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Investigations attribute banks shortcomings to illegal deposit

By Ibe Wada

The International Consortium of Investigative Journalists (ICIJ) has revealed that illegal deposit of a massive amount of money has led to banking sector shortcomings in mapped out regulations for banks.

It stated that the sum of allegedly dirty money has flowed for years through some of the world’s largest banking institutions, and are profits made by illegal business owners who lack courage in taking such amount to their countries.

ICIJnoted that Profits from deadly drug wars, fortunes embezzled from developing countries, and hard-earned savings stolen in a Ponzi scheme were all allowed to flow into and out of the financial institutions, despite warnings from the banks’ employees.

The investigation, which was led by 108 international media outlets from 88 different countries, is based on thousands of suspicious activity reports (SARs) submitted to the US Treasury Department’s financial law enforcement agency, FinCEN, by banks from around the world.

It stated that these documents, compiled by banks, shared with the government, but kept from public view, expose the hollowness of banking safeguards, and the ease with which criminals have exploited them, stressing that the document is relating to $2 trillion in transactions that circulated between 1999 and 2017.

The investigation points in particular to five major banks — JPMorgan Chase, HSBC, Standard Chartered, Deutsche Bank, and Bank of New York Mellon — accused of continuing to move assets of alleged criminals, even after being prosecuted or convicted for financial misconduct.

“The networks through which dirty money traverse the world have become vital arteries of the global economy,” Buzzfeed News reported.

” Deutsche Bank said that the ICIJ’s revelations were “well known” to its regulators. The bank also said it had “devoted significant resources to strengthening our controls,” as well as focused on “meeting our responsibilities and obligations,” he added.

The investigation also highlighted the American authorities’ lack of power in regulating dirty financial transactions.

Prior to the investigation’s publication, FinCEN said that the “unauthorized disclosure of SARs is a crime that can impact the national security of the United States.”

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