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Earlier this month, we discussed the new guidance issued to banks regarding those things distinctly ungroovy in the federal eye, marijuana businesses. Turns out, they really do need the help, because not only are they not very good at preventing or detecting money laundering, they’re quite easily fooled by those dedicated to it for the purpose of allowing you to pay for blow with your Amex.

The Justice Department and the Federal Trade Commission have recently brought a string of criminal and civil cases accusing individuals and companies of using legitimate-looking websites to deceive financial firms into processing unsavory purchases….

“No processor, even if it spent a fortune, is going to perfectly shield itself from fraudulent merchants,” said Lois Greisman, associate director of the FTC’s Division of Marketing Practices. The FTC, she said, “is seeking to root out processors that are knowingly facilitating fraud.”

Like these two guys, whose websites said they were selling such wholesome products as dog treats and diving gear, but who were allegedly selling weed instead, and may have been in league with Angela Merkel’s favorite payments processor.

In one recent high-profile case, the Manhattan U.S. Attorney’s Office accused two businessmen, Ruben Weigand and Hamid “Ray” Akhavan, of tricking banks into processing more than $100 million in transactions made through Eaze Technologies Inc., an online marijuana marketplace.

Shocking, we know, that such things could get past these company’s airtight due diligence and compliance teams.

Fake Businesses Are Fooling Real Banks Into Processing Online Drug Purchases [WSJ]



Goldman Said Sorry, Doesn’t Think It Should Have To Also Say ‘Guilty’

Also, isn’t a $2 billion fine for ripping a country off of $6.5 billion sort of excessive, when you think about it, Attorney General Barr?

(Getty Images)

Jamie Dimon Is A Pretty Permissive Babysitter, It Turns Out

He really let the kids run wild on their devices without even a glance.


Prosecutors Successfully Spoof Spoofer To Prison

And even more successfully cite the specter of reefer madness.


FBI Recommends Hedge, Private Equity Funds For Money Laundering

It’s just so much harder for it to trace that way, it says.

temple fox school

MBA Purveyor Could Have Used A Law Degree When Allegedly Deciding To Lie To B-School Rankers

U.S. News may not be a federal agency, but fibbing to them may still be fraud.

By Chris Potter (Flickr: 3D Judges Gavel) [CC BY 2.0], via Wikimedia Commons

Judges Say Prosecutors Can Spoof Spoofing Probes

At least, they say no one can question whether they’re doing it, which is just as good.

Rep. Blaine Luetkemeyer opening his early Valentine's Day cards from bank lobbyists. (Rep. Blaine Luetkemeyer)

Banks Ask Congress To In-Source Money Laundering So They Don’t Have To

First on the G.O.P.’s banking agenda in 2018: Making sure banks don’t have to spend their tax savings figuring out who the bad guys are.