Beautiful Virgin Islands

Friday, Mar 20, 2026

Dirty money has ‘metastasized’ within global banking system: regulator

Dirty money has ‘metastasized’ within global banking system: regulator

New York’s top financial regulator says banks and governments have allowed money laundering to “metastasize” inside the banking system and wrap itself “within the guts of financial institutions.”
In an opinion piece released days after the FinCEN Files investigation revealed sweeping failures by global banks to stop illicit money flows, Linda A. Lacewell, the superintendent of the New York State Department of Financial Services, acknowledged that “insiders” have long known that the financial system is “awash with trillions of dollars in dirty money.”

Efforts in the United States and other countries to prevent banks from waving through illicit funds largely rely on a system of self-reporting. Financial firms are required to file “suspicious activity reports” whenever they spot transactions that may be linked to criminal conduct.

But these reports, known in shorthand as SARs, have “become a free pass for banks,” Lacewell wrote in the op-ed, published in Law360, a legal industry news publication.

The International Consortium of Investigative Journalists, BuzzFeed News and other FinCEN Files reporting partners found that big banks often OK’d transfers of suspicious money but didn’t report these transactions to regulators until months or years later — after the money was long gone.

“I think what this set of articles did is put a spotlight on: ‘Is this system working?’” Lacewell said in an interview on Wednesday with ICIJ. “When you create something like ‘Well, here’s a form or document you must fill out under certain conditions,’ that can almost generate a false sense of security that ‘I’ve done what I need to do and everything is fine.’”

Because many big banks process global transactions through their offices and accounts in Manhattan, Lacewell’s state agency plays a big role in overseeing their operations and making sure they are working to combat money laundering. In July, for example, the agency forced Deutsche Bank to pay $150 million in penalties related to its banking relationships with convicted sexual predator Jeffrey Epstein and with two foreign banks involved in money laundering scandals.

Lacewell told ICIJ that many banks do more than just file SARs with FinCEN, the U.S. Treasury’s Financial Crimes Enforcement Network — they carefully vet customers and block tainted transactions.

But she is concerned that a lack of accountability can distort the risk-reward equation within banks.

“Individual bankers are rarely held accountable, so money laundering becomes a source of profits and bank fines become a cost of doing business,” Lacewell wrote. “When the profits exceed the fines, the business choice is easily corrupted.”

The FinCEN Files include more than 2,100 suspicious activity reports filed by banks and other financial firms with FinCEN, the U.S. Department of Treasury’s Financial Crimes Enforcement Network. BuzzFeed News shared the cache of reports with ICIJ, which organized a team of more than 400 journalists from 110 news organizations in 88 countries to investigate banks and money laundering.

The team’s investigation revealed that many global banks have continued to profit from suspect transactions even after U.S. authorities fined them for earlier failures to stem flows of dirty money. In all, an ICIJ analysis found, the documents identify more than $2 trillion in transactions between 1999 and 2017 that were flagged by financial institutions’ in-house compliance officers as possible money laundering or other criminal activity.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
UK Plans 50% Steel Tariffs in Bold Move to Protect Domestic Industry
Iran Conflict Sends Shockwaves Through UK Economy as Energy Costs and Trade Risks Surge
UK Health Officials Warn Kent Meningitis Outbreak Still Active as Cases Continue to Rise
UK Climate Progress Faces Scrutiny Over Reliance on Carbon Accounting Methods
UK Deploys Advisers to United States to Shape Plan for Reopening Strait of Hormuz
Amazon Bets on AI-Driven Alexa Upgrade to Revive UK Smart Speaker Market
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
UK VAT Decision Opens Path for Potential Refunds to U.S. Biopharma Firms
UK and Canada Advance ‘Middle Power’ Strategy to Shape Global Influence Beyond Superpowers
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Holds Back on Hormuz Escort Mission While Continuing Talks with Allies
TrumpRx Pricing Platform Faces Scrutiny as Some Medicines Remain Costlier Than in the UK
UK, Netherlands and Finland Explore Joint Defence Investment Bank to Boost Military Capability
Deadly Meningitis Outbreak in Kent Raises Alarm as Cases Surge and Emergency Response Expands
UK Security Adviser Viewed US-Iran Nuclear Deal as Within Reach Before Sudden Escalation
UK Prime Minister Urges Continued Focus on Ukraine Amid Escalating Iran Conflict
UK Introduces New Safeguards to Shield Lenders from Bank Run Risks
UK Promotional Products Market Surpasses £1.3 Billion as Demand Strengthens in 2025
Reeves Pushes for Deeper UK-EU Economic Ties to Revive Growth
UK Security Adviser Saw No Imminent Iranian Nuclear Threat Days Before War Erupted
France Signals Warm Welcome for UK Return to EU Single Market Amid Renewed Cooperation Talks
UK Defence Official Criticises Boeing Over Delays to E-7 Wedgetail Programme
UK Urged to Secure Quantum Talent as Minister Warns Against Repeating AI Setbacks
UK Mayors Set to Gain New Spending Powers Under Reeves’ Fiscal Devolution Plan
Western Allies Urge Restraint as Israel Weighs Expanded Ground Operation in Lebanon
Trump Warns NATO Faces ‘Very Bad’ Future Without Stronger Allied Support in Iran Conflict
UK Minister Says Britain Not Bound to Support Every Demand From U.S. President
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
UK Set to Introduce Steel Tariffs of Up to 50 Percent in New Industrial Strategy
European Governments Decline Trump’s Call to Send Warships to Reopen Strait of Hormuz
Fears Over Iran Conflict Weigh on UK Consumer Confidence
Starmer Says UK Working With Allies on Hormuz Shipping Plan After Trump Raises Pressure
Iran War and Energy Shock Shake Britain’s Economy and Political Debate
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
King Charles and Queen Camilla Share Personal Tributes to Their Mothers on UK Mother’s Day
Prince William Honors Princess Diana with Mother’s Day Tribute
UK Economy Stalls in January as Households Cut Back on Eating Out
AI-Generated Singer Becomes Viral Voice for Iranians With New Anthem
London Private Club Founder Plans Exclusive Palm Beach Venue Near Trump’s Mar-a-Lago
×