Banco Master Used Investment Funds and Asset Sales to Hide Its $10bn Fraud
Brazil’s biggest-ever bank fraud case has left the country’s banking system facing a 52 billion-real ($9.9 billion) bill after Banco Master used funds, asset sales, and other maneuvers to hide major balance-sheet problems from investors and regulators.
OFAC Warns on Sham Transfers in Sanctions-Evasion Schemes
The U.S. Treasury Department’s Office of Foreign Assets Control on Tuesday issued new guidance warning that sham transactions used by sanctioned individuals and entities to disguise continuing control over assets do not extinguish a blocked interest in property under U.S. sanctions rules.
Ex-Malaysian PM Razak Ordered to Pay $1.3 Billion to 1MDB Unit
A Malaysian court on Tuesday ordered jailed former Prime Minister Najib Razak to pay $1.3 billion to SRC International, a former unit of scandal-linked state fund 1MDB, after finding him liable for losses incurred by the company.
Trial Begins in France for Alleged ‘Magnitsky Affair’ Money Launderer
The trial of Russian businessman Dmitry Klyuev, accused by French prosecutors of laundering proceeds of the $230 million Magnitsky Affair fraud through luxury purchases in France, opened in Paris on Monday.
SEC Enforcer Leaves Agency After Little Over 6 Months on the Job
The U.S. Securities and Exchange Commission (SEC) said on Monday that Judge Margaret Ryan has stepped down as director of its Division of Enforcement after little more than six months on the job.
Singapore Warns on Money-Laundering Risks of Variable Capital Companies
Singapore’s financial regulator has warned fund managers that a popular low-tax investment structure introduced to attract offshore capital could be exploited for money laundering.
Hong Kong Raids Securities Firms, Arrests 8 in Major Bribery Case
Hong Kong authorities have arrested eight people in their biggest coordinated market misconduct raids since 2017, as regulators investigate an alleged HK$315 million ($40 million) insider dealing and corruption scheme involving two major brokerages and a hedge fund manager.
Lula’s Son Stripped of Bank-Secrecy Protections in Ongoing Fraud Case
A Brazilian Senate decision to strip bank- and tax-secrecy protections from President Luiz Inácio Lula da Silva’s son has intensified political pressure on the leftist leader as lawmakers investigate an alleged fraud scheme inside the national pension system.
Basel Committee Calls for Close Monitoring of Synthetic Risk Transfers
The Basel Committee on Banking Supervision is warning that a fast-growing market for banks to offload credit risk to private investment funds needs close monitoring because it is creating new vulnerabilities for the global financial system.