-  Investigations updates from around the world

Monday, 23 June 2014

Mexico seeks arrest of three Banamex employees

Mexico Attorney General Jesús Murillo is seeking the arrest of three Banamex employees and expects more arrests of people connected to the fraudulent loans oil services company Oceanografía obtained from Citigroup’s Mexican unit, he said on Friday.

BNP Paribas settlement estimate drops to US$9 billion

BNP Paribas’s settlement with US authorities over alleged sanctions violations will amount to around US$9 billion, according to press reports today.

Friday, 20 June 2014

IRS doubles offshore voluntary disclosure penalty

The US Internal Revenue Service (IRS) has announced changes to its offshore voluntary compliance programme, which allows individuals who have undeclared bank accounts abroad to avoid prosecution if they pay a fixed penalty.

UBS Belgium chief executive charged in tax probe

A Belgian investigating judge has charged the head of UBS’s subsidiary in Belgium for his involvement in an alleged multi-billion tax fraud scheme. Belgian police raided the bank on Thursday morning, and arrested and questioned Marcel Bruehwiler for several hours.

Four arrested following Siemens bribery allegations in Israel

The Israel Securities Authority has arrested and questioned four men in connection with an alleged scheme that saw German engineering company Siemens pay bribes to state-owned Israel Electric Corporation to rig bids between 2002 and 2005, according to the Israeli press.

Grifols discloses FCPA investigations

Spanish pharmaceutical company Grifols is investigating potential FCPA violations in Belarus and Russia, as well as trading practices in Brazil, China, Georgia, Iran and Turkey, according to an SEC filing made late last month.

Thursday, 19 June 2014

Barrick Gold faces Tanzanian bribery accusations

An anonymous whistleblower has accused US mining company African Barrick Gold of bribing government officials to further its business interests, the Wall Street Journal reports. The company allegedly paid over US$400,000 in cash to Tanzanian government officials and consultants responsible for land valuations.

Tough AML rules harming banks, says ICC

Banks are terminating correspondent banking relationships when they lead to "outsized" risk brought on by strict anti-money laundering enforcement, according to an International Chamber of Commerce (ICC) report.

Ireland refers data protection safe harbour programme to ECJ

Justice Gerard Hogan of Ireland's High Court has asked the European Court of Justice (ECJ) to decide whether the EU's Safe Harbour programme, which allows the transfer of personal data to US companies despite data protection restrictions, is compatible with EU privacy rights.

Wednesday, 18 June 2014

Deutsche Bank misconduct in Japan even more widespread

Deutsche Bank’s alleged illegal entertainment of officials in Japan might have been even more widespread than originally thought. Bloomberg reports to have a seen a document prepared by Japan’s financial regulator and the bank indicating that between 2010 and 2012, Deutsche Bank’s Japanese securities unit spent ¥22.

Bank of England to hold back forex report until end of FCA investigation

The Bank of England will withhold details of an investigation of whether its staff was involved in manipulation of the foreign exchange market until the UK's Financial Conduct Authority (FCA) finishes its own investigation of alleged misconduct, the Financial Times reports.

SEC fines chief compliance officer for failing to investigate

The US Securities and Exchange Commission (SEC) has fined Private Capital Management chief compliance officer Thomas Meade US$100,000 for failing to stop an insider trading scheme carried out by a company employee.

Fedex discloses potential bribery in Kenya

Delivery company FedEx has told US authorities about potential bribery in Kenya, and instructed a US law firm and external auditing team for its investigation of the allegations, the Wall Street Journal reports.

Tuesday, 17 June 2014

Former SEC trading and markets head joins dark pool

The former acting head of the SEC’s trading and markets division, John Ramsay, has joined dark pool trading organisation IEX Group.

Banks drop US customers over FATCA

FATCA regulations are negatively affecting US expats, according to a Reuters report: banks have resorted to dropping US customers before the complex financial reporting regulations will be fully enforced.

HKMA carrying out anti-money laundering checks

The Hong Kong Monetary Authority is checking a number of financial institutions, including at least one bank, to identify potential money-laundering violations, Bloomberg reported, following a South China Morning Post report stating the banking regulator was investigating the institutions.

Monday, 16 June 2014

FCA sets aside £1.7 million for Clifford Chance-led investigation

The UK’s Financial Conduct Authority (FCA) has dedicated £1.7 million to investigate why it gave a potentially misleading briefing in March, which led to a sharp drop in shares in the insurance sector.

FIFA investigator will review The Sunday Times evidence

Michael Garcia, who is leading football governing body FIFA’s internal investigation of bribery allegations, says he is aware of most of the evidence referred to in The Sunday Times story published this month.

SFO raids increase threefold in last year

The UK’s Serious Fraud Office (SFO) carried out three times more raids in the last financial year (2013/14) than it did in 2012/13, according to a report by Pinsent Masons. In the last year, the SFO conducted 26 raids compared to eight in the previous 12 months.

BNP Paribas warned about US sanctions in 2006

Cleary Gottlieb Steen & Hamilton and Clifford Chance warned French bank BNP Paribas that it risked penalties for allegedly violating US sanctions in 2006, French newspaper Le Monde reports.

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