Money Laundering

HSBC Holdings apparently is under investigation by a Senate panel in a money-laundering inquiry. Although the specifics regarding the inquiry have not yet been released, there have been reports of a “breakdown” in HSBC’s anti-money laundering systems.  

Suppose an owner of multiple retail perfume stores located on the United States-Mexico border sells perfume – a lot of perfume – to Mexican purchasers. You might think that that’s a nice niche business. Now suppose that a lot of the purchases were for cash – millions of dollars in cash. What would federal prosecutors think? 

“Affinity fraud” refers to investment scams that prey upon members of identifiable groups, such as religious or ethnic communities, or the elderly. Typically, the financial fraudster is a member of the group. What happens if the financial fraudster runs out of victims in his or her group? Sometimes, it leads to a Ponzi scheme crashing down. Other times, it may lead the thief to broaden his or her horizons. 

Compliance departments are coming under increased pressure to strengthen anti-money laundering compliance because of a growing focus from senior management, but they are hampered in their efforts by a lack of training and resources, according to a joint Dow Jones Risk & Compliance/Association of Certified Anti-Money Laundering Specialists (ACAMS) survey released today. 

The Federal Deposit Insurance Corporation, the Treasury's Financial Crimes Enforcement Network (“FinCEN”), and the State of Florida Office of Financial Regulation (“OFR”) have assessed concurrent civil money penalties of $10.9 million against Ocean Bank of Miami, Florida, for violations of federal and state Bank Secrecy Act (BSA) and anti-money (AML) laundering laws and regulations.

Looking for that special something for that special person? Look no further! A flawless, 43.51 carat yellow diamond will be sold via a U.S. Marshals online auction starting Sept. 6. The notable diamond (pictured) appears on lists of the top diamonds in the world. 

Convicted money launderer Harris Dempsey “Butch” Ballow has been sentenced to 10 years in federal prison without parole and ordered to pay more than $10 million in restitution to his victims. 

Robert E. Maloney, Jr., of McDonough, Georgia, has been arraigned on federal charges before U.S. Magistrate Judge Janet F. King. A superseding indictment charges Maloney and two former top officers of FirstCity Bank of Stockbridge, Georgia, Mark A. Conner and Clayton A.

Adley H. Abdulwahab had been convicted by a federal jury for his role in a $100 million fraud scheme with more than 800 victims across the United States and Canada.                       

Since the financial collapse in 2008, there has been greater scrutiny of financial institutions and transactions. Illicit activities such as fraud and money laundering continue to plague the finance industry. A June 22 conference to be hosted by the New York State Society of CPAs Foundation for Accounting Education is aiming to provide attendees with practical tools to help prevent and detect fraud with sessions including: