A New York court convicted a former executive of a prominent management consultancy of helping transfer $3.4 million into Iran through the informal exchange system known as hawala. A jury found former McKinsey & Company senior associate Mahmoud Reza Banki guilty Friday on five counts, including running an unlicensed money services business. With the help of an Iran-based co-conspirator, Banki used a Bank of America account to facilitate prohibited international money transfers to Iranians, according to prosecutors. Between January 2006 and September 2009, Banki received $3.4 million in wires from individuals and companies in Saudi Arabia, Kuwait, Latvia, Sweden, Russia...
PricewaterhouseCoopers will pay $25 million and revise its consulting practices after removing incriminating findings from a 2008 report drafted for Japan's largest bank, a New York State regulator said.
Recent regulatory guidance on banks use of consultants for anti-money laundering remediation work places a renewed focus on the personal connections that can affect the independence of consultants, according to compliance professionals.
A federal court ruling reversing convictions against a former financial adviser for running an unlicensed money remitter that accepted money from Iran highlights little known exceptions to prohibitions on accepting Iranian money.
Three weeks before he attempted to detonate a car bomb in Times Square on May 1, Faisal Shazhad, a naturalized U.S. citizen living in Connecticut, was in New York picking up $7,000 in cash sent by a suspected member of a Pakistani terrorist group using an age-old informal transmission network.