Monday, September 21, 2020

The SAFE TO WORK Act: Not So Safe For American Employees

Tom Spiggle Senior Contributor

FENG YU - STOCK.ADOBE.COM

Congress has been struggling to pass another coronavirus relief bill. One of the sticking points is the Republican Party’s desire to restrict the number of coronavirus lawsuits against businesses, individuals and other entities. This is due to the belief that without such legal protection, a wave of frivolous lawsuits will threaten the economy and the continued existence of businesses, churches, health care providers and schools.

To prevent this, Senators Mitch McConnell (R-KY) and John Cornyn (R-TX) introduced the Safeguarding America’s Frontline Employees To Offer Work Opportunities Required to Kickstart the Economy Act, also known as the SAFE TO WORK Act.

What Does the SAFE TO WORK Act Do?

In short, the SAFE TO WORK Act (STWA) makes it much harder for plaintiffs to sue someone else for injuries relating to a coronavirus infection. For the most part, the STWA doesn’t provide immunity in the casual sense. Rather, it makes it far harder for a plaintiff to bring and succeed in his or her lawsuit.

Specifically, the STWA applies to “coronavirus exposure actions.” These are civil lawsuits relating to injuries that are the result of a coronavirus exposure when patronizing or visiting a business, service or school.

These legal liability protections will only apply when the alleged exposure took place on or after December 1, 2019, and before the date of October 1, 2024 or the coronavirus is no longer considered a public health threat.

If there is a conflict between a state, federal or tribal law and the STWA, the STWA will override the other law. However, there are some exceptions, such as:

Worker’s compensation laws
The law provides greater legal protections for defendants than the STWA

The STWA will also not apply to lawsuits concerning intentional discrimination “on the basis of race, color, national origin, religion, sex (including pregnancy), disability, genetic information, or age.”

How Does the SAFE TO WORK Act Affect a Plaintiff’s Case?

If a prospective plaintiff wants to bring suit for personal injuries caused by the coronavirus, there are several issues they will need to consider.

First, they only have one year to bring suit. Most states have a statute of limitations for personal injuries that’s at least two years. In some states, it’s as high as four years.

Second, the burden of proof is significantly higher. In a typical personal injury case, the plaintiff can succeed if they can prove that the defendant more likely than not caused the alleged injuries. This is referred to as the “preponderance of the evidence” standard.

Under the STWA, the burden of proof is “clear and convincing evidence.” This requires the plaintiff to show that it is highly probable (or substantially more likely) that the defendant caused the plaintiff’s injuries as opposed to the injuries being caused by someone or something else.

Third, the plaintiff cannot win his or her case by showing negligence. Negligence refers to a defendant not acting reasonably under the circumstances. Instead, the plaintiff must show that the defendant acted intentionally or engaged in gross negligence.

Gross negligence is the reckless disregard for the safety in others. We can use an example to illustrate the difference between gross negligence and “regular” negligence.

Regular negligence is like a doctor administering medication and failing to properly notice the patient’s allergic reaction and take appropriate action. Gross negligence would be the doctor administering a medication that the patient is allergic to, but not realizing they are making a mistake because they are drunk on alcohol.

Fourth, the plaintiff has to do more when preparing his or her complaint. The STWA requires the plaintiff to:

Identify all locations visited and individuals they came into contact with during the two weeks before coronavirus symptoms first appeared.
Give the factual basis of why the plaintiff believes the defendant is responsible for giving them the coronavirus and not another person or place visited in the last 14 days.

Provide a statement outlining the nature and amount of claimed damages and the basis for that amount.

Attach an affidavit from a doctor or other medical professional, as well as provide medical records that support the plaintiff’s assertion that they were injured from coronavirus exposure.

Fifth, the plaintiff must bring suit in federal court. Federal courts tend to be more pro-defendant than state courts when it comes to personal injury litigation.

Sixth, there is no joint and several liability, unless the defendant acted intentionally to injure the plaintiff or committed fraud. Without joint and several liability, each defendant only has to pay its portion of damages that corresponds to its portion of wrongful conduct.

Seventh, the plaintiff’s potential damages are significantly limited. The plaintiff can recover economic compensatory damages if the defendant acted with gross negligence. If the defendant acted intentionally, only then can the plaintiff recover noneconomic compensatory damages.

Punitive damages are only available if the defendant acted willfully and may not exceed the compensatory damage award.

Any damages recovered will be reduced by any other form of compensation the plaintiff receives, such as insurance.

Eighth, the STWA allows defendants to sue the plaintiff or the plaintiff’s attorney if either sends a “meritless” demand letter to the defendant asking to settle the case. If successful, the defendant can recover compensatory damages, punitive damages and attorney’s fees and legal costs. The STWA also allows the U.S. Attorney General to sue any individual or organization that “is engaged in a pattern or practice” of sending demand letters. If successful, the Attorney General can obtain up to $50,000 per letter sent.

In summary, the STWA will make it almost impossible for a plaintiff to bring a successful coronavirus personal injury lawsuit. And in cases when it’s not impossible, the amount of recoverable damages will probably be so low, it won’t be worth the cost and risk of a countersuit.

How Does the SAFE TO WORK Act Affect Employment Cases?

There’s some good news and bad news when it comes to the STWA and employees suing their employers.

The bad news is that the STWA can affect some employment litigation cases. If a representative for the employee sues for wrongful death or the employee claims they were injured due to unsafe working conditions, the plaintiff will be severely hindered by the STWA.

For instance, imagine a manager forces employees to come to work, even if the employees are showing signs of a coronavirus infection. The plaintiff complies with this order and gets infected.

The plaintiff believes they became infected at work, but in the last two weeks, they also went shopping at a local grocery store and picked their kids up from pre-school. Based on these facts, it will be extremely difficult for the plaintiff to prove by clear and convincing evidence that the infection came from the workplace and not the grocery store or the child’s pre-school.

Then there’s the fact that because potential recoveries are dramatically lowered, there is the raised pleading standard and potential legal liability for bringing “meritless” lawsuits. Concerning this latter hurdle, even if the plaintiff felt it was worth this risk to sue, they may not find an attorney who is willing to take the case.

The bad news doesn’t stop there. There’s a special provision in the STWA that states in any action relating to coronavirus exposure and brought under a “covered Federal employment law,” employers are not subject to enforcement proceedings or legal liability. Covered Federal employment law includes:

The Occupational Safety and Health Act of 1970
Title VII of the Civil Rights Act of 1964
The Age Discrimination in Employment Act of 1967
The Fair Labor Standards Act of 1938
The Worker Adjustment and Retraining Notification Act
Title TII of the Genetic Information Nondiscrimination Act of 2008
Title I of the Americans with Disabilities Act of 1990

Now for the good news. The STWA is unlikely to pass in its current form. Like most laws that pass Congress, a bit of negotiation is to be expected. The STWA is likely going to be modified assuming it becomes law. The only question is how much modification it will receive.

While the existence of liability protection appears to be non-negotiable for Republicans, exactly how the protection will apply is something that Democrats and Republicans may be able to compromise on.

There’s also the possibility that the STWA may never pass. If Joe Biden becomes president or Democrats take the majority in the Senate, it’s very possible that the STWA will not become law, even heavily watered down.

Finally, the STWA, even in its current form, will not affect the majority of lawsuits brought by employees against their employers. Most of these employment cases deal with legal issues not involving coronavirus exposure or personal injuries. Disputes over discrimination, wrongful termination, retaliation and work leave are far more common.

The Bottom Line

Not all labor cases involving the coronavirus will involve an employer acting illegally or otherwise being unfair to the employee. There will be cases where it may seem like an employer is retaliating or discriminating against the employee, but the employer’s actions have a reasonable basis. For example, the employer needs to downsize as a result of the coronavirus dramatically lowering revenue.

But the STWA, as currently drafted, goes well beyond protecting defendants in these situations. Instead, it would effectively stop the vast majority of coronavirus personal injury lawsuits, even the cases brought in good faith with what would normally be sufficient evidence to prove the plaintiff’s case.



Tom Spiggle
I’m an employment lawyer who writes about your workplace rights.
After clerking for a judge and working as a federal prosecutor, I wanted to spend more quality time with my kids so in 2009 I started the Spiggle Law Firm. 
Follow me on Twitter or LinkedIn. Check out my website
On This Day in Space: Sept. 21, 2003: Galileo mission to Jupiter meets fiery end

By Hanneke Weitering - Associate Editor SPACE.COM

On Sept. 21, 2003, NASA's Galileo mission to Jupiter and its moons came to an end.

After 14 years of exploration, the Galileo spacecraft intentionally fell into Jupiter and disintegrated in the planet's dense atmosphere. Galileo launched in 1989 from the payload bay of the space shuttle Atlantis and arrived at Jupiter in 1995.

Target: Jupiter — 9 Missions to the Solar System's Largest Planet

It was the first spacecraft to orbit Jupiter and the first to send a probe into its atmosphere. It discovered evidence of saltwater below the surfaces of three of Jupiter's moons – Europa, Ganymede and Callisto. It was purposely put on a collision course with Jupiter because it was running out of fuel, and NASA wanted to make sure that it wouldn't impact any of Jupiter's moons that could harbor life in their subsurface oceans.


























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 CRIMINAL CAPITALISM BANK ROBBERY

FinCEN Files: HSBC moved Ponzi scheme millions despite warning

  • 20 September 2020Share this with FacebooShare this with Messenger
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HSBC allowed fraudsters to transfer millions of dollars around the world even after it had learned of their scam, leaked secret files show.

Britain's biggest bank moved the money through its US business to HSBC accounts in Hong Kong in 2013 and 2014.

Its role in the $80m (£62m) fraud is detailed in a leak of documents - banks' "suspicious activity reports" - that have been called the FinCEN Files.

HSBC says it has always met its legal duties on reporting such activity.

The files show the investment scam started soon after the bank was fined $1.9bn (£1.4bn) in the US over money laundering. It had promised to clamp down on these sorts of practices.

The scam was a Ponzi scheme - a notorious type of investment racket that pays existing stakeholders with money collected from new members.

Lawyers for duped investors say the bank should have acted sooner to close the fraudsters' accounts.

The documents leak includes a series of other revelations - such as the suggestion one of the biggest banks in the US may have helped a notorious mobster to move more than $1bn.

What are the FinCEN Files?

The FinCEN Files are a leak of 2,657 documents, at the heart of which are 2,100 suspicious activity reports, or SARs.

SARs are not evidence of wrongdoing - banks send them to the authorities if they suspect customers could be up to no good.

By law, they have to know who their clients are - it's not enough to file SARs and keep taking dirty money from clients while expecting enforcers to deal with the problem. If they have evidence of criminal activity, they should stop moving the cash.

The leak shows how money was laundered through some of the world's biggest banks and how criminals used anonymous British companies to hide their money.

Media captionWhat are Suspicious Activity Reports?

The SARs were leaked to the Buzzfeed website and shared with the International Consortium of Investigative Journalists (ICIJ). Panorama led the research for the BBC as part of a global probe. The ICIJ led the reporting of the Panama Papers and Paradise Papers leaks - secret files detailing the offshore activities of the wealthy and the famous.

Fergus Shiel, from the consortium, said the FinCEN Files are an "insight into what banks know about the vast flows of dirty money across the globe… [The] system that is meant to regulate the flows of tainted money is broken".

The leaked SARs had been submitted to the US Financial Crimes Enforcement Network, or FinCEN between 2000 and 2017 and cover transactions worth about $2 trillion.

FinCEN said the leak could impact US national security, risk investigations, and threaten the safety of those who file the reports.

But last week it announced proposals to overhaul its anti-money laundering programmes.

The UK also unveiled plans to reform its register of company information to clamp down on fraud and money laundering.

What was the Ponzi scam?

Ming Xu pictured in WCM777 Facebook postImage copyrightFACEBOOK
Image captionMing Xu claimed he was running a global bank

The investment scam that HSBC was warned about was called WCM777. It was started by Chinese national Ming Xu. Little is known about how he came to be living in the US, although he claims to have studied for an MA in California.

Basing himself in the Los Angeles area, Xu - or "Dr Phil" as he styled himself - acted as a pastor at evangelical churches.

Xu said he was operating a global investment bank, World Capital Market, that would pay out 100% profit in a 100 days. In reality, he was running the WCM777 Ponzi scheme.

Through travelling seminars, Facebook and webinars on YouTube, it raised $80m selling supposed investment opportunities in cloud computing.

Image captionSome of the Facebook posts used to market the WCM Pozi scheme

Thousands of people from the East Asian and Latino communities were taken in. The fraudsters used Christian imagery and targeted poor communities in the US, Colombia and Peru. There were also victims in other countries, including the UK.

But the impact were not just financial. The scheme led to the death of investor Reynaldo Pacheco, who was found under water on a wine estate in Napa, California, in April 2014. Police say he had been bludgeoned with rocks.

Reynaldo PachecoImage copyrightHANDOUT
Image captionMurder victim Reynaldo Pacheco, who invested in the Ponzi scheme

He signed up to the scheme and was expected to recruit other investors. The promise was everyone would get rich.

A woman Mr Pacheco, 44, introduced lost about $3,000. That led to the killing by men hired to kidnap him.

"He literally was trying to… make people's lives better, and he himself was scammed, and conned, and he unfortunately paid for it with his life," said Sgt Chris Pacheco (no relation), one of the officers who investigated the killing.

Reynaldo, he said, "was murdered for being a victim in a Ponzi scheme".

By then, regulators in California had already told HSBC it was investigating WCM777 - and alerted its residents to the fraud. This happened in September 2013

And California, along with Colorado and Massachusetts, took action against WCM for selling unregistered investments.

HSBC did spot suspicious transactions going through its systems. But it was not until April 2014, after US financial regulator the Securities and Exchange Commission filed charges, that the WCM777 accounts at HSBC in Hong Kong were shut.

By that time there was nearly nothing left in them.

What do the suspicious activity reports show?

HSBC filed its first SAR about the scam on 29 October 2013 relating to more than $6m sent to the fraudsters' accounts in Hong Kong.

1px transparent line

Bank officials said there was "no apparent economic, business, or lawful purpose" for the transactions - and noted allegations of "Ponzi scheme activities".

A second SAR in February 2014 identified $15.4m in suspicious transactions, and a "Potential Ponzi scheme".

A third report in March related to a company associated with WCM777 and nearly $9.2m, and noted the regulatory moves by US states and an investigation ordered by Colombia's president.

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What did HSBC do?

The WCM777 scheme emerged months after HSBC avoided a US criminal prosecution over money laundering by Mexican drug barons. It did so by agreeing to improve procedures.

Analysis by the ICIJ shows that between 2011 and 2017 HSBC identified suspicious transactions moving through accounts in Hong Kong of more than $1.5bn - about $900m linked to overall criminal activity.

But the reports failed to include key facts about customers, including the ultimate beneficial owners of accounts and where the money came from.

Banks are not allowed to talk about suspicious activity reports.

HSBC said: "Starting in 2012, HSBC embarked on a multi-year journey to overhaul its ability to combat financial crime across more than 60 jurisdictions… HSBC is a much safer institution than it was in 2012."

The bank added the US authorities had determined that it "met all of its obligations under the [agreement struck with US prosecutors]".

Xu was eventually arrested by the Chinese authorities in 2017 and jailed for three years over the scam.

Speaking to the ICIJ from China, Xu said HSBC had not contacted him about his business. He denied WCM777 was a Ponzi scheme, saying it was wrongly targeted by the SEC and his aim had been to build a religious community in California on more than 400 acres of land.

What is a Ponzi scheme?

A Ponzi scheme - named after early 20th Century conman Charles Ponzi - does not generate profits from the cash it raises. Instead investors are paid a return from money coming in from other new investors.

1px transparent line

More and more investors are needed to cover these payments. Meanwhile, the owners of the scheme move money into their own accounts.

A Ponzi scheme will collapse if it cannot find enough new investors.

What else did the leak find?

The FinCEN Files also show how multinational bank JP Morgan may have helped a man known as the Russian mafia's boss of bosses to move more than a $1bn through the financial system.

Semion Mogilevich has been accused of crimes including gun running, drug trafficking and murder.

FBI most wanted poster featuring Semion MogilevichImage copyrightFBI

Banks have measures in place to stop profits from crime going through the financial system but a SAR filed by JP Morgan in 2015 after the account was closed, reveals how its London office may have moved some of the cash.

It details how JP Morgan, provided banking services to a secretive offshore company called ABSI Enterprises between 2002 and 2013, even though the firm's ownership was not clear from the bank's records.

Over one five-year period, JP Morgan sent and received wire transfers totalling $1.02bn, the bank said.

Graphic showing JP Morgan suspicious activity report relating to Semion Mogilevich

The SAR noted ABSI's parent company "might be associated with Semion Mogilevich - an individual who was on the FBI's top 10 most wanted list".

In a statement, JP Morgan said: "We follow all laws and regulations in support of the government's work to combat financial crimes. We devote thousands of people and hundreds of millions of dollars to this important work."

FinCEN Files strap

The FinCEN Files is a leak of secret documents which reveal how major banks have allowed criminals to move dirty money around the world. They also show how the UK is often the weak link in the financial system and how London is awash with Russian cash.

The files were obtained by BuzzFeed News which shared them with the International Consortium of Investigative Journalists (ICIJ) and 400 journalists around the world. Panorama has led research for the BBC.

FinCEN Files: full coverage; follow reaction on Twitter using #FinCENFiles; in the BBC News app, follow the tag "FinCEN Files; Watch Panorama on the BBC iPlayer (UK viewers only).

The 11 most important things in the leaked FinCEN files, which exposed $2 trillion in suspicious transactions and are roiling the world of finance

A Deutsche Bank branch in Frankfurt, Germany. Frank Rumpenhorst/picture alliance via Getty Images

Leaked documents from the Financial Crimes Enforcement Network were shared with news outlets.
They showed that big banks had for years engaged with dirty money with little oversight.
Banks named in the documents included JPMorgan Chase, HSBC, Barclays, and Deutsche Bank.
Here are some of the biggest takeaways from the scandal.
Visit Business Insider's homepage for more stories.


Thousands of leaked documents shared with journalists have shown how some of the world's biggest banks for years facilitated the movement of dirty money.

The documents, part of a collection of files belonging to the Financial Crimes Enforcement Network, were published on Sunday by BuzzFeed News and the International Consortium of Investigative Journalists.

FinCEN is in charge of compiling "suspicious-activity reports" sent to it by banks that suspect financial wrongdoing by their clients. SARs do not constitute evidence of wrongdoing but are a way to alert regulators and law enforcement.

The documents are shared with law-enforcement and financial-intelligence groups around the world. The agency does not require banks to stop dealing with clients who prompted SARs.


The BuzzFeed News and ICIJ said the documents showed that banks including JPMorgan Chase, HSBC, and Deutsche Bank engaged with and facilitated the movement of criminal money even after raising suspicions.

The files detailed movements and transactions over almost two decades, from 1999 into 2017.

Many of the banks named in the report have responded in statements to BuzzFeed News.

Here are some of the biggest revelations to come out of the bombshell report:

5 banks processed more suspicious money than anyone else in the leak

The names of five big banks came up more than any others in the documents.

Of the $2 trillion in suspicious transactions, $1.2 trillion moved through Deutsche Bank.

Nearly all the rest was processed by JPMorgan, Standard Chartered, Bank of New York Mellon, and Barclays.

Several other banks, including Société Générale, HSBC, State Street Corporation, Commerzbank AG, and China Investment Corporation, also processed billions.


European bank shares — already under pressure from a resurgence of the coronavirus — have tumbled since the report was published.

Barclays shares were last down 5.4% on London's FTSE 100 index, at their lowest since late April, while Deutsche Bank shares were down nearly 9% in Frankfurt, at their weakest since late May.
The leaked documents represented 0.02% of total SARs

Reporters saw more than 2,100 leaked SARs — but this is just the tip of the iceberg.

According to the ICIJ, more than 12 million SARs were filed with FinCEN from 2011 to 2017, meaning those in the leak represented about 0.02% of the total.

HSBC moved money for the WCM777 Ponzi scheme that victimized thousands

The files show that HSBC allowed fraudsters involved with WCM777, an $80 million Ponzi scheme, to move money around the world, the BBC reported.

In 2013 and 2014, the bank moved fraudsters' money from the US to Hong Kong, despite having promised to clamp down on money laundering, the outlet reported.

In 2012, after a US Senate investigation, the bank was fined a record $1.9 billion for its role in channeling cash for what the investigators called "drug kingpins and rogue nations," the BBC reported at the time.

But the following year, fraudsters working with WCM777 were able to move more than $15 million through HSBC, despite warnings that it was a scam, the leaked documents show.


At the time of the notice, WCM777 was barred from conducting business in three states.

The Ponzi scheme targeted poor communities in various nations and victimized thousands of Asian and Latino immigrants, according to the BBC and BuzzFeed News.

HSBC told the BBC it has always followed its legal duty in reporting such activities.

Read the full report from the BBC here.

Banks processed millions for the family of a Kazakh politician wanted by Interpol

The documents showed that JPMorgan Chase, along with Bank of America, Citibank, American Express, and others processed millions in transactions linked to a Kazakh politician wanted by Interpol, BuzzFeed News reported.

The family of Viktor Khrapunov, a former mayor of Almaty, Kazakhstan, used JPMorgan Chase to handle millions of dollars in transactions, even after Interpol issued a so-called red notice, the outlet said.

At the time of the transactions, Khrapunov and his wife stood accused of money laundering, fraud, and the creation of an organized crime group, according to Newsweek.

They were convicted in absentia, having fled to Switzerland. They described the charges as politically motivated, BuzzFeed News reported.

Arkady Rotenberg, a Putin associate, may have used Barclays to launder money and evade sanctions

The documents suggested that a close associate of Russian President Vladimir Putin's may have used the UK-based Barclays Bank to avoid sanctions and launder money, the BBC reported.

Arkady Rotenberg, a childhood friend of Putin's, is among several associates who were put under European Union and US sanctions following Russia's annexation of Crimea in 2014, the BBC reported. The sanctions were meant to restrict Rotenberg from conducting business with Western banks.

But companies controlled by Rotenberg appeared in numerous SARs in the leak, according to the BBC.

From 2012 to 2016, a company named Advantage Alliance moved about $77 million through HSBC; the US Senate has said there is strong evidence that the company is owned by Rotenberg. A Senate investigation found that the company was making secretive art purchases using its Barclays account to evade the sanctions, the BBC reported.


Barclays closed Advantage Alliance's account in 2016, but leaked SARs showed that the bank continued to deal with numerous other companies thought to be owned by Rotenberg until 2017, the BBC reported.

Barclays denied any wrongdoing.

Read the full report from the BBC here.
$142 million of suspected Iranian money was processed via the UAE

US prosecutors have alleged that Gunes General Trading, based in Dubai, was used to funnel Iranian state money via the United Arab Emirates and evade international sanctions, according to the BBC.


In 2011 and 2012, the documents showed, the UAE's central banking system processed $142 million in transactions for the company, despite them being labeled as suspicious, the BBC said.

A New York branch of Standard Chartered Bank noted hundreds of suspicious transactions from the company and flagged them to the UAE's central bank but did not mention an Iran connection, the BBC reported.

While the UAE's central bank said it alerted law enforcement and closed the accounts, Gunes General Trading used other state-owned banks to funnel another $108 million in transactions until September 2012, the BBC reported.

In 2016, the US said the company was involved in a major sanctions-evasion scheme. It has wound up within the past two years, the BBC reported.


The Central Bank of the UAE did not respond to the BBC's request for comment.

Read the full report here.
A major donor to the UK's ruling Conservative Party was linked to the Kremlin

The husband of a major donor to UK Prime Minister Boris Johnson's Conservative Party has received money from a Putin-linked millionaire who is under US sanctions, the leaked documents showed.

The files showed that Vladimir Chernukhin, the husband of Lubov Chernukhin — who has given almost $2.2 million to the Conservative Party — was given $7.8 million by an offshore company that could be traced back to a Russian politician and oligarch named Suleyman Kerimov.


Kerimov was one of several oligarchs named in a 2018 report by the US Treasury Department discussing "malign" Russian activity. The Treasury report said he was accused of laundering money and leaving taxes unpaid in Europe.

Lubov Chernukhin has spent time in the company of three prime ministers — and she once paid $205,000 to play tennis with Johnson, according to the BBC.
North Korea laundered money using a string of shell companies and US banks

The leaked documents suggested that despite international sanctions blocking North Korea's access to the global financial system, it has laundered more than $174.8 million, NBC News reported.

The documents show that transactions flagged as suspicious from about 2008 to 2017 were cleared through US banks including JPMorgan Chase and Bank of New York Mellon, NBC News said.


North Korean wire transfers flagged in the SARs were often facilitated by Chinese and shell companies, NBC News reported.

Experts told NBC News that the transactions showed all the hallmarks of money laundering.

Read the full report here.
Banks flagged Paul Manafort's activity as suspicious years before he was arrested


Bank transactions linked to Paul Manafort, President Donald Trump's former strategist who was convicted of fraud in 2018, were flagged as suspicious six years earlier, in 2012, the ICIJ reported.


More than $50 million in payments to Manafort processed by JPMorgan Chase over 10 years attracted SARs, according to the ICIJ.

The report said the bank processed $6.9 million in transactions after Manafort resigned from Trump's campaign.

Manafort is serving a seven-year sentence for tax fraud, bank fraud, and failure to report foreign bank accounts.
Deutsche Bank managers knew more than they claimed about an infamous trading scandal

2017's mirror-trading scandal — a $10 billion money-laundering scheme involving crime bosses, drug cartels, and terrorist networks — saw Deutsche Bank pay a fine and blame middle managers in its Moscow offices.


But the leaked SARs showed that awareness of the issues at the heart of the scandal went far higher in the company, BuzzFeed News reported.

According to BuzzFeed News, warnings of serious failings at the company were sent to the bank's chair and its supervisory board.

Bank of America was so concerned that it submitted a SAR about Deutsche Bank's dealings — and then its managers were asked to leave Deutsche Bank's building when they attempted to discuss the matter in London, BuzzFeed News reported.

Christian Sewing, now Deutsche Bank's CEO, ran the audit office overseeing the bank's Moscow dealings, but he gave the office the all-clear, BuzzFeed News reported.


Deutsche Bank told BuzzFeed News that Sewing was not personally involved in the Moscow audit.

Read the full story here.
Financial regulators catch only a small fraction of the activity behind dirty money

The FinCEN leak includes 2,100 SARs, but they're a fraction of what's out there.

Banks often don't know or don't follow up on their inquiries about the ultimate owners of the accounts they process, the ICIJ reported.

David Lewis, executive secretary of an anti-money-laundering group called the Financial Action Task Force, told the ICIJ that compliance was more often about going through the motions than taking real action.

"Everybody is doing badly," Lewis said.

2011 report by the United Nations Office on Drugs and Crime estimated that less than 1% of global illicit financial flows were seized and frozen.

Read the full story here.