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Wall Street sinks on global money laundering allegations involving big banks

calendar 21/09/2020 - 15:31 UTC

On early Monday, Dow Future sinks over -650 points on global risk aversion amid Rising coronavirus infections in Europe, resulting in new restrictions and lockdowns while an investigation of the International Consortium of Investigative Journalists (ICIJ) into the FinCen (Financial Crimes Enforcement Network) Files revealed several European, U.S. as-well-as Asian banks were involved in money laundering of huge amounts (around $2T) over nearly two decades.

Banks such as JPMorgan Chase (JPM), HSBC, and Deutsche Bank (DB) plunged as they facilitated the movement of criminal money even after getting caught previously and despite red flags about the origins of the money. The files contained information about more than $2 trillion worth of transactions between 1999 and 2017, which were flagged by internal compliance departments of financial institutions as suspicious. Also, Bank of America, Citibank, and American Express processed huge transactions for foreign entities even under U.S. sanctions. Some of the entities

The ICIJ reported the leaked documents were a tiny fraction of the reports filed with FinCen. The HSBC, DB, and StanChart were among the five banks that appeared most often in the documents, the ICIJ reported. Almost all Indian banks are also named for suspicious transactions.

The FinCen files so far have established sender-receiver connections for 406 transactions worth over $482 million for India related entity in this old money laundering allegation. The FinCen operates under the U.S. Treasury Department, compiles suspicious activity reports when it detects potential or evident financial crimes. As per the ICIJ, this global money-laundering involves or organized crime, terrorists, drug traffickers’ and Ponzi schemes across the globe involving high profile personalities/politicians/global leaders.

Technical Outlook: SPX-500, DJ-30, and NQ-100 (Futs): Updated 09/09/20

 

 

 

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