Thu. Jul 11th, 2024

Money laundering problem in European banks

Money laundering problem in European banks 7
Money laundering problem in European banks 7

While British bank officials HSBC are having to deal with the trouble of money laundering involving a number of criminal organizations in Latin America and Middle Eastern countries, as well as incur new government fines.

The results of the investigation conducted by Moneyval came to a conclusion that required Saint-Siege (Vatican’s headquarters) to further strengthen the supervision mechanism for the IOR and pointed out that there are still many opaque issues in the IOR.

Moneyval experts assess that the roles, duties, functions, powers and independence of officials responsible for the Vatican’s financial operations lack clarity.

Like HSBC’s boss, former IOR director Ettore Gotti Tedeschi was dismissed and is being investigated for allegedly participating in money laundering activities.

Statistics show that in 2011, the Bank of Italy had to ask the country’s law agencies to intervene in dozens of money laundering and transfer cases suspected of being related to church and religious officials.

The European public debt crisis has created favorable conditions for mafia organizations to penetrate the financial sector by providing loans with more `preferential` conditions than banks to users.

According to the assessment of the anti-crime organization SOS Impressa, founded 10 years ago, the mafia has become the number 1 bank for small and medium-sized businesses during the crisis thanks to holding about 65 billion euros in liquidity.

According to the Central Bank of Italy, in 2010-2011, financial transactions showing signs of money laundering increased by 147% compared to the previous two years.

According to the IMF, the amount of money laundered illegally by underground criminal organizations around the world accounts for about 2%-5% of global asset value, equivalent to 500 to 1500 billion USD.

Gafi, an anti-money laundering financial organization with 31 member countries and headquartered in Paris that specializes in monitoring money laundering activities, said many officials and politicians have participated in or assisted in such activities.

Taking advantage of European countries struggling with financial crises, money laundering activities in this continent have become bustling in recent years, turning the Old Continent into a weak link in the fight against money laundering.

The British financial security agency FSA required the famous asset management company Coutts to pay 10 million euros in compensation for abetting money laundering activities.

In the latest move, the Mexican government on July 25 required HSBC’s branch in this country to pay a fine of 27.5 million USD, nearly 52% of this bank’s profit in Mexico in 2011. Reason

“We are aware that in the past we have at times failed to meet the standards expected by customers and financial regulators,” the HSBC official said.

However, HSBC is not the first large bank to face and suffer consequences due to allegations of money laundering.

HSBC launders money in Mexico

A series of HSBC branches are closely monitored

(According to VietnamNet)

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