Financial crimes

The impact of U.S. sanctions against Russia on U.S. banks has so far been limited. But further escalation could lead to anti-money-laundering compliance challenges and invite cyberattacks, among other consequences.

Canadian banks have frozen just over 200 accounts under emergency powers invoked by Prime Minister Justin Trudeau that are meant to end protests in Ottawa and at key border crossings, a government official said this week.

Banks are still seeking clarity from law enforcement on how to handle the alleged protesters’ accounts. Finance Minister Chrystia Freeland said some accounts have already been frozen as part of a financial crackdown on those accused of paralyzing the nation's capital.

Coinbase Global, Gemini Trust and Robinhood Markets are among firms helping to build a platform to comply with a U.S. money laundering rule as crypto and financial technology companies seek to satisfy existing requirements and head off stricter oversight.

The registry created by the law — whose implementing rules are being written now — is worse than useless, pairing unverified data with severe penalties for misuse. It will confuse bankers, burden small businesses and embolden crooks.

The Knoble, a nonprofit, is bringing together bank financial crime experts, law enforcement officers and the tech company Prove to help identify criminals and their victims in Los Angeles.

Ilya Lichtenstein and his wife, Heather Morgan, were arrested for allegedly masterminding the 2016 scheme. They are scheduled to appear at federal court in Manhattan Tuesday afternoon.

Stephen Calk had argued against incarceration, while prosecutors asked for 51 to 63 months behind bars. The ousted bank CEO was convicted of approving $16 million of loans in exchange for Paul Manafort’s help in landing a job in the Trump administration.

The U.S. Treasury Department is looking more closely at potential money laundering and the financing of terrorism through trading high-value art.

A proposal by the Financial Crimes Enforcement Network would create a pilot program allowing banks to do something they've long wanted: share suspicious activity reports with their own units in other countries. But many banks may take a pass if the agency doesn't ease the compliance requirements, experts say.