Grey Screen Schemes embezzlement
Bachir El Nakib ( 2015)
Simon Baker posted on LinkedIn
I have been approached by a third party who is investigating whether 'grey screen schemes' which may be used to shield beneficial ownership, are a current concern within the banking sector.
In March 2015, Bachir El Nakib, Senior Consultant Compliance Alert (LLC) wrote an article highlighting concerns about "Grey Screen" Cash or Credit Instruments.
These are normally funds, or assets derived from funds, that are "restricted" by reference to their history and origin etc. In many cases they arise from "assets" that are controlled or supervised by, for example, the Central Bank of a Country, the International Monetary Fund, the Federal Reserve, the ECB, etc. or are derived from previous Placement or Trading profits or have been "restricted" or "de-monetized" ie: removed from normal use because of their historic origins or ownership etc.
In other cases "Inter Bank Screen" or "Grey Screen" Cash/Instruments arise because assets or funds have been placed on long term deposit within Banking Institutions or Central Banks and the Investor & Institution have agreed a basis for allowing the funds or assets based on these funds/assets to be utilized by others for credit purposes for a limited period and under controlled conditions.
The practical position is, that in general, these funds or assets are only verifiable under certain "Screen based inter bank procedures" and not in other and rather more normal ways and additionally can normally only be "blocked" for transactions by "Screen based inter bank procedures" etc...
These types of procedures are not available to the majority of Traders and also not popular with those that are capable of carrying out the necessary procedures and in most cases are declined for a variety of reasons related either to the Asset, the Beneficiary, the control over the asset, or the fact that co-operation and commitments are required from the Asset Owner, the Beneficiary, The Deposit Bank and possibly others that may not be readily forthcoming.
Certain "Grey Screen" assets cannot be traded at all because of the reasons for the assets being "on screen" and the levels of authorizations required to trade them or because no authorizations are available. Certain other "Grey Screen" assets may only be traded with certain high level approvals by traders with special clearances. Other Inter Bank Screen assets may be considered as referred to above. In all cases a full and detailed file will normally be required before any indications can be given.
As indicated above in most cases the Screen Beneficiary of the Asset is rarely the Legal Owner of the underlying Assets and is often rarely able to supply all of the background information required and in many cases is unable to "control" the asset or ensure that the controller of the asset co-operates fully with the trader's requirements to actually engage the asset.
The Lord James of Blackheth Case Study
Lord James of Blackheath - a respected British industrialist and former senior adviser to the Conservative Party (passed away Feb 29th, 2012, he passed away only two weeks after he exposed a scam being targeted by a "government who should know better" that involved the movement of $15,000,000,000,000.00 from the Federal Reserve. This exposure came around the same time that $6 Trillion in fake US Bonds were seized in Switzerland and another $2 Trillion in more fake US Bonds reportedly found in the Phillipines.
Lord Blackheath was going to provide evidence supporting his claim to this fraudulent money laundering scheme, but now it seems we will never know what he uncovered thanks to the interests of a few conglomerates who obviously have way too much to loose.
Forex Grey Label are a popular option for new forex brokers because they offer a number of advantages, including:
"Grey Screen" Cash or Credit Instruments are normally funds, or assets derived from funds, that are "restricted" by reference to their history and origin etc. In many cases they are arise from "assets" that are controlled or supervised by, for example, the Central Bank of a Country, the International Monetary Fund, the Federal Reserve, the ECB, etc. or are derived from previous Placement or Trading profits or have been "restricted" or "de-monetised" ie: removed from normal use because of their historic origins or ownership etc.
In other cases "Inter Bank Screen" or "Grey Screen" Cash/Instruments arise because assets or funds have been placed on long term deposit within Banking Institutions or Central Banks and the Investor & Institution have agreed a basis for allowing the funds or assets based on these funds/assets to be utilized by others for credit purposes for a limited period and under controlled conditions.
The practical position is that in general these funds or assets are only verifiable under certain "Screen based inter bank procedures" and not in other and rather more normal ways and additionally can normally only be "blocked" for transactions by "Screen based inter bank procedures" etc...
These types of procedures are not available to the majority of Traders and also not popular with those that are capable of carrying out the necessary procedures and in most cases are declined for a variety of reasons related either to the Asset, the Beneficiary, the control over the asset, or the fact that co-operation and commitments are required from the Asset Owner, the Beneficiary, The Deposit Bank and possibly others that may not be readily forthcoming.
Certain "Grey Screen" assets cannot be traded at all because of the reasons for the assets being "on screen" and the levels of authorizations required to trade them or because no authorizations are available. Certain other "Grey Screen" assets may only be traded with certain high level approvals by traders with special clearances. Other Inter Bank Screen assets may be considered as referred to above. In all cases a full and detailed file will normally be required before any indications can be given.
As indicated above in most cases the Screen Beneficiary of the Asset is rarely the Legal Owner of the underlying Assets and is often rarely able to supply all of the background information required and in many cases is unable to "control" the asset or ensure that the controller of the asset co-operates fully with the trader's requirements to actually engage the asset.
The grey screen transaction is actual called inter-bank-grey-screen transaction. This is the easy way for the banks and large institution and the governments to send money, bank instruments.
"Bank A" puts all the information on the screen and generates special code for "Bank B" to log into the screen with the special codes and then download the information. It is all done electronically.
Gray screen transaction relates to the old style Nostro Banking prior to the very good SWIFT service, however the term has been highjacked by gray market financial brokers (non-licenced) and often used by fraudsters in a bank guarantee transaction or scam. The claim is that under a specific code bank or financial instruments can be assessed and downloaded against cash or a credit line, allowing very high amounts to be transacted for 10 to 20% of the face value with major banks. While such things exist, they are neither secret nor are they risk free as projected and the old saying : you get what you pay for! really applies. the details are not murky and infact a good internationally versed financial lawyer should be able to explain. These transactions are not for retail banking but institutional banking. When advertised through non licensed entities they are usually part of an laborate scam. Often combined with variations of "roll programs, bank guarantee or mtn programs or trading" in short all the advance fee scams the various agencies are warning about. The existing variants are currently under scrutiny for compliance and Basel III adjustments in bank handling.
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