"Global Major Banks Involved in 2,300 Trillion Won Black Money Business"

International Consortium of Investigative Journalists Exposes Involvement of JP Morgan, HSBC, and Others
"Illegal Deals with Powerholders"
Bank Stocks Weaken in New York Stock Market

[Asia Economy New York=Correspondent Baek Jong-min] Global major banks have been exposed for generating profits by transferring 'black money' for over a decade. As the possibility of sanctions against these banks has emerged, bank stocks are plummeting.

[Image source=EPA Yonhap News]

The International Consortium of Investigative Journalists (ICIJ), together with 110 media organizations from 88 countries and the internet media BuzzFeed, analyzed Suspicious Activity Reports (SAR) from the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) and released the results on the 21st (local time).

BuzzFeed obtained over 2,100 SARs submitted by five global banks including JP Morgan and other financial institutions to FinCEN between 1999 and 2017 and provided them to ICIJ.

The submission of an SAR means that the transaction is suspected to be related to money laundering or criminal activities. The total amount of suspicious transactions reached $2 trillion (approximately 2,327 trillion KRW).

ICIJ pointed out, "Considering that the total number of SARs submitted to FinCEN between 2011 and 2017 was over 12 million, the SARs analyzed this time represent less than 0.02% of the total," adding, "$2 trillion is just a drop in the ocean of dirty money flooding through banks worldwide."

They continued, "Despite fines imposed by U.S. authorities, the five global banks have continued to profit from dangerous power holders," and "Some banks continued illegal fund transfers even after officials warned that criminal charges could be filed."

This report drew attention by mentioning money laundering involving North Korean funds, bribery related to the selection of the Tokyo Olympic host city, and allegations of slush funds linked to close associates of Russian President Vladimir Putin.

U.S. NBC News reported that North Korea is estimated to have laundered more than $174.8 million through U.S. banks such as JP Morgan and Bank of New York Mellon despite international sanctions.

Evidence also emerged that money was given to the sons of International Olympic Committee (IOC) members and others to secure Japan’s selection as the Olympic host city.

There were also allegations that a friend of Russian President Vladimir Putin, who is subject to U.S. and European Union (EU) sanctions, managed large slush funds through the British bank Barclays.

If this report is true, financial authorities in the U.S. and other countries may impose large fines and sanctions, causing bank stocks to experience significant declines. On the New York Stock Exchange, JP Morgan’s stock price has fallen by 3.6%, and Citigroup’s by 2.5%.