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U.S. investigates 6 banks connected to the FIFA financial fiasco

July 27
9:28 AM 2015

U.S. authorities dig deeper into the alleged FIFA financial fiasco, contacting more than half a dozen banks associated to the football corruption scandal.

In May, the soccer world was shaken with allegation from Brooklyn prosecutors revealing a 162-page indictment on 14 FIFA top officials. According to CNN, Executives who got more than $150 million worth of bribe and kickbacks in a scheme that models a criminal enterprise. Besides the individuals, the prosecutors also questions the bank involved in the money laundering scheme. Brooklyn prosecutors also contacted Credit Suisse, Standard Chartered, and Deitsche Bank.

Brooklyn US Attorney's office together with New York's top financial regulator has approached HSBC Holdings PLC, Delta National Bank and Trust Company, and Standard Chartered PLC. These stronger investigations create a new issue for theFIFA corruption case and additional headaches for the financial industry, which has questionable money-laundering controls.

Laws require banks to have and efficient anti-money laundering system according to a report bySI. This is why authorities are questioning these banks about any money flowing through that could have been linked to the FIFA scandal.

One of the individuals who admitted to the allegations was Chuck Blazer, a former FIFA executive committee member. He pleaded guilty to 10 counts, including wire fraud conspiracy, income tax evasion, wilful failure to file report, money laundering conspiracy, and racketeering conspiracy. FIFA banned its former committee member for life just earlier this month. He confessed that he, and other executive committee members, accepted bribes to have the 2010 World Cup in South Africa.

US Attorney Kelly Currie said that they are investigating if banks know about the illegal funds, which goes through their accounts. FIFA's National Security and Cyber crime section head Evan Norris leads the investigation. Prosecutor Winston Paes will investigate the business and securities fraud section. Ot oof the 14 people who received indictment, seven were arrested during the rids in Zurich.

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