buzzfeed--2020-09-21--Standard Chartered’s Problems With Suspicious Clients Didn’t Go Away. Just Like These Two Ex-Employe

Standard Chartered’s Problems With Suspicious Clients Didn’t Go Away. Just Like These Two Ex-Employees Had Been Saying.

Confidential records from the FinCEN Files show that the bank was reporting its own suspicions about customers with links to Iran until at least 2017 .
On a summer morning in 2012 , Anshuman Chandra read a news article about a Saudi Arabian financial institution suspected of facilitating the funding of al-Qaeda attacks , including 9/11 .
The bank was called Al Rajhi , and a US Senate committee cited allegations it had handled payments to suicide bombers in Somalia , Sri Lanka , India , and the Philippines .
Chandra was deeply troubled , he said , and not @ @ @ @ @ @ @ died in terrorist attacks .
He was disturbed because Chandra worked for Standard Chartered bank , and he realized that his employer was doing business with Al Rajhi .
So Chandra warned a supervisor about what he had learned , he said , but he never heard back .
From Standard Chartered ’ s Dubai office , where Chandra was a client services manager , he dug deep into bank records .
He later learned , examining a yearly profit report , that in 2009 alone , Standard Chartered earned $ 2 million @ @ @ @ @ @ @ ( Al Rajhi did not respond to a request for comment . )
But that wasn ’ t all .
Poring over Standard Chartered ’ s accounts , he found a number of customers in Iran , a country under US sanctions , and Chandra feared that they too had been indirectly supporting terrorist activities .
“ I actually got goosebumps , ” Chandra said .
This time , he decided to bypass his bosses .
He turned to the US government .
By the fall of 2013 , Chandra and another whistleblower @ @ @ @ @ @ @ authorities thousands of internal bank records that they claimed show Standard Chartered was giving safe harbor to a number of customers moving money to Iran .
The documents came at a significant time .
A year earlier , the bank had acknowledged its role in concealing tens of thousands of transactions with businesses in Iran .
Under threat of criminal prosecution , the bank had agreed to clean up its act .
Ultimately , the government walked away from the whistleblowers .
But the two men had flagged real problems .
The bank @ @ @ @ @ @ @ reported to the US Treasury that it had suspicions about at least 31 companies contained in the data the whistleblowers had handed over .
Prosecutors eventually determined in 2019 that the bank had allowed more illegal transactions for Iranian clients — including one who had been in Knight and Chandra ’ s documents from 2013 .
Taken together , the whistleblowers ’ accounts and the banks ’ Treasury reports show the depth of the money laundering problems at Standard Chartered and the extent to which the US government gives big banks a pass @ @ @ @ @ @ @ are required to file suspicious activity reports , or SARs , when they spot transactions that bear the hallmarks of money laundering or other financial misconduct .
These confidential reports , which go to the Treasury Department ’ s Financial Crimes Enforcement Network , or FinCEN , are not by themselves evidence of a crime , but they can support investigations and intelligence gathering .
The FinCEN Files investigation is based on more than 2,100 of these documents that BuzzFeed News shared with the International Consortium of Investigative Journalists and more than 100 @ @ @ @ @ @ @ whistleblowers passed along their records , including transaction spreadsheets and client lists , the FBI pursued an investigation .
But it was short-lived .
An agent who was looking into the bank said their documents did not show evidence of new illegal transactions .
A judge recently issued a ruling blocking Knight from an opportunity for whistleblower compensation .
In response to detailed questions from BuzzFeed News , Standard Chartered said in a statement , “ We take our responsibility to fight financial crime extremely seriously and have invested substantially in our compliance @ @ @ @ @ @ @ bank files SARs “ when circumstances warrant and that means our screening and monitoring systems are working as intended.
” The bank said it employs 2,000 people worldwide to detect and report suspicious transactions , and that “ U.S .
and U.K. authorities have publicly acknowledged ” that the bank “ has undergone a comprehensive and positive transformation over the last several years.
” Standard Chartered , which like all banks is prohibited from disclosing the contents or even the existence of SARs , did not address many of the specific allegations in @ @ @ @ @ @ @ decision on his whistleblower case .
Both he and Chandra are pursuing a separate suit alleging that the bank retaliated against them for their disclosures .
They say the decision to come forward wreaked havoc on their lives — and they don ’ t know why the government didn ’ t dig deeper into their materials .
“ I feel betrayed , ” Chandra said .
“ If they analyzed the data , ” he added , “ they could have stopped this much earlier.
” “ These false allegations have been thoroughly @ @ @ @ @ @ @ a comprehensive investigation into the claims , ” the Standard Chartered spokesperson said .
The FBI did not respond to multiple requests for comment .
“ The Department of Justice stands by its work , and remains committed to aggressively investigating and prosecuting financial crime—including money laundering—wherever we find it , ” DOJ spokesperson Matt Lloyd said in a statement responding to detailed questions about the FinCEN Files investigation .
The global headquarters of Standard Chartered bank stands stolidly on Basinghall Avenue in the heart of the City of London , an imposing @ @ @ @ @ @ @ The bank ’ s history dates back 150 years and tracks the rise of the British Empire .
Standard , at the time a separate institution , banked Cecil Rhodes , the diamond baron who supported policies of racial inequality in southern Africa ; Chartered financed the opium trade , ensuring that Britain profited from the drug addictions of millions in China , Hong Kong , and India .
The combined companies now rake in more than $ 15 billion in revenue and employ 85,000 people in 60 different markets .
Standard Chartered @ @ @ @ @ @ @ to emerge unscathed from the 2008 financial crisis .
It avoided much of the criticism its competitors received for their risky and deceptive mortgage-trading practices , and even managed to earn a profit throughout the crash .
In 2012 , its CEO said it succeeded because unlike its competitors , it saw “ virtue in being boring.
” But in August of that year , the world learned of another side to Standard Chartered .
New York state prosecutors announced that the bank had helped its clients hide at least 59,000 financial transactions @ @ @ @ @ @ @ dollars , that potentially violated American sanctions against Iran .
The bank had made “ hundreds of millions of dollars in fees ” off those clients , the prosecutors said .
The bank admitted to having broken the law , but only up until 2007 .
The New York regulators had threatened to revoke the bank ’ s business charter .
The punishment would effectively halt its access to the US dollar market , a death blow for a global financial institution .
But , with a promise from Standard Chartered to stay @ @ @ @ @ @ @ an outside monitor keeping a close eye on the bank , prosecutors held off bringing any criminal charges .
New York state issued a fine of $ 340 million — a mere 1.3 % of Standard Chartered ’ s revenue that year .
The bank was allowed to continue winding down its business with a number of Iranian clients .
Meanwhile , the bank was also being investigated by US federal authorities .
But Standard Chartered had a well-placed advocate .
George Osborne , the UK ’ s chancellor of the exchequer at @ @ @ @ @ @ @ the Federal Reserve copying in Timothy Geithner , then the US secretary of the Treasury , to discuss his “ concerns.
” The US was coming down awfully hard on the bank , Osborne said , hard enough to endanger its health .
“ For a systemically important financial institution , ” he wrote , “ this could lead to contagion.
” Endanger one bank , he seemed to suggest , and the whole economy could suffer .
Geithner and Osborne were both heading to Tokyo for the annual World Bank meeting .
@ @ @ @ @ @ @ planned meeting , later dug up in a congressional probe , make clear that the world ’ s superpower believed Standard Chartered had crossed a line : “ Treasury considers SCB 's conduct surrounding sanctions violations to be reckless and egregious but not the worst we have encountered.
” The Department of Justice and Standard Chartered ultimately negotiated a deferred prosecution agreement , the US government ’ s preferred tool for getting wayward banks back on track .
Standard Chartered would pay a second fine — $ 227 million — but so long @ @ @ @ @ @ @ , there would be no criminal prosecution on the federal level , either , and the bank would not lose its license .
A spokesperson for Geithner told BuzzFeed News the Treasury secretaries have “ no authority over criminal prosecutions ” and that “ such matters are handled independently by the Department of Justice and the bank regulators respectively.
” The spokesperson added that Geithner “ did not push for lenient treatment for Standard Chartered from the US government.
” Chandra was working in the bank ’ s Dubai office when , he @ @ @ @ @ @ @ colleagues talking about a former colleague named Julian Knight .
They were saying he had blown the whistle on the bank .
Knight , a former flight lieutenant in Britain ’ s Royal Air Force , had risen to become one of the global heads of transaction banking at Standard Chartered before getting fired in 2011 .
He was living in Germany when he first heard the bank was in trouble with prosecutors .
Knight did not believe that Standard Chartered had stopped banking Iranian clients .
He dug out a compact disc @ @ @ @ @ @ @ profit reports , and transaction spreadsheets he had downloaded before leaving the bank .
Through a friend , he passed it to the Treasury Department .
Those records , which have since been reviewed by BuzzFeed News , showed that Standard Chartered was working with Iranian clients after 2007 .
What Knight did n't know was that the government had allowed the bank to fulfill its obligations with some Iranian clients after 2007 .
Those clients had permission to repay their outstanding loans to the bank in currencies other than US dollars , @ @ @ @ @ @ @ bank accounts that were otherwise blocked by the US government .
Chandra didn ’ t know all those details , either .
He just knew he needed to speak with Knight .
Chandra said that in April 2013 he sent Knight an email and soon after that passed on the information he had gathered , with the request that it be handed to the US authorities .
He was visiting Standard Chartered ’ s Zambia branch when he received his first email from Matthew Komar .
“ I am a Special Agent with @ @ @ @ @ @ @ on the investigation into Standard Chartered , ” Komar wrote in an email obtained by BuzzFeed News .
“ I would like to speak with you.
” Chandra was nervous about speaking with Komar , who asked many questions , but the two stayed in touch .
On October 2 , 2013 , a week after his first contact with the FBI , Komar gave him some unwelcome news .
The FBI had let slip that it was talking to Chandra .
His name was “ inadvertently sent by a member of the @ @ @ @ @ @ @ , ” Komar wrote .
He said the bank ’ s lawyers had promised not to share the information with their client .
Chandra had already emailed Komar , telling him about an unexpected scan of Chandra ’ s computer , the first of what he said were a number of strange developments at work .
“ I 'm very worried at the moment , ” he wrote .
Over the next few months , according to his emails to the FBI , he lost access to certain shared files , he had @ @ @ @ @ @ @ and his managers grew hostile toward him .
In October 2014 , Chandra reported getting his first death threat .
In an email to Komar , he quoted the caller saying , “ We know you helped Americans , its not good and we will take care of you.
” Chandra wrote to Komar : “ Need your help urgently for my and family 's safety.
” Chandra said Komar suggested he call the local police .
It was the last , Chandra said , that he would hear from Komar for two @ @ @ @ @ @ @ questions from BuzzFeed News .
Chandra and Knight , angered by how they had been treated by both the bank and the FBI , turned to American courts .
In 2018 , Knight filed what is known as a qui tam lawsuit under the False Claims Act .
He sought compensation for assisting the US government in its prosecution of the bank for sanctions violations .
But Komar testified that his information wasn ’ t useful , because the investigators were not able to “ corroborate or validate ” the whistleblower ’ s @ @ @ @ @ @ @ judge dismissed the case .
A year after filing that lawsuit , Knight joined with Chandra to file another , this time accusing Standard Chartered of retaliating against them , “ discrediting them and destroying their careers in the industry.
” Knight claimed that the stress of the harassment had taken a serious toll on his health .
Standard Chartered countered that with the retaliation claim , Knight and Chandra were just looking for “ another bite at the apple ” after the first lawsuit went south .
The bank said the two @ @ @ @ @ @ @ protections granted to whistleblowers , because the information they gave the government had no value — and even if Chandra were a whistleblower , that ’ s not what caused his termination .
As for Knight , the bank said he had waived his right to sue when he signed his termination agreement .
The retaliation lawsuit , and any last chance of vindication from the courts for Chandra and Knight , is still pending .
But another kind of vindication had long been happening — much of it in secret .
Chandra @ @ @ @ @ @ @ of the bank ’ s customers .
It turns out similar suspicions were being documented by the bank itself .
The FinCEN Files show the bank filed at least 35 SARs on 31 customers that appeared in the documents Chandra and Knight sent to the FBI in 2013 .
These SARs , filed after the whistleblowers had handed their information to the FBI , show the bank itself alerting the government to questions about the legitimacy of some of its business .
One of the clients included in both the whistleblowers ’ documents @ @ @ @ @ @ @ Al Zarooni Exchange .
The US government barred Al Zarooni from the US financial system in 2015 for supporting the Altaf Khanani money laundering organization , which is alleged to have funneled `` billions of dollars across the globe on behalf of terrorists , drug traffickers , and criminal organizations . ''
The Dubai-based company was accused by the Treasury of laundering cash for the Taliban .
Two years after the sanctions were issued , Standard Chartered ’ s compliance staff filed a suspicious activity report showing that the bank had facilitated “ @ @ @ @ @ @ @ in 2009 and 2010 .
During that time , Taliban militants staged violent attacks that killed civilians and soldiers .
Al Zarooni could not be reached for comment .
Another such client was a large diamond trader accused by prosecutors of black market diamond sales , tax evasion , and bribery .
In a SAR from January 2017 , the bank indicated it had reported the company ’ s transactions in multiple prior filings .
Between 2014 and 2016 , the SAR said , Standard Chartered had moved more than $ 4 billion @ @ @ @ @ @ @ 35 SARs mentioning customers in the whistleblowers ’ documents discussed possible links to Iran .
One was suspected by the bank to have used “ fraudulent documents ” to hide its trade with Iran until at least 2014 , according to the SAR .
Another “ may have sought to obfuscate ” payments to Iran for the leasing of containers at Iranian airports , according to a 2017 SAR .
The SARs were being written and reviewed behind a wall of secrecy .
But eventually a very public repudiation of Standard Chartered ’ @ @ @ @ @ @ @ .
In April 2019 , seven years after Standard Chartered entered into its deferred prosecution agreement , US Attorney Jessie Liu announced that the bank ’ s transactions for Iranian clients had “ undermined the integrity of our financial system and harmed our national security.
” Liu ’ s statements came as Standard Chartered settled investigations with the Department of Justice , the New York Department of Financial Services , and the UK ’ s FCA .
The investigations found that senior managers in the bank ’ s Dubai office hadn ’ t @ @ @ @ @ @ @ dozens of clients used the bank ’ s internet platform known as “ Straight-to-Bank ” to access US dollar accounts .
The bank ’ s compliance staff , according to the New York prosecutors , had “ utterly failed.
” The Dubai office is where Chandra once worked and where he had first grown uneasy about Standard Chartered ’ s systems for thwarting financial crime .
And the Straight-to-Bank system had been identified by Knight when he tried to call attention to problems at Standard Chartered .
His documents show Knight mentioned the @ @ @ @ @ @ @ law enforcement .
The Department of Justice stuck with the same form of punishment it had been using for Standard Chartered since 2012 .
It levied an array of new fines and penalties totaling $ 1.1 billion ( less than a third of the bank ’ s profits that year ) , and extended Standard Chartered ’ s deferred prosecution agreement .
It was the sixth time it had to be extended in the space of seven years .
In the press release announcing the new fines , Liu named Mahmoud Reza Elyassi @ @ @ @ @ @ @ Standard Chartered ’ s Dubai branch .
Former Standard Chartered employees knew that Elyassi “ conducted U.S. dollar transactions for the benefit of Iranian interests , ” the government said , “ and helped Elyassi disguise his Iranian connections to avoid suspicion.
” Six and a half years earlier , Elyassi ’ s name had appeared somewhere else : Chandra ’ s disclosures to the FBI — the ones that the FBI had discarded as worthless .
●

Chandra was working in the bank’s Dubai office when, he said, he heard two of his colleagues talking about a former colleague named Julian Knight. They were saying he had blown the whistle on the bank.
Knight, a former flight lieutenant in Britain’s Royal Air Force, had risen to become one of the global heads of transaction banking at Standard Chartered before getting fired in 2011.
He was living in Germany when he first heard the bank was in trouble with prosecutors. Knight did not believe that Standard Chartered had stopped banking Iranian clients.
He dug out a compact disc that had all the company emails, profit reports, and transaction spreadsheets he had downloaded before leaving the bank. Through a friend, he passed it to the Treasury Department.
Those records, which have since been reviewed by BuzzFeed News, showed that Standard Chartered was working with Iranian clients after 2007. What Knight didn't know was that the government had allowed the bank to fulfill its obligations with some Iranian clients after 2007. Those clients had permission to repay their outstanding loans to the bank in currencies other than US dollars, or to withdraw their existing balances from bank accounts that were otherwise blocked by the US government.
Chandra didn’t know all those details, either. He just knew he needed to speak with Knight. Chandra said that in April 2013 he sent Knight an email and soon after that passed on the information he had gathered, with the request that it be handed to the US authorities.
He was visiting Standard Chartered’s Zambia branch when he received his first email from Matthew Komar.
“I am a Special Agent with the FBI who is the case agent on the investigation into Standard Chartered,” Komar wrote in an email obtained by BuzzFeed News. “I would like to speak with you.”
Chandra was nervous about speaking with Komar, who asked many questions, but the two stayed in touch.


buzzfeed--2020-09-21--Joe Biden Escalated His Supreme Court Fight With A Plea To Republican Senators

PHILADELPHIA — Joe Biden was scheduled to spend his Sunday in Delaware like he usually does , in church and at home .
A last-minute addition to his schedule — a speech , delivered direct-to-camera , from an atrium overlooking Independence Hall , Philadelphia ’ s monument to American democracy — was the mark of a campaign moving quickly to join a fight .
Two days after the death of Justice Ruth Bader Ginsburg on Friday , news that set up an immediately grievous Supreme Court nomination battle , Biden ’ s party was already preparing for one .
The @ @ @ @ @ @ @ million in donations over a period of just over 36 hours .
The party ’ s nominee before Biden , Hillary Clinton , urged Democrats to “ go down fighting ” and “ not give an inch.
” In the Senate , Minority Leader Chuck Schumer told voters that the Supreme Court seat , if given over to a nominee from President Donald Trump , could reshape “ everything Americans value.
” And in the House , Speaker Nancy Pelosi presented the vacancy as a referendum on access to healthcare , a winning @ @ @ @ @ @ @ that gave the party a majority in the House for the first time in nearly a decade , and an urgent question amid the ongoing pandemic .
On Sunday , Biden ’ s contribution hinged on a more contained and personal appeal : not to voters but to an audience of Republican senators , his former colleagues , who now control the seat ’ s fate .
“ Please follow your conscience , ” Biden said from the National Constitution Center in Philadelphia .
“ Do n't vote to confirm anyone nominated under @ @ @ @ @ @ @ have created .
Do n't go there .
Uphold your constitutional duty , your conscience .
Let the people speak .
Cool the flames that have been engulfing our country.
” Biden , 77 , served in the Senate for more than 35 years before Barack Obama asked him to serve as his vice president .
“ If we go down this path , I predict it will cause irreversible damage .
The infection this president has unleashed on our democracy can be fatal .
Enough .
Enough .
Enough . ''
“ @ @ @ @ @ @ @ .
Democrat , Republican , Independent , liberal , conservative .
Everybody.
” In this year ’ s presidential election , a race already marked by crisis and unrest , Biden has been a candidate sometimes contented to step back and cede his airtime to Trump , letting his opponent thrash in the glare of the latest controversy .
On Sunday , Biden inserted himself forcibly , addressing his former colleagues in the Senate , looking dead-ahead as he read from a teleprompter , as if speaking directly to the three or four @ @ @ @ @ @ @ I ’ m not speaking to President Trump , who will do whatever he wants .
I ’ m not speaking to Mitch McConnell , who will do what he wants and he does , ” Biden said of the Republican Senate Majority Leader .
“ I ’ m speaking to those Republicans out there , Senate Republicans , who know deep down what is right for the country and consistent with the Constitution , ” he said , “ not what ’ s just for their party.
” McConnell has already said @ @ @ @ @ @ @ ’ s choice to replace Ginsburg less than 45 days from the election , despite his decision to block Obama from filling an open seat on the court in February of an election year .
Biden called the McConnell ’ s reversal a “ raw political move ” that would put the country on a “ dangerous path ” and in a cycle of “ action and reaction , anger and more anger , sorrow and frustration at the way things are.
” “ We need to de-escalate , not escalate , ” @ @ @ @ @ @ @ so far said they don ’ t believe a Supreme Court nominee should be confirmed before the election , Lisa Murkowski of Alaska and Susan Collins of Maine , who is in a close reelection fight .
Republicans , who hold 53 Senate seats and can break a tie with Vice President Mike Pence , can only lose one more senator if Democrats remain united in opposition to a Trump nominee .
The Senate confirming a new nominee would give Trump three of the nine justices , and tilt the balance of the @ @ @ @ @ @ @ cases that will shape untold generations .
News about Ginsburg 's death broke as Biden was on a plane home to Delaware following a campaign stop in Minnesota .
After landing , Biden told reporters on the tarmac that he did not expect to publish a list of the Supreme Court picks he would consider as president , something Trump did first as a candidate in 2016 and again this month .
On Sunday , Biden laid out his reasoning for that decision and directed part of it explicitly to Senate Republicans .
@ @ @ @ @ @ @ , should not be made “ as part of a partisan election campaign ” but rather “ only after consulting Democrats and Republicans in the US Senate — and seeking their advice before I ask for their consent.
” Earlier in the race , Biden pledged to nominate the first black woman to the Supreme Court , a vow his campaign reiterated this weekend .
At the Constitution Center on Sunday , where he appeared with a handful of campaign aides , journalists , and US Secret Service agents , Biden did not @ @ @ @ @ @ @ to Republican senators directly .
When a reporter shouted the question to him after his speech , he did not answer .
Later on Sunday afternoon , a Biden aide said Biden and his running mate , Sen. Kamala Harris , along with their respective staffs , have been in touch with Democratic leaders in the Senate and House and will be “ regularly coordinating ” on healthcare messaging in particular , linking the COVID-19 pandemic that has killed nearly 200,000 Americans , and Trump ’ s mishandling of the crisis , to @ @ @ @ @ @ @ access afforded by Obamacare .
“ If the president thinks this is n't about the coronavirus , it is .
It ’ s about healthcare , ” Pelosi said on Sunday in an interview on ABC News .
“ He does n't want to crush the virus .
He wants to crush the Affordable Care Act.
” The Supreme Court is scheduled to hear oral arguments on Nov. 10 , one week after the presidential election , in a suit seeking to overturn the healthcare law , brought by red-state attorneys general in @ @ @ @ @ @ @ v. Texas , followed a previously unsuccessful effort by Republicans in Congress to repeal the Affordable Care Act .
The Republican Party 's long promise to repeal Obamacare has not , in an ongoing monthslong pandemic , been a prominent piece of Trump ’ s reelection effort .
A repeal of the law would roll back Medicaid expansion and protections for patients with preexisting health conditions , a popular measure that could cover complications from COVID-19 , Biden said on Sunday , such as lung scarring and heart damage .
Relative to the @ @ @ @ @ @ @ managed to make the Supreme Court among its most animating issues .
Clinton tried in her campaign against Trump , delivering a speech in the spring of 2016 warning voters that the next president would likely get to nominate “ multiple justices ” and “ could demolish pillars of the progressive movement ” in a single term .
“ It is difficult to turn that into a voting issue on our side of the political ledger , ” Clinton told MSNBC ’ s Rachel Maddow after Ginsburg ’ s death .
“ I @ @ @ @ @ @ @

PHILADELPHIA — Joe Biden was scheduled to spend his Sunday in Delaware like he usually does, in church and at home. A last-minute addition to his schedule — a speech, delivered direct-to-camera, from an atrium overlooking Independence Hall, Philadelphia’s monument to American democracy — was the mark of a campaign moving quickly to join a fight.
Two days after the death of Justice Ruth Bader Ginsburg on Friday, news that set up an immediately grievous Supreme Court nomination battle, Biden’s party was already preparing for one. The Democratic fundraising platform ActBlue processed $100 million in donations over a period of just over 36 hours. The party’s nominee before Biden, Hillary Clinton, urged Democrats to “go down fighting” and “not give an inch.” In the Senate, Minority Leader Chuck Schumer told voters that the Supreme Court seat, if given over to a nominee from President Donald Trump, could reshape “everything Americans value.” And in the House, Speaker Nancy Pelosi presented the vacancy as a referendum on access to healthcare, a winning issue for Democrats in the 2018 election that gave the party a majority in the House for the first time in nearly a decade, and an urgent question amid the ongoing pandemic.
On Sunday, Biden’s contribution hinged on a more contained and personal appeal: not to voters but to an audience of Republican senators, his former colleagues, who now control the seat’s fate.
“Please follow your conscience,” Biden said from the National Constitution Center in Philadelphia. “Don't vote to confirm anyone nominated under the circumstances President Trump and Sen. McConnell have created. Don't go there. Uphold your constitutional duty, your conscience. Let the people speak. Cool the flames that have been engulfing our country.”
Biden, 77, served in the Senate for more than 35 years before Barack Obama asked him to serve as his vice president.
“If we go down this path, I predict it will cause irreversible damage. The infection this president has unleashed on our democracy can be fatal. Enough. Enough. Enough."
“We must come together as a nation. Democrat, Republican, Independent, liberal, conservative. Everybody.”
In this year’s presidential election, a race already marked by crisis and unrest, Biden has been a candidate sometimes contented to step back and cede his airtime to Trump, letting his opponent thrash in the glare of the latest controversy.
On Sunday, Biden inserted himself forcibly, addressing his former colleagues in the Senate, looking dead-ahead as he read from a teleprompter, as if speaking directly to the three or four Republicans who might be wavering.
“I’m not speaking to President Trump, who will do whatever he wants. I’m not speaking to Mitch McConnell, who will do what he wants and he does,” Biden said of the Republican Senate Majority Leader. “I’m speaking to those Republicans out there, Senate Republicans, who know deep down what is right for the country and consistent with the Constitution,” he said, “not what’s just for their party.”
McConnell has already said he will pursue a vote on Trump’s choice to replace Ginsburg less than 45 days from the election, despite his decision to block Obama from filling an open seat on the court in February of an election year. Biden called the McConnell’s reversal a “raw political move” that would put the country on a “dangerous path” and in a cycle of “action and reaction, anger and more anger, sorrow and frustration at the way things are.”
“We need to de-escalate, not escalate,” Biden said.
Two Senate Republicans have so far said they don’t believe a Supreme Court nominee should be confirmed before the election, Lisa Murkowski of Alaska and Susan Collins of Maine, who is in a close reelection fight. Republicans, who hold 53 Senate seats and can break a tie with Vice President Mike Pence, can only lose one more senator if Democrats remain united in opposition to a Trump nominee. The Senate confirming a new nominee would give Trump three of the nine justices, and tilt the balance of the Court further to the right, in cases that will shape untold generations.
News about Ginsburg's death broke as Biden was on a plane home to Delaware following a campaign stop in Minnesota. After landing, Biden told reporters on the tarmac that he did not expect to publish a list of the Supreme Court picks he would consider as president, something Trump did first as a candidate in 2016 and again this month. On Sunday, Biden laid out his reasoning for that decision and directed part of it explicitly to Senate Republicans.
A Supreme Court nominee, he said, should not be made “as part of a partisan election campaign” but rather “only after consulting Democrats and Republicans in the US Senate — and seeking their advice before I ask for their consent.”
Earlier in the race, Biden pledged to nominate the first black woman to the Supreme Court, a vow his campaign reiterated this weekend.
At the Constitution Center on Sunday, where he appeared with a handful of campaign aides, journalists, and US Secret Service agents, Biden did not say whether he planned to reach out to Republican senators directly. When a reporter shouted the question to him after his speech, he did not answer.
Later on Sunday afternoon, a Biden aide said Biden and his running mate, Sen. Kamala Harris, along with their respective staffs, have been in touch with Democratic leaders in the Senate and House and will be “regularly coordinating” on healthcare messaging in particular, linking the COVID-19 pandemic that has killed nearly 200,000 Americans, and Trump’s mishandling of the crisis, to a fight to preserve the kind of access afforded by Obamacare.
“If the president thinks this isn't about the coronavirus, it is. It’s about healthcare,” Pelosi said on Sunday in an interview on ABC News. “He doesn't want to crush the virus. He wants to crush the Affordable Care Act.”
The Supreme Court is scheduled to hear oral arguments on Nov. 10, one week after the presidential election, in a suit seeking to overturn the healthcare law, brought by red-state attorneys general in 20 states. The case, California v. Texas, followed a previously unsuccessful effort by Republicans in Congress to repeal the Affordable Care Act.
The Republican Party's long promise to repeal Obamacare has not, in an ongoing monthslong pandemic, been a prominent piece of Trump’s reelection effort. A repeal of the law would roll back Medicaid expansion and protections for patients with preexisting health conditions, a popular measure that could cover complications from COVID-19, Biden said on Sunday, such as lung scarring and heart damage.
Relative to the Republican Party, Democrats have never quite managed to make the Supreme Court among its most animating issues. Clinton tried in her campaign against Trump, delivering a speech in the spring of 2016 warning voters that the next president would likely get to nominate “multiple justices” and “could demolish pillars of the progressive movement” in a single term.
“It is difficult to turn that into a voting issue on our side of the political ledger,” Clinton told MSNBC’s Rachel Maddow after Ginsburg’s death. “I know that from firsthand experience.”


buzzfeed--2020-09-21--Explore Thousands Of Suspicious Payments Sent Around The World

This is part 6 of our FinCEN Files investigation .
To read more , click here .
The map below @ @ @ @ @ using documents shared by BuzzFeed News through the FinCEN Files collaboration .
Go here to @ @ @ @ @ Files .

International Consortium of Investigative Journalists

The map below was created by ICIJ, using documents shared by BuzzFeed News through the FinCEN Files collaboration.
Go here to read more about the FinCEN Files.


buzzfeed--2020-09-22--Documents Show Deutsche Bank’s Top Executives Were Warned It Had A Dirty Money Problem. Then A $10 B

Documents Show Deutsche Bank’s Top Executives Were Warned It Had A Dirty Money Problem. Then A $10 Billion Scandal Broke.

When the $ 10 billion mirror trading scandal was exposed , little emerged about who its victims were or how much Deutsche ’ s executives knew .
The FinCEN Files investigation shows how deep the rot went .
When Robert Meltzer , who runs gyms for children in Los Angeles , found that more than $ 60,000 in payroll taxes — half a year ’ s worth — had gone missing in 2013 , it was too late .
When something similar happened to Stanford Media Group , a company that sold CDs and DVDs online , Mark Gilula said @ @ @ @ @ @ @ .
He said the stress contributed to his heart attack .
And when Maureen Sullivan , an architect , went looking for answers about the $ 111,000 that evaporated from her accounts , she said her inquiries with the police “ basically went into a black hole.
” What none of these small business owners could have known was that their losses were linked to one of the most infamous international banking scandals on record .
The bookkeeper who handled their payroll allegedly embezzled their money and injected it into a notorious scheme @ @ @ @ @ @ @ , and drug cartels .
The participants laundered $ 10 billion of illicit money into nice clean cash .
It all happened with the help of Deutsche Bank , Germany ’ s biggest financial institution and one of the biggest lenders to Donald Trump .
But when the enormous scandal broke , Deutsche blamed it on a few middle-level staffers in its Moscow office , paid a fine , and got back to business .
The FinCEN Files investigation reveals that Deutsche managers , including top executives , had direct knowledge for years @ @ @ @ @ @ @ vulnerable to money launderers .
Documents show two warnings sent to committees that included Paul Achleitner , Deutsche ’ s chair , and one sent to the bank 's supervisory board .
Deutsche ’ s problems were so striking they prompted Bank of America to file a confidential alert known as a suspicious activity report , or SAR , to the US government .
Bank of America employees had visited Deutsche ’ s London office to discuss worries about Russian money laundering .
They were stonewalled when a Deutsche manager interrupted their meeting @ @ @ @ @ @ @ .
Bank of America found the situation troubling enough that it raised the matter with Achleitner , according to its filing .
Another top Deutsche executive , Christian Sewing , ran the audit division when one of its teams gave the Moscow office a clean bill of health , despite evidence that it could not even produce a list of its clients , let alone verify that they were who they said they were .
Sewing is now Deutsche ’ s CEO .
In all , more than 100 internal alerts were raised @ @ @ @ @ @ @ the Russian mirror trade scandal between 2012 and 2015 .
During these years , some of the world ’ s worst criminals used the network to move dark money around the globe , with the help of shell companies and corrupt financiers .
Business owners like Meltzer , Gilula , and Sullivan were left to pick up the pieces .
The wide range of criminal activity linked to the mirror trades has never before been revealed .
The FinCEN Files investigation includes thousands of closely held US Treasury documents — among them , @ @ @ @ @ @ @ shared with the International Consortium of Investigative Journalists and more than 100 newsrooms around the world .
This investigation is also based on confidential bank documents obtained by the German newspaper Süddeutsche Zeitung , a partner in this project .
By law , banks must file SARs to the Treasury Department 's Financial Crimes Enforcement Network , or FinCEN , when they spot activity that bears the hallmarks of money laundering or other financial misconduct .
SARs by themselves are not evidence of a crime , but they can support investigations and intelligence @ @ @ @ @ @ @ ’ s share price has plummeted under the weight of scandal after scandal .
In the last decade , the bank has paid fines for everything from evading sanctions against Iran and Myanmar to rigging foreign exchange markets to doing business with Jeffrey Epstein .
And it has come under scrutiny for lending Trump hundreds of millions of dollars despite his history of defaulting on loans .
The bank , responding to questions raised by this investigation , said it has acknowledged “ past weaknesses ” and “ learnt from our mistakes , @ @ @ @ @ @ @ dollars to bolster its defenses against financial crimes .
“ We are a different bank now , ” a Deutsche spokesperson said in a written response .
The spokesperson said Sewing was not personally involved in the review of the Moscow office and disputed aspects of Bank of America ’ s written account to the government , including the assertion that Achleitner met with an executive from that bank .
The $ 10 billion mirror trading scheme remains one of Deutsche ’ s darkest stains .
While it had many tentacles , at @ @ @ @ @ @ @ launderers who controlled a network of anonymous companies around the world .
They would buy shares in Russia and sell the stock to one of the European shell companies they owned .
As the network pinged money across the globe , it turned the rubles into dollars and other currencies .
The system had one other great advantage : It allowed criminals to move their ill-gotten gains undetected .
To make it all happen , the perpetrators needed a Western bank to work with them .
They found one in Deutsche .
It @ @ @ @ @ @ @ was involved , but prosecutors said traders in its Moscow office were motivated by “ greed and corruption ” and that one supervisor had apparently been bribed to facilitate the trades .
The companies that moved the money were some of Deutsche Russia ’ s most active clients , at times generating bigger commissions for the bank than any of its other customers in Russia .
In one confidential letter from March 2016 , never before revealed , the UK ’ s financial regulator privately scolded Deutsche ’ s willingness to take on @ @ @ @ @ @ @ financial crime risks.
” It cautioned that “ leadership on financial crime had been lacking for a considerable period of time.
” But when the agency spoke about the matter publicly , it exonerated senior managers , saying they “ were not aware of the suspicious trading ” and the failings at the bank had been committed “ negligently , rather than deliberately or recklessly.
” The regulator initially considered a fine of £1.7 billion for the scandal , but decided that would be “ disproportionately high ” and reduced it to £163 @ @ @ @ @ @ @ imposed a higher fine of $ 425 million but took the occasion to praise the bank ’ s leaders for dealing with the issue in a “ serious manner and timely fashion.
” Among the recipients of cash from the mirror trades , the FinCEN Files investigation has found , was a company the US government says is part of the Russian mafia .
Its owner has been identified as a liaison for Vladislav “ Blonde ” Leontyev , described by US authorities as a Russian mobster and a high-level narcotics trafficker .
@ @ @ @ @ @ @ denied any involvement in the mirror trades or other criminal activity .
Between March 2013 and April 2014 , nearly $ 50 million in illicit funds also went to a company that is part of the Khanani money laundering organization , whose clients include Hezbollah associates , the Taliban , and Mexican drug cartels , according to the US government .
( The group ’ s head , Altaf Khanani , was sentenced in 2017 to 68 months in prison after he laundered more than $ 1 million during an undercover Drug Enforcement @ @ @ @ @ @ @ supplier in Brooklyn , where the manager was found guilty of laundering money for cyberscammers , also received cash from the mirror trades .
So did a New Jersey telecoms operation that did business with shell companies linked to organized crime , the Syrian weapons program , and a notorious oligarch , SARs show .
Money from a looted Russian bank where Vladimir Putin ’ s cousin sat on the board was also filtered into the network , records show .
All those funds were funneled into the money laundering operation along with @ @ @ @ @ @ @ consulting firm whose owner allegedly defrauded 141 small businesses across Southern California .
The victims included churches and not-for-profit organizations .
The man behind the fraud fled the US and the money has never been recovered .
The saga of the mirror trades is not yet over for Deutsche .
In its most recent annual report , Deutsche said that the Department of Justice continues to investigate , and that the bank had set aside money in case of future fines .
Then , in November 2012 , an even brighter red flag @ @ @ @ @ @ @ s owners , a Ukrainian financier named Alexander Perepilichnyy , dropped dead during a jog outside his home on the outskirts of London .
Two weeks after he died , it was revealed that Perepilichnyy was linked to a multimillion-dollar tax fraud and had fled Russia , blowing the whistle on the scam .
A few weeks later , the documents obtained by Süddeutsche Zeitung show , Deutsche ’ s anti–money laundering software flagged Financial Bridge for its “ high-risk transactions.
” But the alert went to an office in India where staff @ @ @ @ @ @ @ confidential regulatory documents show .
Financial Bridge ’ s explanation for its transactions — that they were for “ investment activities ” — was deemed adequate .
By 2013 , Deutsche ’ s own internal reviews were beginning to identify crucial weaknesses in the bank ’ s procedures for combating financial crime .
To guard against financial crimes , banks have policies to “ know your customer , ” which means researching clients before taking them on .
But an internal review focusing on know-your-customer protocols in the Moscow office found that bankers @ @ @ @ @ @ @ even neglecting to determine if they were known criminals .
The Moscow bankers could not even produce a list of who their clients were .
By the start of 2016 , the volume of Russian money flowing into the US financial system was raising alarms at Bank of America .
A team of experts from the bank flew to Deutsche ’ s London office seeking answers .
In a Jan. 11 meeting with Deutsche , the Bank of America team began to gain some insights as the head of Deutsche ’ s business @ @ @ @ @ @ @ that “ his staff had to navigate to perform enhanced due diligence on clients , ” the SAR says .
But the meeting was interrupted when one of Deutsche ’ s managing directors arrived .
He told the Bank of America investigators they were not authorized to talk to anyone in London and asked them to leave .
The SAR says that the matter was escalated within Bank of America , with one of its senior managers “ scheduled to meet with Paul Achleitner ” in a few days .
The SAR adds @ @ @ @ @ @ @ be addressed ” with the bank ’ s CEO at the time , John Cryan .
On Jan. 29 , a Deutsche executive overseeing compliance gave Bank of America officials assurances that their questions would be answered .
On Feb. 11 , Bank of America filed its SAR on Deutsche .
It wrote to the government that it did not yet have “ sufficient information to assess the adequacy of the Deutsche Bank ’ s current control environment.
” Bank of America declined to comment for this story .
Asked about the SAR @ @ @ @ @ @ @ review of the situation indicates that the events did not take place as implied.
” It added : “ It would not have been the place of Paul Achleitner to get involved managing the interactions with Bank of America , nor do we have any record of him doing so.
” The bank declined to make Achleitner available for an interview .
Weeks later , the Financial Conduct Authority , the UK financial regulator that had been conducting a confidential review of Deutsche , sent a set of disturbing findings to the bank @ @ @ @ @ @ @ on financial crime had been lacking for a considerable period of time ” at the bank and that managers had put the pursuit of profit above its responsibilities to fight money laundering .
It said it found evidence of “ financial crime risk being overridden by commercial drivers and in some cases a willingness to take on very profitable clients , regardless of financial crime risks.
” The regulator said there was a “ significant risk ” that money laundering at the bank was “ going unreported or undetected.
” To those within @ @ @ @ @ @ @ news .
In October 2015 , Deutsche had hired consultants from the accounting giant Deloitte to figure out what had gone wrong .
Deloitte interviewed staffers , combed through emails , and examined trading data .
The bank laid the blame on Tim Wiswell , an American who ran the Deutsche Moscow trading desk .
But according to a copy of the Deloitte report obtained by Süddeutsche Zeitung , there were systemic failings at the bank .
Going into detail on the Moscow audit , the report described how the team had given @ @ @ @ @ @ @ auditors hadn ’ t properly tested the office ’ s money laundering prevention system .
The report concluded that audits conducted by the division had “ severe shortcomings ” from 2012 onward .
Sewing , while not named in the report , was head of audit at the bank from June 2013 to December 2014 .
He then joined the bank ’ s management board , where his responsibilities included the audit division for another six months .
The report also did not name Achleitner specifically .
But it described instances when concerns @ @ @ @ @ @ @ to board committees on which he sat .
The problem of understaffing was raised repeatedly , and Deloitte concluded that the bank ’ s compliance teams had been “ undermined by limited allocated resources.
” Deloitte also found that the bank ’ s transaction monitoring software had issued 108 alerts about the mirror trading companies between 2011 and 2015 .
Nonetheless , during that time Deutsche kept the transactions moving .
Following its investigation into Deutsche and the mirror trades , the New York State Department of Financial Services determined that “ greed @ @ @ @ @ @ @ bank ’ s Moscow employees .
In a consent order that resulted in a fine for the bank , the department said there was evidence of around $ 3.8 million of alleged bribes going to one of the Moscow bankers and a close relative .
State and federal law enforcement authorities have never charged anyone at Deutsche in relation to the mirror trades .
Inside Deutsche , the bank sacked three people who had worked on the Moscow office audits .
Deutsche said that “ most senior managers referenced in the internal investigative @ @ @ @ @ @ @ ” “ Consequences have been taken where and as appropriate , including on the management board level , ’ ’ the bank ’ s spokesperson said .
The spokesperson defended the actions of the supervisory board , saying it “ diligently exercised its oversight responsibility.
” Achleitner remains in power at Deutsche .
In 2018 , his board forced out CEO John Cryan after a short three-year reign , citing sagging profits .
On a Sunday evening that April , Achleitner presented Deutsche ’ s board with his choice for a new CEO @ @ @ @ @ @ @ so desperately needed : Christian Sewing .
The board approved .
●

When Robert Meltzer, who runs gyms for children in Los Angeles, found that more than $60,000 in payroll taxes — half a year’s worth — had gone missing in 2013, it was too late.
When something similar happened to Stanford Media Group, a company that sold CDs and DVDs online, Mark Gilula said he was forced to lay off employees. He said the stress contributed to his heart attack.
And when Maureen Sullivan, an architect, went looking for answers about the $111,000 that evaporated from her accounts, she said her inquiries with the police “basically went into a black hole.”
What none of these small business owners could have known was that their losses were linked to one of the most infamous international banking scandals on record.
The bookkeeper who handled their payroll allegedly embezzled their money and injected it into a notorious scheme used by crime bosses, terrorist financiers, and drug cartels. The participants laundered $10 billion of illicit money into nice clean cash.
It all happened with the help of Deutsche Bank, Germany’s biggest financial institution and one of the biggest lenders to Donald Trump. But when the enormous scandal broke, Deutsche blamed it on a few middle-level staffers in its Moscow office, paid a fine, and got back to business.
The FinCEN Files investigation reveals that Deutsche managers, including top executives, had direct knowledge for years of serious failings that left the bank vulnerable to money launderers. Documents show two warnings sent to committees that included Paul Achleitner, Deutsche’s chair, and one sent to the bank's supervisory board.


buzzfeed--2020-09-21--Here Is How Banks Have Responded To The FinCEN Files Investigation

“ This is not new information to us or our regulators .
The presented issues which relate to Deutsche Bank date back to the years prior 2016 , we ourselves reported them to our regulators and authorities and they have been to a larger part reported on by the media .
We acknowledged past weaknesses in our control environment , we apologized for this and accepted our respective fines .
Most importantly : we learnt from our mistakes , systematically tackled the issues and made changes to our business perimeter , our controls , and our personnel .
Many of @ @ @ @ @ @ @ which regulators and authorities lauded the bank ’ s cooperation and remediation publicly .
We have engaged in disciplinary consequences including on management board level when the facts warranted it .
We worked and still work constructively together with the authorities .
We have invested almost $ 1 billion in improved controls , trainings and operational processes , and have increased our anti-financial crime team to over 1,500 people .
We plan to continue to increase this number further .
We are a different bank now . ''
On SARs : “ Legal @ @ @ @ @ @ @ discussing potential SARs .
This would be a criminal violation of US ( and other ) law .
Banks file SARs on a regular basis in accordance with our legal obligations and as part of our partnership with regulators and law enforcement to protect the global financial system .
We thus help the authorities to catch and prosecute those engaged in criminal activity .
Deutsche Bank is actively monitoring for suspicious conduct and shares relevant findings with the authorities.
” “ The fight against financial crime , money laundering and capital flight has @ @ @ @ @ @ @ financial institutions alike .
The world ’ s leading financial institutions , including Deutsche Bank , have invested billions of dollars to more effectively support authorities in this effort .
Naturally , this leads to increased detection levels .
At Deutsche Bank we have devoted significant resources to strengthening our controls and we are very focused on meeting our responsibilities and obligations .
This also includes implementing risk mitigants and , where appropriate , off-boarding customers and correspondent banking relationships .
The ICIJ has reported on a number of historic issues .
Those @ @ @ @ @ @ @ to our regulators .
The issues have already been investigated and led to regulatory resolutions in which the bank ’ s cooperation and remediation was publicly recognized .
Where necessary and appropriate , consequence management was applied .
The bank has devoted significant resources strengthening its controls and we are extremely focused on meeting our responsibilities and obligations .
To the extent that information referenced by the ICIJ is derived from SARs , it should be noted that this is information that is pro-actively identified and submitted by banks to governments pursuant to @ @ @ @ @ @ @ potential issues , not proven facts.
” “ We take our responsibility to fight financial crime extremely seriously and have invested substantially in our compliance programmes .
Standard Chartered has nearly 2,000 staff worldwide dedicated to preventing , detecting and reporting suspicious transactions , and all staff are trained in sanctions and anti-money-laundering compliance .
In addition to investing to ensure we meet our regulatory obligations , we are active in public-private partnerships to help fight financial crime and raise industry standards .
As a result of the investments and improvements we have @ @ @ @ @ @ @ publicly acknowledged that the Group has undergone a comprehensive and positive transformation over the last several years .
`` In 2019 we monitored more than 1.2 billion transactions for potential suspicious activity and screened more than 157 million transactions for compliance with applicable sanctions requirements .
The reality of the global financial system is that there will always be attempts to launder money and evade sanctions ; the responsibility of banks is to build effective screening and monitoring systems and we work closely with regulators and law enforcement to bring perpetrators to justice.
@ @ @ @ @ @ @ commenting on most of the details in your inquiry . ''
`` You asked us about our 2014 'How We Do Business ' report and specifically about foreign correspondent banking .
As we noted in that report , we exited several hundred foreign correspondent banks while we upgraded our control environment and systems .
We acknowledged in that 2014 report that our existing AML controls needed improvement , and have since devoted considerable resources to comply with the laws and regulations governing anti-money laundering , terrorist financing and economic sanctions .
Today , @ @ @ @ @ @ @ of dollars are devoted to helping support law enforcement and national security efforts .
JPM has taken a leadership role in AML reform to drive the regime towards more proactive intelligence-led investigations and develop innovative techniques to help combat financial crime . ''
“ We do not comment on suspicious activity reporting .
All of the information provided by the ICIJ is historic and predates the conclusion of our Deferred Prosecution Agreement ( DPA ) in 2017 .
Starting in 2012 , HSBC embarked on a multi-year journey to overhaul its ability to @ @ @ @ @ @ @ jurisdictions .
During that period , the Monitor fulfilled his role of identifying issues and making recommendations for improvement , and concluded that HSBC became a safer bank each year as a result of the Bank ’ s efforts .
At the end of 2017 , the Justice Department , having received all of the Monitor ’ s reports , determined that HSBC met all of its obligations under the DPA .
HSBC is a much safer institution than it was in 2012.
” “ In 2012 , we launched our Global Standards @ @ @ @ @ @ @ place the most effective standards to combat financial crime across our operations globally .
As part of this effort , we designed and implemented new , globally consistent policies on AML and sanctions that often extend beyond the requirements of local laws and regulations .
Among other steps , we hired experienced senior personnel to lead the effort and significantly increased our financial crime compliance capabilities ; we put in place a robust investigations capability ; we improved and expanded our financial crime compliance training initiatives ; and we upgraded or replaced key @ @ @ @ @ @ @ 1bn spent since 2015 .
We also increased the number of staff in our financial crime compliance function from a few hundred in 2012 to around 5,000 in 2017 .
In parallel with our reforms , we dramatically reduced our financial crime risk profile , exiting jurisdictions , curtailing business in other jurisdictions and closing the accounts of existing customers .
`` The goal of any financial crime compliance programme is to detect and prevent financial crime .
One way we do that is through transaction monitoring and sanctions screening .
Each month @ @ @ @ @ @ @ across 236 million accounts for signs of money laundering and financial crime .
In addition , we screen approximately 131 million customer records and 40 million transactions monthly for sanctions exposures .
During 2019 , we filed almost 50,000 suspicious activity reports to law enforcement and regulatory authorities where we identified potential financial crime .
`` Though we have made significant improvements in our financial crime compliance programme , we are continually seeking ways to improve .
That includes investing in and developing new technologies that we believe will enable us to make @ @ @ @ @ @ @ financial crime by allowing us to detect potentially illicit conduct with greater precision than traditional technologies allow .
`` Our global social network analytics platform , which we launched in 2018 , enables us to identify links between different customers and transactions , making it easier to see where there might be criminal networks .
In 2019 , the platform won two industry awards : the Celent Model Bank Award for Risk Management and The Banker ’ s Tech Project Award for Compliance .
In August 2019 , we became the first bank @ @ @ @ @ @ @ screen all our trade finance transactions for potential signs of financial crime.
” '' 1 .
Financial crime weakens financial institutions and we have a shared interest , in addition to our legal obligations , to prevent it .
The potential financial , legal , regulatory and reputational damage to any institution from financial crime is intense .
`` 2 .
Suspicious Activity Reports ( SARs ) are a key part of the process by which law enforcement agencies gather evidence on possible financial crime matters .
In common with other banks , @ @ @ @ @ @ @ other similar reports globally each year – this is a common and required practice in the financial services industry .
`` 3 .
Financial institutions must file SARs on any activity that appears suspicious .
SARs are not however themselves evidence of criminal conduct and simply reflect a snapshot taken at a particular point in time of the information then available .
In the majority of cases , we continue to investigate and monitor account activity after SARs are filed , at times working in conjunction with law enforcement agencies .
In most @ @ @ @ @ @ @ SARs are filed .
`` 4 .
Financial crime is , by its nature , complex and difficult to detect .
We analyse information about our clients and their activities over time .
Criminal activity which may seem obvious with hindsight is often only uncovered as a result of careful evidence gathering after the event in question has occurred or after a SAR has been filed .
`` 5 .
If we conclude we have financial crime concerns , we take appropriate action and have done so in numerous cases over the years @ @ @ @ @ @ @ client relationships is not something we take lightly .
Given the filing of a SAR is not itself evidence of any actual wrongdoing , we would only terminate a client relationship after careful and objective investigation and analysis of the evidence , balancing potential financial crime suspicions with the risk of ‘ de-banking ’ an innocent customer and our obligation to treat customers fairly .
`` 6 .
You will be aware that there are various initiatives to improve the degree of transparency around how corporates and other structures hold money around the @ @ @ @ @ @ @ by the major banks and they should make the process of due diligence on clients a lot easier .
`` 7 .
U.S. criminal law prohibits the unauthorised disclosure of SARs or information about SARs .
We are therefore not permitted to comment on whether a SAR has been filed , or on the contents of any SAR that may have been filed , even when the SARs in question may have been publicly disclosed .
We are also not permitted to comment on individuals or businesses , including to confirm whether they @ @ @ @ @ @ @ We are therefore unable to comment on the specific points in your letter .
`` 8 .
But for the avoidance of doubt , we believe that we have complied with all our legal and regulatory obligations including in relation to U.S. sanctions .
We would also refer you to the report by the U.S. Senate Permanent Subcommittee of Investigations entitled 'The Art Industry and U.S. Policies that Undermine Sanctions ' , published on 29 July 2020 .
That report covers many of the issues raised in your letter and highlights the extensive @ @ @ @ @ @ @ also our significant cooperation with relevant authorities . ''
“ We can not comment specifically on these matters as they are part of ongoing investigations by the authorities .
However , as we have previously said , it is clear that we should have never had that portfolio of non-resident customers .
It is also clear that we were too slow in realising the extent of the issues and to close it down .
Combating financial crime and money laundering is a key priority for Danske Bank .
Overall , we are now @ @ @ @ @ @ @ combating financial crime and money laundering than when the situation in Estonia developed between 2007 and 2015 and have terminated the non-resident portfolio of customers in Estonia .
We have significantly increased our resources dedicated to compliance and combating financial crime across the bank and have invested heavily in IT systems .
We will continue to invest in the area and strengthen the knowledge and culture of compliance across the bank to continue to improve our financial crime defences.
” '' Please understand that , due to banking secrecy and the Money Laundering @ @ @ @ @ @ @ actual or non-existing customer relationships .
`` Compliance is a high priority at Commerzbank .
Since 2015 , we have invested a total of more than 800 million Euros in the area of compliance , thereby strengthening the global compliance management system in a targeted effort .
We use this to prevent and uncover illegal activities .
At the same time , we have provided targeted training for our employees and significantly increased the number of employees .
`` The fact that we take compliance seriously is also demonstrated by the fact that @ @ @ @ @ @ @ monitor used by U.S. authorities within a short period of time .
`` We use the findings from monitoring transactions and customers to further reduce our risks .
`` Suspicious transactions are reported to the relevant authorities as part of our regular transaction monitoring .
`` As early as 2013 , we discontinued our global banknote trading activities , i.e .
the supply and safekeeping of banknotes , due to business policy considerations .
In addition , we have significantly reduced the number of international partner and correspondent banks since 2015 .
Apart @ @ @ @ @ @ @ , regulatory requirements played an important role in this context .
“ Since 2015 we have invested extensively in our compliance and are implementing the regulatory requirements .
The number of international partner and correspondent banks of Commerzbank is currently in the low four-digit range .
Please understand that we will not comment any further.
” “ First of all , we would like to stress , that VEB.RF Group companies have never been involved in any illegal activities .
We should also note that we have never been approached by U.S. ( @ @ @ @ @ @ @ to the allegations made in your letter , although some of them date back a decade .
`` According to your letter , the investigation is based on 'thousands of suspicious activity reports ' ( SARs ) .
We note that unauthorized disclosure of SARs is a serious crime .
To that end we would point you to a statement by the Financial Crimes Enforcement Network made in response to information about various media intending to publish a series of articles based on unlawfully disclosed SARs and other sensitive US government documents .
@ @ @ @ @ @ @ that 'the unauthorized disclosure of SARs is a crime that can impact the national security of the United States , compromise law enforcement investigations , and threaten the safety and security of the institutions and individuals who file such reports ' .
`` Moreover , we can not verify the authenticity of the SARs that you have presented in your request , as there has never been any similar requests from the US authorities , any public or private body .
Given the serious issues raised by the illegal disclosures of the SARs @ @ @ @ @ @ @ for VEB to be involved in the preparation of the article you intend to publish , including by commenting on the allegations made therein .
Nor do we think it is appropriate to publish an article containing these illegal disclosures.
” Bank of China did not respond to requests for comment .
“ Wells Fargo has robust anti-money laundering policies and procedures in place , and we follow all applicable financial crimes-related laws and regulations .
We are unable to provide any further comment.
” “ It does not make sense that the @ @ @ @ @ @ @ hid illegal activity consisted solely of Suspicious Activity Reports that those banks filed alerting law enforcement to that very activity .
Clearly , there is more to this story , but unfortunately the reporting failed to unearth it , and the banks are legally prohibited from telling their side .
In some cases , if the past is any guide , that story likely includes law enforcement asking a bank to keep open an account it has identified as suspicious so that law enforcement can track where the money is going and gather @ @ @ @ @ @ @ conviction .
”

Barclays:
"1. Financial crime weakens financial institutions and we have a shared interest, in addition to our legal obligations, to prevent it. The potential financial, legal, regulatory and reputational damage to any institution from financial crime is intense.
"2. Suspicious Activity Reports (SARs) are a key part of the process by which law enforcement agencies gather evidence on possible financial crime matters. In common with other banks, we typically file thousands of SARs and other similar reports globally each year – this is a common and required practice in the financial services industry.
"3. Financial institutions must file SARs on any activity that appears suspicious. SARs are not however themselves evidence of criminal conduct and simply reflect a snapshot taken at a particular point in time of the information then available. In the majority of cases, we continue to investigate and monitor account activity after SARs are filed, at times working in conjunction with law enforcement agencies. In most cases, accounts are not closed after SARs are filed.
"4. Financial crime is, by its nature, complex and difficult to detect. We analyse information about our clients and their activities over time. Criminal activity which may seem obvious with hindsight is often only uncovered as a result of careful evidence gathering after the event in question has occurred or after a SAR has been filed.
"5. If we conclude we have financial crime concerns, we take appropriate action and have done so in numerous cases over the years. As you will appreciate, terminating client relationships is not something we take lightly. Given the filing of a SAR is not itself evidence of any actual wrongdoing, we would only terminate a client relationship after careful and objective investigation and analysis of the evidence, balancing potential financial crime suspicions with the risk of ‘de-banking’ an innocent customer and our obligation to treat customers fairly.
"6. You will be aware that there are various initiatives to improve the degree of transparency around how corporates and other structures hold money around the world. We think these are supported by the major banks and they should make the process of due diligence on clients a lot easier.
"7. U.S. criminal law prohibits the unauthorised disclosure of SARs or information about SARs. We are therefore not permitted to comment on whether a SAR has been filed, or on the contents of any SAR that may have been filed, even when the SARs in question may have been publicly disclosed. We are also not permitted to comment on individuals or businesses, including to confirm whether they are or have been a client. We are therefore unable to comment on the specific points in your letter.
"8. But for the avoidance of doubt, we believe that we have complied with all our legal and regulatory obligations including in relation to U.S. sanctions. We would also refer you to the report by the U.S. Senate Permanent Subcommittee of Investigations entitled 'The Art Industry and U.S. Policies that Undermine Sanctions', published on 29 July 2020. That report covers many of the issues raised in your letter and highlights the extensive investigative work undertaken by Barclays, and also our significant cooperation with relevant authorities."


buzzfeed--2020-09-21--He Was At The Heart Of Two Of The Biggest Dirty Money Scandals In History. These Are His Secrets.

Alexander Perepilichnyy transformed himself from a money launderer to a whistleblower , and then he died .
The company he founded began a new life in the criminal underworld .
A FinCEN Files investigation .
After Alexander Perepilichnyy dropped dead while jogging outside of London , US intelligence concluded that he was likely “ assassinated on direct orders ” from Russian President Vladimir Putin “ or people close to him.
” Perepilichnyy had exposed the Magnitsky fraud , a $ 230 million tax scam by corrupt Russian government officials two years before , which became a flashpoint in US–Russian relations @ @ @ @ @ @ @ .
Perepilichnyy knew about the scam because he had facilitated it , helping to launder the stolen funds into Swiss bank accounts .
He worked with all kinds of dubious clients , from the alleged ringleader of the Magnitsky fraud to funders of Syria 's Assad regime , which has used chemical weapons on civilians .
And even after Perepilichnyy ’ s death in 2012 , a company he founded , Financial Bridge , would become embroiled in one of the largest dirty money fiascos in history .
In what became known as @ @ @ @ @ @ @ moved at least $ 10 billion over four years through some of the most prestigious banks in the world .
During that time there were at least three internal alerts at Deutsche Bank about Financial Bridge — and more than 100 for the mirror trading network .
But Deutsche never halted the flow of illicit funds .
The inside story of how Deutsche kept moving the dark money and kept raking in fees — exposed today in the FinCEN Files , a joint investigation between BuzzFeed News and the International Consortium of Investigative @ @ @ @ @ @ @ of the biggest financial crimes in history .
But it also sheds light on how illicit cash is siphoned out of the former Soviet republics and into the mainstream banking system .
Perepilichnyy and Financial Bridge serve as prime examples .
After Perepilichnyy transformed himself from a money launderer to a whistleblower , Financial Bridge did not disappear — instead it found a new life in the criminal underworld .
In October 2012 — a month before Perepilichnyy ’ s death — it was taken over by two anonymous shell companies .
Soon @ @ @ @ @ @ @ held accounts with , Danske Bank , that it had two new “ beneficial owners , ” records obtained by L ’ Espresso and ICIJ show .
One was a security consultant named Igor Marakin .
US authorities have linked a company he controls to the Russian mafia .
Financial Bridge was a key part of the mirror trading scandal .
The money laundering gang moved illicit cash for criminals and terror financiers , according to a secret US government report .
Had the banks acted forcefully in the wake of Perepilichnyy ’ @ @ @ @ @ @ @ a crimp in Financial Bridge ’ s plans and perhaps even halted one of the decade ’ s biggest financial scandals years before it unfolded .
The scheme was uncovered four years later in 2016 , and the following year authorities in the US and UK fined Deutsche Bank $ 630 million for its role .
Mirror trades are permitted under the law , but they can be manipulated for illegal purposes such as money laundering .
A spokesperson for Deutsche noted that the mirror trading network “ was criminal action by individuals @ @ @ @ @ @ @ the US and Europe had praised the bank for being “ exceptionally cooperative ” with their investigations .
Since the scandal hit , the bank has “ committed significant resources ” to stopping money laundering , the spokesperson said .
Danske Bank declined to comment on Financial Bridge , but acknowledged its own 200 billion euro money laundering scandal .
“ We were too slow in realising the extent of the issues and to close it down , ” said Philippe Vollot , its chief compliance officer , in a statement .
Marakin @ @ @ @ @ @ @ mirror trading network is laid out in a secret intelligence report , written by analysts at the US Treasury Department ’ s Financial Crimes Enforcement Network and shared by BuzzFeed News with ICIJ .
The report , marked “ Law Enforcement Sensitive , ” warned that the network “ highlights a vulnerability in the global securities market for money laundering.
” Using a mix of bank data and other intelligence , it detailed how the network allegedly conducted billions of dollars ’ worth of trades , some on behalf of “ illicit actors.
@ @ @ @ @ @ @ , according to the report , were four Russians who used a series of banks and brokerages to transfer “ billions of dollars per year ” for a “ fee of up to five percent.
” According to the report , they used Russian rubles to buy stock in large companies , then immediately transferred the shares to Europe and sold them on for dollars , euros , or pounds — allowing them to change large currency sums without the usual oversight from the authorities .
Two of the four Russians , Alexei @ @ @ @ @ @ @ in Promsberbank , where President Putin ’ s cousin Igor was a director .
Millions of dollars were stolen from the bank .
Bankruptcy documents from Promsberbank show that money had been siphoned into the mirror trading network .
Kulikov was jailed for his role in the Promsberbank theft .
Belousov ’ s whereabouts are unknown .
Neither responded to requests for comment .
Another alleged key figure in the scheme , the Russian financier Andrei Babenko , is now in Israel where he has worked in the cryptocurrency industry .
The fourth @ @ @ @ @ @ @ , according to his LinkedIn profile .
Both Babenko and Gorbatov denied involvement in the network in interviews with BuzzFeed News .
Marakin was a director or owner of at least three companies in the mirror trading network , including one that sent cash to a firm controlled by Lazar Shaybazian , who was barred from the US financial system in 2012 for his work with Vladislav “ Blonde ” Leontyev , described by US authorities as a Russian mobster and a high-level narcotics trafficker .
The government has declared that Shaybazian and @ @ @ @ @ @ @ the “ Brothers ' Circle , ” a network of Eurasian criminals linked to drugs , human trafficking , and violence around the world .
Shaybazian did not respond to requests for comment .
Leontyev said he had been wrongly targeted by US sanctions and did not know Shaybazian .
All these transactions occurred behind closed doors while another saga played out in public : Was Perepilichnyy assassinated and , if so , was that murder linked to his disclosures of Russian money laundering ?
In 2017 , a BuzzFeed News investigation revealed @ @ @ @ @ @ @ high confidence ” that Perepilichnyy was assassinated by agents linked to Russia .
The coroner ’ s investigation , which had been held up for years by UK government requests to keep information about his death secret , ultimately said that Perepilichnyy “ likely ” died from natural causes but that it was not possible to rule out that he was killed .
The proceedings were overshadowed by revelations of an inadequate police investigation into Perepilichnyy ’ s death .
The police admitted they had lost hard drives of financial data belonging to @ @ @ @ @ @ @ inquest that the drives could have shed further light on the risks Perepilichnyy faced .
Earlier this year , in a UK government review into Russian interference in the country , officials gave evidence to Parliament about a series of suspicious deaths , including Perepilichnyy ’ s .
But the evidence was withheld from the public for national security reasons .
Igor Marakin did not respond to requests for comment .
Images online show him partying and learning to fly .
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After Alexander Perepilichnyy dropped dead while jogging outside of London, US intelligence concluded that he was likely “assassinated on direct orders” from Russian President Vladimir Putin “or people close to him.” Perepilichnyy had exposed the Magnitsky fraud, a $230 million tax scam by corrupt Russian government officials two years before, which became a flashpoint in US–Russian relations and led to sanctions against Russian officials.
Perepilichnyy knew about the scam because he had facilitated it, helping to launder the stolen funds into Swiss bank accounts. He worked with all kinds of dubious clients, from the alleged ringleader of the Magnitsky fraud to funders of Syria's Assad regime, which has used chemical weapons on civilians. And even after Perepilichnyy’s death in 2012, a company he founded, Financial Bridge, would become embroiled in one of the largest dirty money fiascos in history.
In what became known as the mirror trading scandal, money launderers moved at least $10 billion over four years through some of the most prestigious banks in the world. During that time there were at least three internal alerts at Deutsche Bank about Financial Bridge — and more than 100 for the mirror trading network. But Deutsche never halted the flow of illicit funds.
The inside story of how Deutsche kept moving the dark money and kept raking in fees — exposed today in the FinCEN Files, a joint investigation between BuzzFeed News and the International Consortium of Investigative Journalists — reveals new information about one of the biggest financial crimes in history.
But it also sheds light on how illicit cash is siphoned out of the former Soviet republics and into the mainstream banking system. Perepilichnyy and Financial Bridge serve as prime examples.