Here are some of the biggest revelations that came out of the leaked FinCEN reports

Here are some of the biggest revelations that came out of the leaked FinCEN reports
  • Thousands of leaked documents from the Financial Crimes Enforcement Network were shared with hundreds of journalists, revealing how big banks have for years engaged with dirty money. 
  • The agency, which operates under the Treasury Department, compiles “suspicious activity reports” when it detects potential or evident financial crimes.
  • Banks such as JPMorgan Chase, HSBC, and Deutsche Bank facilitated the movement of criminal money even after getting caught, the agency reported.
  • Visit Business Insider’s homepage for more stories.

Thousands of leaked documents shared with hundreds of journalists reveal how some of the world’s biggest banks have for years facilitated the movement of dirty money. 

The documents are part of a collection of files that belongs to the Financial Crimes Enforcement Network (FinCEN), and were first published by BuzzFeed News and the International Consortium of Investigative Journalists.

The agency is in charge of compiling “suspicious activity reports” (SARs) sent to it by banks which suspect financial wrongdoing by their clients.

The documents are distributed and shared with law enforcement and financial intelligence groups around the world. The agency does not require banks to stop dealing with clients who prompted SARs. 

The report said banks such as JPMorgan Chase, HSBC, and Deutsche Bank, among others, engaged with and facilitated the movement of criminal money even after raising their suspicions. 

The files detail movements and transactions for almost two decades, starting from 2000 and continuing into 2017.

Here are some of the biggest revelations to come out of the bombshell report:

A Ponzi scheme to move millions of dollars around the world

HSBC allowed fraudsters involved with WCM777, a Ponzi scheme, to move millions of dollars around the world, the BBC reported. 

The bank was notified by US investigators that the business was a scam, but fraudsters working with WCM777 were still able to move around more than $15 million. At the time of notice, WCM777 was barred from conducting business in three states. 

The Ponzi scheme that ran out of WCM777 victimized thousands of Asian and Latino immigrants, according to the BBC and BuzzFeed News, targeting poor communities in various nations around the world.

Read the full report from the BBC here.

Big banks processed huge transactions affiliated with a politician wanted by Interpol

JP Morgan Chase, along with Bank of America, Citibank, and American Express, processed huge transactions affiliated with a former Kazakhstan mayor wanted by Interpol, BuzzFeed News reported. 

The family of Viktor Khrapunov used JP Morgan Chase to handle millions of dollars in transactions. Khrapunov, the former mayor, ran off to Switzerland but Kazakhstan attached to his charges of bribe-taking, among others.

Putin associate used a big bank to evade sanctions and launder money

A close associate of Russian President Vladimir Putin used Barclays Bank as a way to avoid sanctions and launder money, the BBC reported. 

The United States and the European Union in 2014 imposed sanctions on Arkady Rotenberg, a billionaire close to Putin, restricting him from conducting business with Western banks. 

Barclays has not admitted any wrongdoing. 

Read the full report from the BBC here.

$142 million worth of suspicious transactions

The United Arab Emirates’ central bank in 2011 and 2012 processed $142 million, despite the transactions being labeled as suspicious, the BBC reported.

A British bank noted the activity, flagging it out of suspicion. But the Gunes General Trading, the firm responsible for pushing the transactions through the central bank, continued to use local financial institutions to process them.

Read the full report here.

Movement of money for organized crime, terrorists, and drug traffickers

Deutsche Bank facilitated the movement of money for organized crime, terrorists, and drug traffickers, according to BuzzFeed News.

Managers and top executives at Deutsche Bank knew that the bank was susceptible to criminals seeking money laundering services, according to documents reviewed by BuzzFeed News.

When reached for comment, the bank said it’s “learnt from our mistakes” and billed itself a “different bank” now.

Read the full report here.

LoadingSomething is loading.

XL subscribe to our newsletter banner

Get the latest news and advice on COVID-19, direct from the experts in your inbox. Join hundreds of thousands who trust experts by subscribing to our newsletter.

Send your news and stories to us news@climaxradio.co.uk or newstories@climaxnewsroom.com and WhatsApp: +447747873668.

Before you go...

Democratic norms are being stress-tested all over the world, and the past few years have thrown up all kinds of questions we didn't know needed clarifying – how long is too long for a parliamentary prorogation? How far should politicians be allowed to intervene in court cases? To monitor these issues as closely as we have in the past we need your support, so please consider donating to The Climax News Room.