The joint-stock company is a social innovation that made possible global capitalism today. The array of corporate vehicles that it has spawned – limited liability corporations, trusts, limited companies and other legal structures – make possible the investment of capital and the…
MSB bank accounts: the global retrenchment
How can a money service business acquire a bank account? There is a wide-spread de-risking currently occurring amongst banks. In this article, we assess the range of phenomena that are occurring around the world, including how relevant regulators have responded…
FATF definition of PEP (Politically Exposed Person)
A politically exposed person (PEP) is an individual who is or has been entrusted with a prominent public function. The best canonical definition of a PEP is provided by FATF. europos use the Financial Action Task Force (FATF) definition of…
Cryptocurrency, Financial Crime and Regulation
The recent HM Treasury publication, “Digital Currencies: response to the call for information”, reported that 80% of respondents believe digital currency requires a form of regulation. In addition, due to the anonymous nature of digital currency, participants acknowledged that money…
Do multinationals have robust enough compliance procedures?
Given the plethora of recent compliance mishaps by multinational banks, highlighted most recently by HSBC’s tax evasion scandal, the question arises as to whether multinational companies have robust enough compliance procedures. HSBC’s admission that “we review all Politically Exposed Persons…
AMLD4 and Domestic PEPS
AMLD4, the 4th amendment to the Anti-Money Laundering Act will update the European Union’s existing Anti-Money Laundering and Counter-Terrorist Financing laws by implementing recommendations made by the Financial Action Task Force, the international global standard setting body of AML and…
Politically Exposed Persons: Who They Are and Why They Matter
In the world of finance, the phrase “politically exposed person|politically exposed persons”, otherwise known as PEP, is one that you will often see. The basic definition of this term is an individual who has a well-known public function, or an…
Effective Methods of Counter-Terrorist Financing
In a 9,000 word PhD chapter length article in the New Yorker, Mattathias Schwartz raises some interesting points.
Why are fintech companies unable to get bank accounts in the U.K.?
Underlying many financial technology companies’ capabilities are access to basic clearing accounts. If you want to lend money, you need to have somewhere to store it. If you want to process payments, you need to have a bank account through…
Why is HSBC unable to resolve its money-laundering issues?
The wave of fines levied against financial institutions has not stopped since the financial crisis of 2008 precipitating financially and reputationally expensive recapitalisations of British and international banks. Despite this, even by 2015, the waves of fines is ongoing, as…
Fincen: Sanity Required Over Wholesale Termination of MSB Accounts
Fincen yesterday issued a statement regarding the extent to which banks should terminate the accounts of MSB’s. The statement declared: MSBs play an important role in a transparent financial system, particularly because they often provide financial services to people less…
Is searching OFAC enough?
At the time of writing, the OFAC SDN list contains 5,466 entities. This list proscribes the entities that on a statutory basis, companies and individuals can not deal with. However, it is apparent that regulators and counter-parties alike do not consider this enough….
“Cutting Off Customers Can Backfire”
According to the Wall Street Journal, HSBC recently stated that it has “closed accounts in certain segments,”. According to the WSJ, Mr. Werner, speaking at a New York State Society of Certified Public Accountants event said that “We’ve done it because we have shareholders and…
Will Russia Stumble From the Hit of the EU’s New Sanctions?
In exactly one week, Russia will be forced to make a major decision: leave the Ukraine alone or continue its abrasive intervention against the neighboring state. If Russia chooses the former option, it will be able to successfully avoid backlash…
Global economic warfare against Israel: the arguments
Palestinian Boycott, Disinvestment and Sanctions Movement: Yay or Nay? Everywhere you turn, there is talk of the Gaza conflict. Israel and Palestine have always been infamous for being at odds, but with recent violence heating up, passionate supporters of each…