Laundered Russian Cash Went Through Big Banks

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British banks handled vast sums of laundered Russian money. Billions of dollars were moved out of Russia in ‘Global Laundromat’ operation, with anonymously owned UK companies playing major role.

Britain’s high street banks processed nearly $740m from a vast money-laundering operation run by Russian criminals with links to the Russian government and the KGB, the Guardian can reveal.

HSBC, the Royal Bank of Scotland, Lloyds, Barclays and Coutts are among 17 banks based in the UK, or with branches here, that are facing questions over what they knew about the international scheme and why they did not turn away suspicious money transfers…..theguardian.com

The Global Laundromat: where the money went

OCCRP/Laundromat

Italy: Online Poker Chiefs Lose Big: 52 years

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An Italian court sentenced on Wednesday
two generations of a Ndrangheta-linked family to a total of more than 52 years in prison for running an illegal on-line gambling empire worth over US$ 65 million.

At the end of a three year-long trial, the Bologna Court sent Nicola Femia, 56, behind bars for 26 years and 10 months for running the mafia-type gambling business. His son Nicola Rocco, 26, received a 15-year jail term, while his daughter Guendalina, 32, was handed a 10-year and three months sentence.

The family controlled poker and casino websites that were hosted in Romania and the United Kingdom but operated in Italy without national license.The groups’ counterfeit slot machines in bars and shops provided access to the virtual casinos, according to the investigators….OCCRP report

New Insights Into The Offshore World

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In October 2016, Andreas Frank*, an expert on money laundering, visited the Bahamas to take a look behind the scenes of the offshore world. Mr Frank was kind enough to share his field report with us, which you can scroll through below and download here.

Some introductory words on the report by Mr Frank:

“When it comes to offshore companies, the novel aspect we see here is that banks created these companies with the purpose of letting third parties use them to disguise financial transactions. The point here is that these banks do not simply facilitate tax evasion and money laundering – they actively initiate, promote and support the criminal activities of their clients.

In our case here a bank in the Bahamas established an International Business Company (IBC). The ICB’s directors were directors of a Swiss bank in Geneva, which in turn was the mother of the bank in the Bahamas.

An IBC has no employees, offices, telephones, or e-mail. An IBC has no bookkeeping nor is it required to produce an annual report, nor is it being audited. An ICB does not have to pay any taxes. With a nominal capital of below $ 50 000 only an annual government fee of $ 350 has to be paid. An IBC is not subject to any minimum capital requirements. $ 100, as in the case of Ms Kroes, suffices.

The IBC we are concerned with here, controlled by a Swiss bank, was ordered by a third party, a Swiss wealth manager from Geneva, to transfer several million euros to a Swiss fiduciary. Following the order, the Swiss bank transferred the requested amount to the account of the fiduciary. From there, the fiduciary had the money transferred, via a German bank, to a company in Cologne, Germany.”   New insights into the offshore world

*Andreas Frank:  Former banker with Goldman Sachs and HSBC,with in-depth knowledge of the financial sector. Internationally recognized independent expert in the field of Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Currently serving as an advisor to the Bundestag and the Council of Europe.


2017-02-Report-Government-of-The-Bahamas

See also: Frauen und Kinder leiden unter Korruption/ Woher stammt das Geld?

Deutsche Bank fined $630m over Russia money laundering claims

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Deutsche Bank has been fined $630m (£504m) by US and UK regulators in connection with a Russian money laundering plan. Authorities in US and UK issue fine after saying bank used offices in Moscow and London to move $10bn out of country.

Under the scheme, clients illegally moved $10bn out of Russia via shares bought and sold through the bank’s Moscow, London and New York offices.

Authorities said Deutsche had missed “numerous opportunities” to detect, investigate and stop the scheme. Deutsche Bank said it was co-operating with regulators. It also said it had put aside money to cover the cost of the settlement.

During the investigation, New York authorities and Britain’s Financial Conduct Authority (FCA) found that so called “mirror” trades had been carried out through the bank between 2011 and 2015. Clients would purchase stocks in roubles in Moscow before their counterparts sold the same stock at the same price through the bank’s London branch.

The Financial Conduct Authority imposed its largest ever fine – £163m – for potential money laundering offences on Germany’s biggest bank, which it said had missed several opportunities to clamp down on the activities of its Russian operations as a result of weak systems to detect financial crime between 2012 and 2015.

The US regulator, the New York Department of Financial Services, also fined the bank $425m as it listed problems at Deutsche including one senior compliance officer stating he had to “beg, borrow, and steal” to receive appropriate resources to combat money laundering. It has imposed a monitor inside the bank for two years.

Harm Bengen
www.w-t-w.org/en/harm-bengen
www.harmbengen.de

Corruption Perceptions Index 2016

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Let’s get straight to the point: No country gets close to a perfect score in the Corruption Perceptions Index 2016.

Over two-thirds of the 176 countries and territories in this year’s index fall below the midpoint of our scale of 0 (highly corrupt) to 100 (very clean). The global average score is a paltry 43, indicating endemic corruption in a country’s public sector. Top-scoring countries (yellow in the map below) are far outnumbered by orange and red countries where citizens face the tangible impact of corruption on a daily basis.
Corruption Perceptions Index 2016

Corruption and inequality: How Populists Mislead People

Marilena Nardi
www.w-t-w.org/en/cartoon/marilena-nardi

Inequality Crisis Is Far Bigger Than We Had Feared

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Oxfam highlights world inequality ahead of WEF Davos summit.

The eight richest businessmen own as much as half the world’s population, 3.6 billion people, according to the Oxfam Inequality is “more shocking than ever before” the aid group said.  In its Report, Oxfam called for an overhaul of what it described as a “warped” economy which allowed eight billionaires to own as much wealth as half of the world’s population, or 3.6 billion people.

The report was published on Monday, a day ahead of the start of the World Economic Forum WEF for the world’s politicians and business leaders in the ski resort of Davos in the Swiss Alps.

But how big the inequality gap is it? Check it by the numbers:

  1. Just eight men own the same wealth as the 3.6 billion people who make up the poorest half of humanity. None of them has earned his fortune through talent or hard work, but by inheritance or accumulation through industries which are prone to corruption and cronyism.
  2. Seven out of 10 people live in a country that has seen a rise in inequality in the last 30 years.
  3. The richest are accumulating wealth at such an astonishing rate that the world could see its first trillionaire in just 25 years. So, you would need to spend $1 million every day for 2738 years to spend $1 trillion.
  4. Extreme inequality across the globe is having a tremendous impact on women’s lives. Employed women, who face high levels of discrimination in the work place, and take on a disproportionate amount of unpaid care work often find themselves at the bottom of the pile. On current trends, it will take 170 years for women to be paid the same as men.
  5. Corporate tax dodging costs poor countries at least $100 billion every year. This is enough money to provide an education for the 124 million children who aren’t in school and prevent the deaths of at least six million children thanks to health care services.

    Waldemar Mandzel
    www.w-t-w.org/en/waldemar-mandzel
    www.w-mandzel.de

Rex Tillerson directed Offshore Company used in Russia Deals

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The ExxonMobil chief nominated by Donald Trump to be Secretary of State was a director of an offshore company that had close dealings with Russia.

Tillerson was appointed in 1998 as a director of Exxon Neftegas, an ExxonMobil subsidiary involved in oil and gas operations in Russia, according to leaked documents from the Bahamas corporate registry received by the German newspaper Süddeutsche Zeitung and shared with ICIJ.
Publicintegrity.org/Tillerson directed Offshore Company used Russia-Deals
Offshore Leaks Database

exxon-neftegas-board-of-directors-p1-normal

rex-tillerson

Will Christine Lagarde have to resign?

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IMF chief Christine Lagarde found guilty of ‘negligence’ over huge payout to business tycoon – but escapes jail.

What was Christine Lagarde accused of?
The 60-year-old former corporate lawyer was accused of wrongdoing on two counts: agreeing to the arbitration and failing to challenge the subsequent €404 million (£340 million) award.

In its verdict, the court of three professional magistrates, six senators and six MPs, found no fault in Ms Lagarde’s decision to launch the arbitration procedure. But it found her guilty of “negligence” in choosing not to appeal the arbitration panel’s ruling.
Telegraph
Statement on Legal Proceedings in France Relating to the Managing Director

Kjell Nilsson-Mäki http://hem.bredband.net/makiteckningar/Makibilder/Webbplats/Valkommen.html

Kjell Nilsson-Mäki
http://hem.bredband.net/makiteckningar/Makibilder/Webbplats/Valkommen.html

 

Understanding the Structure of Organized Crime

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Dr. iur. Verena Zoppei has provided a fascinating article on the unconventionality of the structures of organized crime today. Criminals want to ‘clean’ their money.  Professionals, particularly in banking and related industries, help criminals and are part of the new networks.  This article details how this comes about.
Understanding the Structure of Organized Crime

Serious and Organised Crime infiltration
Transcrime.it/MORE/

Unveiling the Structure of Unconventional Organized Crime

Unveiling the Structure of Unconventional Organized Crime  /  Super-Tree Singapore

 

George Soros’ Sponsors Investigative Research

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George Soros’ The Open Society sponsors research like this on the Russian Prosecutor General’s family.

From high-end hotels in Greece to the shore of Lake Baikal in Siberia, the investigation reveals the sources of the Prosecutor General’s sons’  fabulous fortunes – while uncovering a trail of crime and cover-ups (that stretches all the way to the Kremlin).