3 Recent Bank “Scams” you may Have Never Heard of

The media often likes to talk about any and all crimes involving Bitcoin. When banks are involved in the process, no one bats an eye. Below are three recent examples of bank “scams” that have gotten very little attention. 

Standard Chartered Bank ($250 billion)

It has to be said when banks are involved in suspicious financial activity, the sums are quite steep. In 2019, Standard Chartered Bank in New York received some unpleasant inquiries. The bank had been negligent with AML protocols, potentially allowing for ample criminal transactions. Previous fines and warnings regarding this lackadaisical attitude had fallen on deaf ears.

Ultimately, the ongoing transaction support for Birma, Zimbabwe, Iran, Cuba, Sudan, and Syria caught up with the bank. Once the Federal Reserve conducted its research, they fined the bank for $250 billion. A significant amount, but it didn’t make too much of an impact on the bank, or its shareholders. 

Money Laundering Generates Profits ($1.2 billion)

It is not just the banks who get fined for facilitating criminal activities. In this particular case, a group of eight individuals – spanning 5 different nationalities – were successful in laundering over $1 billion dollars through the American banking system in 2018. 

Why financial institutions continue to allow this to happen, is anyone’s guess. Perhaps it is the quick profit they can skim from every large-scale transaction that makes them forget to question the origin of said funds?

First Farmer Financial LLC ($177 million)

Of the many several financial institutions causing atrocities, the story of First Farmer Financial LLC in Florida is somewhat unique. Other than the president and CEO Timothy G. Fisher, seemingly no one else working for this bank was involved in this money laundering scheme. 

By offering sham loans to an investment company in Milwaukee, Fisher was able to launder $179 million over several years. He eventually pled guilty to the charge, resulting in a $177 million fine. Despite this setback, the overarching organization is still publicly traded on the stock market today. 

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Want to learn more about such bank-related “scams”? Check out this infographic by Tookitaki.

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