FinCEN Leaks: Who Benefits From the Disclosure?

FinCEN Leaks: Who Benefits From the Disclosure? by  for Activist Post

More than 100 news organizations from around the world recently released a detailed investigation into the financial corruption enabled by international banks – do Americans even care?

Last weekend, BuzzFeed News, International Consortium of Investigative Journalists, and more than 100 international news organizations released the FinCEN Files investigation detailing how a plethora of international banks are permitting financial transactions linked to drug cartels, human trafficking, and oligarchs. The series gets its name from the US Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) and is based on more than 2,100 leaked “suspicious activity reports” (SARs) and other US government documents.

U.S. law requires SARs be filed to FinCEN when a bank or a financial institution believes transactions moving through their organizations could involve money laundering, insider trading, cyber attacks or various types of fraud. These SARs are typically never revealed to the public and they are not available via Freedom of Information Act requests.

The FinCEN leaks involve more than $2 trillion USD worth of flagged transactions from 1999 to 2017.  While the unprecedented look at SARs does offer a glimpse into the world international finance, the ICIJ says the 2,100 SARs represent less than .02 percent of the more than 12 million filed during this time period.

The transactions involve a wide range of international banks, including JPMorgan, HSBC, Deutsche Bank AG, and VTB Bank. Key highlights from the leaks and subsequent stories involve JPMorgan processing payments for “potentially corrupt individuals and companies in Venezuela, Ukraine and Malaysia”; HSBC laundering Ponzi scheme money ; and a Ukrainian billionaire being paid via Deutchse Bank AG. The ICIJ also includes a list of the billionaires exposed by the leaks. Most of the names will not be familiar to a western audience, save for Paul Manafort, Donald Trump’s former political strategist who was convicted of fraud in 2018. JP Morgan processed more than $50 million in payments for Manafort over a decade that were flagged as suspicious.

One story discovered in the SARs involves North Korea and an apparent money laundering scheme involving “a string of shell companies” and help from Chinese companies.

“Wire transfers from North Korean-linked companies with opaque ownership sometimes came in bursts, only days or hours apart, and the amounts that were transferred were in round figures with no clear commercial reasons for the transactions, according to the documents,” NBC wrote. “Graham Barrow, a London-based anti-money laundering expert, said those kinds of transactions are “red flags” and are all hallmarks of efforts to conceal the origins of illicit cash.”

Another story involved heroin, money laundering, and a man named Anthony Gomes. Gomes was arrested in 2017 and plead guilty to conspiring to launder money and to distribute drugs that killed Americans. Prosecutors alleged that Gomes and others were using offshore accounts, money transfers, a Bank of America account, and encrypted communication to wire money to China and Canada. Transactions involving Gomes and others were flagged in the SARs. Three of the eight people associated with Gomes have been charged with or convicted of drug trafficking.

HSBC – infamous for admitting to U.S. prosecutors in 2012 that it helped the Sinaloa drug cartel launder at least $881 million – is also heavily featured in the FinCEN leaks. HSBC was supposed to be under a five year probation period during which they would attempt to prevent money laundering via their banks. However, according to the SARs reports, during this time HSBC continued to offer banking services to alleged criminals, Ponzi schemers, shell companies and other funds for drug traffickers.

“Starting in 2012, HSBC embarked on a multi-year journey to overhaul its ability to combat financial crime across more than 60 jurisdictions. HSBC is a much safer institution than it was in 2012,” the bank said in response to the stories by BuzzFeed News and the International Consortium of Investigative Journalists.

The majority of the SARs come from German Deutsche Bank which had more than half the $2 Trillion-dollar sum of the FinCEN Files. The main focus is on Russian and Ukrainian oligarchs like Ihor Kolomoisky, “a Ukrainian oligarch with a reputation for heavy-handed tactics.” However, when it comes to Deutsche Bank, there is more to the story than what we are being told.

As MintPress News noted, “most of the press coverage in the U.S., so far, has focused on the ties to Russian oligarchs and assorted narratives that are hovering over election-year American political discourse. Deutsche Bank’s central role, nevertheless, betrays a far greater problem as the bank’s potential collapse could send the financial world into a tailspin and result in the greatest economic crisis in history.”

The MintPress News story delves into the deeper issues surrounding Deutsche Bank and the current legal battle involving the U.S. Department of Justice and the $11.7 Billion Malaysian sovereign wealth fund called 1MDB, one of the major cases highlighted by the FinCEN leaks. “Absent from most coverage of the FinCEN leaks, however, is how all of these banks and financial institutions are not only laundering trillions, but are doing so together and in consort with each other, as is plainly demonstrated in the 1MDB fraud case,” MintPress reported.

This observation is extremely important as we examine the leaks and who stands to benefit from the disclosure of this information.

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