USA: Barclays implicated in money laundering investigation
The US Department of Justice has confirmed that, in conjunction with the New York District Attorney's office it is looking into allegations that Barclays has processed payments in breach of sanctions.
Nigel Morris-Cotterill, Head, the Anti Money Laundering Network, said "The case brings home that US offices of foreign banks are a gateway to attacks on transactions that take place anywhere in the world. We warned banks about this immediately the USA PATRIOT Act was published but unfortunately other advisers told clients that this course of action was either impossible or highly unlikely. They were wrong."
The investigation revolves around alleged US dollar payments involving Cuba, Iran, North Korea, Sudan and Syria.
Sanctions are one of the topics that will be examined at The Financial Crime Forum in Dubai on 12 - 13 May 2008 (see The Financial Crime Forum website )
The combined effect of OFAC and the USA PATRIOT Act open the door to any financial institution that has premises, staff or assets in the USA.
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