Feds bust online currency firm in $6b money-laundering scheme – cbs news

Federal prosecutors charged a gang of cyber thieves with robbing banks around the world of $45 million. How to detect money laundering Two of the suspects show off the cash in a photo.

“If Al Capone were alive today this is how he would hide his money,” Richard Weber, who is leading the IRS investigation, said at a press conference.


Authorities say the network processed at least 55 million illegal transactions worldwide for 1 million users, including 200,000 in the United States. Money laundering compliance They call the international money-laundering case the largest ever.

CBS News correspondent Elaine Quijano reports stolen money from ATMs would be sent to money exchangers in countries with lax oversight, including Vietnam, Russia and Nigeria. Who do you report money laundering to The cash would be converted to credits deposited in a Liberty Reserve account. Money laundering registration Those credits could pay other users or be cashed out. Types of anti money laundering All users need to get started was an email address.

In a statement, Costa Rica police confirmed that Budovsky had been arrested in Spain on money-laundering charges and that several premises linked to his company had been raided. Money laundering officer A notice pasted across Liberty Reserve’s website last week said the domain “has been seized by the United States Global Illicit Financial Team.”

The indictment calls the network “one of the principal means by which cyber criminals around the world distribute, store and launder proceeds of their illegal activity … Laundering money meaning including credit card fraud, identity theft, investment fraud, computer hacking, child pornography and narcotics trafficking.”

Liberty Reserve allowed users to open accounts using fictitious names, including “Russian Hacker” and “Hacker Account.” The network charged a 1 percent fee on transactions.

“An undercover agent working as part of this group was able to register a name of ‘Joe Bogus, the account name ‘to steal everything,’ and the address ‘123 Fake Main Street’ in ‘completely made up city USA,'” Bahara said, according to Quijano.

Budovsky and Katz have previous convictions on charges related to an unlicensed money-transmitting business, according to court papers. Sars money laundering After that case, the pair decided to move their operation to Costa Rica, where Budovsky officially renounced his U.S. Money laundering techniques india citizenship, the papers say.

In an online chat captured by law enforcement, Katz admitted Liberty Reserve was “illegal” and noted that authorities in the United States knew it was “a money laundering operation that hackers use.”

Aditya Sood, a computer science doctoral candidate at Michigan State University who has studied the underground economy, described Liberty Reserve as a no-questions-asked alternative to the global banking system, with little more than a valid e-mail needed to open an account and start moving money across borders.

“You don’t need to provide your full details, or personal information, or things like that,” Sood said in a telephone interview. Money laundering philippines “There’s no way to trace an account. Money laundering checks That’s the beauty of the system.”

Liberty Reserve’s ease of use and rock-bottom processing fees also attracted a thriving community of tech-savvy users in countries with limited access to credit cards, said Mitchell Rossetti, whose Houston-based ePayCards.com was one of several mainstream merchants that accepted the online-only currency.

Rossetti said his business still had about $28,000 tied up in Liberty Reserve accounts. Career in anti money laundering Liberty Reserve’s irreversible transactions made it attractive to small merchants worried about fraud.

He acknowledged that the currency was being used by scammers but said Liberty Reserve was just like any other currency. How to report money laundering “The U.S. Global money laundering statistics dollar can be donated to a church or it can pay a prostitute,” he said.

Liberty Reserve appears to have played an important role in laundering the proceeds from the recent theft of some $45 million from two Middle Eastern banks, according to legal documents made public by U.S. How many years in prison for money laundering authorities earlier this month.

“We are now entering the cyber age of money laundering,” said Richard Weber, head of the IRS’s criminal investigations unit, in a statement. Definition of money laundering “Technology advancements over the past several years have dramatically increased opportunities for criminals to move, conceal and enjoy their ill-gotten gains. What do you understand by money laundering acca Liberty Reserve and its principals have been charged with operating a sophisticated and complex system for structuring financial transactions which catered to those engaged in such criminal activity.”

The complaint against one of the Dominican Republic gang members allegedly involved in the theft states that thousands of dollars’ worth of stolen cash was deposited into two Liberty Reserve accounts via currency centers based in Siberia and Singapore.

The Costa Rica police statement said that they raided three homes and five businesses linked to Liberty Reserve and seized papers and digital documents that will be turned over to U.S. Definition money laundering authorities.

Separately, the Manhattan District Attorney’s office on Tuesday announced the extradition of Alfonso Portillo, the former president of Guatemala, to face charges he embezzled millions of dollars from the Guatemalan government and laundered the funds through U.S. Money laundering news articles bank accounts.