The Wall Street Journal reports that several banks have been contacted by the U.S. Attorney’s office in Brooklyn and the New York Department of Financial Services regarding whether the banks’ anti-money laundering controls failed to detect alleged illicit money transfers related to the FIFA bribery probe.
Federal authorities have alleged that several FIFA officials received bribes totaling more than $150 million. These funds were allegedly passed through more than twenty banks. Several of these banks are now being investigated as to “whether the banks’ anti-money laundering systems…should have raised red flags about some of that activity.” This “is an indication that the banks may themselves become targets” of the investigation.
New York’s DFS also is hunting for individuals. The Journal reports that the DFS, “which gained a reputation for being aggressive with banks under recently departed head Benjamin Lawsky, also is looking into whether individuals at the banks had a role in any potential control lapses.”