evening (Tuesday).
Read the story:?$2BN+ in penalties for Danske Bank as lender finally pleads guilty in US to Estonia AML failings
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QATARI SCANDAL:?European?democracy?is “under attack”, according to the President of the European Parliament Roberta Metsola.?
In the wake of a corruption scandal which has shook European institutions to their core, President Metsola delivered an impassioned speech at the Parliament’s Strasbourg plenary session yesterday.?
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CORRUPTION CHARGE:?European Parliament Vice President Eva Kaili has been?charged?with corruption by Belgian prosecutors linked to a major investigation into alleged illicit influence by Qatar.?
She is one of four individuals charged by prosecutors, after they were arrested on Friday as part of an investigation into suspected lobbying by Qatar.
In a statement, the Belgian federal prosecutor’s office said: “It is suspected that third parties in political and/or strategic positions within the European Parliament were paid large sums of money or offered substantial gifts to influence Parliament’s decisions.”
Read the story here:?European Parliament Vice President charged with corruption linked to Qatar probe
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FIAU MALTA:?The Maltese Financial Intelligence Unit (FIAU) last month?hosted?its first ever international conference bringing together administrators of bank account registers and retrieval systems from across Europe.?
The FIAU said the conference was a “first of its kind” among administrators, with over 80 delegates from 21 countries attending the two-day conference.
The conference sought to compare different registers and set-ups in terms of technology, data quality checks and reportable data, through a series of presentations and showcases.?
READ the story here:?Malta’s FIAU hosts ‘first of its kind’ conference for administrators of bank account registers and retrieval systems
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US DOJ'S BIG DECISION:?Prosecutors at the US Department of Justice are?reportedly?split on whether evidence gathered in relation to a criminal investigation into crypto exchange Binance is sufficient to conclude the criminal probe.?
A number of US DOJ prosecutors involved in the case believe evidence already gathered justifies progressing further against the exchange.
Several sources have indicated that the differences in opinion between prosecutors is delaying the conclusion of the long-running criminal probe.?
Find the story here:?US DOJ split delays conclusion of criminal probe into Binance
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SANTANDER FAILINGS:?Britain's Financial Conduct Authority (FCA) last Friday?announced?it has fined Santander almost ￡108M for AML failures in its business banking division.
The FCA ruled the UK division of the Spanish bank had failed to manage its anti-money laundering systems properly - affecting the way it dealt with 560,000 business customers.
Between 2012 and 2017 the bank’s systems were not able to verify properly information provided by customers about their businesses.
Read the story here:?Santander fined ￡108M for AML failings
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IN HOT WATER:?Global lender Crédit Agricole has been?slapped?with a €1.5M fine by France’s Autorite de controle prudentiel et de resolution (ACPR), after the regulator found that its transaction monitoring systems was based on an “incomplete set of scenarios”.?
In a statement, the ACPR said that during an on-site inspection of CRCAM Languedoc, the inspection mission used the artificial intelligence tool, LUCIA, which enabled controllers to process large amounts of data.?
As part of this inspection, 540 gigabits (GB) of data were transferred, relating to 750 million payment transactions carried out by customers from January 2018 to June 2020.?
Find the story here:?Crédit Agricole hit with €1.5M fine by French ACPR for transaction monitoring issues
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STEPPING UP:?A campaign is underway in Amsterdam to?combat?souvenir shops used by criminals to launder drug money.
Special control teams are being sent to scope out the city's souvenir shops for suspicious activity, according to The NL Times.
Read the story here:?Amsterdam bulks up efforts against money laundering in souvenir shops
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EMERGENCY LOAN:?Greensill Capital?received?an emergency $140M (€132M) loan from Swiss lender Credit Suisse based partly on invoices to companies who deny ever conducting the business stated on documents.?
Credit Suisse reportedly provided the loan in October 2020, just five months prior to the collapse of the firm, reports the Financial Times.?
Find the story here:?Credit Suisse Group accepted ‘suspicious’ Greensil loan invoice for $140M (€132M)
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ENABLERS ACT:?The United States (US) Senate has?blocked?a bill to curb financial crime and corruption, in a setback to what lawmakers have called the country's most significant anti-money laundering (AML) reform in 20 years.?
The proposed Enablers Act, would have meant that trust companies, lawyers, art dealers would be required for the first time to investigate their clients, as well as the source of money and assets, according to the International Consortium of Investigative Journalists (ICIJ).
Read the story here:?Proposed Enablers Act blocked by US Senate
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STAR FAILURES:?Australia's corporate regulator has?sued?11 current and former directors and officials at beleaguered casino operator Star?Entertainment Group for poor management of money laundering risks.?
It marks the regulator's first lawsuit against the casino industry, as well as the first lawsuit to target individual board members such as the firm's former CEO & Chairman, reports Reuters.?
Find the story on:?Australia’s corporate regulator sues Star Entertainment’s former CEO for AML failures
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Have a great Wednesday??
Elizabeth, Alisha and the team at AMlintelligence.