Posted in Financial Crime

Interview with Leading Recruiters from Sheffield Haworth on the Fighting Financial Crime Market

In this Interview with Helen Tudor and James Strover of recruiter’s Sheffield Haworth, Financial Crime News wanted to know, whether the FCC market was still in growth mode, whether important changes in the market and in expectations of candidates were noticeable, the effects of machines on staffing levels and roles, the effects of all of these on getting hired, staying hired or getting fired, and much more besides. 

1 – FCN: Is Financial Crime Compliance still in growth mode or have we seen the peak?

HT/JS: Combatting Financial Crime continues to be one of the highest risks facing Financial Institutions, and as a result we have certainly seen significant growth, particularly since the financial crises through the first half of this decade.

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Posted in Financial Crime News Sanctions

Interview with the Sentry’s Joshua White and Megha Swamy

In this Interview The Sentry’s Policy & Analysis Director  Joshua White and Deputy Megha Swamy, answer questions posed by Financial Crime News on the work of the Sentry, its aims, achievements and what FI’s can do to help and how the Sentry can help them.

FCN: What is the Sentry and what’s its purpose?

JW/MS: The Sentry is an investigative and policy team that tracks the financing of conflict in East and Central Africa. We follow the dirty money connected to African war criminals and transnational war profiteers and seek to shut those benefiting from violence out of the international financial system. We were co-founded by George Clooney and John Prendergast and launched in 2016. We currently focus on East and Central Africa, specifically South Sudan, Sudan, the Democratic Republic of Congo (DRC), and the Central African Republic.

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Posted in Sanctions

Sanctions Compliance by Steve Munro

Complying with economic sanctions requires a comprehensive program of controls and oversight capable of addressing the unprecedented pace of change, geopolitical tensions, conflicting governmental policies, and intense interest by a range of stakeholders, all of which means the monitoring, interpreting and controlling of sanctions risks have never been greater. Sanctions changes that have made headlines or yet might are therefore of interest as should be the potential implications for compliance programs.

Islamic Republic of Iran Flag
Islamic Republic of Iran

In November 2018, the US re-imposed sanctions on exports of oil from Iran after President Trump unilaterally pulled out of a 2015 nuclear accord between Iran and six world powers.  The US, however, granted waivers to Iran’s eight main buyers – China, India, Japan, South Korea, Taiwan, Turkey, Italy and Greece.

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Posted in Financial Crime Sanctions

Closing the Gap: Guidance for Countering North Korea’s Cryptocurrency Activity in South East Asia by RUSI

The UK Think tank, the Royal United Services Institute (RUSI) have issued a paper that reveals how North Korea can exploit cryptocurrency, particularly in Southeast Asia, to circumvent international sanctions. It sets out practical guidance for countries in the region to ensure resilience against the risk of North Korean cryptocurrency activity. North Korea has gone to extremes to raise funds and evade international sanctions, recently expanding these efforts to include the exploitation of cryptocurrencies such as Bitcoin. Cryptocurrencies likely play only a peripheral role in North Korea’s overall fundraising and sanctions-evasion activity.

However, the sophistication of North Korea’s broader cybercrime operations and its general demand for ongoing financial resources present the risk that its cryptocurrency activity could become a sustained security challenge, particularly as international sanctions lead North Korea to seek financial lifelines outside the mainstream sector.  The paper includes the view of the UN Security Council’s Panel of Experts on North Korea has suggested that cryptocurrencies offer North Korea ‘more ways to evade sanctions given that they are harder to trace, can be laundered many times and are independent from government regulation’.

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Posted in Financial Crime Sanctions

Sanctions Screening Guidance

The Guidance was published in Jan 2019 and highlights:

• whilst sanctions screening is a primary control, it is not foolproof and needs to be deployed as part of an effective wider sanctions compliance programme; and

• where a risk based approach may be appropriate, including documenting a reasonable risk appetite, notwithstanding the strict liability nature of sanctions compliance.

Consideration has been given to topics such as what is meant by sanctions screening, looking at both reference/customer data and transaction screening; the timing of screening; technology and the use of automated systems; the criteria for alert investigation, as well as testing and quality assurance. The guidance covers a number of areas that are most common to sanctions screening, including: the following:

  • the programmatic approach to sanctions screening is explored, including how to employ a risk based approach.
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Posted in Financial Crime Money Laundering Sanctions

Top 10 Predictions for 2019

As the only thing certain apparently is uncertainly (unless you count death and taxes) only a fool would predict anything. So foolishly here are my top 10 predictions for 2019 – in the fight against financial crime.

  • Crime will remain a top 10 global industry and the most profitable of all industries (due to extremely low levels of interdiction) but fall to 2nd in the list of none financial risks of concern to FI Board’s, after Cybersecurity. Depending on your definition of financial crime estimates range from USD2.1 trillion a year, though these likely understate the amount, particularly as they are based on classic financial criminal proceeds, such as drug trafficking and organised crime and date back to 2011. The figures could include corruption (IMF estimate USD1-1.5 trillion), Fraud of which Cyber crime is an ever increasing component, estimated in low single digit trillions and tax evasion, now a predicate offence and again likely estimated in low single digit trillions.
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Brexit and the fight on financial crime - Policy
Posted in Financial Crime

Brexit and the fight on financial crime – Part 1 – Policy

With the date for Brexit due on the 29th March, 2019 (at 11 pm U.K. time) and still no deal, getting a clear view of the likely impact of Brexit on the fight against financial crime, is important. An exit, particularly with no deal, looks to put the UK in a much worse position, but even with a deal the prospects at least in the short term don’t look good. What is at stake and what are the risks and opportunities? In this Part 1, the focus is more on the Policy aspects of fighting financial crime with a few practical potential consequences. Part 2 focuses on the effects on Policing and Part 3 the opportunity that the U.K must take.

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Red Notice
Posted in Financial Crime

Book Review – Red Notice by Bill Browder

This book tells the story of the rise and fall of Hermitage Capital, once the largest foreign investor in post soviet Russia, which made vast fortunes alongside oligarchs and criminals, sharing the spoils from the rigged privatisation of Russian Companies and the crooked markets that developed. As Hermitage made huge profits, the Company, its founder and CEO, Bill Browder, his associates and his Russian lawyers became targets, with Browder having his visa revoked and then his Russian Companies taken. According to Browder, he was taken out by powerful forces on instructions from the highest levels of the the Russian government. Browder tells of his losing battle, uncovering serious criminality by the Russian Interior ministry that took over his Companies, restated their reported profits and collected hundreds of millions of dollars in tax rebates.

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