U.K. banks must do more to fight dirty money, Bank of England’s Sam Woods says

Pedestrians wearing face masks pass the Bank of England in London on March 11, 2020.

Matt Dunham/The Associated Press

Britain’s banks must make the fight against dirty money a “top priority” or risk facing more severe fines, Bank of England Deputy Governor Sam Woods said on Tuesday.

Global banks, including UK-based HSBC, Barclays and Standard Chartered, face a fresh scandal about dirty money after a cache of leaked documents showed they transferred more than $2 trillion in suspect funds over nearly two decades.

Woods said it was vital that banks play their part in fighting financial crime as the leaks were a good reminder of how criminals will use the financial system for their own ends.

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“If the banks get this wrong, then costs for them are very severe, as you have seen in recent years the big fines here in the UK and in the

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Bank shares slide on report of rampant money laundering

Shares of JP Morgan tumbled 4.4%.

The consortium’s investigation found the documents identify more than $2 trillion in transactions between 1999 and 2017 that were flagged by financial institutions’ internal compliance officers as possible money laundering or other criminal activity, and $1.3 trillion of that activity took place at Deutsche Bank. Shares of Deutsche Bank dropped 7.7%.

Deutsche Bank has been under scrutiny for years. The bank, based in Frankfurt, Germany, agreed to pay the state of New York $150 million to settle claims that it broke compliance rules in its dealings with the sex offender Jeffrey Epstein. Epstein killed himself last August in a Manhattan federal jail while awaiting trial on sex trafficking charges.

German newspaper Sueddeutsche Zeitung reported last year that Deutsche Bank gave expensive gifts to senior Chinese officials and hired family members of Chinese elite as it was trying to establish itself as a major player

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Negative rates haunt Virgin Money, bank investors

Worsening outlook

The BoE’s August Monetary Report notes if rates turn negative then deposit-taking institutions probably can’t take deposit rates below zero in response as customers would hoard physical cash.

As a result, the profit margins the banks make on the spreads between lending and deposit rates could narrow the most yet in the current rate-cutting cycle.

Virgin Money’s net interest margin in the UK fell 16 basis points over the June quarter to just 1.47 per cent.

Broker Bell Potter cut its valuation on the bank 10 per cent to $1.80, suggesting if UK cash rates go lower then it’ll struggle to reprice its savings rates offered to depositors.

Banks most reliant on retail deposits for funding are the most exposed to negative rates, according to the BoE. Bell Potter reported 79 per cent of Virgin Money’s funding came from retail deposits in the second half of financial 2020.

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5 directions WWE could go with Otis’ Money in the Bank briefcase

The current situation surrounding the men’s Money in the Bank briefcase is weird, to say the least. Otis, primarily a comic character, won it in the cinematic Money in the Bank Ladder Match on the roof of WWE Headquarters. However, WWE has not done much to elevate him towards a serious role.

In fact, Otis is doing even more comedy work and has been using his briefcase as a lunchbox. He, along with Tucker, has been feuding with The Miz and John Morrison lately. The two heels have tried to steal the briefcase, but Otis has outsmarted them so far.

There are several ways this storyline, and Otis as Mr. Money in the Bank, could play out. He has been successful at maintaining the physical Money in the Bank contract, but things could change soon. WWE will need to be creative with the briefcase right now, with the world title

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Take back your money, bank tells Kobia as case trashed

Paul Kobia at a Milimani court in Nairobi during a past case. [George Njunge, Standard]

It is unusual for a bank to kick out a client, return his money and declare it does not wish to continue doing business with him.

Yet, this is the situation Mr Paul Kobia, who describes himself as a businessman and politician, has found himself in.

The flamboyant man had three accounts with Barclays Bank. But this was only until December 14, 2018, when the bank informed him that after reviewing its business, it had decided to close his accounts and return all the money he’d banked with it.

“As a result of this decision, your accounts or products will be closed with effect from January 14, 2019,” Barclays premier relationship manager Joan Kiragu informed him.

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Later, Kobia sued the Central Bank of Kenya (CBK) and the Attorney General claiming the regulator’s requirement

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Payments are blocked as banks’ new security check becomes a name game | Money

When the sale of Heather Lord’s house completed, her conveyancing solicitor attempted to transfer funds to her bank account. An automated message warned him that her name did not match the name on the account he was paying into, and that the transfer would therefore be at his own risk. Lord was baffled.

“I phoned the bank and asked who I was,” she says. “They told me I was Ms Heather Audrey Lord. This was also refused by the system! As we didn’t want to risk my money disappearing, I asked for a cheque, made out to Heather Lord, which was processed with no problem.”

She is one of dozens of Observer readers to be questioned about their identity after a new name-matching system, adopted by banks, refused to recognise them.

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Zimbabwe’s Mobile Money on Life Support as Central Bank Tightens Screws: Restrictions to Affect P2P Bitcoin Trading

Zimbabwe’s Mobile Money Operators (MMO) say they will comply with the latest directive by the central bank to shutdown mobile money agents. In addition, the MMOs will also limit mobile money transactions to $50 (Zwl $5,000) per day while users are now restricted to one mobile money account per person. The directive went into effect right after the monetary policy review by the Reserve Bank of Zimbabwe (RBZ) on August 21.

In a sign that MNOs have lost an appetite to fight the RBZ, the mobile money market leader, Ecocash also said funds in “frozen agent accounts will only be liquidated into the affected agent’s formal bank account.” On top of that, the liquidation will “require RBZ approval on a case by case basis.”

Ecocash has previously sought relief against RBZ directives through national courts. However, following changes to the regulations that govern MNOs in July, the RBZ now has

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Video shows scammers getting free money from Santander Bank ATMs

A video is circulating online that gives a step-by-step “how-to” for hacking Santander Bank ATMs — a scam that has plagued the area and led to a police chase on Staten Island yesterday, police sources said.

The video, which was viewed by The Post, never actually shows the man getting cash out of the machine, but the sounds of the ATM counting the bills can be heard once he completes the process.

The scam targets a flaw in Santander’s ATM where people use pre-paid debit cards and withdraw more money than the actual balance, sources said.

The multi-state scam was first revealed Tuesday when cops swarmed a bank in Staten Island looking for two scammers, according to video of the incident and police sources.

Videos posted online show a large police presence at the bank near Great Kills Park. Police sources said cops had one man in custody Tuesday and

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Smart Money Recently Increased Its Stake in This Bank Stock

Two prominent investors bought more shares of Investors Bancorp (NASDAQ: ISBC) in the second quarter, a time when a lot of smart money appeared to be negative on the banking sector. Specifically, bank hedge fund EJF Capital and community bank activist investor Lawrence Seidman both significantly increased their stakes.

According to 13F reports filed with the Securities and Exchange Commission, EJF Capital increased its stake in Investors Bancorp from 30,000 shares as of March 31 to 200,000 shares as of June 30, a 566% increase. Seidman is a longtime bank investor who will frequently buy a large stake in a public bank and join its board. Seidman increased his position in the roughly $27 billion asset bank from 45,000 shares to more than 117,000, representing a 160% increase.

Following the smart money is a popular investment strategy. EJF Capital was recently down about 20% on the year, according to The

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