FinCEN Files: How Major Banks Continued Moving Suspect Funds for International Criminals
In an unprecedented investigation, a consortium of over 400 journalists, coordinated by the International Consortium of Investigative Journalists (ICIJ), uncovered startling information from more than 2,100 controversial Suspicious Activity Reports (SARs) filed by global banks to the United States Treasury Department’s Financial Crimes Enforcement Network (FinCEN). This data, known as the FinCEN Files, exposes banks’ unintended roles in illicit activities such as money laundering, drug trafficking, and arms dealing, perpetuating a cycle of corruption that damages democratic societies and fuels authoritarian regimes.
Individuals and Entities Involved
The FinCEN Files implicate numerous high-profile individuals and entities, including:
- Jean-Pierre Bemba, former Congolese Vice President, convicted for bribing witnesses during his trial on charges of leading soldiers on a rampage of rape and looting in the Central African Republic.
- Samark López Bello, alleged frontman for Venezuela’s petroleum minister-cum-alleged drug dealer Tareck El Aissami.
- Kazakhstan’s former energy minister
- Angolan billionaire Isabel dos Santos, charged with fraud and money laundering by Angolan prosecutors to recover around $1.1 billion.
- Ukrainian presidential adviser Andriy Klyuyev, sanctioned by the European Union for allegedly misappropriating state funds.
Banks’ Past Crackdowns and Ongoing Role in Suspect Transactions
Alarmingly, global banks, such as JPMorgan Chase, HSBC, Standard Chartered Bank, Deutsche Bank, and Bank of New York Mellon, continued processing potentially illicit transactions despite past U.S. authorities’ crackdowns on their operations. FinCEN’s analysis indicates that these banks profited from such transactions even after receiving fines and facing criminal probation.
Lack of Proper Verification and Information
One of the most concerning findings in the FinCEN Files is that these banks failed to adequately verify the identities of their clients. Nearly 20% of the reports contained a client with an address in secrecy jurisdictions known for hiding the ultimate owners of accounts. Additionally, almost half of the reports did not have sufficient information about the entities behind the transactions.
Case Study: Jean-Pierre Bemba’s Finances
In the Democratic Republic of Congo, Jean-Pierre Bemba’s finances were highlighted in the leaked documents, shedding light on the movement of millions in suspect funds. These transactions traced through banks in countries like Switzerland, Cyprus, and the United States, indicating the global scope of this issue.
Consequences
These findings underscore the ineffectiveness of the U.S.-led enforcement system in preventing the movement of illicit funds across national borders. The financial repercussions of such misconduct sustain the power and influence of corrupt actors, undermine democracy, and finance terrorism. The consequences for individuals and entire nations are far-reaching and devastating.