Three news to start your week: July 24
The Fed slaps Deutsche Bank with a $186 million fine
(The New York Times)
The Federal Reserve fined Deutsche firm $186 million for failing to act quickly enough to address issues with the firm's anti-money laundering measures that the bank regulator had identified in 2015 and 2017.
To comply with those requirements, to which it had consented, "Deutsche Bank made insufficient remedial progress," the Fed stated.
In addition to fining the bank, the Fed issued a fresh order requiring Deutsche "to prioritize completion" of the controls it was required to implement per the earlier orders.
According to the central bank, the measure was required because the bank was still "exposed to heightened levels of compliance risk" when it came to identifying money laundering or violations of US sanctions, despite making some effort toward putting tighter controls in place.
Ricardo Martinelli: Panama ex-president sentenced to a decade behind bars
(Reuters)
A Panamanian court has sentenced former president Ricardo Martinelli to more than ten years in jail for money laundering, endangering his chances of winning reelection the following year.
Following the ruling in the case known as "New Business," where it is alleged that public funds were used to purchase a media conglomerate and grant the former president a controlling stake, Martinelli declared his innocence.
According to a statement from the attorney general's office, four additional individuals were also sentenced for participating in the fraud. Martinelli was ordered to pay a $19.2 million fine and spend 128 months in jail.
Canada Supreme Court denies appeal on bank account information sharing case
(Jurist)
The Attorney General of Canada v. Gwendolyn Louise Deegan case had a leave application rejected by the Supreme Court of Canada. The ruling ends a nearly ten-year legal conflict involving the US Foreign Account Tax Compliance Act (FATCA) and the Canada-US Enhanced Tax Information Exchange Agreement Implementation Act (IGA), which started in the Canadian federal court system in 2014.
The in question agreement obligates Canadian banks to provide the Internal Revenue Service (IRS), the US tax authority, with financial information, including names and account numbers, of US individuals residing in Canada. According to the IRS, FATCA safeguards against online criminality and global money laundering operations.
In 2014, the plaintiffs Gwendolyn Louise Deegan and Virginia Hillis, two Ottawa women with dual citizenship in Canada and the US, filed a statement of claim, arguing the IGA violated Canadian tax law.
