Idola Blogs

Federal agents swept into New Jersey towns across several counties Thursday morning, charging 44 people, including three mayors and religious leaders, in a federal investigation into public corruption and money laundering.

“The rings were international in scope, connected to Deal, N.J., Brooklyn, N.Y., Israel and Switzerland,” said Mr. Marra, the U.S. attorney, at the news conference. “They trafficked in the cleaning of dirty money all across the world.”

Levy Izhak Rosenbaum of Brooklyn was charged separately with conspiring to broker the sale of a human kidney for a transplant, at a cost of $160,000 to the transplant recipient. According to the FBI’s complaint, Mr. Rosenbaum said he had been brokering the sale of kidneys for 10 years. Mr. Rosenbaum couldn’t be reached for comment. A relative of Mr. Rosenbaum who answered the phone at an address belonging to him declined to comment.

“Any corruption is unacceptable – anywhere, anytime, by anybody,” the governor said, referring to Thursday’s arrests. “The scale of corruption we’re seeing as this unfolds is simply outrageous and cannot be tolerated.”

via Dozens Arrested in New Jersey Corruption Probe

The international drug mafia is estimated to be involved in a business whose total transactions cross $600-800 billion year—Drug Report 2009 released by United Nations Office of Drugs & Crime on June 24, 2009 (for complete text visit http://www.unodc.org) The successive governments in Pakistan provided money laundering schemes to the black economy (although these were termed as good economic measures to dig out black money). Our drug barons hardly need any international channels for money laundering because support from the State is available at home. If any drug smuggler remits dirty money in Pakistan through normal banking channels, the tax authorities cannot pose any question about its ‘source’. Millions of dollars come into the country every year from bank accounts maintained in various countries in fictitious names, but no action is taken under the law.

In the Income Tax Ordinance 2001, a special provision [section 111(4)] exists to facilitate the money launderers to remit (laundered is more appropriate term) their ill-gotten money through banking channels and surrender the foreign currency to the State Bank and get Pakistani rupees as encashment. In this way they can escape not only taxation but any criminal proceedings as well. This scheme aimed at bringing huge foreign funds to Pakistani economy has succeeded immensely during Musharraf-Shaukat era when foreign reserves of Pakistan crossed the US$ 15 billion mark. Even today, it is being exploited cleverly by the Pakistani drug syndicates and tax dodgers to launder their money through State patronage. In the presence of this law can anybody take Pakistan seriously in its so-called measures against money laundering?

More at Drug trafficking & black economy

Washington, DC — The Financial Industry Regulatory Authority (FINRA) announced today that it has fined three broker-dealers — J.P. Turner & Co., of Atlanta, Park Financial Group, Inc., of Maitland, FL, and Legent Clearing, LLC, of Omaha — for failing to implement reasonable anti-money laundering (AML) compliance programs, including the failure to detect, investigate and report instances of potentially suspicious transactions in low-priced stocks.

J.P. Turner was fined $525,000, Park Financial was fined $400,000 and Legent Clearing was fined $350,000. In addition, two individuals — Park Financial’s former CEO and AML compliance officer Gordon Charles Cantley and J.P. Turner equity trader John McFarland — were barred permanently from the securities industry. David Farber, a Park Financial equity trader, was fined $25,000 and suspended in all capacities for 30 days. S. Cheryl Bauman, J.P. Turner’s former AML compliance officer, was fined $30,000 and suspended from acting as a principal in a securities firm for 18 months, while Robert Meyer, a former J.P. Turner branch manager, was fined $5,000 and suspended as a principal for one month.

via FINRA – FINRA Fines Three Firms Over $1.25 Million for Failing to Detect, Investigate and Report Suspicious Transactions in Penny Stocks.

The Global ATM Alliance is a joint venture of several major international banks that allows customers of the banks to use their ATM card or debit card at another bank within the Global ATM Alliance with no fees. Participating banks cover Asia, Australasia, Europe, Africa and North America.

Participating banks are:

• Bank of America (United States)
• Barclays (United Kingdom (primarily England and Wales), Spain, Portugal, Gibraltar and certain countries in Africa)
• BNP Paribas (France, Ukraine)
• China Construction Bank (China)
• Deutsche Bank (Germany, Poland, Czech Republic, Spain and Italy)
• Santander Serfin (Mexico)
• Scotiabank (Canada, Caribbean, Chile and Mexico)
• Westpac (Australia, New Zealand, Fiji, Vanuatu, Cook Islands, Samoa, Tonga, Papua New Guinea and Solomon Islands)
  • Westpac Banking Corporation (Australia, Fiji, Cook Islands, Solomon Islands, and Vanuatu)
  • Westpac New Zealand Limited (New Zealand)
  • Westpac Bank – PNG – Limited (Papua New Guinea)
  • Westpac Bank Samoa Limited (Samoa)
  • Westpac Bank of Tonga (Tonga)
• ABSA (South Africa)
• UkrSibbank (Ukraine) “UkrSibbank” joins Global ATM Alliance

Posted for international travelers from Wikipedia page titled Global ATM Alliance

This research guide, or “source tool,” is a compilation of key AML laws, rules, and guidance applicable to broker-dealers. Several statutory and regulatory provisions, and related rules of the securities self-regulatory organizations (SROs), impose AML obligations on broker-dealers. There is also a wealth of related AML guidance materials. To aid research efforts into AML requirements and to assist broker-dealer compliance efforts, this source tool organizes key AML compliance materials and provides related source information.

When using this research “tool” or guide, you should keep the following in mind:

First, securities firms are responsible for complying with all applicable AML requirements. Although this research guide summarizes some of the key broker-dealer AML obligations, it is not comprehensive. You should not rely on the summary information provided, but should refer to the actual statutes, rules, orders, and interpretations.

Second, AML rules, regulations, and orders are subject to change and may change quickly. While the information summarized in this guide is current as of January 13, 2009, please note that in July 2007, the SEC approved the establishment of the Financial Industry Regulatory Authority (FINRA). FINRA consolidated the former NASD and the member regulation, enforcement, and arbitration operations of NYSE Regulation. The Source Tool reflects the historical issuance of AML rules and guidance by the NASD and NYSE.

Finally, you will find a list of telephone numbers and useful websites at the end of this guide. If you have questions concerning the meaning, application, or status of a particular law, rule, order, or interpretation, you should consult with an attorney experienced in the areas covered by this guide.

Disclaimer: This compilation was prepared by staff in the Office of Compliance Inspections and Examinations (OCIE), Securities and Exchange Commission. The Securities and Exchange Commission, as a matter of policy, disclaims responsibility for any private publication or statement by any of its employees. The views expressed in this document are those of the staff and do not necessarily represent the views of the Commission, or other Commission staff.

Attend the industry’s most respected regulatory compliance event!

You play a critical role in your institution’s overall risk management strategy as you constantly monitor the effectiveness of your compliance policies and procedures. For twenty-two consecutive years, the ABA Regulatory Compliance Conference has been the nationally recognized premier resource for compliance officers to get the tools they need to benchmark their progress towards full compliance. Our comprehensive conference agenda is a cost-effective way for you obtain the latest regulatory guidance and best practices in all areas of compliance. Designed and delivered by the nation’s leading experts, this conference provides direct access to senior regulatory officials that only the American Bankers Association can provide.

Who Attends?

Bank compliance officers (new to compliance attends the ABA Compliance School first), auditors, in-house and outside counsel, regulatory officials and examiners and consultants.

via Events: ABA Regulatory Compliance Conference.

Of the 39 evaluations made public this month, 10 were outstanding, 28 were satisfactory, and one was needs to improve. None were substantial noncompliance. Evaluations are available from links on http://www.occ.treas.gov/cra/may09.htm.

via OCC News: OCC Releases CRA Evaluations For 39 National Banks.

Written by a long-standing practitioner in the field, this timely and critical work is your best source for understanding all the complex issues and requirements associated with corporate compliance. It provides clear guidance for those charged with protecting their companies from financial and reputational risk, litigation, and government intervention, who want a robust guide to establish an effective compliance program.

via Safari Books Online – 9780470114780 – Building a World-Class Compliance Program: Best Practices and Strategies for Success.

• assessment of SARs filed by the securities and futures industry by FinCEN’s Office of Regulatory Analysis as well as information from staff of the Securities and Exchange Commission (SEC) on how to file SARs, the SEC’s use of SARs and the consequences to regulated institutions for failure to file
• covers the securities industry, Ponzi schemes and mortgage fraud cases

Secretary Timothy F. Geithner following the semi-annual plenary meeting of the Bank Secrecy Act Advisory Group (BSAAG):

The Bank Secrecy Act continues to be a powerful weapon against fraud, but that weapon is only useful when it is armed with the valuable information that our private sector partners provide.  This partnership has proven its resilience throughout these financial times because our efforts to fight financial crimes are collaborative and because we seek common ground to safeguard the financial system.  I am confident these joint efforts will thrive into the future.

via TG-128: Statement by Secretary Geithner on the Bank Secrecy Act
Advisory Group Plenary Meeting.