Arab spring played a role
Numbers are impressive but it’s the criminal tales that are gripping
Growth in reporting of suspicious financial activity shows significant jump
BERN, SWITZERLAND – Switzerland saw a 40 percent increase in 2011 in the number of suspicious activities reports (Sars) to MROS, the Money Laundering Reporting Office Switzerland, the federal office shows in its annual report published Monday 14 May.
Banks and other financial groups, required by law to report suspicious activity, filed 1,625 Sars in 2011. Of these, 91 percent were forwarded after “careful analysis” to judicial authorities, federal or cantonal, for prosecution. The total asset value was more than CHF3 billion, greater than the combined value of Sars from 2009 and 2010 and a record figure.
“In 2011, 1,625 SARs generated a total asset value of just under CHF 3.3 billion (2010: CHF850 million from 1,159 SARs),” the report notes.
Two-thirds of the reports were triggered by media reports (30 percent of information sources) combined with third party information and information from prosecuting attorneys, which “show(s) that financial intermediaries use modern resources and consult external sources in order to gather information for their inquiries, which is then evaluated and condensed into a considerable number of Sars sent to MROS”, the report indicates.
Seven cases of bribery had total assets of CHF791 million each
The huge increase underscores the continuing progress made against money laundering in Switzerland over the past 10 years but it also provides a window to some significant shifts in money laundering globally. The average asset value in 2011 was approximately CHF2 million, compared to CHF731,000 a year earlier. The sudden jump shows a small number of cases, notably bribery in the Middle East and in particular in Egypt, that involve much larger sums than the cases in 2010. Seven cases of bribery had total assets valued at CHF791m each.
Four cases of online gaming had a total assets value of CHF560m each.
Eight cases had a total asset value of nearly CHF200m each, while in 2010 none of the reported cases had a total assets value over CHF100m.
Types of crimes reported are shifting
Fraud remains the largest group of crimes reported, but the numbers are down slightly due to a change in reporting. Computer fraud, mainly phishing, has been retroactively put into a category of its own starting with 2007. MROS says the report “shows that ‘phishing’ remains a topical subject and that financial intermediaries consistently report the account details of financial agents or ‘money mules’ to MROS”.
A second group, money laundering, consists of activities that are not technically money laundering crimes “despite the fact that the modus operandi suggested acts of money laundering. The increase is due not only to one reported case involving numerous business connections, but also to the general increase in the number of SARs in 2011.”
The drugs category consists of reports linked to “the street sale of drugs by nationals of sub-Saharan African states and the financial transactions associated therewith (money exchange, money transmitting)”.
Stewart Butterfield and friends and friends in Vancouver, Canada who had a failing online gaming startup in 2003 turned their attention instead to photo-sharing, and the company, Flickr, that they created was so successful that Yahoo paid $30 million for it just months later. Now Butterfield is turning his attention – and money – back to the gaming business, to create a massive multiplayer game under the name Tiny Speck. Details are secret but the Globe & Mail in Canada notes that “Tiny Speck, started by a quartet of the original Game Neverending /Flickr team, including Mr Butterfield, wants to do for online gaming what Nintendo Co Ltd’s Wii did for video game consoles.” Gambling? apparently not. Global bridge? not exactly.
Links to other sites: Globe & Mail, Tech Vibes, Tiny Speck
