Wednesday, February 23, 2011

Libya: A MLRO nightmare

Money laundering

Money laundering © fintag

News comments:
The media is playing a dangerous game.

If you were the MLRO (money laundering reporting officer) of a hedge fund and a USD100m subscription arrived in the post from an investment vehicle that was funded by a Libyan entity, what would you do?

Usher, Beyonce, the Financial Times (Pearsons), RBS, UniCredit, Boots the chemist in Oxford Street, Juventus, the republic of Italy, Fiat, Tony Blair, Prince Andrew, the Ukraine Nurses pension fund, Carlyle and its private equity luvvies, and so on, have all enjoyed Libyan dinars in the past few years.

The media is telling us all the money belongs to the people and it should be handed back [Editor: where?] so should these recipients hand this money back too?

Money laundering as defined by a large UK banks is

"The process of disguising money obtained from criminal activity."

Can we be sure this money was stolen or derived from criminal activities?

You tell me.

Today's shorts:
New York Times uses Wikileaks to validate story on Libya (nyt)

More than a 1000 dead (telegraph)

Libya's diverse portfolio (financial times copy)

Today's longs:
Apple to release another not quite there yet product (telegraph)

Libya to merge with Italy.