• By The Financial District


Bank stocks slid on Monday after a report by the International Consortium of Investigative Journalists (ICIJ) detailed more than $2 trillion in flows marked as possible money laundering or criminal transactions, Ben Winck reported for Business Insider. Firms identified in the report dragged on major indexes. JPMorgan sank as much as 3.9%. Deutsche Bank and HSBC fell 8.5% and 5.9%, respectively.

Government authorities have ordered banks to better combat suspicious flows, but various fines and threats of criminal charges haven't worked, ICIJ said. Documents obtained by ICIJ cover less than 0.02% of the more than 12 million suspicious activity reports filed with the Treasury Department from 2011 to 2017, according to the report.

A new investigation by ICIJ and Buzzfeed published Sunday alleged firms including JPMorgan, Deutsche Bank, and HSBC "kept profiting from powerful and dangerous players" after US authorities fined the banks for failing to combat dirty transactions. More than 2,100 suspicious activity reports obtained by Buzzfeed detail the transactions, including $514 billion flowing through JPMorgan and $1.3 trillion through Deutsche Bank.

Banks named in the report highlighted their work to clamp down on such activity. HSBC told ICIJ in a statement that it "embarked on a multi-year journey" to update projections against financial crime after admitting to laundering at least $881 million in 2012. JPMorgan told the reporters it has taken a "leadership role" in investigating criminal activity and developing "innovative techniques to help combat financial crime." in an online statement responding to ICIJ's report, Deutsche Bank said it has "devoted significant resources to strengthening our controls" and meeting obligations. The "historic issues" raised in the report "have already been investigated and led to regulatory resolutions in which the bank's cooperation and remediation was publicly recognized," the bank added.

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