Nordea in AML trouble in Denmark, Panama Papers probe ends in whimper, Russia leans in on crypto and ML in property highlighted in US and Holland

Danish prosecutors will commence court proceedings against Nordea in an earlier disclosed anti-money laundering matter, the Finland-based bank admitted this morning (Friday). However, the bank said it is contesting the allegations. "Based on Nordea's interpretation of Danish law, Nordea does not agree with the content of the charges nor the legal assessment," the bank asserted in a statement. We have the story for Members on AML Intelligence today.

INTERNATIONAL MONEY LAUNDERING

PANAMA PAPERS: Where were you when the Panama Papers were released? The publication on 3 April 2016 of the first of millions of leaked documents, which exposed the financial dealings of a slew of high-profile politicians and celebrities, was a seminal moment in the world of AML. In a world of alternative truths, José Raúl Mulino, Panama’s new president, hailed a series of acquittals in connection with the Panama Papers.

Earlier this week a Panamanian court released all 28 individuals charged with money laundering as a result of the papers, finding that there were problems with how evidence was collected. Mr Mulino seized on the incident, claiming it showed how the controversy had been an “international tall tale” used to undermine Panama’s “image and competitiveness”. Rightly so, the journalists behind the papers have said that while the courts did not find those charged accountable, “the enduring impact of our investigation persists”.

RUSSIA: Russia’s central bank has proposed easing cryptocurrency oversight. to help with its sanctions circumvention and war effort. Governor Elvira Nabiullina said it has “softened” its stance on the assets and will now allow the use of cryptocurrencies in international payments. While the news is likely to cause some alarm, perhaps countries such as the U.S. should be grateful that the move is being voiced at all. Andrei Kostin, head of Russia’s second-largest lender VTB, said figures in the “U.S. embassy” are likely noting all the country’s public statements and said future information on how international payments work in Russia should be a “state secret" by law.

U.S. REAL ESTATE: Speaking of the U.S., American officials are becoming increasingly uneasy with the relationship between dirty money and their country’s property market. FinCEN, the U.S. Treasury’s financial crimes unit, published new guidelines earlier this year which would require tighter monitoring of residential real estate sales. However, there also appears to be a major problem on the commercial side of the real estate market. A new study by several NGOs looked at 25 cases where such properties were used to launder illicit funds.

It found that in two-thirds of cases, shell or holding companies were used to obscure the identities of the ultimate owner. The revelation will lend further weight to the calls for a beneficial ownership register for U.S. property, as too many companies still do not know who they are truly doing business with.

International Anti-Financial Crime Summit 2024 takes place in London on October 9 next. The summit will hear from top banking, regulator, fintech and law enforcement leaders from the UK, EU and North America. The conference is designed for AFC decision-makers motivated by a desire to be professionally successful. Are you attending? Book your place here: International Anti-Financial Crime Summit 2024

FINES

SPAIN: Officials in Sepblac, Spain’s FIU, can look back on a good 2023 after it was revealed that AML fines doubled during the year despite a drop in inspections. Penalties of €57 million were dished out during the 12 month period. This was double the €27.5 million imposed in 2019, despite on-site inspections halving. The organisation’s approach of casting a narrower net, focusing more closely on riskier financial institutions, seems to be paying dividends.

FIUs

GERMAN, ITALIAN CO-OPERATION SMASHES MAFIA GAMING RING: Also celebrating a win were officials in Italy and Germany. A man had transferred €109,000, alleged to be cash sourced from an illegal Mafia-linked gambling operation, from Italy to Germany. Acting on a tip-off from Germany’s FIU (Financial Intelligence Unit), Italy’s FIU got a court order and seized the funds.In a slightly unusual message posted on LinkedIn bordering on the colloquial, the German organisation hailed the international cooperation and part-quipped: “The perpetrator probably mistakenly thought that his assets were safe in Germany!”

DUTCH FIU: In the Netherlands, the FIU hailed cooperation with Triodos Bank, Knab, ING, ABN AMRO, Rabobank and de Volksbank on a new money laundering methodology called the Cash Compensation Model. CCM describes how criminal cash is used to (partially) pay staff in labour-intensive sectors such as healthcare, parcel delivery and construction via (a chain of) subcontractors. “There are indications that this method leads to labour exploitation. It also encourages unfair competition,” the FIU said.

☝️ We have special offers for Individual and Corporate Members. Your Chief Compliance Officer, Department Head, or Chief Librarian can contact us about our Enterprise Membership for your organisation. Please reach out to James Treacy at jtreacy@amlintelligence.com for further information.

Join the world’s fastest-growing FinCrime community and become an AML Intelligence member.

Subscribe now

Have a great weekend 👋

Stephen and the team at AMlintelligence.