Title: FinCENFiles:HowCroatianBanksFailtoStopMoneyLaundering#
CroatianBanks’RoleinFacilitatingMoneyLaunderingRevealedinLeakedReports
In a damning indictment of the global banking system, the FinCENFiles—a cache of secret financial intelligence reports—expose how Croatian banks, among others, have facilitated industrial-scale money laundering. Obtained by BuzzFeed News and shared with investigative journalists, the records reveal the banking system’s failure to uphold legal obligations and prevent the flow of illicit funds.
DataAnalysisofFinCENFiles
- Contained over 1,000 SuspiciousActivityReports(SARs)
- Flagged over $1.6trillionintransactionsbetween1999and2017
- Croatianbanksaccountedforapproximately62%of Croatia’sreports
- DeutscheBankheadedthelist
ChallengesinReporting
- Inconsistenciesinthedata
- Lackedcompleteinformation
- Incorrectcountrycodesassigned
- Medianlagtimeof166days
FindingsfromtheAnalysis
ProcessingTransactionsfortosecrecyjurisdictions
- +620reportsflaggedhigh-riskjurisdictions
- BritishVirginIslands,UnitedArabEmirates,Russia,Switzerland
ReasonsforFilingReports
- Mostcommontype:MoneyLaunderingOperations
- Otherreasons:Fraud,FinancialTransactions
LinktoKnownIndividualsandCompanies
- Manyreportedtransactionslinkedto corruption,fraud,embezzlement,or sanctionsevasion
GlobalEfforttoUncovertheTruth
- Collaborativeanalysisbyjournalists
- TextualAnalysis
- MachineLearning
- FactChecking
- Uncovered$380.6billionintransactions
- IncludingtransactionsrelatedtoKalotigoldtradingcompany
DiscrepanciesinFinancialReporting
- UnitedKingdomandUnitedStates
- $4.5billionflowedthroughLLPsintheFinCENFiles
- Lowerreportedrevenuesof$2billiontoCompaniesHouse
ImplicationsandNeedforReform
- Croatianandglobalbanks’roleinfacilitatingmoneylaundering
- Needforgreatertransparencyandaccountabilityinthebankingsector
- Callforregulatoryreformstostrikeanappropriatebalancebetweendataqualityanddataurgency
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