The Fraud Examiner

The FinCEN Files: Another Major Leak Implicates Major Banks in Money Laundering Scandal

Mason Wilder, CFE
Research Specialist, Association of Certified Fraud Examiners                                 

The latest exposé from the International Consortium of Investigative Journalists (ICIJ), the organization behind the Panama Papers, Paradise Papers and Luanda Leaks reports, highlights the involvement of several major international financial institutions in the movement of funds tied to corruption, fraud, organized crime and terrorism.

Like the previous ICIJ reports, which have been covered by the ACFE, this report not only illustrates the failure of anti-fraud controls to prevent the flow of illicit funds worldwide, but also prompts discussions about reactive responses to the revelations that could impact anti-fraud professionals.

The documents

At the heart of the report are 2,100 suspicious activity reports (SARs) filed by financial institutions with the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury that collects and analyzes information about financial transactions to combat financial crime in accordance with the Bank Secrecy Act (BSA).