Figuring out which of your clients and counterparties are using you to launder money is (arguably) hard and (inarguably) expensive. The good news is that you only really have to go through the motions to avoid getting in trouble for it, although for some reason even this has proven insuperably difficult (or not cost-effective) for many supposedly sophisticated and well-capitalized institutions. So perhaps they would like to outsource this difficulty to some software run by another institution that has definitely not proven itself unwilling and/or incapable of operating and maintaining even the most critical technological systems underlying its most basic and essential functions? Nasdaq certainly hopes so.

Exchange operator Nasdaq Inc said on Thursday it would buy anti-financial crime software firm Verafin for $2.75 billion in cash, significantly expanding its reach in the regulatory technology market…. Nasdaq will aim to provide Verafin’s technology to the 250 banks, exchanges, broker-dealers and buy-side organizations, and regulatory authorities, that use its trade surveillance systems, the company said.

Nasdaq to buy financial fraud detection firm Verafin for $2.75 billion [Reuters]

Related

By Luis Villa del Campo from Madrid, Spain (Times Square - NASDAQ) [CC BY 2.0], via Wikimedia Commons

Apparently You Can Steal, Like, A Whole ETF

Not just some shares. The whole damned thing.

By Luis Villa del Campo from Madrid, Spain (Times Square - NASDAQ) [CC BY 2.0], via Wikimedia Commons

The Dow Closed At 20,996.12 Today

Oh yea, and something happened on the Nasdaq, too.

Nasdaq Officials Would Just Like To Point Out That Anyone Who Lost Money As A Result Of The Exchange's Incompetence Have Little To No Legal Recourse

Oh you can try a lawsuit but, historically speaking, it won't do shit. Nasdaq is sending a message to firms weighing lawsuits related to trading losses in Facebook's initial public offering: winning won't be easy. The exchange operator believes it is protected by its contracts with members and by its unusual legal status, which is rooted in its dual role as a regulatory body as well as a business that makes money running markets. Exchange officials in recent weeks have pointed out to analysts that Nasdaq has never been successfully sued over a trading error. "When you look at member agreements that people sign, it's quite explicit that they're bound by that accommodation policy," Robert Greifeld, Nasdaq's chief executive, said last week at a Sandler O'Neill + Partners conference, referring to legal agreements capping the exchange's payouts linked to system problems...Banks and brokers have estimated they lost hundreds of millions of dollars due to technical problems during Facebook's May 18 debut. The glitches forced Nasdaq to delay Facebook's opening, and left trades involving millions of shares unconfirmed for hours. Amid the chaos, traders were forced to guess their positions and place additional orders based on those estimates. When Nasdaq delivered the results of the trading Friday afternoon, many firms were caught off guard and scrambled to reposition. According to Greifeld, the last guy who tried to get his money back "trades on the pink sheets now" but take your best shot. Nasdaq Claims Strong Defense [WSJ] Related: UBS Not Sweating The Small Stuff

wirecard

Wirecard May Have Laundered Money In Addition To Making It Up

While prosecutors are having a look around the place, you never know what might turn up.

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.

challenger-deutsche

Deutsche Bank Still Trying, Failing To Figure Out How To Stop Money Laundering

Yes, this headline would apply no matter what you put after “figure out,” but once again we’re talking about this.