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Tag: Money laundering

  • Vietnam tycoon’s jail term cut to 30 years in $17-bn money laundering case

    Vietnam tycoon’s jail term cut to 30 years in $17-bn money laundering case

    A Vietnamese property tycoon who was jailed for life in a $17-billion money laundering case had her sentence cut to 30 years on appeal Monday after she claimed what happened was “an accident”.

    Property developer Truong My Lan had already lost a challenge against the death penalty in a separate case in which she was found guilty in April last year of stealing money from Saigon Commercial Bank (SCB) and fraud amounting to $27 billion.

    The appeal court ruled there was no basis to reduce her sentence, but said she could still escape the death penalty if she returned three quarters of the stolen assets.

    Four months later, an appeal court in Ho Chi Minh City on Monday ruled that a life sentence she was handed for three crimes during a second trial in October would be reduced to 30 years.

    “Lan played the major role… (but) we also take into consideration the amount of money that Lan has spent on overcoming the consequences,” judge Pham Cong Muoi said following discussions earlier in the appeal about how her assets may be used to compensate victims of her crimes.

    In her final words before the court last week, Lan described what happened as “an accident”.

    “Since being jailed, I have tried my best… to seek the best solutions to (deal with my) projects and properties,” she was quoted as saying by state media.

    “Please acknowledge my effort,” she added.

    – ‘Mastermind’ –
    The 68-year-old was found guilty in October of laundering $17.7 billion and illegal cross-border trafficking of $4.5 billion.

    She was also found guilty of bond fraud to the tune of $1.2 billion.

    During the trial, the court had determined that Lan was “the mastermind, committed the crime with sophisticated methods, many times, causing especially serious consequences”.

    During her first trial in April 2024, Lan was found guilty of embezzling $12.5 billion but prosecutors said the damages caused by the scam totalled $27 billion — equivalent to around six percent of the country’s 2023 GDP.

    Lan owned just five percent of shares in SCB on paper but the court concluded that she effectively controlled more than 90 percent through family, friends and staff.

    Tens of thousands of people who had invested their savings in the bank lost money, prompting rare protests in the communist nation.

  • DPP reaffirms commitment to fight money laundering

    DPP reaffirms commitment to fight money laundering

    The Director of Public Prosecutions (DPP) has reaffirmed his commitment to combating money laundering in the country.

    Speaking at the Inaugural Anti-Corruption Crime Summit in Nairobi, Wakesho Wegulo, Principal Prosecution Counsel who represented the DPP, stressed the importance of strengthening the working relationships between the Office of the Director of Public Prosecutions (ODPP) and investigative agencies to curb illicit financial flows.

    Ms. Wakesho highlighted that such partnerships would enhance efforts to trace assets acquired through money laundering, bring offenders to justice, and disrupt illicit financial networks.

    The Summit, which brought together representatives from the Office of the Director of Public Prosecutions (ODPP) Kenya Revenue Authority (KRA), Ethics and Anti-Corruption Commission (EACC), and financial institutions, resolved to adopt clear policies aimed at removing Kenya from the Financial Action Task Force (FATF) grey list.

    Kenya was included in the grey list by FATF in February 2024, in a move financial analysts say poses challenges to the country’s economic and social progress.

  • Uganda exits FATF Grey List after reforms

    Uganda exits FATF Grey List after reforms

    Uganda has been delisted from Financial Action Task Force (FATF) Grey List after four years of implementing reforms needed to combat illicit financial flows.

    The East African Community (EAC) member state was placed on the list in February 2020 due to strategic deficiencies in Anti-Money Laundering and Countering Financing Terrorism (AML/CFT) measures.

    According to Uganda’s Financial Intelligence Authority (FIA), Uganda has implemented a series of rigorous reforms and demonstrated substantial progress in aligning its AML/CFT framework with International standards.

    “Uganda’s exit from the FATF Grey List is a testament to our unwavering commitment to fostering a transparent and secure financial environment. It reflects the concerted efforts of our Government and Regulatory Authorities to strengthen our AML/CFT framework and safeguard our financial system from illicit financial activities,’ said Samuel Wandera, FIA Executive Director.

    Among key reforms the country has undertaken during the four years period include adoption of the Countering of Proliferation Financing Strategy which has helped in enhancing the use of Mutual Legal Assistance and maintaining comprehensive statistics.

    Uganda also developed and implemented a risk-based supervision of the financial and Designated Non Financial Business and Professionals (DNFBP) sectors, ensured that Law Enforcement Agencies and Judicial authorities apply the ML offence consistent with the identified risks as well as establishing procedures to trace and seize proceeds of crime.

    Wandera said the country also sought regional collaboration with other anti-money laundering organizations with the aim of combating illicit financial inflows.

    “Government of Uganda has been actively working to strengthen the effectiveness of its Anti-Money Laundering/Countering Financing of Terrorism (AML/CFT) regime to implement the action plan agreed to, with the FATF which comprised of 22 Action items,” he added.

    The exit from FATF Grey List now means Uganda can now enhance its attractiveness to investors and facilitate greater access to International Financial Markets.

    Kenya last week landed on the list with National Treasury saying the country has been compliant in some areas though facing challenges in others.

    In a bid to seal loopholes exploited by criminals engaged in illicit financial flows, Treasury said key achievement has bee the enactment of AML/CFT Amendment Act 2022 which has helped address key legal and compliance deficiencies.

    “The National Treasury is actively engaged in this process and anticipates minimal effects on the country’s financial stability and the cost of conducting business in Kenya,” said Prof. Njuguna Ndung’u, National Treasury Cabinet Secretary.

  • Binance chief pleads guilty to money laundering charges

    Binance chief pleads guilty to money laundering charges

    The Binance chief executive, Changpeng Zhao, has resigned after pleading guilty to money laundering violations.

    “I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself”, he said in a post on X.

    The Justice Department said it was requiring Binance, the largest crypto-exchange in the world, to pay $4.3bn (£3.4bn) in penalties and forfeitures.

    It said Binance had helped users bypass sanctions across the world.

    “Binance enabled nearly $900 million in transactions between US and Iranian users, and facilitated millions of dollars in transactions between US users and users in Syria, and in the Russian occupied Ukrainian regions of Crimea, Donetsk and Luhansk,” a spokesperson said.

    Binance, which is registered in the Cayman Islands, is known as the world’s largest platform for buying and selling cryptocurrencies and other digital assets.

    Who is the new boss of Binance?
    The Justice Department also said the exchange had made it easy for criminals and terrorists to move money.

    “Between August 2017 and April 2022, there were direct transfers of approximately $106 million in bitcoin to Binance.com wallets from Hydra. Hydra was a popular Russian darknet marketplace, frequently utilised by criminals, that facilitated the sale of illegal goods and services,” the department said.

    Binance must now report suspicious activity to federal authorities.

    “This will advance our criminal investigations into malicious cyber activity and terrorism fundraising, including the use of cryptocurrency exchanges to support groups such as Hamas,” the Justice Department said.

    Richard Teng, the company’s head of regional markets, has been named the new CEO.

    In a post on X, Changpeng Zhao said it was “not easy to let go emotionally.”

    He is one of the most influential figures in crypto.

    In March, US regulators sought to ban Binance, alleging that the firm had been operating in the country illegally.

    The lawsuit from the Commodity Futures Trading Commission (CFTC) said the firm cultivated US business while failing to register properly with authorities.

    It accused Binance of breaking numerous US financial laws, including rules intended to thwart money laundering.

    At the time, Binance defended its practices.

    It said it had made “significant investments” to ensure that US users were not active on the platform, including blocking users identified as American citizens or residents, or who had a US mobile number.

    The firm was also hit with another lawsuit in June.

    The company was accused of a “web of deception” by The Securities and Exchange Commission (SEC). The agency said the trading platform and Zhao, its founder, ignored the rules meant to protect investors, in order to keep operating in the US.

    At the time, Binance said it would defend itself “vigorously”.

    US authorities had pledged to use existing laws to root out fraud and other issues in the crypto industry, especially after the dramatic collapse of Binance rival FTX last year.

    Earlier this month Sam Bankman-Fried, the founder of FTX, was found guilty of fraud. ​

  • Binance CEO pleads guilty to money laundering charges

    Binance CEO pleads guilty to money laundering charges

    The Binance chief executive, Changpeng Zhao, has resigned after pleading guilty to money laundering violations.

    “I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself”, he said in a post on X.

    The Justice Department said it was requiring Binance, the largest crypto-exchange in the world, to pay $4.3bn (£3.4bn) in penalties and forfeitures.

    It said Binance had helped users bypass sanctions across the world.

    “Binance enabled nearly $900 million in transactions between US and Iranian users, and facilitated millions of dollars in transactions between US users and users in Syria, and in the Russian occupied Ukrainian regions of Crimea, Donetsk and Luhansk”, a spokesperson said.

    Binance, which is registered in the Cayman Islands, is known as the world’s largest platform for buying and selling cryptocurrencies and other digital assets

    The Justice Department also said the exchange had made it easy for criminals and terrorists to move money.

    “Between August 2017 and April 2022, there were direct transfers of approximately $106 million in bitcoin to Binance.com wallets from Hydra. Hydra was a popular Russian darknet marketplace, frequently utilised by criminals, that facilitated the sale of illegal goods and services,” the department said.

    Binance must now report suspicious activity to federal authorities.

    “This will advance our criminal investigations into malicious cyber activity and terrorism fundraising, including the use of cryptocurrency exchanges to support groups such as Hamas,” the Justice Department said.

    Richard Teng, the company’s head of regional markets, has been named the new CEO.

    In a post on X, Changpeng Zhao said it was “not easy to let go emotionally.”

    He is one of the most influential figures in crypto.

  • State to toughen laws to deter money laundering

    State to toughen laws to deter money laundering

    The Government will continue to strength its financial laws to deter money laundering and enhance its financial integrity, President William Ruto has said.

    The President said a firm regulatory and administrative enforcement on the source and flow of illicit funds will effectively promote integrity and stability in our financial system, thereby spur economic growth.

    He spoke Friday after holding a meeting Under Secretary of the Treasury for Terrorism and Financial Intelligence of the United States Brian Nelson at State House, Mombasa.

    “Kenya will continue working with the U.S. Government to strengthen its laws and regulations on money laundering and financial terrorism,” said the Head of State.

    Early this month, Cabinet approved the Anti-Money laundering and Combating of Terrorism Financing Laws (Amendment) Bill 2023 and mandated the Financial Reporting Centre (FRC) to impose sanctions for violations of the proceeds of crime.

    If enacted by Parliament, FRC, the anti-money laundering agency, will have the power to show the instances under which it might request for the revocation of a reporting institution’s license.

    The amendments in the draft Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2023 are set to boost government’s efforts to combat money laundering and enhance Kenya’s financial integrity.

    The proposed amendments seek to review all existing laws related to anti-money laundering, and anti-terrorism financing to ensure efficient detection and prevention of money laundering activities in Kenya.

    The amendments include supervising and enforcing terrorism financing, reporting suspicious transactions, transparency of beneficial ownership, and combating terrorism financing.

    According to the bill, financial institutions and designated non-financial businesses will be required to conduct thorough verification of their customers.

    The bill also seeks to enhance customer due diligence, strengthen reporting obligations, expand scope and coverage, as well as increasing penalties and deterrents.

    These measures will help prevent the risk of anonymous transactions and ensure transparency in financial dealings.

    Further, the amendments introduce stricter penalties for individuals and entities guilty of money laundering offences which includes higher fines and extended prison terms expected to be strong deterrents against illicit financial activities.