‘Insider threat’ revealed as bank worker jailed for ML, new EU chief’s priorities – and spot the difference at FATF, official photo embraces diversity

From Paul O'Donoghue at AMLi

‘Insider threat’ revealed as bank worker jailed for ML, new EU chief’s priorities – and spot the difference at FATF, official photo embraces diversity

For some time we have all been aware of the considerable “insider threat” posed by proxies planted by criminal organizations into banks and financial services. This week we learned of the jailing of one highly educated young bank worker who was on the payroll of one of the world’s biggest fraud and money laundering gangs.

Funmi Abimbola from Dublin, Ireland worked for the country’s biggest bank where he abused his position to manage multiple money mules and bank accounts for the notorious “Black Axe” gang.

The Bank of Ireland employee became a suspect during an investigation into the theft of €1.1 million from a lawyer’s office, part of an invoice redirection fraud. Abimbola was also caught on camera withdrawing cash at ATMs and became a major focus of police inquiries.

Detectives said Abimbola was a mid-tier member of the "Black Axe" gang based out of west Africa which has become one of the world’s most notorious organized crime groups, involved in everything from drug trafficking to murders. This wee the bank worker involved with the group was jailed for three years.

One of those involved in the early stages of the inquiry was Det Chief Pat Lordan , former head of the Irish police’s National Bureau of Economic Crime. I think we all now know what Pat was warning about at ‘European Anti-Financial Crime Summit 2023’ when he told delegates of the considerable threat posed by “insiders” working for criminal gangs! While in some cases proxies are planted, Pat said the most likely scenario threat was when vulnerable employees were recruited by criminals.

BANK’S MAFIA CONNECTIONS: Prosecutors in Milan allege Banca Progetto enable mafia-linked businesses access to public funds ‘for years’ through loans that also breached AML regulations.

The Oaktree-backed bank is now under court administration over the mafia-linked loans. Milanese investigators said Banca Progetto had given the mafia-linked businesses access to such public funds “for years” through loans that also breached AML regulations. “Investigators found several shortfalls in the bank’s operations specifically in relation to [Banca Progetto’s] permeability to relations with individuals under investigation for serious crimes or subject to restrictive personal or financial measures,” prosecutors said.

The prosecutor’s office said on Thursday police had found evidence loans were granted to businesses with ties to the ‘Ndrangheta. The loans were backed by a special public fund that supports domestic small and medium enterprises.

Over the last four years, Italy has distributed billions of euros in taxpayers’ money to mitigate the impact of the Covid pandemic and the economic fallout of Russia’s war in Ukraine on businesses. The state-backed guarantees on loans were designed to help companies stay afloat through the crises.

NEW EU CHIEF: With EU public hearings looming, most of the new European Commission’s new commissioner’s are polishing up shiny new policies.

Maria Luís Albuquerque, the incoming financial services commissioner, has chosen a slightly different tactic, by instead proposing an overhaul of an existing initiative.

She revealed that the European Commission is currently developing a “new version” of the ‘FIU.net ’ secure information exchange platform, adding this is an initiative she wants to throw her weight behind.

Started all the way back in 2002, FIU.net allows Financial Intelligence Units (FIUs) in the EU to securely exchange information.

The promise of a new version of the portal, which provide a big boost in tracking international transactions, is much needed attention for the Union’s FIUs which provide the central pillar to fighting financial crime.

FATF: The first FATF plenary held under new president Elisa de Anda Madrazo wraps up today.

We’ll be bringing you a special edition of the AML Intelligence newsletter later on with all of the news from the event - such as which jurisdictions wind up on the “grey list” – and how Russia once again likely doesn’t get blacklisted.

But one thing we thought worth highlighting before that - the organization’s push for diversity.

The Financial Action Task Force received stinging criticism over official photography from its Singapore summit with Interpol two years ago. The official photo from the event was like something from the 1950s – featuring almost exclusively men in suits, the so-called “Boys Club.”

However, the photos published from this year’s conference showcases a much more diverse lineup of attendees, with the new-look FATF led out by de Anda.

FINTECHS

BINANCE: The conflict between Nigeria and #Binance, one of the world’s leading cryptocurrency exchanges, took a dramatic turn during the week after charges against Tigran Gambaryan were dropped.

Gambaryan, a U.S. citizen and head of financial crime compliance at Binance, has been in detention in Nigeria since late February and has been charged with laundering more than $35 million.

He had been accused of money laundering as part of a broader case against Binance - accusations which both Gambaryan and the company denied.

The charges against Gambaryan have now been dropped to allow him seek medical treatment abroad.

The development marks a significant turnaround in the case, as Gambaryan was denied bail under medical grounds earlier this month.

REVOLUT: The UK introduced a scheme earlier this month to quickly refund scam victims up to a limit of ￡85,000.

#Revolut, one of the payments firms which will likely find itself on the hook for payouts, now wants to ensure the idea doesn’t spread to other jurisdictions.

The company recently wrote to government officials in Ireland, arguing that such compensation programs create a “moral hazard” for consumers.

Revolut said this could leave the payments industry “disproportionately” hit by greater costs and argued that it could actually lead to higher levels of fraud in the long run.

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LAWYERS AND AML

FINTRAC: With AML legislation tightening year by year in banking and finance, it can be difficult to conceive of sectors which are largely unaffected by the stricter rules.

But Canadian lawyers are one such group - despite how closely they are often linked to major financial transactions, such as property deals.

A new notice from the country’s #FINTRAC watchdog has highlighted this issue, warning that the sector may be unwittingly enabling international money laundering schemes.

Particular areas of concern included real estate sales, the misuse of trust accounts and the creation of companies and trusts.

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Have a great Friday ??

Stephen and the team at AMlintelligence.