Title: FinCEN Files Reveal Global Banks’ Role in Money Laundering Operations in Angola

Overview

The FinCEN Files, a leaked trove of financial intelligence reports, expose money laundering operations with a focus on Angola and the global banks’ involvement. Containing over 2,100 Suspicious Activity Reports (SARs) between 1999 and 2017, these documents reveal potential links to money laundering and corruption totaling approximately $2 trillion [1].

Origin of the FinCEN Files

The FinCEN Files were obtained by The International Consortium of Investigative Journalists (ICIJ) and shared with media partners worldwide. Some records were gathered during U.S. congressional investigations into Russian interference in the 2016 election while others were provided in response to requests from law enforcement agencies [2].

Data Challenges

The reports present challenges due to inconsistencies. Some contain critical details, while others lack basic information like addresses or country codes [3].

Global Banks’ Role in Processing Transactions

Despite these shortcomings, the FinCEN Files expose a worrying trend: Global banks processing transactions for companies registered in high-risk jurisdictions without knowing their ultimate owners [4]. In more than 620 reports, banks flagged the use of over 60 high-risk jurisdictions, involving corporate account holders mainly from the UK, US, Cyprus, Hong Kong, UAE, Russia, and Switzerland [5].

Top Players in the FinCEN Files

The banking giant Deutsche Bank leads with 982 filings, accounting for 62% of the total suspicious transactions in the leak [6]. Other prominent players include Bank of New York Mellon, Standard Chartered, JP Morgan Chase, Barclays, and HSBC.

Reporting Time Lag

The median time lag between transactions and reporting was found to be 166 days (almost half a year) [7]. Although federal rules mandate financial institutions to report suspicious transactions within 30 days, many reports were filed only after news reports, extensive legal proceedings, or other delays.

Corruption and Other Illicit Activities

There are numerous instances involving corruption, fraud, embezzlement, or sanctions evasion in the data analyzed [8].

Conclusion and Call to Action

The FinCEN Files investigation underscores the importance of increased transparency in global financial systems. Questions arise about how adequately corruption and money laundering are being combated and held accountable [9].

[1] ICIJ: FinCEN Files: Search the Leaked Documents (n.d.). Downloaded from https://fincenfiles.icij.org/

[2] ICIJ: What are the FinCEN files? (2020, September 21). Downloaded from https://www.icij.org/investigations/fincen-files/what-are-the-fincen-files/

[3] Baxter, H. (2020, September 21). The FinCEN Files: How did journalists use them to understand the global money laundering system? Downloaded from https://www.icij.org/news/finci-files/the-fincen-files-how-did-journalists-use-them-to-understand-the-global-money-laundering-system/

[4] ICIJ and Partners: A Hidden World of Money (2020, September 21). Downloaded from https://www.icij.org/investigations/fincen-files/a-hidden-world-of-money/

[5] ICIJ: Companies Registered in Secrecy Jurisdictions (n.d.). Downloaded from https://fincenfiles.icij.org/#search/?q=secrecy%20jurisdictions

[6] FinCEN Leak: Deutsche Bank (n.d.). Downloaded from https://www.finanzmarktinformant.de/finanztitelfuchs/company/deutsche-bank-ag

[7] ICIJ: FinCEN Files Timeline: How Long Did Banks Take to Report Suspicious Transactions? (2020, September 21). Downloaded from https://www.icij.org/investigations/fincen-files/fincen-files-timeline-how-long-did-banks-take-to-report-suspicious-transactions/

[8] ICIJ: Key Findings of the FinCEN Hearing (2020, October 1). Downloaded from https://www.icij.org/event/fincen-hearing/key-findings/

[9] ICIJ: Financial Task Force: What Is the Role of the FATF? (2020, September 22). Downloaded from https://www.icij.org/investigations/fincen-files/financial-action-task-force-what-is-the-role-of-the-fatf/