Sep 2008 Financial News

NCB money laundering case resumes October 2

Sep 22, 2008

The case against the National Commercial Bank (NCB), accused of breaching the Money Laundering Act over US multimillion-dollar transactions of accused drug dealer Norris Deedo Nembhard, is set to continue on October 2.

Two people have so far testified in the trial that was adjourned in the Half-Way-Tree Resident Magistrate's Court last Thursday.

NCB was last year charged by the Financial Investigative Division (FID) with breaches of the Money Laundering Act after investigators discovered suspicious financial transactions of US$27 million in the account of Nembhard, who was recently extradited to the US to face charges of drug trafficking.

The charges were laid following an investigation that was triggered after the police received reports that major players in a drug cartel had recruited a worker at the bank to assist them in laundering cash allegedly accrued from drug-running.

Allegations are that Nembhard lodged and withdrew the millions in several different transactions in 2003 without any of them being reported to the relevant authorities.

The police say the bank made no report of lodgements, withdrawals and transfers which were way above the financial threshold.

Under Jamaican financial law, any transaction over US$50,000 must be reported to the authorities. The penalty for failing to report each transaction could result in a fine of up to $400,000.

The bank, however, is contending that it had reported the transactions but the FID counters that the report was made too late.


Source:
The Jamaica Observer
Monday September 22, 2008

http://www.jamaicaobserver.com/news/html/20080921T2300000500_140410_OBS_NCB_MONEY_LAUNDERING_CASE_RESUMES_OCTOBER__.asp