Two stories which in hindsight are the highlights of my past six months at POLITICO:
- Money laundering on the high street looks at how cash transfer and foreign exchange shops in London have become a haven for drugs money and gang activity. These shops are not as tightly-regulated as other financial companies, and they provide a lifeline for many of people around the world who depend on the income of their relatives and friends in the UK. According to police sources, organized crime gangs have infiltrated the sector, meaning that already put-upon communities are now being drawn, often unwittingly, into elaborate money laundering schemes. The state (National Crime Agency, Met Police, financial regulators and the government) is aware of the problem and trying to solve it, representatives said, but the situation is complex — an overstretched public sector and criminal justice system, decentralised financial regulation enforcement, loopholes, overlapping guidelines, and vested corporate interests preventing progress.
- Digging into the Remainers’ dirty secret: for this story I went undercover with the BBC to find out how migrant labourers are exploited in the largely unregulated home improvement sector. Hundreds of small construction companies provide cheap home extensions for London’s socially climbing middle classes, but what you don’t see in the glossy real estate brochures are the horrendous risks workers take for jobs that are paid by the day, cash in hand, below minimum wage, and often without safety gear, health insurance or even basics such as a working toilet. Local authorities are rarely visiting these sites to verify compliance with the few rules that do exist, so ruthless gangmasters and building contractors operate with impunity. This, in my view, is the dark side of EU membership, and I don’t think it was a coincidence that the exploitation of workers is at its worst in the city which is considered the stronghold of the Remain campaign in the EU referendum. I don’t mean to re-litigate Brexit or to imply that exploitation will necessarily diminish after withdrawal, but the fact remains: EU free movement led millions of poor people to seek fortune in the West, where they continue to be ill-used while the authorities and the hypothecated bourgeoisie pretend they don’t exist.
I met the loveliest old lady yesterday who, seemingly unaware it had been illegal since 1991, told me she recently had a “110 pound pitbull who used to sleep in my bed when I let him. The dog was sweet but very anxious and alert and I’d never leave him alone with my child so it didn’t maul him.”
Presumably she meant the dog mauling the child, not the other way round.
In any case, she said she tried to warn people not to approach the dog when she took it out on walks, “but people are just stupid. They think all dogs are harmless.” These walks tended to be short, because of the people, not because of the dog, she told me.
The dog also “made the most terrible uproar when someone rang the doorbell. He had a most peculiar bark, and a subtle but throaty growl that would chill anyone right to the bone. But that was part of the point.”
The world interfered with the old lady’s love for her pitbull.
“Eventually I had to take him to a behavioural therapist but that didn’t do any good.”
I didn’t get the impression the dog was with us today and by then someone else barged into the conversation so it was too late to ask.
It was a privilege to make a small contribution to this six-page special report in Private Eye magazine, exposing the UK firms without which the malignant post-Soviet oligarchy would have been unable to gain the power it has today. Featured are lawyers, bankers, accountants, public relations and real estate agents — all eminently respectable, even, for some, admirable people — yet enablers who have for years been feeding at the same trough of blood money from the collapsing communist empire.
In the words of Richard Brooks, who was the author of the report, these “pukka professionals” are now exposed. Read it all here on the website of Private Eye magazine.
For me it was all the more wonderful to take part in this story because although I’ve been writing in Private Eye since 2013, it was the first time I had a byline — Private Eye doesn’t usually do bylines.
After the S&P Global Market Intelligence news service published my three-part series into rogue Cypriot bank FBME’s activities, we received more confidential documents from sources keen to expose the depth of the abuses that took place at this firm. And some of those documents revealed that top German bank and one of the world’s most important lenders — Deutsche Bank — had cut a secret deal with FBME to process anonymous money transfers from its clients — including some who had links with financing the Syrian chemical weapons program, the Russian mafia, fraud, forgery and corruption. The arrangement, which lasted several years and breached international regulations, only came to light because during my research I obtained notes taken by lawyers hired by FBME to contain the bank’s legal problems.
Read the full exclusive for free by clicking here.
If you would like to know more about my new novel, Country Gumption, which is also unpublished and my first, please click here.
S&P Global Market Intelligence, the financial newswire where I work as a reporter, recently published my investigative series into FBME, the now closed rogue Cypriot bank linked to the Russian mafia, Syrian war crimes, fraud, money laundering, corrupt offshore finance & other illegalities. The newswire is usually available only to subscribers, but these stories are free to read.
Part one shows how, thanks to FBME’s brazen rulebreaking, Russian gangsters who robbed the state (in what became known as the Magnitsky case) channelled their dirty money into Syrian tyrant Bashar Al-Assad’s banned weapons program:
Part two exposes the variegated bunch of crooks and politically-connected businesspeople that took advantage of FBME’s dodgy services, as well as a number of moody schemes in which the bank’s owners were involved directly:
The third part looks into what exactly went wrong in the bank’s compliance department, allowing money laundering, fraud and sanctions evasion to take place for years… This one is for those who care about financial procedures known as AML (anti-money laundering) and KYC (know your customer):
S&P Global Market Intelligence is one of the only six publications that obtained the ream of confidential audits, internal reports and witness statements which revealed the extent of the wrongdoing at this bank. The others are Asia Sentinel, Cyprus Mail, Buzzfeed UK, CNN and The Daily Beast.
Posted in Journalism
Tagged chemical weapons, cyprus, eastern ghouta attack, fadi saab, farid saab, fbme, fraud, hermitage capital, khan shaikhoun, michael saab, michel saab, money laundering, organised crime, rogue bank, russia, saab brothers, sarin gas, sergey magnitsky, ssrc, syria, war crimes
The Wapping Mole, a lively blog running journalistic investigations and general interest news about the Wapping neighbourhood of Tower Hamlets, London, has discovered what appears to be a Romanian sex trafficking gang operating on the quaint cobblestoned streets it patrols.
The Mole duly ran an investigative series about it — complete with candid pictures — and shortly afterwards the police and local council followed up and are now said to be monitoring the situation.
I made a slight contribution to the Mole’s work in the form of a few comments about how Romanian human trafficking gangs generally work. They are a much bigger problem in Italy, Spain and France but it seems the UK is not immune.
Read all about it here:
Beyond antisocial behaviour, which is a nuisance of course, the police should make sure that there is no modern slavery or other organised crime going on around the activity of these escorts. Trust the Mole to keep chasing the story.
Maia Sandu could be living proof that Moldovans don’t necessarily have to choose between handing their lives over to either oligarchs or communists.
A plane with the name of the country written across it. Creative commons license,
Pieter van Marion, Flickr[dot] com
Much has changed for the better in Moldova in recent months — there is a new governor of the central bank after a much-publicized series of frauds which nearly bankrupted the government, a new interpretation of the constitution allows people to directly elect the president after about 15 years of only electing members of parliament, and a new voice championing reform, human rights, liberal democracy and the rule of law emerged from the chaos of winter: Maia Sandu, the former education minister.
Sources with inside knowledge of Maia Sandu’s fledgling political organization tell me she is going to formally register a new centrist political party some time in late April. They have so far signed up 6,000 members (population of Moldova: 3.5 million) and created six or seven regional offices. More are on the way. Chicanery from the current oligarch-controlled government is expected during the process of making the party eligible for elections, one source says.
To learn who Sandu is and what she wants, please read on.
Brick Lane on a Sunday in August 2014. Personal archive
Much ink has been used on the topic of how the East End is now compared to the good ol’ days.
Of all the well-documented waves of immigrants that came here, Eastern Europeans like me are the newest. I was broke and friendless, having just been kicked out of a shared house in Stratford in February 2012 when a an old Bengali man gave me a room. Jakir, Hussain and other Bengalis from the neighbourhood often gave me work helping with their businesses when I found myself down and out. None of them ever complained about gentrification – on the contrary, they are better off for it. The value of their houses went up, the wealth of their customers as well, and E1, E2 and E3 became fashionable postcodes.