As a follow-up on yesterday’s post, read this story about how Deutsche Bank Trust Co. Americas handled payments from Dankse Bank‘s Estonian unit.
A number of quotes will give you an idea of the priorities at the bank:
[W]hen workers sought broader scrutiny of certain clients, they got a familiar response from some higher-ups, the officer said: Shut up, focus on the transaction in front of you, file your paperwork and move on.
Although U.S. executives routinely promised regulators they’d get tough, former staffers say such efforts were often disregarded in favor of cozy relationships with overseas customers.
Throughout Deutsche Bank, compliance staff members were considered to be “one step above the janitors,” an unnamed former executive told lawyers who filed a 2016 lawsuit against the bank.
In Jacksonville, that task [i.e. know your customer] fell to an office that was understaffed and overly permissive, insiders recall.
Swedish tv station SVT has investigated suspected money laundering by Russian and Ukranian customers of Swedbank. Oligarchs used accounts at Swedbank’s Estonian branch to move money offshore. The documentary is available online in English: part 1 and part 2.
At the end of part 2, Daria Kaleniuk, executive director of the Anti-Corruption Action Center in Kiev is asked “why do you think they [i.e., the bank] let this happen?”. Ms. Kaleniuk replies “because it’s profitable!”.
In my opinion, criminals succeed in money laundering because compliance with AML regulation was (is?) not a priority for top executives.1 A lack of funding and management attention for compliance leads to a mentality of “just check the boxes, so it looks like we did what we had to do”.
Stronger enforcement, including higher fines and other sanctions, might change that situation.
[A] higher share of women on the boards of banks […] is associated with greater stability. As I have said many times, if it had been Lehman Sisters rather than Lehman Brothers, the world might well look a lot different today. – Christine Lagarde, Managing Director of the International Monetary Fund
In today’s finance & crime news:
“Swedbank AB has fired its chief executive officer, Birgitte Bonnesen, amid allegations the bank was used to launder billions of dollars in Russian money on her watch.” – Bloomberg
For your information, five of the eleven members of Swedbank’s Board of Directors are women.
How international is the European banking landscape?
Jamie Dimon, CEO of American bank JPMorgan Chase, says that European banks need mergers across borders in order to become more competitive. I created the map below to illustrate that Dimon has a point (that’s why he’s richer than you).
I used to commute to Brussels by train. The usual experience: full compartments, sometimes people had to stand if they didn’t want to wait for the next train.
When I went to a conference about the financial crisis (slides) last month, the train was almost empty.
As recently as five years ago, few companies allowed telecommuting. If your supervisor was OK with it, you were lucky to work from home once a week.
Nowadays, almost everybody realizes that a lot of jobs don’t need the physical presence of workers in some central office. With just a laptop, a VPN, and a headset you’re ready to collaborate with your colleagues from the kitchen table.
Credit where credit is due: banks were among the first to institutionalize telework.
You don’t have to study economics to get into banking. Many bankers have degrees in philosophy, geography, mathematics, civil engineering, law, or history.
Bank managers don’t care that their employees have studied Old French poetry or Kant’s Kritik der reinen Vernunft. To employers, a university degree indicates perseverance and an ability to learn new things.