laundering

Latest Bank Money Laundering Scandal Shows Federal Regulators M.I.A.

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You f---ing Americans. Who are you to tell us, the rest of the world, that we‟re not going to deal with Iranians. -- SCB‟s Group Executive Director

Laudering money for rogue nations and drug cartels seems to be par for the course. The latest scandal is this bomb: a British bank has been laundering Iranian money for over a decade. The New York State Department of Financial services filed an Order Pursuant to Banking Law § 39, which that describes willful and egregious violations of law by Standard Chartered Bank, aka SCB. The above quote is part of the documentation against SCB.

For almost ten years, SCB schemed with the Government of Iran and hid from regulators roughly 60,000 secret transactions, involving at least $250 billion, and reaping SCB hundreds of millions of dollars in fees. SCB‟s actions left the U.S. financial system vulnerable to terrorists, weapons dealers, drug kingpins and corrupt regimes, and deprived law enforcement investigators of crucial information used to track all manner of criminal activity.

Banks Launder Money With Impunity

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laundering moneyHSBC is a bank. They are also a money launderer. Last week the Senate subcommittee on investigations, part of the Senate Committee on Homeland Security and Government Affairs, issued a report (pdf) and held a hearing, U.S. Vulnerabilities to Money Laundering, Drugs, and Terrorist Financing: HSBC Case History. Contained within is a laundry list, if we can use the pun, of HSBC evil doings and how they mechanically laundry money for drug cartels, terrorists and tax evaders.

This is over a decade past 9/11 and seemingly HSBC has been operating with impunity. One of the conduits for money laundering is correspondent banking. Correspondent banking is when one financial institution provides services to another financial institution to move funds, exchange currencies, cash monetary instruments, or carry out other financial transactions. Even though in 2002, correspondent banking was recognized as a primary method to fund terrorist activities, the doors have not been shut.

Correspondent accounts continue to provide a gateway into the U.S. financial system, and wrongdoers continue to abuse that entryway.

Below is what has been done since 9/11, yet correspondent banking is alive and well.