Even if you have a Putin on your board? Well, Master Bank didn’t—it, like most Russian banks, probably considered money laundering a key business line and the lifeblood of the Russian economy—and now it is no more. Read more »
A while back Oppenheimer & Co. let some people trade illegally in some penny stocks and today they got in mild trouble for it, settling with FINRA over charges of selling unregistered securities, inadequate supervision, and inadequate anti-money-laundering compliance programs. Oppenheimer agreed to pay a $1.4mm fine and hire a bunch of stop-doing-that consultants to tell them to stop doing that.
The FINRA complaint is mildly amusing; its list of “red flags indicating that there may have been sales of unregistered securities1 that should have prompted further inquiry” includes “the customer had walked into a branch office with share certificates of thinly-traded securities for deposit.” Not in 1920, I mean, in 2008: a customer “carried into the Newport Beach office and delivered into his new account share certificates for 255,000,000 and 500,000,000 shares of NBVG.” I just love that image for its old-fashioned solidity; I’ve entrusted my entire life savings to some bits floating around the internet but this guy was hauling around paper stock certificates. Worth, apparently, hundreds of millions of pennies!2 Read more »
Yesterday SAC was indicted for insider trading, more or less, so today people are fighting on the internet about whether insider trading should really be illegal. You know what I think, more or less, but really I just think that’s sort of an unhelpful way to put it. Here is a rough stylized chart of the benefits of informed trading:
That is: Read more »
The Federal Reserve has ordered Citigroup Inc to better police for the risk of money laundering, part of a broad U.S. regulatory crackdown on the potential for illicit money flows. The Fed told Citigroup’s board to submit a plan within 60 days to improve its oversight of companywide anti-money laundering compliance, according to a consent order dated March 21, but only made public on Tuesday. The order expands upon similar orders directed at several Citigroup units in 2012. The plan should include funding personnel and resources based on the risks of different units – policies that instill a “proactive approach” to identifying and managing money-laundering risks – and measures to ensure employees adhere to those compliance policies, the Fed said. [Reuters]
It’s not Venezuela, now that old Hugo is gone. It’s not Cuba. And it’s definitely not the U.S. Indeed, the ballsiest country on this side of the globe seems to be measuring its cojones against us, in a series of direct throw-downs. And Argentina’s are bigger. Read more »
Oh, the wily and unscrupulous French: They spend years arguing with the ferocity of a cockfighter for tough, nay, draconian financial regulations. And then they elect a Socialist who promises to be even less interested in the concerns of the monied classes. And then, when Europe’s two biggest economies—the ones housing the financial centers the French hope to destroy—announce that they’ll impose the aforementioned tough, if not draconian, regulations, the French say, joke’s on les Huns et les rosbifs. Read more »