Wednesday, October 28, 2020

Anglo Austrian Bank faces liquidation following money laundering allegations


Austrian lender Anglo Austrian Bank (AAB) shall be liquidated following the decision by the European Central Bank (ECB) to revoke its banking licence, local media reported Wednesday.

The ECB withdrew AAB’s trading license following revelations of irregularities in their banking business in a 44-page report to the Austrian financial regulator last week.

Formerly known as Meinl Bank and founded in 1923, the AAB was part of an Austrian coffee importing empire and supermarket chain owned by the family of Julius Meinl V, who was also the chairman of the AAB board until last year, according to Viennese daily Der Kurier.

Following the ECB decision, a report was released by the Austrian broadcaster ORF’s business reporting team, the Viennese weekly Profil and the Organized Crime and Corruption Reporting Project (OCCRP), according to which, AAB laundered approximately 500 million euros (554 million U.S. dollars) for financial entities on the brink of failure in Latvia, Lithuania and Ukraine between 2011 and 2015.

- Advertisement -

Since Monday, customers have rushed to withdraw their deposits, leading to queues around the bank’s headquarters in the center of Vienna.

The decision to withdraw the AAB’s trading license is considered unique. This is the first time after World War Two that an Austrian bank is accused of being too lax in the supervision of its transactions, according to the ORF and Profil.

AAB’s two-member board resigned on Tuesday and the bank was put under state supervision for the liquidation of its assets starting on Wednesday, according to Der Kurier.

- Advertisement -
- Advertisement -


Beam Suntory Inc. fined $19.6 million in foreign bribery case

Beam Suntory Inc. (Beam), a Chicago-based company that produces and sells distilled beverages, has agreed to pay a criminal monetary penalty of $19,572,885 to...

Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Hong Kong fines Goldman Sachs $350 million over 1MDB scandal

Goldman Sachs ignored multiple red flags over the multibillion-dollar fundraisings it arranged for state fund 1Malaysia Development Berhad, Hong Kong’s financial regulator said on...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World


Latest News

This Week

Greek ex-minister Tsochadzopoulos, wife sentenced for money laundering

Former minister Akis Tsochadzopoulos, his wife and his cousin were found guilty of money laundering by a criminal appeals court on Tuesday. Each was served...

Indonesia sentenced stockbroker to life over fraudulent investment scheme

Renowned stockbroker Benny Tjokrosaputro was sentenced to life by the Jakarta Anticorruption Court on Monday evening for his role in a major graft scandal...

UK regulators fine Goldman Sachs £97 million over 1MDB scandal

Goldman Sachs International has been fined £96.6m by UK regulators for risk management failures connected to the 1MDB scandal. The Financial Conduct Authority and Prudential...

Two U.S. Navy service members get prison for defrauding military insurance program

Two U.S. Navy service members were sentenced in San Diego federal court Friday for their roles in an insurance fraud scheme that involved making false medical claims to...

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks