In today’s post we will preview an article by this author that is due to be published soon in the Journal of Money Laundering Control . The article is available in its pre-published format here . In this post we will review the underlying premise of the article, and present the target of the article which is a new venture in the anti-money laundering arena – Sigma Ratings . The article aims to introduce the new venture to the literature and examine its potential against the backdrop of the anti-money laundering (AML) arena, and also against the experiences of its model-sharing cousins, the credit rating agencies. For clarity, Sigma Ratings is essentially a mixture of the two worlds and seeks to bring the credit rating model into the AML arena, with the hope being that the agency will enable the world to ‘ transact with confidence ’. To achieve this aim, the article presents a number of different contexts. The first context presented is that of the AML world and some of the compe...

On the back of revelations regarding Danske Bank and its connection to money laundering last year, it was revealed in the news yesterday that Birgitte Bonnesen, the CEO of Swedbank, had been relieved of her duties just minutes into the Bank’s AGM in relation to the organisation’s connection to dirty money. In this post we shall examine these connected cases further and learn more about the anti-money laundering issues facing banking organisations. The incredibly reputable Danske Bank, Denmark’s largest lender, became embroiled in a money laundering scandal last year when it was revealed they had helped launder almost €200 billion in Russian and Baltic money since 2007 . The case of Danske Bank revolves around the purchasing of an Estonian Bank that would become the vessel for money laundering from neighbouring States like Russia and the Baltic States. The leadership of Danske Bank were not only made aware of the issues as early as 2010, but actively promoted the increasing of ‘n...

In the first of three brief posts today, in order to stay abreast of a busy day in the financial arena, we will begin by looking at news that is coming out of the Department of Justice in the U.S. The news, that the DoJ is changing course on its agreement put in place to deter further transgressions by the multinational bank, is excellent news for the bank but, perhaps, sends a message about the pro-business sentiments that are emerging all the time under the Trump Administration. On two specific occasions here in Financial Regulation Matters , we have looked at HSBC in particular with reference to their almost infamous track record when it comes to financial crime, particularly money laundering. It is no secret that the large multinational bank has been involved in some particularly damaging news stories, including having to pay a £1.9 billion fine to U.S. authorities in 2012 for ‘ exposing the U.S. financial system to money laundering, drug (and) terrorist financing risks ’ an...

In today’s post the focus will be on the banking sector and, by focusing on three current issues, provides an overview of recent developments within this particular sector. By looking at the issues surrounding Barclays, HSBC, Standard Chartered, Lloyds, and RBS, a picture will be painted that details the need to ask much deeper questions about the role the banking sector plays within society and, perhaps more introspectively, the relationship between big business and humanity. Going through the issues in no particular order, the first stop in today’s journey takes us to Barclays, with the news emerging that Red Kite Management, the world’s largest metals hedge fund, is suing the British Bank for ‘ alleged market abuse in the copper market ’, which it claims has cost the company at least £650 million between 2010 and 2013. The company’s claim, according to documents filed with the High Court, is that the Bank allowed some of its staff to share confidential information with the Ba...