In AML Surveillance

In other news, the United States relations with Haiti have become contentious of late, with the U.S. recently issuing a warning to Haiti to revamp their anti-money laundering (AML) and combating of terrorism financing (CFT) efforts or risk an embargo on money transfers between the two countries by November of 2016. In reference to Kenneth Rijock’s article,  “US tells Haiti it will cut off money transfers in November if no reforms undertaken” posted in BSA News Now on Tuesday, August 30th, many Haitians are largely supported by remittances sent by family and friends working in the United States, however that route “is also used to repatriate the proceeds of narcotics crime” (Rijock, 2016). The Obama administration has grown increasingly frustrated with the lack of AML and CFT initiative in Haiti, and the large role Haiti plays in drug smuggling and trafficking, as well as money laundering operations. As a result, Haitians living in Haiti may lose the resources they have become accustomed to receiving from their expatriates in the United States unless Haiti reforms its financial crime prevention practices in the near future.

In similar news, the middle-eastern branch of the multinational professional

services firm Deloitte Touche is being sued by the Dubai-based investment group Nest Investments Holdings after Deloitte failed to “flag up” money laundering at Lebanese Canadian Bank (LCB), which has now become defunct. According to the OneStopBrokers article “Deloitte is being sued after failing to flag up more than $200 million of money laundering” found in BSA News Now on Wednesday, August 30th, LCB was forced to pay over $100 million in 2011 to “settle claims brought by US authorities that it was involved in laundering drug money and funneling funds to Hezbollah and other militant organizations” (OSB, 2016). Shortly thereafter, the US Federal Bureau of Investigations Drug Enforcement Administration shut down LCB permanently after an investigation found that “LCB bank accounts were used ‘extensively by persons associated with international drug trafficking and money laundering’ as a result of ‘management complicity’” (OSB, 2016). An estimated $230 million of “illicit funds passed through LCB’s accounts while Deloitte and Touche were in charge of reviewing the bank’s books”, a clear failure in their duty as auditors.



Rijock Citation –

OneStopBrokers (OSB) Citation –

Mr. Christopher J. Pelaez is a Staff Writer and Operations Specialist for Global RADAR. His background consists of experience as both a BSA and marketing consultant, with an education based in law. Always on top of all the latest in the world of AML/BSA, Mr. Pelaez also curates the well-known Global RADAR news service, BSA News Now.
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