The New York branch of Arab Bank will pay a US$24 million civil money penalty, the second highest Bank Secrecy Act penalty assessed to date, for failing to implement adequate money laundering and terrorist financing controls in relation to its funds clearing operations. This case and several others will be dissected at Money Laundering Alert’s Second Annual European Money Laundering Conference in Barcelona this September.
Experts at the conference will provide the inside story on the US$24 million penalty suffered by Arab Bank in the United States and how non-U.S. institutions can avoid similar actions.
This case follows the US$ 25 million that Riggs Bank, later acquired by PNC, had to pay in May 2004 for not complying with money laundering regulations. These cases show how governmental agencies around the world continue to prioritize the fight against money laundering in their agendas and heavily penalize for the lack of compliance with associated regulations.
Money Laundering Alert and Moneylaundering.com, which annually sponsor the world’s largest and most renowned money laundering conference in South Florida, are bringing their renowned conference format and expertise to Barcelona for the Second Annual European Money Laundering Conference, from 28 September to 30.
Money laundering cases in Europe multiplied
Dave Zollinger, head of the money laundering and legal assistance department of the Canton of Zurich, will be speaking at the conference. Recently he has been involved with the investigation of one of Germany’s largest banks, Commerzbank. The probe centers on suspected embezzlement by bankers, other German citizens and residents of Luxemburg, Liechtenstein and Cyprus of the assets of a Russian telecommunications company and factories that were previously state-owned. According to press reports, the investigation focuses on trusts and front companies in Zurich and Frankfurt as the laundering vehicles.
In late July, the Frankfurt public prosecutors searched Commerzbank premises in connection with a several-year-old case and the suspected money laundering activities of five current and former bank employees. Zollinger, who is assisting Germany in the investigation, will be explaining how he deals with these cases and others during the conference.
In addition, the conference will spotlight 25 other international experts on 14 panels, which will focus on hot money laundering and terrorist financing topics including Spain’s recent crackdown on money laundering; the new EU Money Laundering Directive and how it changes the duties of European financial institutions; how the EU is counteracting the aggressive “extraterritorial” reach of the U.S. laws; and how offshore secrecy havens serve to launder money.
People from over 30 countries will gather in Barcelona for this three-day conference that covers the latest money laundering and terrorist financing developments in Europe and the Middle East.
Focus on corruption, new EU laundering directive
The new EU Money Laundering Directive will receive special attention at this year’s conference. Among its new provisions and obligations, it requires financial institutions to perform special due diligence on “politically exposed persons” (PEPs), including those within the EU. Experts who helped draft the directive will tell financial institutions, businesses and professionals how best to comply.
Registration information and full details on the conference, including program and speakers, are found at moneylaunderingconference.com or www.moneylaundering.com/conferences/europe05/default.aspx.
