Add to the fallout of the largest-ever known Ponzi schemes another change to bank behavior: institutions are keeping more investigators tied to their desks in an attempt to identify big frauds. The shift by several of the world's largest banks from identifying relatively small-time criminals through boots-on-the-ground investigations to stopping large and complex frauds through teams of number crunchers comes as a consequence of some $2.1 billion in settlements and fines paid by financial institutions since April 2011 for the accounts they once held for Ponzi schemers. One large bank in the United States is in the process of "shifting...
A recent bevy of civil complaints brought against financial institutions by victims of Ponzi schemes raises questions over the extent to which financial institutions can detect and prevent large scale fraud perpetrated by their own customers, say sources.
This time last December, one might reasonably have expected that 2014 would be a year of modest changes for the anti-money laundering and sanctions compliance sector. Then came JPMorgan Chase, BNP Paribas and a convoy of Russian tanks to quash that notion.
Plaintiffs suing Toronto Dominion Bank over its ties to a convicted Ponzi schemer will likely reject a proposed comprehensive settlement that would grant the institution immunity from future litigation, say attorneys.
Federal financial regulators are questioning TD Bank about potential Bank Secrecy Act compliance lapses identified in the wake of the conviction of Florida-based Ponzi schemer Scott Rothstein, say sources.