FinCEN Files: Investigation into Dirty Money Transfers from Major Global Banks

At least $ 2 trillion in suspicious transactions were carried out between 2000 and 2017 by several major global banks. This is what an investigation by the International Consortium of Investigative Journalists, made up of 400 journalists from the media in 88 countries, including the investigation units of Radio France and the newspaper Le Monde, reveals.
For their investigation, ICIJ journalists were able to obtain "suspicious activity reports". These are top-secret documents that US bank internal compliance officials send to US financial intelligence agencies when they detect questionable money transfers.

According to these documents, 2,000 billion dollars in suspicious transactions may have been carried out. It is dirty money linked to drugs, corruption, organized crime and terrorism.

Large banks are singled out like JP Morgan, Deutsche Bank, Bank of New York Mellon or HSBC. They ensure, however, that they make significant efforts to combat financial crime an…

Will banks give in to pressure from their shareholders? | Morocco

Through the results of the first quarter of 2020 and the reporting for April, the banks were able to measure the first impacts of the crisis caused by the Covid-19 pandemic.
 
Bank Al Maghrib is visibly concerned about the financial health of the banks. Impacted by the economic effects of the Covid-19 crisis, the banks seem to be gradually losing their strength. Falling loans to individuals and businesses, declining banking activity, postponing credit maturities, stopping major economic projects, all these negative elements have a direct consequence on the situation of banks.

Bank Al Maghrib is visibly concerned about the financial health of the banks. Impacted by the economic effects of the Covid-19 crisis, the banks seem to be gradually losing their strength. Falling loans to individuals and businesses, declining banking activity, postponing credit maturities, stopping major economic projects, all these negative elements have a direct consequence on the situation of banks.

Through the results for the first quarter of 2020 and the reporting for April, the banks were able to measure the first impacts of the crisis caused by the Covid-19 pandemic. This will not fail to weaken the fundamentals of credit institutions. To provide solutions to this unprecedented and uncertain situation, Bank Al Maghrib recommends that Moroccan banks give up the distribution of dividends made in 2019. A recommendation that goes in the direction of strengthening equity and capacities financial institutions. But, for now, this is only a recommendation.

That is to say, banks may not apply it if they do not receive an agreement from their shareholders. For banks with 100% Moroccan capital, we expect alignment with the recommendation of Bank Al Maghrib. Driven by a desire for solidarity with their banks, Moroccan shareholders could thus renounce their dividends to financially support their banking institutions. Options are then considered. Among the most frequent: dividends could be transformed into shares. This solution is perfectly conceivable for both large shareholders and small holders.



Will of solidarity

For the latter, it is another pair of sleeves. Penalized by a halt in the stock market activity and by an economic situation in free fall, the small holders will find in these dividends an unexpected exit door for their financial crisis. Giving up perceiving them or even exchanging them for actions would certainly not be appropriate solutions during the current situation.

As for foreign shareholders, particularly French shareholders in the case of several banks such as BMCI, Société Générale and even Crédit du Maroc, they are fully entitled to demand their dividends. But everything suggests that they will give up at least part of these dividends to support their Moroccan subsidiaries during these difficult times. As a reminder, all the national banks achieved significant financial results for the year 2019. Results which amount to several billion dirhams. Enough to dazzle the shareholders who are only waiting for the month of June 2020 to pocket their pockets. But the Covid-19 crisis risks toppling everything.