Article: Private sector ‘key in fighting illegal wildlife trade’

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Private sector ‘key in fighting illegal wildlife trade’

Hellen Nachilongo, 29 April 2021

Dar es Salaam. Involving private sector and financial institutions is the best tactic that could be used to help investigate and prosecute syndicate leaders (Kingpins) involved in illegal Wildlife Trade (IWT) and money laundering.

African Wildlife Foundation senior manager and wildlife law enforcement species Didi Wamukoya said most of the culprits associate themselves with shell, front companies and banks to operate their business thus making it difficult to investigate and prosecute them.

“Normally the syndicate leader operates in such institutions, to access loans from financial institutions, mix funds for different purposes, pay taxes and sometimes they get witnesses, “she said. Continue reading “Article: Private sector ‘key in fighting illegal wildlife trade’”

Article: NatWest to move HQ from Scotland in event of independence

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NatWest to move HQ from Scotland in event of independence

Iain Withers, 29 April 2021

Britain’s NatWest would move its headquarters out of Scotland in the event of a vote in favour of independence, its CEO Alison Rose said, only days before parliamentary elections there.

State-backed NatWest (NWG.L), which until last year was called Royal Bank of Scotland, has been based for 294 years in the Scottish capital Edinburgh. “In the event that there was independence for Scotland our balance sheet would be too big for an independent Scottish economy. And so we would move our registered headquarters, in the event of independence, to London,” Rose told reporters. Continue reading “Article: NatWest to move HQ from Scotland in event of independence”

Article: How the Big Three Rating Companies Got China Huarong So Wrong

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How the Big Three Rating Companies Got China Huarong So Wrong

Shuli Ren, 29 April 2021

After the collapse of Lehman Brothers Holdings Inc., the Big Three rating companies were blamed for their enabling roles in the subprime mortgage crisis. Troubled securitized products would not have been marketed and sold without their seal of investment-grade approval. In fact, investors relied on their ratings, often blindly.

Over a decade later, similar drama is unfolding with state-owned China Huarong Asset Management Co. After failing to release its 2020 financials on time amid media reports of a deep restructuring, the distressed-asset manager became a distressed asset itself. Its 4.5% perpetual bond is trading at 70 cents on the dollar, not at all aligned with its safe-as-cash ratings. With $22 billion in dollar bonds outstanding, Huarong has issues due every month into the summer. Continue reading “Article: How the Big Three Rating Companies Got China Huarong So Wrong”

Article: Opinion: Wirecard fraud shows it’s time to regulate the regulators

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Opinion: Wirecard fraud shows it’s time to regulate the regulators

Kate Ferguson, 29 April 2021

What would you do if you were confident you could get away with it? Perhaps you’d rob a bank, or have a wild affair. Or maybe you’d subsist on nothing but candy floss for the rest of your life.

The chances are you won’t, though. The risk of being arrested, destroying your marriage or becoming a diabetic are simply too high. For most of us, the question is destined to remain hypothetical. After all, life has taught us that bad behavior does not generally go unpunished.

Generally doesn’t mean always
There are notable exceptions to the rule, though. In recent years, three major scandals in Germany have provided pleasingly concrete answers to the question. Continue reading “Article: Opinion: Wirecard fraud shows it’s time to regulate the regulators”

Article: Deutsche Bank Avoids Archegos Meltdown, Reports Profit Surge

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Deutsche Bank Avoids Archegos Meltdown, Reports Profit Surge

Patricia Kowsmann, 28 April 2021

Deutsche Bank AG reported its strongest quarter in seven years thanks to activity at its investment bank, while the lender escaped the implosion of Archegos Capital Management that badly hit some rivals.

The news sent Deutsche Bank shares up 10% on Wednesday, their highest level since May 2018. Also helping its bottom line were lower charges on bad loans, as customers seemed to be weathering the pandemic effects better than expected.

The bank benefited from frenzied investor activity in financial markets. Its business advising clients on fundraising and mergers and acquisitions also boomed, as companies repositioned growth plans during the pandemic. A cost-savings plan imposed to turn the lender around following years of bad results is also helping. The bank reported a cost-to-income ratio of 77% compared with 89% a year ago. Continue reading “Article: Deutsche Bank Avoids Archegos Meltdown, Reports Profit Surge”

Article: BofA Hit Hardest as EU Fines Bond-Trading Trio $34 Million

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BofA Hit Hardest as EU Fines Bond-Trading Trio $34 Million

Aoife White, 28 April 2021

Bank of America Corp. Credit Suisse Group AG and Credit Agricole SA were fined about 28.5 million euros ($34 million) by European Union regulators for colluding on trading of U.S. supra-sovereign, sovereign and agency bonds.

Bank of America got the largest individual penalty of 12.6 million euros, while Credit Suisse was fined 11.9 million euros and Credit Agricole was ordered to pay more than 3.9 million euros. Deutsche Bank AG participated in the cartel but dodged a potential penalty of about 21.5 million euros because it was the first to inform the EU about the illegal behavior. Continue reading “Article: BofA Hit Hardest as EU Fines Bond-Trading Trio $34 Million”

Article: EU Fines Trio of Banks $34 Million for Bond-Trading Cartel

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EU Fines Trio of Banks $34 Million for Bond-Trading Cartel

Aoife White, 28 April 2021

Bank of America Corp., Credit Suisse Group AG and Credit Agricole SA were fined a total of about 28.5 million euros ($34 million) by European Union regulators for colluding on trading of U.S. supra-sovereign, sovereign and agency bonds.

Bank of America got the largest individual penalty of 12.6 million euros. Credit Suisse was fined 11.9 million euros and Credit Agricole was ordered to pay more than 3.9 million euros. Deutsche Bank AG participated in the cartel but wasn’t fined because it was the first to inform the EU about the illegal behavior. Continue reading “Article: EU Fines Trio of Banks $34 Million for Bond-Trading Cartel”

Article: Samsung Heirs to Pay $11 Billion Tax Amid Succession Cases

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Samsung Heirs to Pay $11 Billion Tax Amid Succession Cases

Yoojung Lee and Sohee Kim, 28 April 2021

Samsung Group’s billionaire heirs outlined a long-awaited plan to pay one of the largest inheritance-tax bills in history, a more than 12 trillion won ($11 billion) transfer of assets that will take place over several years.

The family of Lee Kun-hee, who died last year, revealed the size of the total bill, along with its intention to donate 1 trillion won for medical facilities and approximately 23,000 works of art. Under South Korea law, the heirs are allowed to make the tax payment over five years. Continue reading “Article: Samsung Heirs to Pay $11 Billion Tax Amid Succession Cases”

Article: Regional Report – Netherlands: One of country’s largest banks, ABN Amro, pays nearly $600 million penalty for longstanding AML failings, lax risk ranking, missed reports on suspicious activity

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Regional Report – Netherlands: One of country’s largest banks, ABN Amro, pays nearly $600 million penalty for longstanding AML failings, lax risk ranking, missed reports on suspicious activity

Brian Monroe, 28 April 2021

Dutch authorities have hit the third largest bank in the Netherlands with a penalty of more than a half a billion dollars for longstanding failings in nearly every area of its fincrime compliance program, including lax customer risk scoring, shoddy alert investigations and missed reports of potential suspicious activity.

The Netherlands Public Prosecution Service (NPPS) has settled its probe into Amsterdam-based ABN Amro Bank for 480 million euros, or just less than $583 million, for falling “seriously short” of anti-money laundering (AML) compliance program requirements and being considered “culpable” in aiding criminal groups in cleansing ill-gotten gains. Continue reading “Article: Regional Report – Netherlands: One of country’s largest banks, ABN Amro, pays nearly $600 million penalty for longstanding AML failings, lax risk ranking, missed reports on suspicious activity”

Article: Market Manipulation Case Reopening Adds to Credit Suisse’s Woes

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Market Manipulation Case Reopening Adds to Credit Suisse’s Woes

Alicia McElhaney, 28 April 2021

Although appellate court judges threw out some claims against the bank, they said that market manipulation allegations were “plausible.”

Credit Suisse is having another rough week.

A U.S. Appeals Court reopened a 2018 case alleging that Credit Suisse had engaged in market manipulation of some exchange-traded notes that short the VIX, a popular proxy for volatility. Continue reading “Article: Market Manipulation Case Reopening Adds to Credit Suisse’s Woes”

Article: Money Printer Goes Quiet and Argentine Government Gets Squeezed

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Money Printer Goes Quiet and Argentine Government Gets Squeezed

Ignacio Olivera Doll, 28 April 2021

The Argentine central bank’s fight against inflation is upending the local bond market and squeezing government finances as the country struggles to regain traction while the pandemic rages on.

Long known as some of the world’s most prolific money printers, Argentine policy makers are cutting back on the largesse in an effort to curb inflation running at more than 40% a year. While the move toward orthodoxy has often been urged by economists, the timing is difficult. Slower expansion of the money supply over the past six months has cut liquidity and sapped demand for debt, pushing up interest rates and making it harder for the government to fund itself given its lack of access to overseas markets. Continue reading “Article: Money Printer Goes Quiet and Argentine Government Gets Squeezed”

Article: Will ‘Global Britain’ clamp down on money laundering?

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Will ‘Global Britain’ clamp down on money laundering?

Tom Burgis, 28 April 2021

In March 2014, a few days after Vladimir Putin’s forces invaded Crimea, a British official arriving for a meeting of the UK’s National Security Council failed to shield his notes from the Downing Street photographers. Any response to the Kremlin’s aggression should not, the notes read, “close London’s financial centre to Russians”. The government subsequently explained that it “wanted to target action against Moscow and not damage British interests”.

Seven years on, the assessment is very different. Last year’s report on Russia by parliament’s Intelligence and Security Committee — eventually published after a contentious delay — found that the warm British welcome for Russian money “offered ideal mechanisms by which illicit finance could be recycled through what has been referred to as the London ‘laundromat’”. Continue reading “Article: Will ‘Global Britain’ clamp down on money laundering?”

Article: UBS Joins Morgan Stanley With Surprise $861 Million Archegos Hit

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UBS Joins Morgan Stanley With Surprise $861 Million Archegos Hit

Marion Halftermeyer, 27 April 2021

UBS Group AG disclosed an $861 million hit from the implosion of Archegos Capital Management and vowed to improve risk management, joining Morgan Stanley in blindsiding investors who’d been kept in the dark for weeks about the size of the losses.

The loss, mostly booked in the first quarter, overshadowed a better-than-expected profit, with strong performance in the key wealth management business. Chief Executive Officer Ralph Hamers said while the bank will require more transparency from clients to prevent such losses in the future, he defended the business with hedge funds as “strategic” and said he had no plans to follow rival Credit Suisse Group AG in cutting back lending.

“Clearly, we are very disappointed at this situation,” he said in an interview with Bloomberg TV. “We are reviewing the different prime brokerage relationships, as well as the GFO — the family office relationships.” Continue reading “Article: UBS Joins Morgan Stanley With Surprise $861 Million Archegos Hit”

Article: Anatomy of a hedge fund hack

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Anatomy of a hedge fund hack

Laurence Fletcher, 27 April 2021

It was only when John made a final phone call to confirm the transfer of about €10m to his family trust that he realised he was about to fall victim to a highly sophisticated financial scam.

A fraudster had spent two months pretending to be one of John’s business associates in order to gain his confidence and trick him into diverting a standard loan repayment to a different bank account.

Having obtained emails through an earlier hack of a financial services company in Liechtenstein, they studied the habits and conversational style of John’s business associate and then imitated him on email. Continue reading “Article: Anatomy of a hedge fund hack”

Article: Credit Suisse Pressed by Senator on $200 Million Tax Fraud

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Credit Suisse Pressed by Senator on $200 Million Tax Fraud

David Voreacos, 27 April 2021

Credit Suisse Group AG, already under pressure for losing $5.5 billion in the collapse of Archegos Capital Management, must now answer questions from a powerful U.S. senator about a seven-year-old tax evasion scandal.

Senate Finance Committee Chairman Ron Wyden wrote Tuesday to Credit Suisse and the Justice Department, asking their leaders to explain how the lender’s banking unit could have pleaded guilty in May 2014 to enabling U.S. tax evasion but failed to disclose more than $200 million in accounts held by an American.

Wyden asked Credit Suisse Chief Executive Thomas Gottstein and Attorney General Merrick Garland about the bank’s handling of accounts held by former business professor Dan Horsky. After whistle-blowers told the Justice Department about the accounts in July 2014, Internal Revenue Service agents approached Horsky in 2015. He cooperated with U.S. authorities and pleaded guilty to tax fraud in 2016. Continue reading “Article: Credit Suisse Pressed by Senator on $200 Million Tax Fraud”

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