Anti-Money Laundering Specialist Pleads Guilty to Willful Failure to Implement Anti-Money Laundering Controls

Earlier today, in federal court in Brooklyn, Gyanendra Asre pleaded guilty to failing to maintain an anti-money laundering program in violation of the Bank Secrecy Act, as part of a scheme to bring lucrative and high-risk international financial business to a small, unsophisticated credit union. Today’s proceeding took place before United States District Judge Diane Gujarati.  When sentenced, Asre faces up to 10 years in prison.

Breon Peace, United States Attorney for the Eastern District of New York, Nicole M. Argentieri, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and Erin Keegan, Acting Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations, New York (HSI) announced the guilty plea.

“Asre was an experienced anti-money laundering specialist well-versed in the Bank Secrecy Act’s provisions and deliberately ignored these protections, exposing financial institutions to the risk of illicit criminal activity,” stated United States Attorney Peace.  “This Office will vigorously enforce these laws to ensure the integrity of the U.S. financial system and to hold responsible those who would deliberately disregard them for financial gain.” 

“Gyanendra Asre was specifically trained in proper banking protocols and procedures. Yet, instead of following the necessary steps, the defendant took advantage of a small New York financial institution, which primarily served state employees, to the tune of $1 billion," said HSI New York Acting Special Agent in Charge Erin Keegan. "I commend HSI New York and our law enforcement partners for their dedication to ensuring vitally integral regulations — the foundation of our banking system — are upheld.”

According to court filings, from 2014 to 2016, Asre devised a scheme to bring lucrative and high-risk international financial business lines such as international currency trading to small, unsophisticated financial institutions.  Asre was trained in anti-money laundering compliance and procedures, and represented to the financial institutions that, because of his experience and training, he understood the risks associated with the high-risk business lines and would conduct appropriate anti-money laundering oversight as required by the Bank Secrecy Act.

Based on Asre’s representations, the New York State Employees Federal Credit Union (NYSEFCU), a small financial institution with a volunteer board that primarily served New York state public employees, allowed Asre to conduct high-risk transactions through the NYSEFCU.  Asre then caused the transfer of more than $1 billion in high-risk transactions, including hundreds of millions of dollars originating from high-risk foreign jurisdictions, through the NYSEFCU and other entities.  Asre, who was a certified anti-money laundering specialist with experience in international banking and anti-money laundering compliance and procedures, was a member of the NYSEFCU’s supervisory board during this time period.  However, contrary to his representations, Asre willfully failed to implement and maintain the requisite anti-money laundering programs or conduct oversight required to detect, identify and report suspicious transactions.  This caused, among other things, the NYSEFCU to process more than $1 billion in high-risk transactions during Asre’s tenure, without ever filing a single Suspicious Activity Report as required by law.

In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC).  As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft.

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section, in coordination with the Office’s Bank Integrity Task Force, which is charged with investigating and charging corporate and individual actors who launder criminal proceeds using the U.S. banking system and enforcing anti-money laundering controls under the Bank Secrecy Act. Assistant United States Attorneys Ryan C. Harris and Francisco J. Navarro of the Eastern District of New York are prosecuting the case with Acting Chief Margaret Moeser of the Criminal Division’s Money Laundering and Asset Recovery Section.  The investigation is being conducted by HSI’s El Dorado Task Force in New York.

The Defendant:

GYANENDRA ASRE
Age:  56
Greenwich, Connecticut

E.D.N.Y. Docket No. 21-CR-174 (DG)