Money laundering

Two of the Nordics’ biggest banks, Nordea and Danske Bank, are involved in a money laundering scandal that involves billions of Danish krona, reports Berlingske. They are cooperating with authorities over possible incidents of money laundering via their overseas branches from 2011 to 2014, it added.
The Danish newspaper cites investigations into authorities in countries including Latvia and Moldova, which show that large amounts of money passed through Danish banks into tax havens like the Seychelles and Panama. The origin of the money is not certain, but sources point to Russian organized crime. Meanwhile, according to Berlingske, fourteen Moldovan judges have been arrested and are awaiting trial for aiding the perpetrators.

UBS will go on trial in France for establishing a wide-ranging tax fraud scheme, legal sources said today. The swiss bank will be charged with illegal banking practices and dissimulating tax fraud, the sources said, adding UBS’s French subsidiary will also go on trial for complicity.

“UBS has made clear that the bank disagrees with the allegations, assumptions and legal interpretations being made,” the bank said in a statement. “We will continue to strongly defend ourselves and look forward to a fair proceeding.”

Finance Minister Ishaq Dar in a policy statement in the National Assembly said that Pakistan is going to sign an agreement with Switzerland on exchange of information regarding bank accounts on March 21st.

He said that the conditions presented by Pakistan were accepted by the Swiss authorities as Pakistan would not lessen the tax rates and it would not give Switzerland the status of Most Favoured Nation (MFN).

Global banking giant HSBC has disclosed being probed by tax authorities in India, the US, France and Belgium, including against its Swiss and Dubai units, for allegedly abetting tax evasion of four Indians and their families.

Disclosing the "tax-related investigations" in its latest annual report published last week, HSBC further said it has set aside $ 773 million as a provision for various tax- and money laundering-related matters.

The Swiss central bank sought on Monday to allay fears among citizens that bank notes could eventually be phased out as a result of global money-laundering rules or the rise of alternative payments systems.

Among other benefits over cashless payments, cash provides "more effective budget control" and can be used without any technical know-how, while it also offers a comprehensive protection with regard to financial privacy, SNB’s deputy head Fritz Zurbruegg said.

It has been speculated for some time that Switzerland may have to do away with cash, especially high value banknotes, to get rid of its tag of being an alleged ‘safe haven’ for black money stashed by foreigners.

The non-governmental organizations (NGO) Transparency International said authorities regulating the financial sector lack transparency, creating mistrust and hampering the effectiveness of systems designed to prevent financial crime, according to a report into the amount of information published on authorities’ anti-money laundering efforts in 12 countries hosting major financial centres.

“We need to see that the people meant to stop corruption in the banking industry are doing their job,” said José Ugaz, chair of NGO.

“There is no good reason to keep this data secret," he added. "We, the citizens, have the right to know if the financial sector is being permissive or complicit with illicit activity.”

A group of Geneva-based art dealers, lawyers, and consultants formed a Responsible Art Market Initiative in an effort to alleviate international concerns over the city’s freeports. It is intended to raise awareness of the illicit trafficking of art and antiquities, and the ways in which art facilitates money laundering and other financial crimes.

The project was launched at the Artgenève Salon d’art on January 26 with the publication of a set of guidelines designed to crack down on illegal activity in the city.

PayPal revealed on Wednesday that it is being investigated for violations of anti-money laundering regulations and U.S. sanctions.

The California-based online payment processor said in a securities filing that it had received a subpoena from the U.S. Department of Justice seeking information related to its “historical anti-money laundering program” as well as new subpoenas related to potential sanctions violations from the U.S. Department of the Treasury.