Posted in Financial Crime

Fighting Financial Crime in 2022 – Dashboard by FCN

Making sense of where we are in the fight against financial crime, and then suggesting the necessary actions to move forward to improve effectiveness is not an easy task. By looking back on what we know and has been reported in 2022 and prior years, the evidence increasingly indicates progress is not what anyone apart from the criminals would have hoped for, despite many successes, across all sectors, the overall scorecard remains “must do better“.

The FCN Fighting Financial Crime Dashboard for 2022 highlights some important KRIs and KPIs where some insights and conclusions can be drawn and from these actions highlighted to improve effectiveness going forward. 

For example:

  • Threats 1 Traditional Crimes such as Drug Trafficking: The war on drugs is now 50 years old – even with seizure rates of illicit drugs between 10-20%, enough still gets through to meet demand and generate huge illicit funds. 
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Posted in Financial Crime

Financial Crime related material Bank Fines in the 21st Century updated for 2022

As 2022 comes towards its end, the trend in major fines and penalties (above US$10 million) levied against Banks, for AML, ABC & Sanctions violations globally has topped 100 (102) and shows interesting results. For 2022, there were 7 AML related country fines  (3 in the USA, 2 in the UK, 1 in South Africa & 1 in Denmark taking the number of AML (& ABC) related cases this century to 79 representing US$2.5 billion for 2022 and US$23.9 billion overall. 

This is an increase in numbers which have averaged 4 a year this century, and an increase in value from an average of US$992 million a year. This included the 3rd largest AML fine this century, levied against Danske Bank for violations from 2007 to 2016 of US$2.15 billion in the USA and in Denmark, as well as against Santander in the UK of US$132 million, National Bank of Pakistan in the USA of US$55 million, Julius Baer in the UK of US$21 million (ABC related), USAA Bank in the USA of US$14 million & Nedbank in South Africa of US$21 million

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Posted in Financial Crime

Danske Bank Pleads Guilty to Fraud on US Banks and Violations of Laws In Denmark

Danske Bank: Much has been written about the Danske Bank case with last weeks fine of US$2.1 billion long expected and well trailed. It’s previously been reported that Danske Bank’s Estonia Branch facilitated the movement of around US$227 billion (€200 million), of which US$160 billion was processed via US Banks in New York and a large amount of the balance in Euros in the EU, much of it suspected as originating from Russian sources. These funds came from in aggregate at any one time thousands of non resident accounts in Danske Bank’s Estonia Branch each year which from 2007 until 2015, which made up in total about 10,000 active accounts in this period. Of these accounts, approx 80% were opened in the name of companies from places like the British Virgin Islands & the UK, designed it has been suggested to obscure the true ownership of the funds passing through the accounts.

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Posted in Financial Crime

Mexico Financial Crime Threat Assessment 2022 by FCN

The Financial Crime Country Threat Assessment for Mexico is now available. To download the Mexico Financial Crime Country Threat Assessment 2022 click HERE: Mexico Sept 2022 FINAL

Mexico is both a G20 and FATF member country with moderate to high threats (31/100) and a Moderate Response (50/100) with an overall Moderate risk (41/100) (based on the FCN Financial Crime Country Risk Model). 

Mexico’s last NRA was published in 2020, which focussed, to no one’s surprise on organised crime including drug trafficking gangs and corruption being the key threats. OCGs operating in Mexico pose a major threat not only to Mexico but are highlighted elsewhere including in the USA and in Europe, with the threat from Mexican drug trafficking activities very significant. 

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Posted in Financial Crime

National AML Risk Assessments – Update & Resources from FCN

All countries are expected to generate a meaningful National AML Risk Assessment. These are useful for the authorities, and the other institutions that use them (eg FIs and DNFBPs), so that all relevant parties understand and mitigate material money laundering risks. ML is a fast moving and adaptive environment with criminals changing methodologies, routes and institutions used to perpetrate and benefit from their crimes. Dedicated TF and PF assessments are also increasingly the expectation.

According to FATF, “Understanding the money laundering and terrorist financing risks is an essential part of developing and implementing a national anti-money laundering / countering the financing of terrorism (AML/CFT) regime.”

A risk assessment allows countries to identify, assess and understand its money laundering and terrorist financing risks.

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Posted in Financial Crime

Financial Crime Fighting Dashboard 2022 by FCN

As FATF President T Raja Kumar joins the G20 at its summit tomorrow in Bali under the Presidency of Indonesia his 3 key messages are on crypto regulation, transparency of beneficial ownership and seizing dirty cash. As far as taking action on illicit funds is concerned, he states that:

“Under Singapore’s presidency, the FATF also focuses on supporting national authorities to ramp up the seizure and return of stolen assets. In a joint drive to reinforce and mobilise the international community, the FATF is working closely with INTERPOL and other partners to promote national policies that prioritise asset recovery. This includes enhancing global cooperation and strengthening law enforcement and judicial networks to share information and evidence quickly.

The G20 can lead in this area by promoting policies that prioritise asset recovery and ensuring law enforcement and other agencies have the capabilities and training necessary to ‘follow the money’ that fuels crime and terrorism.

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Posted in Financial Crime

Follow the Money set for a Boost

At the FATF INTERPOL ROUNDTABLE ENGAGEMENT (FIRE) EVENT held in September in Singapore 2022, the FATF President T. Raja Kumar & Interpol Secretary General Juergen Stock, hosted experts from law enforcement, asset recovery, FIU’s, prosecutors, policy makers, international organisations & private sector industry leaders to kick off a new initiative to drive forward global asset recovery.

According to the FATF President, T. Raja Kumar: “Asset Recovery needs to be ingrained in the mindset of all relevant agencies as a core aspect of criminal investigations. Not ancillary, not a “nice to do” but a must do to disempower criminals by seizing their illicit assets.

According to Interpol’s Secretary General Juergen Stock: “The magnitude of illicit profits, and the velocity at which billions are moving across borders, is deeply worrying.

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FATF Member Countries LEA – KPI Related Data by FCN 2022

Financial Crime News has collected information from 37 FATF member countries and Indonesia as an observer and the UAE which is a GCC member, which is also an observer at FATF.

The information includes data on convictions fror money laundering, human trafficking and foreign bribery and contains information on asset seizures and confiscations. The data refers to different years and is as recent as possible, to the extent that such information is publicly available and can be identified and sourced.

See below for additional data. Contact the Editor FCN for more details or access to this data.

The following Effectiveness ratings for FATF Member Countries plus Indonesia and UAE are summarised below as summarised from the FATF Consolidated Ratings November 2022

This information has been collected by and is the property of Metriqa Ltd and Financial Crime News and should not be distributed or used without the consent of the Editor Financial Crime News.

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Posted in Financial Crime

Human Trafficking Cases – Prosecutions and Convictions Analysed by FCN

According to the annual US State Department Trafficking in Persons Reports global investigations were reported at just 10,572 (of which 1,379 were of forced Labour) with convictions at  5,260 (of which  374 were of forced Labour) for 2021. These 2021 figures represent just 55% of the total number of prosecutions in 2015, and 80% of the convictions in  2015. The ratio of convictions to prosecutions in 2021 was 50%. For more details see the data from the US TIP 2022 below

Human Trafficking Prosecutions & Convictions in FATF Member Countries

Whilst FATF Member Countries represent more than 90% of Global GDP, they were responsible for HT prosecutions of 2,637 in 2021, or just 25% of the total global HT prosecutions and HT convictions of 1,800 in 2021, or just 34% of the total global HT convictions.

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Posted in Financial Crime

UAE Financial Crime Dashboard 2022 by FCN

Today FCN is publishing its 2022 UAE Financial Crime Dashboard a year after its first for the UAE. As threats continue to evolve those from fraud, drugs trafficking, professional money laundering, trade based financial crime and TF remain important inherent threats with inherent threats increasing from geo political events such as the Russian invasion of Ukraine.

Whilst threats exist as they do for all countries the major change in the UAE is with the nature and scale of the response, no doubt encouraged as a result of the FATF grey listing. Key indicators on Asset Seizures and Confiscations reflect real progress made. For example between 2013-2018 an average of US$25 million was reported as recovered whereas US$625 million seized in 2021 and US$600 million confiscated. 

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