Basics of Anti-Money Laundering : A Really Quick Primer
- 1. Basics of Anti-Money Laundering : A Really Quick Primer
- 2. What is Money Laundering? • The act of concealing or disguising (laundering) of funds obtained through illegal activity so that they appear to have been generated through legal, legitimate sources. Illegal money/funds Legal money/assets
- 3. Money Laundering: A Three Stage Process Placement • Illicit funds are physically placed in the financial institution Layering • Multiple transactions • Wire transfers between domestic and foreign accounts Integration • Real estate investment • Luxury automobiles • Investment in securities markets
- 4. How is it Carried Out? – Shell companies, intermediaries and money transmitters usually transfer these funds around the world – Banks and other financial institutions are the chosen medium for laundering these illegal funds
- 5. AML Regulations • The Bank Secrecy Act is the most important Anti-Money Laundering (AML) regulation • The BSA requires financial institutions to: – Keep records of cash purchases of negotiable instruments – File reports of cash transactions exceeding $10,000 (daily aggregate amount) – Report suspicious activity that might signify money laundering, tax evasion, or other criminal activities – Implement a written, board-approved compliance monitoring program • The USA Patriot Act – Expands AML requirements to all financial institutions – Augments existing BSA framework
- 6. AML Best Practices • In order to combat money laundering, banks should implement the following best practices: – Customer Identification Program (CIP) – Customer Due Diligence (CDD) Program – Bank Secrecy Act/Anti-Money Laundering Risk Assessment – Identification and Reporting of Suspicious Activity
- 7. Want to learn more about anti-money laundering process and best practices? ComplianceOnline webinars and seminars are a great training resource. Check out the following links: • http://www.complianceonline.com/anti-money-laundering-aml-compliance- program-seminar-training-80114SEM-prdsm?channel=amlppt • http://www.complianceonline.com/bsa-aml-ofac-risk-assessments-regulatory- requirements-seminar-training-80181SEM-prdsm?channel=ppt • http://www.complianceonline.com/bsa-aml-compliance-reporting-requirements- webinar-training-703352-prdw?channel=amlppt • http://www.complianceonline.com/bsa-aml-compliance-checklists-webinar- training-703178-prdw?channel=amlppt • http://www.complianceonline.com/bsa-aml-ofac-risk-assessments-and-evaluation- compliance-program-webinar-training-703493- prdw?channel=amlppt • http://www.complianceonline.com/best-practices-for-developing-risk-models- for-aml-bsa-monitoring-webinar-training-703628- prdw?channel=amlppt