MSBs in Philippines, Casinos in Las Vegas, City of San Diego

May 3, 2017

Corporate Fraud

United States: A former executive assistant at Procter & Gamble has pleaded guilty to defrauding the company out of more than $454,000 by using the P&G P-Card to pay for personal expenses as well as requesting P&G to issue corporate checks to make payments to her own personal credit card. Speaking of stealing from one's company, a high-ranking official from the Northern New Mexico College has admitted to taking over $200,000 from the college.

South Africa: A former municipality manager has been sentenced to 5 years in prison for his role in hiring a consulting firm that over-invoiced the municipality. The accused failed to act in the best interest of the municipality, did not have any controls in place to manage the number of hours billed (and other risks) and failed to follow a procurement process that was fair, equitable, transparent, competitive and cost-effective.

United States: More government entities are switching to P-Cards since many businesses do not accept purchase orders. However, proper internal controls is a must. Without proper oversight, issues like elevated liability, split transactions, and purchases made when employee was not in the office (as seen in the P-Card program for City of San Diego) will be a problem.

Money Laundering News

Europe: Thousands of accounts at Credit Suisse will be facing money-laundering and tax evasion investigations after a tip was received by the Dutch office for financial crimes prosecution that millions of euros were deposited in those accounts without appropriate disclosure.

Australia: Requirement for lawyers to disclose possible money-laundering transactions could erode lawyer-client privilege and revenues for profession.

Philippines: Bangko Sentral ng Pilipinas (BSP) has directed banks to put in place a system to understand the normal and reasonable account activity of customers in order to detect any unusual or suspicious transactions. In the meanwhile, BSP has also has directed banks and financial institutions to disclose all charges for domestic remittance transactions to level the playing field.

United States: 21 people have been charged by US federal authorities for money-laundering where “card-skimming” devices were used to steal millions from ATM machines and the money was laundered through Las Vegas and other casinos across the country.

Caribbean: The 2017 International Narcotics Control Strategy Report on Money Laundering and Financial Crimes has named 21 Caribbean nations as major money laundering countries.

Malaysia: 14 premises operating as money services business (MSBs) were raided for suspected offences under the Money Services Business Act and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act.

Jamaica: A former police officer is one of the eight people being extradited to the United States for their role in a lottery scam that bilked more than US$5.6 million from more than 70 mostly elderly Americans. All the accused have been indicted with count of conspiracy and attempting to commit wire fraud, 48 counts of wire fraud, 15 counts of mail fraud, and one count of money laundering.

About Anu Sood 

Anu Sood (LinkedIn | Twitter) is the Director Marketing at CaseWare RCM and is responsible for the company’s global marketing strategy. She has over 20 years of experience in product development, product management, product marketing, corporate communications, demand generation, content marketing and strategic marketing in high-tech industries.

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