Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Blowing whistle on dirty money 'wrecked my life'

Anna Waterhouse was a high-flying lawyer at Deutsche Bank in Dubai. Now she's unemployed.

Amjad Rihan was a partner at the accountancy giant EY's Dubai office. He also lost his job and hasn't worked for more than five years.

They both say their lives were destroyed after they flagged up suspicious activity at a major gold refiner in Dubai - Kaloti.

A joint investigation between BBC Panorama and French media company Premieres Lignes shows they were right to be suspicious.

Anna and Amjad didn't know it at the time but had stumbled upon evidence of an organised crime group using gold sales to Kaloti to launder British drug cash.

EY, Deutsche Bank and Kaloti have all denied any wrongdoing.

In 2013, Amjad was leading an audit into Kaloti's supply chain for EY.

His team found Kaloti had weak checks on its suppliers - and was handing out extraordinary amounts of physical cash for gold.

"My team started conducting these audits and it's really shocking what they were finding," he said,

"Kaloti has done more than $5.2bn (£4bn) in cash in one year. Money-laundering 101 tells you not to use cash. Cash increases the risk of money-laundering."


'Are we safe?'

A few miles away, Anna, Deutsche Bank's general counsel and head of compliance in Dubai, was getting suspicious about Kaloti's cash too.

Panorama has seen a transcript of a Dubai court case in which she says "never before had I seen such a catalogue of suspicious circumstances".

She told Panorama: "A colleague came into my office and described a call from a local bank in Dubai. Apparently they had called to ask, 'Are these guys, Kaloti, are they good guys? Are we safe doing business with them?' I was surprised. That's very unusual.

"The guys at the bank had noticed that Kaloti had been withdrawing very large amounts of money, so large that they had to remove this physical cash in wheelbarrows.

"They said: 'We can see that quite a lot of this money is being funded by a Deutsche Bank account.'"

BBC Panorama's joint investigation with Premieres Lignes shows that cash from Kaloti was a crucial part of a $250m money-laundering operation which used gold sales to launder cash from British and European drug deals.

In all, 27 members of the money-laundering gang were jailed in France in 2017. The crime boss behind it, Nour Eddine Ech-Chaouti, remains on the run in Morocco.

Documents seen by Panorama show Kaloti bought 3.6 tonnes of gold from a company owned by a member of the gang in 2012 alone. The gold refiner paid the company $146m in cash.

The money-laundering could have been stopped years earlier if concerns raised by the two whistleblowers had been investigated properly.

Anna Waterhouse reported her suspicions about Kaloti's cash withdrawals to the local money-laundering authorities. It was a decision that would wreck her life.

First, she told the Anti-Money-Laundering Suspicious Cases Unit at the Central Bank of the UAE. She says they didn't investigate Kaloti - but turned on her and the bank instead.

"When I explained these very serious concerns, I was straight away met with the accusation that you must have done this. How else would you know? And of course it's ridiculous," she said.

"Why on earth would anybody run into the head of the Anti-Money-Laundering Suspicious Cases Unit to tell them that they'd laundered [money]? It's absurd."

Anna also reported the suspicions to another regulator, the Dubai Financial Services Authority (DFSA). It polices anti-money laundering regulations in the Dubai International Finance Centre.

"Neither regulator that I had reported it to actually seemed to investigate the suspicions about Kaloti, but each regulator started investigating the bank," she said.

"That was the start of what became a very, very wide-ranging investigation which to me seemed like a giant fishing expedition, intended to find a problem of any sort within the bank. What I didn't realise at the time was that I was also the focus individually of their investigation."


Serious sanctions

The DFSA investigation found bankers in Deutsche Bank's Dubai office had broken regulations in a separate case involving its private wealth division. No clients lost money, but the breach of the rules meant the bank, and its senior managers, faced serious sanctions.

The transcript of the Dubai court case suggests Deutsche Bank bosses sacrificed Anna and saved themselves.

It shows the managers discussed a plan to "offer up Ms Waterhouse" to "express settle everything for the bank".

The bank escaped with a reduced fine and Anna was the only manager sanctioned by the DFSA. She's now appealing through the courts.

"I've been a victim in all of this. It's cost me my career. It's cost me the last six years of my life. It has caused myself and my family untold suffering and nobody seems to care. They don't even seem to have a conscience about what happened," she said.

The DFSA said it had no part in any plan to offer up Anna Waterhouse.

It said there was ample reason to take action against her and the decision was made in good faith. It said it was not motivated by her decision to report suspicious activity.

Deutsche Bank told Panorama it disagrees with the depiction of its treatment of Anna Waterhouse.

It said this matter was thoroughly investigated more than five years ago by the bank, external advisors and the DFSA but it would be inappropriate to comment further because of the legal action.

The bank said: "We take our anti-money-laundering responsibilities very seriously and have taken extensive steps to further strengthen our controls."


'Covered up'

Amjad Rihan wanted to blow the whistle on Kaloti too - but says his EY bosses wouldn't do it.

He said: "If you identify a suspicious transaction, you should report it to the authorities. What we identified was way beyond suspicion. Instead of reporting the crimes that I told them about, my bosses just covered them up."

Amjad fled Dubai because he was worried that his attempts to blow the whistle on Kaloti could get him in trouble with the Dubai government.

He is suing EY, claiming he was ostracised and labelled a trouble-maker, then forced from his job by being pressured to return to Dubai.

He said: "Since I lost my career and I was pushed out from EY, I haven't been able to earn much money. And it's been really, really tough on us as a family financially. It's been years in court, really in order for me to carry on with life, I try not to think about how tough it is."

EY says Amjad has raised certain unfounded allegations in the court claim, which is being vigorously defended.

EY also says it is confident that all legal and reporting obligations have been complied with, and that it had delivered its findings to the relevant regulator in Dubai: "It was the work of EY Dubai that brought to light Kaloti's non-compliance with the applicable regulations and ultimately resulted in the remediation of the issues."

Kaloti says it conducted all appropriate anti-money-laundering checks.

And it would "never knowingly enter into a trading relationship with any party… engaged in financial impropriety or criminal activity of any kind".

It said cash payments were common in Dubai but it no longer buys gold for cash.

The financial system is supposed to keep dirty money out. But the two people who tried to blow the whistle about the suspicious activity in Dubai both feel they have been punished.

Anna's dispute with the DFSA has now been going on for six years. If her appeal isn't successful, she won't be able to work in financial services or the legal profession again.

"Frankly, it's changed me as a person because I find it extremely difficult to trust in authority or to trust in people," she said

"I've been let down by so, so many people that I find it extremely difficult to trust anybody anymore."

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Meta Raises AI Spending Target to as Much as $145bn Despite Pressure Over Returns
Danube Drought Exposes Nazi Wrecks and Pushes Central Europe’s Power System to the Brink
Joe Biden’s Cancer Has Spread Beyond His Bones, Hunter Biden Says
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Why Markets May Look Quiet in August After Big Tech Earnings
UK Drought Cuts Harvests and Raises Food-Security Fears
UFO: Pentagon Releases Video of Unidentified Object Tracked Over Middle East
Ukraine Tells Senate Republicans Its Drone War Offers a Blueprint for America
Weight-Loss Drug Boom Tests the Limits of Prescription Advertising Rules
Senate Scrutinises AI-Driven Personalised Pricing
Spain Seeks Mainland Transfers for 1,100 Children Stranded in Ceuta
Spain and Morocco Trade Blame After 72,000 Migrants Enter Ceuta
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
Europe’s Heat and Drought Are Now Disrupting Power, Shipping and Tourism
Europe’s Drying Rivers Trigger Power Cuts, Factory Shutdowns and Wildfire Emergencies
Record-Low Danube Forces Nuclear Cuts and Emergency Power Curbs
Danube Drought Forces Hungary’s Paks Nuclear Plant Into Full Shutdown
Ceuta Death Toll Rises as Spain and Europe Clash Over Border Response
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Massive Wildfires Ravage Southern Europe: Fatalities in Greece and Evacuations Across France, Spain, and Turkey
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
×