Tuesday, October 20, 2020

Germany’s anti-money laundering unit failed to disclose warnings about Wirecard’s suspicious transactions

-

The anti-money laundering unit of Germany’s customs authority reportedly failed to share dozens of warnings with police that online payments company Wirecard was facilitating suspicious transactions even before the scandal broke in June.

The Financial Intelligence Unit (FIU) only handed over a small portion of the information it had about Wirecard’s transactions, broadcaster NDR and Süddeutsche Zeitung reported on Tuesday.

The FIU reportedly received a total of around 1,000 reports in connection with Wirecard, 97 of which were found to potentially offer information related to the Wirecard allegations. However, it only forwarded a fraction of them to the Bavarian state police and the responsible public prosecutor’s office in Munich, according to the reports.

The agency has been looking over the reports for offenses including falsification of accounts, fraud, embezzlement, market manipulation and insider trading, and says it is re-examining the evidence in light of new information.

- Advertisement -

A spokesman for the Munich public prosecutor said that “only two reports from the FIU were received” before June 2020, both of which had triggered investigations.

The FIU says it has passed the information on 50 of the suspicious reports to the responsible law enforcement authorities, the majority of which originated after the scandal broke.

Widespread criticism

The unit has also been repeatedly criticized by police for delaying or withholding money laundering reports.

A total of four state justice ministries have filed formal complaints with the Federal Ministry of Justice against FIU, alleging that the unit had neglected to discover crimes outlined in the reports, or forwarded the reports too late.

- Advertisement -

Left Party politician Fabio de Masi told NDR and Süddeutsche Zeitung that the unit’s process with the reports shows that the FIU is a “security time bomb,” and that “it urgently needs to be clarified whether it withheld information that would have allowed the criminal investigators in Bavaria to recognize the scandal earlier.”

Chairman of the Association of German Criminal Police Officers Sebastian Fiedler said the review process was a “security-policy catastrophe.” It can be considered certain that “there are countless other scandals in the data pool of the FIU,” said Fiedler. He also called on Federal Finance Minister Olaf Scholz to have the FIU’s process independently reviewed.

Wirecard started bankruptcy proceedings at the end of June after it was revealed that there was a €1.9-billion ($2.1 billion) gap in its accounts.

MUST READ

Ex-managers of Security firm pleads guilty in Santa Clara County concealed gun permit bribery scandal

Two former managers of a Silicon Valley international security firm pleaded guilty Monday to charges related to a bribery scheme to obtain concealed firearms...

Ohio former House Speaker Larry Householder to stand for reelection amid bribery charges

Republican Rep. Larry Householder’s name will be on the ballot Election Day as the disgraced Ohio lawmaker intends to serve his district for another...

Billionaire Robert Smith to Pay $140 million after admitting to tax evasion

Billionaire Robert Smith will pay about $140 million and acknowledge wrongdoing to end a four-year U.S. tax investigation involving assets held in offshore tax...

Mexico’s ex-army chief arrested in US on charges of drug trafficking, money laundering

Former Mexican Defense Secretary Gen. Salvador Cienfuegos, who led the country’s armed forces for six years under then-President Enrique Peña Nieto, has been arrested...

Texas billionaire Robert Brockman charged in $2 billion tax evasion case

Robert Brockman, the Houston billionaire and CEO of a software company, has been charged with taking $2 billion through a scheme to evade taxes,...
Advertisement
Advertisement

Latest News

This Week

Textile suppliers for fashion retailer Boohoo investigated for money laundering and VAT fraud

The National Crime Agency (NCA) is investigating companies that supply the fast-fashion giant Boohoo on suspicion of money laundering and VAT fraud. Britain’s crime-fighting agency...

Spain extradites former bank CEO sentenced in Iran for corruption

Spain has extradited a fugitive former Iranian executive implicated in a large financial corruption case, in what Iran’s judiciary says is the first such...

Rapper Nuke Bizzle charged with COVID-19 relief aid fraud after bragging in music video

A rapper who bragged about defrauding the government’s unemployment program in a music video has been arrested on federal charges of carrying out the...

Former Mississippi city clerk pleads guilty to money laundering

A former administrator for a Mississippi city has pleaded guilty to money laundering and making false statements on a federal tax return, federal authorities...
Advertisement

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