$2 Trillion Laundered Through Big Banks
A report released yesterday claimed that many large global banks moved illicit funds over the course of the past two decades. Deutsche Bank, Citigroup, JPMorgan and Goldman Sachs were among the organizations named. The report said that Internal compliance officers at these banks flagged more than $2 trillion in transactions as money laundering or other criminal activity. While the leaked suspicious activity reports do not necessarily indicate any wrongdoing, the banks were given warnings from U.S. regulators to limit money laundering.
Many of the stocks named in the report fell yesterday amid the news and a larger market selloff. Deutsche Bank in particular had a bad day. The German financial giant lost more than 8% of its value Monday after it was alleged to have moved nearly $1.3 trillion in suspicious money.
Some of the banks named in the report released statements defending their actions. HSBC and JPMorgan were among the banks to do so. So far it seems like most of the banks were in line with the law, but this report could have a lasting impact on the industry if it leads to new regulations.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
