Displaying items by tag: banking

An exposé has shown that the Bank of Baroda made it simple and easy for its agents to steal money from customers’ accounts - and some of them did. The bank’s employees had linked unauthorised mobile numbers to accounts before uploading them onto the bank’s new mobile app. These numbers were of bank staff, managers, guards, their relatives, and bank agents in remote areas. Internal documents show that some of the bank’s agents withdrew tens of thousands of rupees from customers’ accounts. The bank’s head office has asked the managers concerned to do everything necessary to restore the money to the accounts. The  Reserve Bank of India (RBI) has ordered an audit, and has told the bank to stop registering new customers on its app.

When Metro Bank was launched in 2010,it was the first new high street bank in 150 years. Now, there are concerns about its future. The bank, which has around 2.7 million customers, is reportedly in discussions with investors about securing £250 million in equity funding and refinancing £350 million in debt to strengthen its balance sheet. The issue is that it is operating at the edges of its capital requirements, meaning the amount of assets held by the bank that can be sold off at short notice if it faces unexpected losses. This move has rattled investors, causing the bank's share prices to plummet by over 25%. Despite these challenges, the bank stated that customer deposits are secure, and there is no indication of imminent collapse. In any case, the Financial Services Compensation Scheme (FSCS) ensures that customers' funds would be returned within seven working days in the event of the bank's dissolution. While the bank has faced difficulties in the past, it hopes to secure the necessary funding to navigate its current financial situation and continue serving its customers.

Journalists and activists are under constant risk in too many parts of the world. Recently the extent and all-consuming nature of the threats was revealed when new technology was discovered. An Israeli company invented spyware that can do everything from extracting data to inconspicuously recording live audio and video. They insist their technology is intended for use against criminals and terrorists. But the Pegasus Project shows that it has been used by some governments to target journalists, activists, and political opponents. Journalist Khadija Ismayilova led the investigations which exposed Danske Bank moving suspicious cash to launder Azerbaijan’s international image. US$230 billion in dirty money was funnelled through the bank’s accounts in twelve years. Yet full accountability for the apparent anti-money laundering failures has been impossible to achieve – until this week. The European Commission has proposed an anti-money laundering agency, which could be a much-needed gamechanger.

The European Commission has said that free ports, the Singapore-style tax-free zones favoured by Boris Johnson, are ‘potentially vulnerable to money-laundering and financing terrorism’ in the European single market. Free ports are ‘the new emerging threat’, said the European justice commissioner, Věra Jourová. ‘This is something we want to focus on more.’ Prime Minister Johnson says he wants ‘about six’ tax-free zones in ports as part of his vision for the UK after Brexit. He has yet to give details on their size and location. EU countries and their dependencies already shelter 80+ free ports, including one on the Isle of Man, a British crown dependency which is neither in the EU nor the UK. The commission’s report warned that the EU has ‘a structural problem’ in preventing the financial system from being used by criminals.