Tag Archives: Banking/Credit

German Regulators Order Deutsche Bank to Improve Controls on Money Laundering | Instant News

BaFin, Germany’s financial regulator, has placed an order

German Bank AG

DB -1.41%

to take it a step further protection against money laundering, showing still finding shortages in the bank was repeatedly reprimanded for a lack of proper controls.

In a brief statement on its website late Friday, BaFin said banks should “further adopt appropriate internal safeguards and comply with due diligence obligations, particularly with regard to regular customer reviews,” adding the same applies to correspondent relations and monitoring of transactions.

It said it was expanding the role of the monitor it appointed in 2018 to see implementation. That year, BaFin appointed KPMG for the job.

In a statement, Deutsche Bank said it had significantly increased its control, adding that it had spent about $ 2.4 billion and raised its anti-money laundering team to more than 1,600 over the past two years.

“But we are also aware that there is still work to be done,” the bank said.

Deutsche Bank has run into a series of problems with regulators in the past. It has paid fines in the US for failing to monitor it properly dealt with late financier and convicted sex offender Jeffrey Epstein and for its role as a correspondent bank for Danske Bank Estonia branch A / S, through which an estimated $ 230 billion has flowed from Russia and other former Soviet countries over the years with minimal oversight.

It also has US monitors as part of a 2017 settlement with authorities related to “mirror trading,” where the bank moved $ 10 billion in Russian client money abroad.

Under the leadership of the Chief Executive Officer of Christian Sewing, the bank is eager to demonstrate that this problem is behind it. Earlier this week, it reported its strongest quarter in seven years, and revealed that unlike many other rivals, it was escaped the explosion of Archegos Capital Management thanks to rigorous risk assessment.

Mr. Sewing has revamped the bank which includes sharp cost cutting and a refocus on client service, particularly in its home country, Germany. However, that doesn’t mean banks aren’t willing to take risks.

In November, The Wall Street Journal reported that there had been tensions between US monitors and banks over possible expansion plans in Russia. Thought the US watchdog the risks of doing business with Russian clients too big, and the bank should close the business instead.

Write to Patricia Kowsmann at [email protected]

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Parent Greensill Australia Puts Into Liquidation | Instant News

SYDNEY – Parent Greensill in Australia was put into liquidation following a meeting of creditors who owed nearly $ 1.33 billion when its supply chain finance business went bankrupt last month.

Steps to liquidate Greensill Capital Pty Ltd. it was not opposed by the 23 creditors who joined the virtual meeting in Australia which lasted more than 90 minutes on Thursday. Three creditors abstained from voting.

No buyers appeared for Greensill Capital, the parent company of more than 40 businesses, after being declared bankrupt, according to creditors who were present at the meeting. Separate bankruptcy proceedings for Greensill’s main operating unit, which is based in the UK, and its banking unit continue.

Greensill Capital’s guaranteed creditors include Credit Suisse Group AG and the Greensill family business, while Japan

SoftBank Group Corp.

is one of the unsecured creditors. The creditor meeting was also attended by representatives from the Australian Taxation Office, the Australian Securities and Investments Commission, and the Association of German Banks.

A spokesman for US-based Greensill declined to comment.

Founded by Australian born Lex Greensill, the company bills itself as a technology startup that competes with traditional banks such as

Citigroup Inc.


JPMorgan Chase

& Co. Greensill’s goal is to offer supply chain finance to companies that are under the radar of traditional banks that prefer larger, more established customers.

It was mired in crisis last month when Credit Suisse froze a $ 10 billion investment fund that Greensill relied on to fill most of its business.

According to the Grant Thornton report, bankruptcy experts gave up control of Greensill on March 8, creditors have filed claims of nearly $ 1.33 billion, or Australian $ 1.72 billion. SoftBank’s biggest claim was about $ 1.16 billion.

In addition, the German Bank Association has filed contingent claims of € 2 billion, or $ 2.41 billion, to cover potential losses if the Bremen-based customers of Greensill Bank request funds to protect their deposits.

Bankruptcy specialists continue to look at whether any of Greensill’s assets can be sold to raise money for creditors. Last month, a small financial technology business called Earnd was sold to London-based Wagestream. The sale of another Greensill-owned company, digital lender Omni Technologies, is also being considered by Grant Thornton.

“It is currently too early to determine whether there will be any returns available from the British Administration,” said Grant Thornton, who has been investigating a possible Greensill restructuring, in his report to a meeting of Australian creditors.

Write to Alice Uribe on [email protected]

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Greensill Whistleblower Tips Warns German Regulators of Last Year’s Fraud | Instant News

The German banking regulator received a series of whistleblower tips over the past year that made “multiple allegations of fraud” at Greensill Bank, prompting it to sue for repairs at the bank, according to an internal German government report reviewed by The Wall Street Journal.

The regulator, known as BaFin, received the first series of warnings in the second quarter of 2020. The information alleges that some of Greensill’s assets were backed by fake invoices, according to the report, which outlines the regulator’s efforts over the past year to supervise banks.

BaFin received another alert in the third quarter of 2020 and three other submissions this year. The German-language report, which did not specify the origin of the filing, said the information raised “concerns about the financial situation of the Greensill Group as well as various allegations of fraud.”

There are mainly concerns about the loan Greensill Bank is making to the GFG Alliance, a metals company owned by the British-Indian steel magnate Sanjeev Gupta.

A Mr. spokesperson. Gupta declined to comment.


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I am 68 years old, make $ 130,000 and love eco travel in Peru, Brazil and Africa. I want to travel while I can, but I am afraid to stop working | Instant News

Dear Quentin,

I am a 68 year old man who has only been working from home for a year due to the COVID-19 pandemic. I earn about $ 130,000 a year plus $ 35,000 in Social Security, and an additional $ 25,000 in capital gains from a small apartment house, and partnership interests.

I have over $ 300,000 in savings and $ 400,000 in equity in my own home. I also have about $ 835,000 in a 401 (k). The problem, which was mitigated by the pandemic, is that I love eco-travel in countries like Peru, Brazil, Africa and Belize.

Obviously, as we get older, this type of travel becomes more and more strenuous, so timing is very important. I’m seriously considering retiring, and traveling as much as I can before I can’t. My income would be up to $ 130,000 per year if I did. I feel comfortable spending $ 60,000 a year on lifestyle, plus travel.

Does retirement make sense?

Fear of Retiring, But Having Itchy Feet

You can email The Moneyist with any financial and ethical questions related to the coronavirus at [email protected]

Dear Itchy,

Retirement makes sense, working part-time makes sense and / or reduces your job so you can travel more. But don’t make hasty decisions about taking off on a jet plane and locking your doors before you see how the next few months are going well. We are still in the midst of a pandemic, and the coronavirus experiencing a revival in Europe and other countries, with a new mutation.

‘I don’t want to be bliss that kills. I want to make sure that you take good care of your physical and financial health, and have all the information to make an informed decision. ‘

– Moneyist

check MarketWatch Retirement Calculator where you can enter your age, income, savings and other details to plan for your retirement. On average, retirement plan provider Fidelity Investments recommends that you save 10 times your income for retirement at age 67 in order to retire comfortably. If you are planning to travel, you can also benefit from renting a house.

I don’t want to be a killing pleasure. I want to make sure that you take good care of your physical and financial health, and have all the information to make an informed decision. A 65-year-old man will need $ 72,000 to have a 50% chance of saving enough to cover their health care costs in retirement in 2016, according to the Employee Benefit Research Institute (EBRI). report.

Ultimately, one of the reasons you work for years (assuming you enjoy it) is to contribute to society, but also enjoy a tangible rest so that you can do what makes you happy. Only you can sit back and look at your income and expenses when you retire, and I recommend that you do that with a financial planner. Can you retire? Yes. Do you deserve it? Yes again.

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Central Bank of Brazil Uses Payment Platforms to Spur Competition | Instant News

Brazil’s central bank has stepped up its efforts over the years to crush the nation’s club banking industry, using the pandemic-driven shift to touchless payments to launch its own digital platform.

The payment system, dubbed Pix, was established and managed by a central bank and not by private payment players, unlike similar systems in other countries. Since launching in November, Pix has handled a larger share of digital payments than its private sector alternatives, advancing regulators’ goals to spur competition and get more Brazilians to use financial services.

In addition, Brazil’s central bank last month introduced so-called open banking, which mandates that institutions share key price data and credit history with rivals. That adds to recent efforts to boost fintech growth to provide consumers with more options and to attract unbanked Brazilians into the formal financial system.

The push is closely watched by investors, as financial startups use the Pix platform to gain market share in a sector where the top five banks held 93% of all assets in 2019, compared to 54% in neighboring Argentina or 41% in the US, according to BankFocus, Moody’s Analytics. The concentration of banking in Brazil is higher than in the other 16 developed and developing markets cited by the company.

“It’s all about breaking or challenging established banking brands,” said Chris Ward, researcher and digital banking consultant at the London-based unit of FBX Informa, about the Brazil experience. “Actually the central bank encourages that rather than the fact that they are not viable for society as a whole.”


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