Monaco Money Laundering Scandal Rocks Financial Industry
A shocking money laundering scandal has rocked the financial industry in Monaco, with two high-ranking bankers facing criminal charges and a third being investigated for their alleged involvement.
The Investigation
The scandal centers around Giorgio Amore, an Italian businessman who allegedly deposited large amounts of cash into his bank accounts without providing adequate documentation or justification. According to a document reviewed by Bloomberg, Amore deposited a total of €1.24 million between 2012 and 2015 in nine bundles of cash as large as €140,000.
Bank Officials’ Inaction
Bank officials at Edmond de Rothschild and Banque Havilland, where Amore held accounts, claimed that they did not report the transactions to the Monaco government because they believed it was tax dodging, rather than money laundering. However, investigators discovered audio recordings of a conversation between Amore and his account manager, Balga, in which they discussed ways to avoid triggering internal alarms.
Red Flags Uncovered
The investigation, led by Monaco’s anti-money-laundering watchdog, SICCFIN, uncovered numerous red flags, including large cash deposits that should have triggered alerts. Despite concerns raised by back-office staff, no one at the banks singled out Amore’s transactions as suspicious until news of his legal woes in Italy became public.
Consequences
The scandal has sparked questions about how such massive money laundering schemes can go undetected for so long. The maximum penalty for money laundering is 10 years in prison, while failing to file a suspicious transaction report can lead to a fine.
Response and Impact
In a statement, Gelso’s attorney declined to comment on the allegations against his client. Neither Amore nor Balga could be reached for comment. The case highlights the need for greater transparency and cooperation between financial institutions and law enforcement agencies to combat money laundering and other financial crimes. As Monaco continues to grapple with the fallout from this scandal, the global financial community is left wondering how such a massive scheme could have been perpetrated under their noses.
Key Takeaways
- Two high-ranking bankers facing criminal charges
- Third banker being investigated for alleged involvement
- €1.24 million deposited in nine bundles of cash between 2012 and 2015
- Bank officials claimed it was tax dodging, not money laundering
- Audio recordings revealed attempts to avoid triggering internal alarms
- Red flags were ignored until news of Amore’s legal woes became public
- Maximum penalty for money laundering is 10 years in prison, while failing to file a suspicious transaction report can lead to a fine.