TD Bank accused of laundering Fentanyl proceeds, compliance failings at Block revealed – and last chance to book your tickets to ‘EAFCS24'
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A U.S. Department of Justice (DoJ) investigation into Canada’s TD Bank is focused on how Chinese drug traffickers and crime groups used Canada's second-largest lender to launder their money from fentanyl sales, it’s been revealed. The investigation has led to the bank setting aside provisions of $450M. As we report today the probe was initiated after agents uncovered an operation in New York and New Jersey that laundered hundreds of millions of dollars in proceeds from illicit narcotics through TD and other banks. The revelations cap a nightmare week for Canada’s second-largest lender. Meanwhile, on Thursday local regulator FINTRAC fined TD $6.7M for a series of AML process failings. Read our story on AML Intelligence; TD Bank’s nightmare week gets worse – accused of laundering cash for China fentanyl gangs as regulator fines lender $6.7M for STR failures
Meanwhile, US prosecutors are examining financial transactions at Block, the Jack Dorsey-owned entity. Federal prosecutors were discussing with a former employee alleged compliance lapses at Square and Cash App, the company’s two main units. Square is a financial services platform used by millions of businesses, while Cash App is a mobile payment platform which allows users to send and receive money and buy stocks and cryptocurrency. Areas under investigation include whether Square and Cash App failed to gather sufficient information on customers to assess risk. Read our story on AML Intelligence: Jack Dorsey’s Block probed by US prosecutors over crypto compliance concerns
In the UK two of the country’s key finance watchdogs have pledged to respond to issues raised by each other within at least 10 working days in the wake of the collapse of the ‘Football Index’. Catch this on AML Intelligence : UK finance regulators to respond to each other ‘within 10 working days’ to avoid repeat of Football Index collapse
Croatia, Cyprus and Lithuania have introduced new measures to crack down on money laundering and terrorist financing, a series of reports was found. MONEYVAL, the Council of Europe anti-money laundering Committee said all three nations have improved their compliance with recommendations from the Financial Action Task Force (FATF), the intergovernmental organisation focused on combating money laundering.
*** It’s just two weeks out from ‘European Anti-Financial Crime Summit (EAFCS) 2024’ - the stand-out Anti-Financial Crime (AFC) event of the year. Hundreds of delegates are attending from banking, fintech, finreg and regtech from across the EU, UK, US and Middle East. Have you booked your or your department’s place at EAFCS2024? The summit will hear from the top global leaders on AML and AFC for a banking, fintech, finreg and gaming audience. Topics being covered are:
There’s still some time to book your or your organisation’s tickets here: EAFCS2024
Raiffeisen Bank International's (RBI) acquisition of a stake in construction firm Strabag STRV.Linked to a Russian tycoon remains under careful assessment for any compliance risk, the biggest Western bank in Russia said on Thursday.
The US, UK and EU are pressing the United Arab Emirates (UAE) to show it is cracking down on firms evading sanctions imposed on Russia over the war in Ukraine.
Now for your end of week news blast...
TD BANK's NIGHTMARE WEEK: CANADA's AML agency (Thursday) said it had imposed a C$9.2 million ($6.71 million) fine on TD Bank for failure to submit suspicious transaction reports. The fine is for a catalogue of failings across the bank's FCC processes - including failures to file STRs, ignoring AML risks, failing to conduct ongoing monitoring of business relationships and not conducting enough due diligence on high risk accounts.
BLOCK PROBED BY US PROSECUTORS: US prosecutors are examining financial transactions at Block, according to NBC News. The news publication reported that federal prosecutors were discussing with a former employee alleged compliance lapses at Square and Cash App, the company's two main units.
UK FINANCE REGULATORS RESPOND ON GAMBLING: TWO of the UK’s key finance watchdogs have pledged to respond to issues raised by each other within at least 10 working days in the wake of the collapse of the ‘Football Index’. The UK Gambling Commission (UKGC) and the UK Financial Conduct Authority (FCA) made the pledge in a Memorandum of Understanding (MoU) being agreed between the two organisations.
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3 EU COUNTRIES TIGHTEN AML MEASURES: Croatia, Cyprus and Lithuania have introduced new measures to crack down on money laundering and terrorist financing, a series of reports has found. MONEYVAL, the Council of Europe anti-money laundering Committee said all three nations have improved their compliance with recommendations from the Financial Action Task Force (FATF), the intergovernmental organisation focused on combating money laundering.
EUROPE's TOP COCAINE SUPPLIERS: In 2018, convicted cocaine trafficker Slobodan Kostovski fled a Brazilian prison and made his way back to Europe with a fake passport. The Serbian senior quickly fell into old habits, police allege. Last August, Kostovski was arrested in Belgrade, accused of shipping 2.7 metric tonnes of cocaine from Brazil aboard a 22-meter vessel apprehended near Spain’s Canary Islands.
‘European Anti-Financial Crime Summit (EAFCS) 2024’ is set to be the stand-out Anti-Financial Crime (AFC) event of the year. Have you booked your or your department’s place at the ‘European Anti-Financial Crime Summit 2024’ in Dublin on May 16? The summit will hear from the top global leaders on AML and AFC for a banking, fintech, finreg and gaming audience. Topics being covered are:
Europe’s new AML regime –what it means for your bank/organisation
AI and Machine Learning – how can your organisation harness technology in the fight against financial crime
Sanctions – how your organisation can stay compliant
Crypto – everything a fincrime leader needs to know
PPPs – building out the partnerships at home and on a transatlantic basis to fight financial crime.
Delegates from across the globe are preparing for the #EAFCS24 - have you secured your ticket? Book your or your organisation’s tickets here: EAFCS2024
RAIFFEISEN DEAL UNDER ASSESSMENT: Raiffeisen Bank International's (RBI) acquisition of a stake in construction firm Strabag STRV.Linked to a Russian tycoon remains under careful assessment for any compliance risk, the biggest Western bank in Russia said on Thursday. RBI wants to buy a stake in Strabag linked to Oleg Deripaska for 1.5 billion euros ($1.6 billion), a contested deal that has renewed international pressure on the Austrian lender.
PRESSURE GROWS ON UAE: THE US, UK and EU are pressing the United Arab Emirates (UAE) to show it is cracking down on firms evading sanctions imposed on Russia over the war in Ukraine. American, British and EU officials visited the Gulf state last week as part of a wider coordinated effort to prevent sanctioned goods from reaching Russia, a British foreign secretary spokesperson said, declining further comment.
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Have a great Friday??
Stephen and the team at AMlintelligence.