A set of policies, procedures, and technologies that prevents money laundering
What is Anti-Money Laundering?
Anti-Money Laundering (AML) is a set of policies, procedures, and technologies that prevents money laundering. It is implemented within government systems and large financial institutions to monitor potentially fraudulent activity.
- Anti-Money Laundering (AML) is a set of policies, procedures, and technologies that prevents money laundering.
- There are three major steps in money laundering (placement, layering, and integration), and various controls are put in place to monitor suspicious activity that could be involved in money laundering.
- Some anti-money laundering controls include knowing your customers, software filtering, and implementing holding periods.
What is Money Laundering?
Money laundering refers to the process of taking illegally obtained money and making it appear to have come from a legitimate source. It involves putting the money through a series of commercial transactions in order to “clean” the money.
For example, money may be placed in a business and disguised as sales revenue in order to camouflage its origin. Money laundering is illegal in itself.
Money Laundering – Process
The figure below shows the three steps in money laundering and some of the controls that are used to prevent it. Money laundering is carried out through placement in a financial institution carrying out a series of transactions to disguise its original source (layering) and obtaining/using the cleaned money (integration).
Anti-Money Laundering – Controls
Many governments, financial institutions, and businesses impose controls to prevent money laundering. The first is criminalization by the government. The United Nations Convention Against Transnational Organized Crime has set forth guidelines that help governments to prosecute individuals involved in money laundering schemes.
2. Know Your Customers
Financial institutions must also have “know your customer” policies in place to help prevent money laundering. This involves monitoring the activity of clients and understanding the types of transactions that should raise red flags. Financial institutions are required to report suspicious activity to a financial investigation unit.
3. Record Management and Software Filtering
Financial institutions and businesses also keep detailed records of transactions and implement software that can flag suspicious activity. Customer data can be classified based on varying levels of suspicion, and transactions denied if they meet certain criteria.
4. Holding Period
Many banks require deposits to remain in an account for a designated number of days (usually around five). This holding period helps manage risk associated with money being moved through banks to launder money.
5. New Technology
The technology used to identify suspicious activity linked to money laundering continues to evolve and become more accurate. Technologies, such as AI and Big Data software , allow these systems to become more sophisticated.
History of Anti-Money Laundering
The first anti-money laundering structures came about with the Financial Action Task Force (FATF). It ensures that international standards are put in place to prevent money laundering.
Since the 2001 terrorist attacks, the FATF now also includes terrorist surveillance in an effort to mitigate terrorist financing. Recently, cryptocurrency has come under scrutiny, as it provides anonymity to its users. This has facilitated a lower-risk method for criminals to go about their transactions.
Anti-Money Laundering in Financial Institutions
Financial institutions are held to high standards with regards to following procedures to identify money laundering. All bank employees are trained to some degree to identify and monitor suspicious customer activity. Larger financial institutions will also have dedicated departments to track fraud and money laundering.
Many of the institutions put in place a “know your client” measure, which can help flag suspicious transactions based on particular clients. Transactions and processes at financial institutions are recorded extensively so that law enforcement can trace the crimes back to the source.
While such institutions are legally obligated to follow anti-money laundering regulations as they relate to the country they operate in, not all agree with them. Implementing the policies are often costly and ineffective, and the net benefit of having them in place often comes into question.
Case Study: HSBC Money Laundering Scandal
HSBC went through a period of restructuring and cost-cutting, which caused them to decrease the size of their compliance department. As a result, many of the control systems to detect fraud and money laundering were weakened.
It was later found that HSBC had facilitated transactions that involved terrorist groups in the Middle East and drug cartels in Mexico. HSBC would eventually pay a fine of $1.9 billion, as regulators agreed that their control processes were inefficient in catching suspicious activity.
Thank you for reading CFI’s guide to Anti-Money Laundering. To keep learning and advancing your career, the following resources will be helpful:
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Money Laundering: Most Effective Combat Strategies Essay
Money laundering refers to acts, whereby, criminals mask the nature of their illegal activities, sources of their finances, and proceeds of their activities. Money laundering corrupts the integrity of the whole financial system of a country (MacQueen, 1993). Participants of money laundering activities strive to establish legitimate reasons to conduct their illegal businesses. Criminals, who deal in money laundering, conduct their transactions in least suspicious ways to hide from authorities such as, the government and business administration bodies that control money laundering. The practice of money laundering is widespread all over the globe. It is rampant in countries with loose anti laundering programs and in countries that have inefficient mechanism to detect money laundering. The practice of money laundering affects the economy and security of a country (MacQueen, 1993). There have been increases in implications brought by money laundering, internationally. This calls immediate intervention from the mandated bodies, in the relevant countries. The government of United States of America approximates losses 60 billion U.S dollars, annually. One of the main routes adopted for money laundering is through sale of drugs. Since sale and consumption of drugs is illegal in most of the countries, different innovative ideas are used to reach the prospective customers. The same applies to ways adopted by money launderers. There are various techniques that are adopted (Module 8, slide 3). The money from the sales is transferred illegally. It is estimated that the drug trade is worth US$322 billion annually (Module 6, slide 2). Money laundering should be controlled; otherwise, economic progress may not be realized as quickly as projected.
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Strategies Used to Combat Money Laundering
The increased concerns about the adverse effects of money laundering led to precautionary and combative measures to be developed, in various countries. Countries have directed their efforts to curb money laundering to control the downwards projections of their countries’ economies. Countries are also aware of the security challenges posed by money laundering. As a result, countries have joined regional blocks such as the E.U to enjoy platforms laid down to control money laundering. Nations hope to do away with money laundering by applying their own strategies and those from regional blocks (MacQueen, 1993). Canada adopted a unique strategy to curb the use of drugs and indirectly minimize money laundering. The Canadian government decriminalized the use of drugs but kept it illegal (Module 6, slide 29). So gradually the use of drugs is expected to decrease. This will definitely have a positive impact on the financial figures of the country. Another method that the Canadian government adopted to curb money laundering was to open dummy exchange office that allowed drug traffickers to deposit money in order to legalize it. Many drug traffickers were attracted to deposit huge amounts of illegal money. Almost US$165 million were collected through this (Module 7, slide 19). According to some scholars, the best way to demoralize money launderers is to freeze their valuable assets (Module 9, slide 7).
Effectiveness of the Strategies Applied to Combat Money Laundering
Several countries such as Canada have adopted legislative programs that have initiated strategies to combat money laundering. These programs aim to tackle money laundering issues at the basics. The legislative programs established have aimed at, evaluating and monitoring suspected illegal accrual of wealth. The programs have provided a ground to report doubtful money or assets, held by various individuals. Changing times and technologies have made it possible to conceal of vital information on illicit wealth in a way that cannot be traced easily. Most countries have high levels of corrupt legislative officers, across the globe. Corrupts individuals manipulates money laundering corrupt officers through bribes, who allows money laundering activities to proceed. The US government has set up a legislative control act (The Money Laundering Control Act), which encourage suspected people to report and justify the acquisition of their wealth, or to face charges amounting up to 3000 U.S dollars. On the other hand, Canada has established a national initiative to tackle money laundering cases. The initiative has strategized ways to spot and limit the financing of terrorist activities in the country. The contents of the strategy: include provision of a background for in depth investigation of money laundering cases, and ruthless prosecution of money laundering offences (Stephen, 2004). The United Nations (UN) has implemented anti terrorism measures. The Security Council, a wing of the United Nations, commissioned a set of sanctions against persons associated with money laundering. The sanctions intend to freeze all assets these individuals have, and also ban them to travel to other countries. The United Nations together with bodies set up by different countries have stepped up their efforts, and realized considerable results in curbing money laundering cases. The Croatian government reported a 40% decrease in losses that arose from money laundering. Following this incidence, the government has combined efforts with the U.N to trace terrorism financing roots. This strategy has covered a considerable ground and has reduced money laundering activities by 12%, in 2012. The strategy has also realized massive gains with regard to the high number of money laundering cases reported, in Croatia (David, 2009).
The Most Effective Strategies of Money Laundering Control
Supervisory authorities have played the most significant role to curb money laundering. The inclusion of financial institutions such as, banks and insurance supervisors in the monitoring of monetary transactions have helped, countries, significantly to get the sources and destinations of finances that have been involved in money laundering activities (Gilmore, 1999). Financial institutions supervisors have helped to trace the locations of the participants of money laundering, and bring them for prosecution. Financial institution strategy has complemented the other strategies to curb money laundering. Financial institutions help to detect terrorists financing agents, and provide data for the legislative bodies to take actions. Financial institutions strategy is the most effective way of controlling money laundering, and thus demands undivided attention. However, the effectiveness of this strategy is not guaranteed if authorities do not take actions. The strategy is also subject to manipulation by influential participants in money laundering. Money laundering is an illegal activity that engages in transactions that revolve around several countries. This fact calls for cooperation among countries. Cooperation should facilitate the exchange of information that is useful in anti money laundering campaign (Gilmore, 1999). In addition, established bodies such as the United Nations should provide a common ground to promote cooperation among countries. Combined efforts provided by other bodies and treaties such as, the Mutual Legal Assistance Treaty, have helped significantly to step up anti laundering campaigns, in various member countries. Other countries are undertaking zonal participation, in curbing the menace, as a result of the alarming cases, and more awareness created by U.N conventions. Therefore, governments should step up their fight against money laundering. They should enhance cooperation among financial institutions, in order for them to access the necessary information from suspected money laundering individuals, and thus control money laundering activities to the minimum level possible.
David, C., & Sharman, J. (2009). Corruption and Money Laundering: A Symbiotic Relationship. Palgrave: Macmillan. Gilmore, W. C. (1999). Dirty Money: The Evolution of Money Laundering Counter-measures . Strasbourg: Council of Europe Pub. MacQueen, H. L., & David Hume Institute. (1993). Money Laundering. Edinburgh: Edinburgh University Press. Module 6. (n.d.). The Drug Trade – Study Materials (Slides 2 & 29). Retrieved from: file:///C:/Users/admin/Downloads/eConcordia%20-%20Governance%20and%20Organized%20Crime%20-%20Module%206-%20The%20Drug%20Trade%20(Print%20Version).html Module 7. (n.d.). Law Enforcement Strategies – Study Materials (Slide 19). Retrieved from: file:///C:/Users/admin/Downloads/eConcordia%20-%20Governance%20and%20Organized%20Crime%20-%20Module%207-%20Law%20Enforcement%20Strategies%20(Print%20Version).html Module 8. (n.d.). Money Laundering – Study Materials (Slide 3). Retrieved from: file:///C:/Users/admin/Downloads/eConcordia%20-%20Governance%20and%20Organized%20Crime%20-%20Module%208-%20Money%20Laundering%20(Print%20Version).html Module 9. (n.d.). Combating Money Laundering – Study Materials (Slide 7) . Retrieved from: file:///C:/Users/admin/Downloads/eConcordia%20-%20Governance%20and%20Organized%20Crime%20-%20Module%209%253a%20Combating%20Money%20Laundering%20(Print%20Version).html Stephen, S. (2004). Money Laundering in Canada: An Analysis of RCMP Cases. Nathanson Centre for the Study of Organized Crime and Corruption. New York: York University.
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This money should be allocated for the development of a country, education and also employment. People who are under influence of drugs can act aggressively which means they can commit violence without consciousness and intentions. They are also willing to do anything such as rob, steal or at a certain point kill innocent people as they want money to buy drugs. As a result, the rate of crime will increase, the environment is not safe enough for the community to live in and it can disrupt people’s routine lives. Moreover, it can give negative perceptions to the investors from other countries and they are not willing to invest or make a deal with a country that has high social problems. The consequence is, it can retard the economy growth of a
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They also increase the drug trafficking and pay off corrupt officials by extortion or intimidation which helps them continue their operations. Although the FBI is unsure of how much impact there is, they estimate it to be around $1 trillion a year, globally.
Cja 384 Controlling Organized Crime
Organized crime can be narrowed down to five unique areas of criminal activity. The first being racketeering, an umbrella term, meant to describe when any group or groups conduct one or more of the other criminal activities. One of the most successful ways the federal government has been able to hinder the actions of hardcore criminals is through the formation of the RICO Act (Racketeer Influenced and Corrupt Organizations). The second area of major criminal activity is vice, or vice operations. This has to do with victim-less crimes such as drugs, gambling, and prostitution. Again, these crimes are highly problematic because it is the public that decides whether or not they prosper. It’s all too easy to build a case against someone breaking a law by importing huge quantities of controlled substances across a border, but it becomes much more difficult to stem the sale or need for such drugs once they have reached their intended destinations.
Drug Trafficking : The United States
Drug trafficking is a major problem in the United States. When this trade reaches third world countries, it usually spreads incredibly fast and law enforcement is more easily corrupted. It is the illegal trade involving cultivation, manufacture, distribution, and the sale of substances which are illegal under the law. The drug trade is estimated to bring in more than $100 billion every year from the U.S. The number of global deaths each year due to illegal drugs is over 200,000.
Should The United States Criminalize Drug Trafficking?
Drug crimes happen to violate state or federal drug laws from possession, manufacture, use, or distribution. Trafficking does impede national currency of transactions seeing as, “both the federal government and many states criminalize drug trafficking and broadly define it as the trade or dealing in illegal substances” (Tran, 2016, para. 2). Its seriousness will confront some measurement by a range of economic damage, loss to victims, and so on. Ultimately, some elements bring an allowance of illegal narcotics or controlled industrial compounds to circulate within the U.S. government.
Organized Crime In The United States
Organized crime is often committed by highly controlled criminal groups that participate in illegal activities for financial benefits. Indeed, organized crimes terrorize multiple facets of the American nation, which include the US’ economy as well as national security. The FBI assigns the costs of organized crime globally at one trillion dollars per year.
Who Is Winning the War between the United States Law Enforcement against Money Laundering in 2013?
In order to successfully launder money three processes are needed: placement, layering, and integration. In the first state, placement, the illegal proceeding are disengaged from direct association with the crime or criminal. In the second stage, layering, the money is used in some legal financial transaction in order to “camouflage” the cash. In the third stage, integration, the apparently legal money is available to the money launder (Kelly, Maghan and Joseph). For better understanding, the fig 1 gives a real life example on how money laundering is done.
Federal Asset Forfeiture Is The Driving Force Behind Money Laundering Today
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The General Operational Definition Of Organized Crime
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Sinaloa Cartel: The Role Of Money Laundering In The United States
That is their criminal efforts, but the economic problem arises when the cartels must transfer the cash back to Mexico. The IRS requires that any deposit made over $10,000 has a bank receipt that goes along with the transaction (ICE). When cartels are depositing very large amounts of money, they must make inconspicuously, large amounts look believable. “Traffickers will send drug proceeds through various wire transfers to different accounts in different names in different countries, all the while varying the amount of their deposits and withdrawals to make the paper-trail harder to follow” (Woody).
U.s. Foreign Corrupt Practices Act Of 1977
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Jordan Belfort: The Wolf of Wall Street
Money Laundering is the act of placing illegally acquired money in a legitimate business cash flow. This is done in order to be able to use that currency without law enforcement and the IRS questioning cash flow pertaining to a certain individual or corporation in question. This also considered a form of
Corruption of Government Essay
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There are also economic effects that result from government corruption. These economic effects coincided with bribery. People who work for companies that are at risk of being shut down for health or other reasons will pay any amount to make their problems go away. In Mexico, food store owners such as Jose Luis Garcia will pay anywhere from $50-$100 to have inspectors turn the other way (Archibold). This happens on a small scale such as
- Money laundering
Analysis of Anti-Money Laundering Strategies
Money-laundering has been a significant problem for Canada because such a practice enables and facilitates many criminal activities such as drug trade, fraud or even global terrorism. It should be noted that many financial institutions of the country are engaged in the transactions that enable criminal organizations to conceal their revenues and legitimize them. This is they survive for a very long time. This paper is aimed at discussing the strategies used by Canadian government to combat money-laundering. In particular, it is necessary to evaluate the efficiency of these strategies. Overall, one can argue that this issue can be properly addressed if local and international organizations join their efforts and enforce laws that make money-laundering both punishable and unprofitable.
On the whole, the efforts of the government are based on the premise that the major cause of money-laundering is drug trade. Certainly, the dangers of terrorism financing should also be taken into account, but the majority of money-laundering cases are related to narcotics. This is one of the reasons why the state implemented laws that against drug trafficking. Furthermore, the government emphasized the necessity of educating individuals and families in order to protect them from the dangers of substance abuse. The combination of these practices was called Canada’s Drug Strategy or CDS. This approach enabled the state to reduce the supply as well as demand for drugs. Nevertheless, CDS did not create mechanisms that could stop money-laundering practices. This policy is not directly related to banks or casinos that help criminal organizations. This is one of its major limitations.
Yet, there are policies that are directly related to money-laundering. One of them is the prevention of cash smuggling across the national borders of Canada. In part, the policies of the state are aimed at preventing criminal organizations from bringing money to the country and delivering it to financial institutions that can later conceal these assets. This is why law-enforcement agencies of the country carried out a series of operations in order to achieve this goal. For instance, one can mention such a project as Operation Mantis that resulted in the confiscation of more than $3 million. Furthermore, the officers of CBSA (Canada Border Service Agency) arrested a vehicle that carried $.330.000. It is believed this money could belong to a large criminal organization. Certainly, these activities are important because they limit the flow of illegal money into Canada at least to some degree. Moreover, they can uncover existing networks of various criminal syndicates. The activities of law-enforcement agencies can also highlight the methods of smuggling money into the country. This is why their importance should not be disregarded. However, such operations can capture only a very small portion of money derived from drug trafficking or fraud. Apart from that, they do not affect the financial institutions that may support illegal transactions. Thus, one can argue that the success of these strategies is very limited. The efficiency of law-enforcement agencies is essential for combating money laundering, but it is not sufficient. This is one of the issues that policy-makers and legislators should not overlook.
Additionally, this problem can be effectively addressed provided that various governmental agencies implement laws that prohibit money-laundering and enforce them effectively. Canadian policy-makers agree with the idea that organized crime can be addressed properly if public agencies know how illegal activities are conducted and how different parties interact. Thus, this task requires close cooperation of many agencies that should share information with one another. The Canadian government created such institutions that were supposed to stop illegal financial transactions. For example, one can speak about the Financial Action Task Force. This organization had to cooperate with legislators, financial institutions, and law-enforcement agencies in order to reduce money-laundering. The result of this cooperation is new legislation that makes money-laundering unprofitable. Moreover, these legislative acts criminalize such activities. For instance, one can mention the amendments of the Criminal Code according to which the government could forfeit the assets of criminal organizations. Therefore, they cannot ensure that their money is fully protected, and it is difficult for them to conceal their assets. Furthermore, special attention should be paid to the Proceeds of Crime (Money-Laundering) and Terrorist Financing Act. This law requires financial organizations to report suspicious transactions and disclose the identities of their clients, if they may be engaged in illegal activities. According to this law, banks, security dealers and even casinos are obliged to report possible money-laundering practices; otherwise they may face criminal penalties. Thus, this legal act is essential for legal prosecution of money-laundering. It should be note that current Canadian legislation attached importance to the responsibility of financial organizations and their employees who may facilitate money-laundering. In other words, they have an incentive to disclose illegal transactions and comply with the law. It is possible to say that this strategy has been quite effective. For instance, one can mention that Canadian institution filed 3.747 reports about some of their clients. This legislation improved the work of FINTRAC or the Financial Transactions and Reports Analysis Centre of Canada. This agency was able to obtain data about more 500 cases that could be related to money-laundering or other illegal transactions. These disclosures have been of great use to law-enforcement agencies. In this way, these organizations can uncover a great number of criminal networks and identify companies that assist money-laundering of drug traders or other offenders. This is the main advantage of this approach.
On the whole, these examples show that legislative changes can be more effective for combating money-laundering than separate operations of law-enforcement agencies. Well-developed laws compel financial organizations to disclose the information about the illegal activities of their customers. Furthermore, this strategy raises the cost of money-laundering. The thing is that criminal organizations can easily lose the money that they derive from drug trade or fraud. Therefore, money-laundering may simply become unprofitable and dangerous. This is why it is extremely difficult for criminals to legitimize their illegal revenues. If the activities of police are also efficient, many gangs or syndicate may not be able to operate effectively. They will not longer be sustainable.
Certainly, money-laundering still remains a significant problem for Canadian society and one cannot say this problem will be completely resolved in the near future. Nevertheless, the cooperation of public agencies and the development of efficient ways can reduced this activity to the minimum. Canadian government should take into consideration that this activity involves a variety of participants such as smugglers or employees of financial institutions. By looking at this problem from this perspective, Canadian policy-makers can better cope with the activities of criminals.
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Essay Service Examples Crime Money Laundering
Anti Money Laundering Using Machine Learning
- Topics: Money Laundering
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The huge amount of Bank operations performed daily and extremely hard for Financial Institutions to spot malicious Money Laundering related operations. This really impact and generates the fear while performing financial activity. There are already some predefined heuristics are performed by Financial Institutions but still manual intervention required to identify the malicious activity.
This motive the needs for intelligent system (Anti Money Laundering) to learned and help Financial Institutions to fight money laundering in a diversity way such as intelligent filtering of bank operations, intelligent analysis of suspicious activity trained and learned new objectives and rules that restricts, stop and identify the suspicious activity.
Money laundering is the crime which is increasing day by day in the entire world. US$500 Billion and US$1 Trillion amount being laundered in entire world. “Now we know the Money Laundering is very common, important and serious problem not for bank only but for all Financial institutions even government regulatory authority because it’s bad impact on global Economy of the country”.
There are three stages of money laundering placement, layering, and integration. Placement is the process in which illegal money or dirty money enters into the financial system. Then the money is transferred into offshore / onshore accounts or fake accounts. Finally Integration is the process purchase of luxury assets, financial investments.
Pakistan is facing economical crises which increasing day by day and one of the major reasons are Money Laundering due to which Pakistan is included in the “Grey List” issued by the FATF in June 2018.
International banks can pull their business out of Pakistan as a result of the inclusion in the ‘grey list’. There are different steps and efforts are taken by financial institutions to stop malicious transactions using Anti Money Laundering rule based techniques.
Past Work Review
Importance is given to this critical issue in the past and different ways was implemented from 2005 to 2017 to stop this malicious activity with the time of different publications. In 1995 detection of money laundering was described by Senator (Senator et al. 1995) which was rule-based. System matches these predefined rules and then would be further investigated by analyst. Further Rule Based was encoded using Decision Tree by Wang and Yang in the year 2007. Rule Based approach depend on domain knowledge and sometime generate false positive alerts with new operations later system updated with this issue by approach supervised and un-supervised by Kingdon, this process is based on “Know Your System”. Zhu 2006 Le-Khac, Markos, and Kechadi 2010; Zengan 2009; Raza and Haider 2011 improved the system using distance based clustering. Further different systems apply supervised learning to identify suspicious behaviour(Lv, Ji, and Zhang 2008; Heidarinia and Harounabadi 2014).
Conventional Way to Fight
Over decades Financial institution are relying on Rule Base Transaction Monitoring system which generate lot of false positive alerts and create lot of backlog for compliance department to review these alert transactions.
Typically, monitoring starts with a rule-based system which scans customer transactions for red flags consistent with money laundering. When a matching pattern is observed, an alert is generated and the case is referred to the bank’s internal investigation team for manual review.
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Efficient Way to Fight
Using Machine Learning techniques we can complement these rule based transactions monitoring systems by substantially reducing the number of false positives alert.
Machine Learning does not perform humanistic programmed cognitive tasks. Rather, machine learning algorithms learn novel new relationships from data. Uncovering hidden patterns in money movement makes machine learning for AML a very attractive enhancement to existing AML operations.
“Clustering is used to group the account which have the suspicious transactions”.
“Techniques like Neural Network are used to detect pattern of money laundering”.
“Social Network Analysis or Link Analysis is used to find the communities involved in the money laundering”.
In order for this to work, the modeling dataset containing historical alerts and their outcomes (SAR filed or not) must be carefully constructed from mostly the same data that is made available to reviewers.
An analyst, with little or no expertise in machine learning, can then feed the modeling dataset into the automated machine learning platform, which will perform the key steps of the model development process for them automatically.
It will determine the best ways to pre-process the data, structure it for validation and final holdout assessment, distill out the relevant features related to money laundering according to the historical data, and identify the best machine learning algorithms to apply based on this dataset. This is only the beginning of the story of how automated machine learning can be used to enhance an AML compliance program. Dataset: https://www.kaggle.com/ntnu-testimon/paysim1
As of 2017 Banks globally have paid $321 billion in fines since 2008 for an abundance of regulatory failings from money laundering to market manipulation and terrorist financing.
With growing amounts of data, reliance on online transactions, and the increase of digital-currency adoption, banks must address money laundering to not only stop it, but to also avoid fines. Many banks have started implementing business process automation and see Artificial Intelligence (AI )and particularly Machine Learning (ML ) as the next step in the journey to greater efficiency and effectiveness.
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Introduction The case presented depicts a money laundering case. Money laundering is the illicit practice of covering up the source of illegally acquired money bytransferring it through a complex sequence of banking transactions or business dealings. In an ambiguous and indirect way, the general scheme of this method returns the ‘clean’ cash to the launderer. Former Rizal Commercial Banking Corporation (RCBC) branch manager Maia Santos- Deguito is found guilty by the Makati Regional Trial Court on January 10 for money...
As the popular saying goes, if something is too good to be true then it probably is. This perfectly sums up the life and career of Bernie Madoff. At a point, he was one of the most sought-after investment managers in America. The cookie however crumbled in 2008 when it was discovered that he had no genuine investment plan but rather an elaborate Ponzi scheme. It left thousands of his clients devastated with the loss estimated at a whopping $65...
Would anyone assume that a young man who grew up from humble beginnings in a small Jewish middle-class family be responsible for the largest Ponzi schemes in American history? A young Hofstra graduate with a bachelor’s degree in Political Science and hopes and aspirations to work on Wall Street. Bernie Lawrence Madoff was born on April 29, 1938, in Queens, New York. Madoff’s Family originated from Poland and was heavily affiliated with the Jewish religion and community. Madoff was never...
INTRODUCTION The case talked about the money laundering case of Maia Santos-Deguito a former Rizal Commercial Banking Corp. (RCBC) branch manager and her appeal to her sentence of a maximum of seven years in prison with a fine of $109.5 million. Deguito was accused of laundering money over the 2016 Bangladesh bank heist (Buan, 2019). The appeal stated that the court gave the wrong penalty because of the misinterpretation of what constitutes money laundering under the Anti-Money Laundering Act. ISSUES...
ABSTRACT Money laundering is a crime of many approaches, and a host of different laws, as countries do not always have consistent approaches. Combating money laundering, therefore, requires consideration of issues of national and international jurisdiction. The countries world-wide face the greatest challenge of protecting their economy from the menace of money laundering as it seriously affects the economic growth and has the potential to upset the programmes of the economic planners. Banks are used as an important channel by...
Introduction The economic problems have taken a global dimension after the globalization. It has also increased the supply chain of products across the borders. Cross-border transaction of black money and money laundering are serious economic crimes, and it causes substantial impacts on the economic development of the world. The Illicit trade is the fountainhead of these problems, and estimated total cost of illicit trade is $ 1.77 Trillion in 2015 which is about 10 percent of global trade in merchandise...
Introduction “Money is the fruit of evil, as often the root of it”, a famous quote by novelist Henry Fielding (“Henry Fielding Quotes,” n.d., par 1). This quote quantifies what this presentation will be about today: money laundering. Money laundering is the process of taking the income from criminal activities and making them appear legitimate. This is also known as making dirty money appear clean. A simple comparison I will be comparing a money launder and a magician: a money...
- White Collar Crime
White-Collar Crimes are nonviolent crimes that are committed by businessmen and government professionals who commit a criminal act for financial gain, but there is one white-collar crime that would be considered the most dangerous form. Money laundering is the most dangerous form of White-Collar crime there is. When it comes to what would be considered the most dangerous white-collar crimes money laundering would be on top. Money laundering is quite common amongst businessmen, it can have an impact on businesses...
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Anti Money Laundering (AML) Training – Essay Sample
AML training is essential to the operation of regulated financial services firms in that it familiarizes employees with the legislative and compliance information necessary to stay abreast of current developments in the field and best practices. In the current global financial environment, it is essential that employees are aware of, and know how to, identify money laundering and attempts by terrorist organizations to finance dangerous enterprises. Ultimately, employees are expected to maintain a high degree of diligence vis a vis the customer’s identity so that any suspicious activity can be identified and investigated. Training is crucial if techniques aimed at countering illicit activity are to be effective in the long-term.
One particularly important aspect of AML training is ensuring that employees make proper use of detection and prevention techniques year-round, not just in the wake of periodic training modules. One way to apply a “practical” solution is to circulate idealized case studies that present a problem, identify the proper techniques for identification and resolution and illustrate a positive outcome. Another effective “real life” approach is to make trainees aware of news stories that point to the insidious nature of the crime involved, its destructive potential and the repercussions of not following protocols prescribed for avoiding a worst-case scenario. Employees are far more apt to adhere to a dedicated, programmatic approach if they understand what’s at stake and that money laundering is a year-round problem, requiring vigilance and discipline.
A more detailed breakdown of training needs must take into account introductory training for new employees, particularly those who can expect a high degree of personal contact with customers. Training should include a thorough rundown of due diligence practices and reinforce the fact that they are required to disclose instances of malfeasance. If applicable, training must stress the need to follow identity verification checks, criminal background checks (where applicable), and other up-front security “fail safe” measures. Perhaps the most difficult skill to learn is how to discriminate between normal and abnormal financial behavior. This amounts not only to knowing one’s customers but learning key warning signs, tip-offs that may lead to the identification and prevention of a money laundering threat.
Company officers and, in particular, money laundering reporting officers (MLRO) must have a more expansive understanding of the threat if they are to be successful at communicating the urgency of constant monitoring to other employees. Ultimately, these personnel are responsible for ensuring that the firm is fully prepared for the threat posed by money laundering. Among other things, the MLRO needs to be familiar with the firm’s individual services in order to assess how vulnerable each department is to money laundering. As the final judge of whether a threat warrants reporting, the MLRO bears a greater degree of responsibility than any other in staying abreast of new techniques and ensuring that others are aware of them. As well, he is charged with maintaining a line of communication between the firm and the relevant law enforcement agencies.
One of the most effective tests for determining staff readiness is one that duplicates, as nearly as possible, the real-life circumstances that might arise as the result of an AML threat. To that end, a particularly well-conceived readiness plan was tested through a kind of “fire drill,” in which staff members were required to identify a viable potential threat based on established criteria, and react according to compliance protocols. Today, this is considered one of the best means for embedding best AML practices into a firm’s everyday routine.
In recent years, much larger financial service firms could have benefited from a “real world” simulation. In 2004, Riggs Bank was hit with sanctions, including the highest fee on record, which led directly to the bank’s collapse. The most damaging outcome of the consequent penalties, levied for failing to comply with AML regulations, was the bank’s crippling loss of confidence among the public at large. This perhaps more than anything delivered a coup de grace from which Riggs never recovered. The most important lesson to be learned from the Riggs collapse was that simply complying with training requirements is not enough. Executives and MLROs must see to it that good monitoring practices and response preparedness are fully ingrained in the firm’s culture.
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3 steps to improve anti-money laundering regulation
This letter, addressed to Secretary Steve Mnuchin, is a formal comment in response to the Department of Treasury, Financial Crimes Enforcement Network's Advance Notice of Proposed Rulemaking, Anti-Money Laundering Program Effectiveness , Docket No. FINCEN-2020-0011. The notice was published September 17, 2020.
Dear Secretary Mnuchin,
Thank you for the opportunity to comment on the Department of Treasury (Treasury) Financial Crimes Enforcement Network (FinCEN) Advance Notice of Proposed Rulemaking titled “Anti-Money Laundering Program Effectiveness” and published on September 17, 2020 in the Federal Register (“the Notice”). I am Aaron Klein, a fellow in the Economic Studies program and policy director of the Center on Regulation and Markets at the Brookings Institution.
Miriam k. carliner chair - economic studies, senior fellow - center on regulation and markets.
I commend Treasury for conducting this review. Current anti-money laundering (AML) programs are in substantial need of reform. A thesis of AML has been that increasing compliance costs for financial institutions will discourage serving high-risk customers. This thesis has counterproductive outcomes. AML compliance costs are not correlated with customer profitability, which is the main driver of whether an entity can secure a banking relationship. The result has been an increase in regulatory costs that discourage serving low-income/low profit customers, while high risk but profitable/wealthy customers remain able to secure banking relationships, even if they have to pay more for them. This harms lower income people who need access to the financial system for legitimate purposes while failing to deliver on the goal of restricting criminals’ access to the financial system.
To enhance AML program effectiveness, a new thesis should be adopted. Encourage financial institutions to devote substantial resources to effectively identifying high-risk entities. Require law enforcement to use this data to more wisely target resources and catch criminals, instead of using the data as a check of other criminal activity after wrong doing had been identified elsewhere. Under this regime, the purpose of AML compliance by financial institutions will be to provide high quality information to serve key strategic law enforcement objectives. The current regime’s focus on the production of documents without sufficient feedback on the quality or effectiveness of the information should be considered a failure, not a success. Raising fixed costs to serve a consumer is counter productive, while targeting resources to higher risk customers is beneficial.
In addition to this overall change, this letter details three specific additional changes that would increase AML effectiveness and achieve objectives consistent with the Notice. Namely that FinCEN should:
- Embrace new financial technology (FinTech) capabilities to increase financial inclusion and reduce compliance costs for financial institutions serving the underserved.
- Prioritize financial elder abuse as a key objective resulting from information gathered from AML programs. To achieve this objective, FinCEN should convene a working group among state and federal elder abuse experts to make the SARs database more useful and provide greater guidance about filing elder abuse SARs in an actionable way for law enforcement.
- Treat state-licensed marijuana businesses, employees and counterparties, and state, tribal and local governments who derive revenue from taxation of such businesses similar to all other businesses and counterparties for purposes of AML compliance.
Please see below for additional details and pertinent support:
1. New technologies
Recommendation E: Advance Regulatory Innovations of the Notice states that the Anti-Money Laundering (AML) regime should “ promote the use of responsible innovations to address new and emerging money laundering and terrorist financing risks .” Innovations in financial technology (Fintech) provide the opportunity to better detect financial malfeasance through more targeted detections. It is hard to believe that the sharp growth in SARs filings by financial institutions over the past decade is driven by increased suspicious activities taking place within the financial system, but rather it is a function of a series of regulatory decisions designed to create incentives to maximize quantity over quality . American financial institutions spend an estimated $50 billion per year in AML compliance costs, yet estimates are they catch less than one percent of the estimated $2 trillion in financial crime committed each year. As then-Harvard University now Alliance for Innovative Regulation’s Jo Ann Barefoot put it , “law enforcement agencies lament that the data they receive today is low in value, containing too much unimportant information and lacking queriable formats that could help them readily find key material and detect patterns of crime.”
FinCEN should be focused on outputs, prioritizing quality over quantity, while remaining technologically neutral. FinTech is evolving faster than regulations are updated. Hence requiring specific technologies be used, or de facto requiring such usage, retards innovation and evolution. The general goals of getting things done, better, faster, cheaper, ought to apply as much in AML as in other areas. Rewarding traditional systems because of their historic usage negates the potential to improve the AML system. Improvement must be measured by the quality of information, not quantity. As noted above, the vast increase in SARs filings is not evidence of increased success of AML; To the contrary, it is evidence of a system producing more information than can be consumed.
Clearer guidance by FinCEN in coordination with international standards setting bodies can be particularly important to incorporating new FinTech as part of processing cross-border payments (remittances). This is critical in the fight for greater financial inclusion and against the ‘de-risking’ phenomena . Cross-border payment risks can be ameliorated by technologies that enable direct, point-to-point settlement, which eliminates the need for many of the current costly operational processes. The innovation of a portable digital identity offers the possibility for payments information to be traced, allowing greater transparency. Finally, FinTech also allows for more effective collaboration between financial institutions and law enforcement agencies by providing platforms for secure and meaningful public-private collaboration, while preserving privacy and commercial confidentiality.
AML enforcement is a genuine resource challenge: time, funding, and human capital alike. In response to resource challenges, firms often try to find efficiencies. However, the AML policy response to a serious resource challenge has been to generate even greater resource challenges via the snowballing of existing inefficiencies.
2. Suspicious Activity Reports (SARS) on elder exploitation
Question three of the Notice requests different or additional mechanisms to “ increase the effectiveness of AML programs .” FinCEN further describes considering “Strategic AML Priorities” as part of their risk assessment process for financial institutions. FinCEN should include as part of these strategic priorities detecting and deterring financial elder abuse. A starting point is to convene a working group among state and federal elder abuse experts to make the SARs database more useful and provide greater guidance about filing elder abuse SARs in an actionable way for law enforcement. This must include law enforcement and other officials dedicated to protecting the elderly, not just traditional law enforcement. The output from this working group should help inform a sustained effort to focus on financial crimes against the elderly .
Elder financial abuse is widespread and damaging. Crimes committed against the elderly, swindling them out of substantial sums of money are inherently financial in nature. Financial crimes such as elder abuse are designed to be detected as part of an anti-money laundering regime. However, many cases are avoiding detection under current AML reporting systems. According to the Consumer Financial Protection Bureau (CFPB) only two percent reported of an estimated 3.5 million cases of elder abuse triggered the filing of a suspicious activity report (SAR). This despite an increase in filings that now reach $1.7 billion in elder financial abuse SARs. The Consumer Financial Protection Bureau has repeatedly suggested that financial institutions report all suspected EFE to appropriate local, state, or federal responders and clarified that doing so does not generally violate privacy laws . Still, less than one third of these SARs say that the filing institution reported the suspicious activity to authorities. Thus, two-thirds of institutions simply file and leave it at that, producing little likelihood that the SAR will start an investigation.
Elder abuse is likely to grow substantially due to demographics alone. By 2034 there will be 77 million Americans over the age of 65 , the first time in American history the elderly will outnumber children, according to the Census Department. This will trigger what is being called, ‘the largest transfer of wealth in history’ as those fortunate enough to have saved are estimated to have $68 trillion in potential wealth to transfer to heirs. Now is the time to strengthen our systems of elder abuse detection and mitigation.
Financial institutions are critical to this mission. As the National Center of Elder Abuse found: “ banks are in a good position to observe financial abuse and concerted attention should be given to how to better involve them .” Further, as many of the elder abuse laws and law enforcement are state and local in nature, the SARs database is well situated to provide information to the widespread decentralized network charged with detecting these crimes. In addition, research indicates that adult protective services caseworkers, who are the front line of investigating these types of crimes, believe “ that officials in the criminal justice system (law enforcement, prosecutors) were unhelpful to them in investigating elder abuse, in general, and financial exploitation in particular .” Given the ability of SARs and other AML information to lead to successful prosecution of AML related crimes, this makes it even more important for AML resources to be prioritized to addressing elder financial abuse.
Greater integration between law enforcement, financial institutions, elder abuse specialists and caseworkers, and others are required for AML officials, financial institutions, and law enforcement. This necessitates leadership and focus, two attributes that the Treasury Department can and should provide in elevating elder protection. Treasury has an apt potential partner in the CFPB, which has already devoted substantial resources to addressing this issue. Treasury should involve CFPB and other financial regulators as well as financial institutions as part of this roundtable, developing a strategy that prioritizes combating elder financial abuse.
3. State-licensed Marijuana businesses
As another mechanism to “increase the effectiveness of AML programs,” FinCEN should allow banks and credit unions to treat state-licensed marijuana businesses as any other business (no extra required SARs filing). By doing this, vital resources currently aimed at tracking marijuana companies can be refocused to address areas of risk and national AML priorities.
Current regulations require banks to file suspicious-activity reports (SARs) on customers that are suspected of depositing revenue from illegal activities. This is a logical and important requirement as the SAR is a key element used to detect illegal activity and alert law enforcement as to individuals who are conducting illegal action. It is also an expensive proposition and an error in filing opens financial institutions to potentially significant fines and sanctions. After identifying a customer as suspicious, the financial institution has to continually file information. This make sense under the assumption that the criminal is attempting to hide illegal activity and the financial profits of that activity are a clue that illicit behavior is occurring.
The core assumptions regarding SARs filing fail in the case of individuals and corporations engaged in state licensed cannabis. These entities are not hiding their operations, but rather are conducting them in plain sight. They are identifying themselves in multiple public documents available to law enforcement at any and all level. If law enforcement wants to find state licensed cannabis activity it is more effective and efficient to use Google maps than the SARs database.
Partially recognizing the absurdity of the situation as it relates to state licensed and regulated cannabis, FinCEN has issued various guidance to financial institutions for serving state licensed cannabis and hemp entities . However, these existing regulations are insufficient. As evidence, most banks and credit unions are not serving cannabis businesses—only one in thirty bank and credit unions report that they do so. As a result of under-banking in the industry, marijuana businesses end up sending trucks of cash to trigger additional rounds of AML reporting by financial institutions on businesses. Current AML regulations are inefficient, counter productive, and an increasingly growing problem as marijuana becomes commercialized in more states (see 2020 election results in New Jersey, Arizona, and other states). In addition, high costs for financial institutions to serve cannabis companies are particularly burdensome for smaller credit unions, community banks, and minority owned depository institutions many of which have considered serving this growing industry.
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The solution is simple. If a cannabis company or individuals associated with such an enterprise are state licensed, they should be treated as any other business for AML purposes. This should extend to their counterparties, including state and local governments that deposit tax revenue from these activities. If there are reasons to believe that company is conducting additional illicit activity it should and must be subject to additional scrutiny. This may be the case more frequently in these companies than in general business and FinCEN should work with law enforcement and financial institutions to develop appropriate guidelines. However, using financial institutions as the first line of identification for illicit activity among state licensed cannabis companies is illogical. It is time for FinCEN to acknowledge that and move beyond its initial, now outdated cannabis compliance regime.
It is past time to revisit basic assumptions regarding the AML regime. I commend FinCEN and Treasury more broadly for soliciting comments on this topic and indicating a willingness to rethink the system. Changes in financial technology, the growth in elder financial abuse, and the rise of state licensed cannabis all present significant challenges and opportunities for AML reform. The ability to substantially alter the current system to address new reality will determine whether we are more efficient and effective in achieving the shared goals of an inclusive financial system that dedicates significant resources to effectively fight crime and protect our most vulnerable citizens.
Fellow, Economic Studies, Brookings Institution
Isabella Dunbar contributed substantially to the research and analysis that supported this comment letter
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197 results for “Money Laundering” .
Money Laundering What Is the
Offenders here might physically transport cash to those countries in small amounts that will not violate customs regulations. However, this method is not viable for transferring large amounts of money. Very large amounts of money can be informally transferred through a network of bookees across a number of different countries. Such bookees possess or have access to large amounts of cash. ookees in the destination country can disburse money to individuals upon request from the corresponding bookee in the origin country. More research needs to be done exploring the various informal methods of money laundering to identify participants and offenders who have heretofore gone unnoticed. ibliography Featherstone, R. & Deflem, M. (2003). "Anomie and Strain: Context and Consequences of Merton's Two Theories." Sociological Inquiry 73(4):471-489. Walker, John, and rigitte Unger. "Measuring Global Money Laundering: The Walker Gravity Model." Review of Law & Economics. 5.2 (2009). Print. 18 USC § 1956…
Featherstone, R. & Deflem, M. (2003). "Anomie and Strain: Context and Consequences of Merton's Two Theories." Sociological Inquiry 73(4):471-489.
Walker, John, and Brigitte Unger. "Measuring Global Money Laundering: The Walker Gravity Model." Review of Law & Economics. 5.2 (2009). Print.
18 USC § 1956 - LAUNDERING of MONETARY INSTRUMENTS
Money Laundering the First Against
Under the Annunzio-Wylie Act, the U.S. Treasury is authorized to require financial institutions to adopt anti-money laundering programs that include: (a) internal policies, procedures, and controls; (b) designation of a compliance officer; - continuation of an ongoing employee training program; and (d) an independent audit function to test the adequacy of the program. Source: Zagaris, 1999, p. 1023. Therefore, building a case against sophisticated money-laundering schemes begins with recognizing when a violation of one more of the controlling laws have been violated, and understanding which law enforcement organization is the most appropriate for handling it and these issues are discussed further below. How a Case is Built against Money Launderers. While any of the foregoing current laws could be used in building a case against money laundering operations, the Money Laundering Control Act's ("the Act") expanded definition of "money laundering" activities has provided investigators with the ability to reach the…
April, DH, & Grasso, A.M. (2001). Money laundering. American Criminal Law Review, 38(3), 1051.
Birks, P. (1995). Laundering and tracing. Oxford: Oxford University.
Black's law dictionary. (1990). St. Paul, MN: West Publishing Co.
Carlson, C. (2003, April 22). USA Patriot Act. eWeek, 19(16), 18.
Money Laundering An Overview of
S. Department of Justice Press Release, 2007). Hiding money in banks of small island nations is a popular form of money laundering, hence the term 'off-shore' companies for the use of concealing funds as well as creating the off-shore gambling facilities themselves. Relationship between Illegal Drugs and Gambling The illegal drug trade and illegal gambling often exhibit a symbiotic relationship in the case of money laundering. Casinos have also been used as ways for drug traffickers to launder money as criminals, including drug traffickers, cash in the 'chips' of their winnings -- the purchase of the original chips may have been bought with illegally obtained funds, but by cashing in the chips the funds now appear to be 'earned' through gambling. Even the state lottery has been implicated in money laundering schemes. Members of a cocaine ring engaged in one scheme whereby they would "purchase winning four-digit State of Michigan…
16 Additional People Indicted in Large Scale Drug and Money Laundering Case." U.S. Drug
Administration Press Release. June 16, 2007. 24 Jun 2008. http://www.usdoj.gov/dea/pubs/states/newsrel/detroit061506.html
Cash Smuggling Case at O'Hare Airport." U.S. Drug Administration Press Release. January 12, 2007. 24 Jun 2008. http://www.usdoj.gov/dea/pubs/states/newsrel/chicago011204.html
Greenhouse, Linda. "Justices narrow money-laundering law. The New York Times. January 2, 2008. June 24, 2008. http://www.nytimes.com/2008/06/03/washington/03scotus.html?_r=1&adxnnl=1&oref=slogin&adxnnlx=1214312653-Rsae8D4Y+YN4ZHPJfrPrdg
Combating Money Laundering - Imperative to Cut
Combating Money Laundering - Imperative to Cut down on Terrorism FATF - Financial Action Task Force GAO - General Accounting Office UGAO - United States General Accounting Office OECD - Organization of Economic Cooperation and Development IFA - International Federation of Accountants Money Laundering What is Money Laundering? The act of converting money earned from illegal activities such as drugs, arms smuggling and other crimes, including insider trading, embezzlement, bribery and computer fraud schemes as well as fraudulent pyramid marketing schemes, all of which generate vast sums money which can be moved between locations only by what is called money laundering. Since these large amounts are not declared to the government, and since these perpetrators have no intention of paying tax at any level to any authority, they devise a million ways to break their profits into different entities, invest and spend the money without falling into the hands of…
IFA. (2004). Anti-Money Laundering, International Federation of Accounts, 2nd Edition, ISBN 1-931949-29-8, pgs. 4-6, 2004.
USGAO, (2003). Combating Money Laundering: Opportunities Exist to Improve the National Strategy, GAO-03-813, pgs. 1-55.
Rowan, B.D. And Graham, S. (1994). Money Laundering: A practical guide to the new legislation, Chapman & Hall, London, xii and 304pp, 1994.
Myers, M. (1998), "International Strategies to Combat Money Laundering," International Symposium on the Prevention and Control of Financial Fraud, Beijing, 19-22 October, 1998.
Management Fighting Money Laundering Definitions
"Arabs Wage War on Money Laundering: Arab Governments Are Adopting Strict New Standards to Prevent the Misuse of Banks in the Middle East by Terror Organisations and Financial Manipulators. These Efforts Could Enhance Efforts to Develop New Global Financial Centres in the Levant." The Middle East: 6+. Tracy Tucker Mann, 2007 "Money Laundering," American Criminal Law eview 44, no. Kathryn L. Gardner 2007, "Fighting Terrorism the FATF Way," Global Governance 13, no. 3. How is Money Laundered?" 2008, Money Laundering FAQ, FATF-GAFI. Kathryn L. Gardner 2007, "Fighting Terrorism the FATF Way," Global Governance 13, no. 3. hys Jones January 2007, "The Money Changers: International Police Are Investigating a Complex Drug-Money Laundering Operation Based on the Ancient Hawala Money Transfer System, Which Has Links in Dubai, Turkey, Afghanistan and Italy," the Middle East. How is Money Laundered?" 2008, Money Laundering FAQ, FATF-GAFI. Josh Martin July 2006, "Arabs Wage War on Money…
Doyle, Todd 2002. "Cleaning Up Anti-Money Laundering Strategies: Current FATF Tactics Needlessly Violate International Law." Houston Journal of International Law 24.2: 279+.
Gardner, Kathryn L. 2007. "Fighting Terrorism the FATF Way." Global Governance 13.3: 325+.
How is Money Laundered?" 2008, Money Laundering FAQ, FATF-GAFI.
Jones, Rhys Jan. 2007. "The Money Changers: International Police Are Investigating a Complex Drug-Money Laundering Operation Based on the Ancient Hawala Money Transfer System, Which Has Links in Dubai, Turkey, Afghanistan and Italy." The Middle East: 38+.
Link Between Organized Crime and Money Laundering in Contemporary Society
CCTV installation and burglary reduction?) and set out a short list of clear aims and objectives. Please enter Introduction in below text box* How is organized crime linked to money laundering in contemporary society? Over the past years, there has been increased interest in money laundering activities. Money laundering, as defined by Bartlett (2002), is the set of activities through which criminals generate profit by disguising the origin of the profit as a legal origin rather than an illegal one. Cressey and Finckenauer (2008) argue that money laundering is a significant part of the work of criminal gangs because without these activities, it would be extremely easy to seize them since the source of their money will be jeopardised. As argued by Janet Reno, former Secretary General of Security Issues in the United States National Strategy against Money Laundering, money laundering gives two aspects to the financial angle of criminal…
Luijerink & Maguire 2013 Australia's Money Laundering
Luijerink & Maguire (2013), Australia's money laundering laws are among the world's toughest, particularly with regards to reporting requirements. egulated entities are required to report all international electronic funds transfers, regardless of size (Luijerink & Maguire, 2013). ecent anti-money laundering legislation like the Anti-Money Laundering and Counter Terrorism Financing Act of 2006 have been severely criticized for their contradictory ability to glean more information but result in minimal increases in prosecutions due to the strict interpretation of the electronic funds transfer clause. Increased reporting of the electronic funds transfers offers "more information to inform investigations, but conversely require additional resources to process and analyse the information," (Luijerink & Maguire, 2013). Australia's laws are tougher than many other comparable nations due to the electronic funds transfer clause, and also to strict penalties -- prison sentences of over twenty years and fines in the millions. In spite of these provisions, other jurisdictions…
"Anti-Money Laundering and Counter-Terrorism Financing Act 2006," (2006). Retrieved online: http://www.comlaw.gov.au/Details/C2012C00375
Australian Government Attorney-General's Department (2013). Anti-money laundering and counter terrorism financing. Retrieved online: http://www.ag.gov.au/CrimeAndCorruption/AntiLaunderingCounterTerrorismFinancing/Pages/default.aspx
Australian Transaction Reports and Analysis Centre, (2008). Overview of the FTR Act. Retrieved online: http://www.austrac.gov.au/elearning/pdf/intro_amlctf_act_overview.pdf
Luijerink, D. & Maguire, J. (2013). Australia's money laundering laws among the toughest in the world. KPMG. Retrieved online: http://www.kpmg.com/au/en/issuesandinsights/articlespublications/banking-newsletter/april-2012/pages/australia-money-laundering-laws.aspx
The Global Financial Crisis Money Laundering
Money Laundering: The Global Financial Crisis There is disturbing evidence that money derived from the illegal sale of drugs was one of the primary means through which some banks remained solvent through the global financial crisis of 2008. According to Rajeev Syal of The Guardian, “Inter-bank loans were funded by money that originated from the drugs trade and other illegal activities,” resulting in the rescue of banks that otherwise could not have stayed solvent. Although this might seem to be a benefit for society, it does not exculpate the violent crimes which occur as the result of the drug trade. Unfortunately, this means that there may be an incentive not to be fully vigilant about the sources of money still necessary for some banks to thrive and underlines the dark side of the banking industry. It may also cause banks to subtly pressure for less regulation of money laundering in…
Analyzing a case of money laundering
money laundering from the perpetrator's perspective. In specific, it will address the questions of whether virtual money can be counterfeited, whether the money can be trailed, and who can access the devices used for financing the system. The simplest form of money laundering entails making it appear as though the money derived from one source (say, Source A) actually comes from another (Source B, for instance). That is, criminals perpetrating this crime attempt to cover the origin of their illegally-procured money, making it appear as though their source was lawful. If they do not do so, they will not be able to utilize that money, as a link could be established between it and some criminal activity, causing law enforcement personnel to seize the money (Money Launderering Basics - How Money Laundering Works - Howstuffworks). The practice of money laundering constitutes a key step in successful white-collar crimes, terror activities,…
Burns, M. (2009). The Monetary Future. The Monetary Future: Virtual Currency and Money Laundering. Retrieved August 7, 2016, from http://themonetaryfuture.blogspot.com/2010/02/virtual-currency-and-money-laundering.html
Lu. (2014). Equities.com. The Hows and Whys of Money Laundering - Equities.com. Retrieved August 7, 2016, from http://www.equities.com/news/the-hows-and-whys-of-money-laundering
Moulette, P. (n.d.). OECD Observer. Money laundering: staying ahead of the latest trends - OECD Observer. Retrieved August 7, 2016, from http://oecdobserver.org/news/archivestory.php/aid/244/Money_laundering:_staying
(n.d.). Money - Howstuffworks. Money Launderering Basics - How Money Laundering Works - Howstuffworks. Retrieved August 7, 2016, from http://money.howstuffworks.com/money-laundering1.htm
Anti-Money Laundering AML Project Management Office PMO
Resource Capacity Planning Objective - to provide guidance for enhancing the approach and documentation relating to Citi AML Consent Order project plans for a few areas where there have been questions, observations and gaps. This guidance is intended to assist in minimizing questions and feedback in areas that are common. · Definition · Capacity planning is an approach that enables entities to efficiently and effectively oversee operations – whilst taking into consideration the finite nature of resources. · The relevance of capacity planning when it comes to the determination of optimal utilization of resources cannot be overstated. This is more so the case given that it plays a key role in the decision making process, especially when it comes to capacity plan execution. · Benefits of Capacity Planning · Capacity planning comes in handy in seeking to avert resource imbalances and resource misallocation. · Capacity planning is key in the…
Terrorism Narcoterrorism & Money Laundering
A much more important avenue of interdiction to combat terrorism (and the drug trade, for that matter) is money laundering, by which money for illegal goods and services changes hands on the black market. Money laundering is facilitated by corruption within state institutions and international banks and can be most effectively fought there (Blank, 2001). Some potentially effective means of reducing money laundering include: providing more oversight and transparency to international banking, reducing layers of bureaucracy in government institutions in which below-board transactions can take place beyond the reach of law enforcement, and enacting strict penalties for corruption. While it will be impossible to fully eliminate money laundering, these are important key steps that can be taken. eferences Blank, S. (2001, December). Narcoterrorism as a threat to international security. World and I, 16(12), p. 265. Felbab-Brown, V. (2006, January). A better strategy against narcoterrorism. MIT Center for International Studies. The…
Blank, S. (2001, December). Narcoterrorism as a threat to international security. World and I, 16(12), p. 265.
Felbab-Brown, V. (2006, January). A better strategy against narcoterrorism. MIT Center for International Studies. The Audit of Conventional Wisdom. Cambridge, MA: MIT Center for International Studies.
Money Banking and Financial Markets
economic crisis in Europe and the increasing costs for European countries to borrow money and bail out other Euro countries in financial distress. The EU nations that use the Euro have experienced a crisis among certain countries with high debt requiring bailouts for Greece and Ireland and the likelihood that Portugal and Spain may also need a bailout. Postponing the restructuring of high interest debts has led to further crisis rather than resolving any of the problems faced by insolvent countries. Huge transfer payments from the more powerful Euro countries, like Germany, to the failed economies of Greece and Ireland have made investors nervous and led to less investment at a crucial time. The author suggests that the debts of troubled countries need to be restructured now in order to create a sustainable payment to increase confidence and secure future payments. Creditors will also have to shoulder some of the…
Bamberger, K.. (2010). Technologies of Compliance: Risk and Regulation in a Digital Age. Texas Law Review, 88(4), 669-739. Retrieved January 21, 2011, from ABI/INFORM Global. (Document ID: 1995143041). http://www.egloballibrary.com/egl/html/institutes/1086/homepage/library.jsp
Corder, J. (2009). The Federal Reserve System and the Credit Crisis. Public Administration Review, 69(4), 623-631. doi:10.1111/j.1540-6210.2009.02011.x http://ehis.ebscohost.com.csuproxy.egloballibrary.com/ehost/detail?hid=6&sid=feb1c9d6-ff89-462b-9741-b5b3cfdd54aa%40sessionmgr12&vid=8&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=buh&AN=42960193
Europe finance: Time for Plan B. (2011, January). EIU ViewsWire. Retrieved January 19, 2011, from ABI/INFORM Global. (Document ID: 2241366821).
electronic money, and a description into the various types of electronic money. Computers and telecommunications devices may come in place of paper currency and checks - during a course of time. Also, electronic ways of transaction of money have turned out widely prevalent. Anyhow, in the recent past debate about "electronic money" has witnessed a dramatic change, narrowing down to the level to which new ways of electronic money will in course of time turn central banks out of date, making them fragile that they cannot manipulate inflation. (Stevens, 72) Electronic money can be considered in terms of electronic substitute for coins and banknotes, which is saved on an electronic gadget such as a chip card or computer memory and which overall is meant for the reason of influencing electronic payments of restricted loans. (Directive 2000/46/Ec of the European Parliament and of the Council, 2) Analysis Electronic money is not…
Bank of International settlements, (BIS). Security of Digital Money. Basel, 1996, 1-11
Board of Governors (BoG) of the Federal Reserve System. The Federal Reserve System: Purpose & Functions. Washington, D.C.: Federal Reserve System. 1994, 1-18.
Bonorris, Steven. Institute for Technology Assessment (ITA) (ed.): Digital Money: Industry and Public Policy Issues. Washington: ITA, October 1997, 44
Directive 2000/46/Ec of the European Parliament and of the Council, 2000, Official Journal of the European Communities, 27 October, 2000, 1-10
Hsbc Bank USA Efforts in
It is highly unlikely that they would become involved with illegal activities knowingly. However, the complicated nature of compliance risk and the high expectations within the banking industry make it possible that some legal manner might be overlooked. Chief Compliance Officers are at particular risk due to the nature of their position and should be increasingly diligent to maintain a proper understanding of the expectations of compliance. Additionally, Chief Compliance Officers and the operations department should be aware of the current weaknesses within their own AML programs. In an effort to minimize these risks, HSBC Bank USA has recognized the need for more purposeful measurement and management of compliance risk. Legal and operational risk can quickly and efficiently hamper the activities of any bank. However, it is reputational risk that poses the greatest risk to HSBC Bank USA. Banks that are associated with money laundering, terrorism, and criminal activity in…
Bagla, Deepak, and Vinay Mendonca. "Anti-Money Laundering: Payments Filtering." HSBC's Guide to Cash and Treasury Management in the Asian Pacific. 2006. 13 January 2007 .
Bank Compliance: Controlling Risk and Improving Effectiveness. Economist Intelligence Unit, June 2006. 13 January 2007 .
Banking Department Enters Into Written Agreement with HSBC Bank USA. 30 Apr. 2003. 13 January 2007 .
Beaumier, Carol M. "Auditing anti-money-laundering compliance: insufficient transaction testing, inadequate testing of automated monitoring systems and deficient follow-up are typical shortcomings.(Regulatory Outlook)." Bank Accounting & Finance 19.1 (Dec 2005): 31(4). Expanded Academic ASAP. Thomson Gale. Denver Public Library. 12 Jan. 2007 .
Bank Insure That the Level
In 2003, new procedures were created and they state that "companies accredited with receiving money relating to public subscription in securities must take all necessary measures to ensure the legality of the sources of the money used in the payment of such securities, in compliance with the provisions laid down in the Prevention and Prohibition of Money Laundering and its Implementing egulations" (Terterov and euvid, 2005). Banking institutions are also focused on reducing money laundering and the principal actions they implement in this endeavor are those of fully complying with the regulations imposed by the central banks and the legislations in their home countries. More recently, the banks can access technological innovations to fight money laundering, such as LexisNexis's Bridger Insight XGTM (Tech 4 Law). But since the access to technologies is different at each bank, a conclusion is drawn that the internal reactions to money laundering are different. The…
Minaeva, T., Aksenova, M., Anti-money laundering in Russia, White & Case, http://www.whitecase.ru/articles/moneylaundry.pdf last accessed on July 14, 2010
Terterov, M., Reuvid, J., 2005, Doing business with Estonia, GMB Publishing Ltd.
Walker, J., 1998, Modeling global money laundering flows -- some findings, http://www.johnwalkercrimetrendsanalysis.com.au/ML%20method.htm last accessed on July 13, 2010
1999, Ten years of combating money laundering, OECD Observer, http://www.oecdobserver.org/news/fullstory.php?aid=63 last accessed on July 13, 2010
Globalization and Organized Crime Globalization
Thus, many shipments go to another destination before the United States or Europe in order to throw law enforcement off of the trail. For cocaine coming out of Colombia, West Africa and Venezuela, home to rogue states and dictatorships, have become popular transit hubs. The increased transportation of goods accompanying globalization has increased opportunities for maritime piracy. Organized crime is exploiting the increasingly dense international flow of commercial vessels. Maritime piracy consists not only of hijacking of goods, but also kidnapping of passengers for ransom. (UNODC, 2010, p. 11) OC groups engaged in pirating do not often begin as OC groups. Pirates off the cost of Somalia started as local Somali fishermen who formed vigilante groups to protect their territorial waters. These armed ships eventually exceeded their mandate of mere protection and began to hijack commercial ships for goods. These activities have proved so profitable that these groups are now…
Lyman, M.D. & Potter, G.W. (2007). Organized Crime. New York: Prentice Hall
Abadinsky, H. (2010). Organized crime. Belmont, Calif: Wadsworth/Cengage Learning.
Mallory, S.L. (2007). Understanding organized crime. Sudbury, Mass: Jones and Bartlett.
Kaplan, D.E., & Dubro, A. (2003). Yakuza: Japan's criminal underworld. Berkeley: University of California Press.
Computer-Based Crime The illegal site I reviewed for this assignment is www.howtogrowmarijuana.com. This site covers virtually all aspects of marijuana growing -- which is an illegal activity because marijuana is widely outlawed in the United States. However, there are some states in which individuals can legally consume marijuana for medicinal purposes. In these states and others there exists the potential for businesses to legally supply this substance to people. There is a large degree of transparency in this particular web site. It was the first result to appear with a Yahoo search for "How to grow marijuana." As the tile of the site suggests, it discusses many different facets of growing marijuana and stratifies this process according to location (indoor or outdoors), various strains of marijuana including seeds (No author, 2014), irrigation and growth systems involving hydroponics, and other germane equipment types such as the expensive lights used to assist…
Faris, S. (2013). Have the NSA leaks compromised Big Data's future? www.dataversity.net Retrieved from http://www.dataversity.net/page/2/?s=stephanie+faris
No author. (2014). Marijuana seed strains review. www.howtogrowmarijuana.com Retrieved from http://howtogrowmarijuana.com/all-marijuana-strains.html
Romero, R. (2011). Craigslist illegal drug trade exposed. www.abc7.com
Retrieved from http://abc7.com/archive/8132665/
Stanford Ponzi Scheme a Ponzi Scheme Is
Stanford Ponzi Scheme A Ponzi scheme is an investment fraud involving the payment of returns to existing investors from funds contributed by new investors. There is generally no actual investment. Instead, the managers/organizers of the schemes "focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in any legitimate investment activity" (SEC). Investors are attracted to Ponzi schemes because those running the schemes promise high returns and say that there is little or no risk. Moreover, because money from new investors is used to pay the older investors, early investors do see the promised high returns. Unfortunately, because there is no legitimate investment income driving the fund, when the scheme fails to attract new investors or existing investors get leery and seek to cash out of the fund, the entire scheme collapses. There are some red flags that an…
Brubaker Calkins, Laurel, and Andrew Harris. "Allen Stanford Trial Begins as Indigent Ex-
Billionaire Claims Memory Loss." Bloomberg. 23 Jan. 2012. Web. 28 Feb. 2012.
"Bryan Burrough on Allen Stanford's Alleged Ponzi Scheme." Vanity Fair. 3 Jun. 2009. Web.
28 Feb. 2012.
International Crime Terrorism and Organized Crime Trends
International Crime, Terrorism, And Organized Crime Trends Comparing contrasting topics international crime, terrorism, organized crime trends This research has confirmed the possibility of close correlation between money laundering activities, Islamic terrorist fundraising, organized crime, and corruption of public officials throughout Brazilian Hizballah region. The organized crime networks and the Islamic extremists of Brazil must be examined in collaboration because they are connected to wider networks in Latin America zone and across the world. All the organized activities and terrorists in Brazilian Hizballah were facilitated by corrupt officials, which were driven by the benefits of lucrative criminal activities conducted such as business ventures by terrorists and organized crime groups. Consequently, there was a mutually beneficial association among the three sectors. In this study, Brazilian Hizballah will serve as a microcosm. Introduction A number of free-Trade American regions with massive Middle Eastern populations permit organized crime mafias, Islamic terrorist groups, and corrupt…
Almeida, J. (2008). Brazil in focus: Economic, political and social issues. New York: Nova Science Publishers.
Duyan, A., & NATO Emerging Security Challenges Division. (2012). Defence against terrorism: Different dimensions and trends of an emerging threat: [proceedings of the NATO Advanced Training Course on Defence Against Terrorism: Different Dimensions and Trends of the Emerging Threat - Terrorism, Kabul, Afghanistan, 23-27 May 2010]. Amsterdam: Ios Pres in cooperation with NATO Emerging Security Challenges Division.
Friedlander, R.A., Levie, H.S. & Lovelace, D.C. (2009). Terrorism: Documents of international and local control. Dobbs Ferry, N.Y: Oceana Publications.
Giraldo, J.K. (2007). Terrorism financing and state responses: A comparative perspective. Stanford, Calif: Stanford Univ. Press.
Subprime Loans Are Said to Be Among
Subprime loans are said to be among the biggest reasons for the most recent financial crisis which hit the world economy at the end of year 2008. Had the lenders considered the level of income and repaying abilities of the borrowers before lending them money, the World's financial sector would not have seen such critical circumstances. The consequences of subprime loans have not ended yet; economists and researchers in the field of International Finance are of the view that they may further get worsen in the coming five to ten years period. Beside the criticism regarding the approval of subprime loans to low income borrowers, the lenders have also been strongly criticized for using unethical business practices in their customer dealings and transactions (Mandal, 2010). This paper investigates the consequences and risks that were caused by subprime loans in the World's financial sector and their impact on the lenders, borrowers,…
Donath, L.E., & Cismas, L.M. (2009). The Current Financial Crisis Revisited -- Causes and Remedies, the Romanian Economic Journal, 31 (1): 85-92.
Goldmann, P. (2010). Financial Services Anti-Fraud Risk and Control Workbook, 1st Edition. Hoboken, N.J.: Wiley.
Jennings, M. (2012). Business Ethics: Case Studies and Selected Readings, 7th Edition. South-Western Legal Studies in Business. Australia; Mason, OH: South-Western.
Magdoff, F., & Foster, J.B. (2009). The Great Financial Crisis: Causes and Consequences. N.Y: Monthly Review Press
Organized Crime Scholar Mark C Gribben Defines
organized crime scholar Mark C. Gribben, defines organized crime as "an ongoing criminal enterprise consisting of multiple actors working for economic gain who use or will use force to promote and protect their enterprises." y this definition a number of groups might fit into the definition of organized crime. Street gangs, hate groups, drug cartels, and the Mafia are merely the tip of the iceberg when it comes to organized crime in the United States. The preceding graphic demonstrates the scope of organized crime in America. It is important to understand that the crimes within the largest circle are those which are generally considered organized in nature. Those outside the circle, such as the solo murder or the one-time bank robbery are not considered to be organized. They key elements of organized crime must include "ongoing criminal activity with multiple actors." The following pages will explore organized crime in America.…
Israely, Jeff. "Meet the Modern Mob." Time. 2 June 2002. http://www.time/world/printout/0,8816,257072,00.html
Organized Crime Ed. Mark Gribben. February 2003. http://organizedcrime.about.com/library/weekly.htm
Lindberg, Richard C. "The Mafia in America: Traditional Organized Crime in Transition." Search International. February 2003. http://www.search-international.com/Articles/crime/mafiaamerica.htm
Is This the End of R.I.C.O. February 2003. http://www.fsu.edu/~crimdo/rico.html
History of Swiss Banking in
The asylum automatically granted under the Swiss constitution was denied for those seeking it for religious reasons. y 1942, only 9,150 foreign Jews were legally resident in Switzerland, an increase of just 980 since 1931. It was the Swiss government that requested the German government to help it identify Jews by stamping all Jewish passports with a prominent letter "J," following the Nuremberg acts in 1935. "y 1942, acting at the behest of Switzerland's establishment and the majority of its people, its authoritarian police apparatus was dedicated to keeping the country 'pure' and to saving it from being 'overrun with Jews'." Until 1942, the working Jewish community in Switzerland was forced by the government to support Jewish refugees. The other side of the German interest in Switzerland's banks was related to the business of Germany and the looting of conquered countries. y 1941, Germany had exhausted all of its foreign…
Bazyler, Michael J. Holocaust Justice: The Battle for Restitution in America's Courts. New York: New York University Press, 2003.
Borowiec, Andrew. "World's leaders gather in Geneva." The Washington Times. http://washingtontimes.com/world/20-5793r.htm .
Bower, Tom. Nazi Gold. New York: Harper Collins, 1997.
Clarke, William. "Nazi Gold: The Role of the Central Banks - Where Does the Blame Lie?" Central Banking, Volume VIII Number 1. Summer 1997. April 22, 2005. http://www.bigeye.com/nazigold.htm .
National Institute of Justice Nij Department of
National Institute of Justice (NIJ): Department of Justice Research question/hypothesis Importance of research to general knowledge Methodology (Data collection approach, collection of data and analysis techniques) f. Analysis techniques to be implemented Main Body The purpose of the proposal Review of relevant literature Implication of policy and practice Dissemination strategy Dependant and Independent variables Due to tremendous increase in crime rate, there is urgent need to evaluate and understand criminal behavior, to implement programs and develop strategies that will prevent criminal activities and curb crime increase, using considerately cost effective approaches and technological inputs. With regards to the nature of the problem, the most convenient way that will be cost effective and easy to implement will be the use of Reserve Officer Training Corps (ROTC) programs being integrated into the high school syllabus as an incentive which will make the program more appealing to the students, hence allowing for prevention…
Offshore Financial Centres and Their
Because the home country is not required to reimburse foreign depositors for losses, there is no corresponding financial penalty for lax supervision; there is, though, a benefit to the country with lenient regulatory policies because of increased revenues generated and the employment opportunities these services provide (Edwards 1999). Furthermore, banks seeking to conduct multinational business are attracted to countries where incorporation laws and the regulatory framework offer less regulatory oversight (Edwards 1999). The quid pro quo nature of offshore financial services is clearly indicated by Edwards's observation that, "Multinational banks provide the offshore financial centre with increased tax revenue and employment for its citizens. Because the benefits outweigh the costs, offshore financial centres have a powerful incentive to maintain lenient regulatory policies. As a result, multinational banks incorporated in an offshore financial center successfully avoid supervision by an effective home country regulator" (1999, p. 1267). Given the scope of the…
Black's Law Dictionary. (1999). St. Paul, MN: West Publishing Co.
Boise, C.M. & Morriss, a.P. (2009). 'Change, Dependency, and Regime Plasticity in Offshore Financial
Intermediation: the Saga of the Netherlands Antilles.' Texas International Law Journal, vol. 45,
no. 2, pp. 377-379.
Analyzing the Illicit Finance
Illicit Finance Why is the internet important to money laundering? A large number of nations now have aggressive policies in place against money laundering, rendering it exceedingly difficult for offenders to apply traditional money laundering tactics. But this also leads them to strive at creating new tactics with the Internet being one of the popular new modes they employ (Kassner, 2013). Globalization and the Internet have made it possible to pay for services online. Several online merchants and customers make use of the numerous web-based payment services available. A number of these individuals aren't eligible to own credit cards or have no bank accounts. Thus, web-based payment services enable them to purchase products/services online and transfer cash directly. Numerous online sellers are very willing to get paid online, since they are cheaper than credit card payments (Delta & Matsuura, 2008). The web-based payment services may be located anywhere in the…
Delta, G., & Matsuura, J. (2008). Law of the Internet. Aspen Publishers Online. Retrieved from https://www.techopedia.com/2/29789/internet/world-wide-web/money-laundering-the-internet-way
IMF. (2016). Anti-Money Laundering/Combating the Financing of Terrorism. Retrieved from https://www.imf.org/external/np/leg/amlcft/eng/aml1.htm
Kaplan, E. (2006). Tracking Down Terrorist Financing. Retrieved from http://www.cfr.org/terrorist-financing/tracking-down-terrorist-financing/p10356#p6
Kassner, M. (2013, Dec). Money Laundering, the Internet Way. Retrieved from Techopedia:
Future of Eurasian Organized Crime
Ashley, Assistant Director, Criminal Investigative Division of the FI relates that in 1991: "...the U.S. Attorney's office in Los Angeles charged 13 defendants in a $1 billion false medical billing scheme that was headed by two Russian emigre brothers. On September 20, 1994, the alleged ringleader was sentenced to 21 years in prison for fraud, conspiracy, racketeering, and money laundering. He was also ordered to forfeit $50 million in assets, pay more than $41 million in restitution to government agencies and insurance companies victimized by the scheme." (2003) Ashley relates that the first Eurasian organized crime investigation of a significant nature involved a major underworld figure in the United States and specifically, Vyacheslav Ivankov who is a powerful Eurasian organized crime boss. Ashley states that Ivankov "...led an international criminal organization that operated in numerous cities in Europe, Canada, and the United States, chiefly New York, London, Toronto, Vienna, udapest,…
Albini, Joseph L. And R.E. Rogers. "Proposed Solutions to the Organized Crime Problem in Russia." Demokratizatsiya Winter 1998: p. 103.
Crime Without Punishment." (1999) the Economist August 28, 1999 the Makings of a Molotov Cocktail. The Economist 344, no. 8025.
Edward H. Sutherland (nd) Differential Association Theory. Online Criminology FSU.EDU available at http://www.criminology.fsu.edu/crimtheory/sutherland.html
Eurasian, Italian and Balkan Organized Crime (2003) Testimony of Grant D. Ashley, Assistant Director, Criminal Investigative Division, FBI Before the Subcommittee on European Affairs, Committee on Foreign Relations, United States Senate. 30 Oct. 2003. Federal Bureau of Investigations. Online available at http://www.fbi.gov/congress/congress03/ashley103003.htm
Countering Illicit Finance a Number
Criminal gangs do exploit global trade networks using confusing documentation associated with legitimate business transactions. Such criminals ideally make use of Trade-ased Money Laundering (TML). This is a scheme that Colombian drug cartels have capitalized on. Homeland Security Intelligence has in this regard instituted Trade Transparency Unit (TTU) to counter TCOs resolve to launder illicit proceeds through manipulation of international trade and financial systems. The TTU partners with foreign nations to exchange trade data . It has partnered with Mexico, Panama, razil, Colombia, Ecuador, and Paraguay to mention but a few countries with a view to identifying, investigating, and prosecuting international criminal gangs that engage in TML. The ICE, ITU, and intelligence analysts in the field together with the foreign customs and law enforcement agencies responsible for border control and enforcement of financial crimes make use of TTU's computer systems called the Data Analysis and Research for Trade Transparency System…
Department of Homeland Security, (2012). "Written testimony of U.S. Immigration and Customs Enforcement Homeland Security Investigations Investigative Programs
Assistant Director Leigh Winchell for a Senate Committee on Homeland Security and Governmental Affairs, Permanent Subcommittee on Investigations hearing titled "U.S.
Vulnerabilities to Money Laundering, Drugs, and Terrorist Financing: HSBC Case
History"16 Jul. 2012.
The Evolution of Organized Crime
History Of Organized Crime More than a century of motion pictures and more than a half-century of television productions have created a somewhat romanticized version of organized crime as typified in "The Godfather" series. Indeed, there is even a National Museum of Organized Crime and Law Enforcement, commonly known as "The Mob Museum" in Las Vegas which is a popular tourist destination (Green, 2013). The reality of organized crime, however, contrasts sharply with any romanticized depiction and the Federal Bureau of Investigation (FBI) emphasizes that organized crime is not only prevalent in the United States, it has become far more complex and broader in scope compared to the past. To determine the facts about the history of organized crime, this paper provides a background and overview followed by an analysis of some of the main sources of revenues for these criminal organizations. Finally, the paper concludes with an analysis of…
Calderon, F. (2015, Summer). Drug trafficking and organized crime: Connected but different. Harvard International Review, 36(4), 52-55.
Drug trafficking. (2016). United Nations Office on Drugs and Crime. Retrieved from https:// www.unodc.org/unodc/en/drug-trafficking/.
Green, M. (2013, October 1). How the Mob (Museum) was won: Building a history of organized crime in the U.S. UNLV Gaming Research & Review Journal, 17(2), 101-104.
Kelly, R. J. & Chin, K. L. (1999). Handbook of organized crime in the United States. Westport, CT: Greenwood Press.
Narcoterrorism and the Future
Mexico faces an array of drug-related problems ranging from production and transshipment of illicit drugs to corruption, violence, and increased internal drug abuse. Powerful and well-organized Mexican organizations control drug production and trafficking in and through Mexico, as well as the laundering of drug proceeds. These organizations also have made a concerted effort to corrupt and intimidate Mexican law enforcement and public officials. In addition, the geographic proximity of Mexico to the United States and the voluminous cross-border traffic between the countries provide ample opportunities for drug smugglers to deliver their illicit products to U.S. markets. The purpose of this study was to develop informed and timely answers to the following research questions: (a) How serious is the trade in illicit drugs between Mexico and the United States today and what have been recent trends? (b) How does drug trafficking fund terrorist organizations in general and trade between Mexico and…
Delaware fact sheet. (2014). Friends of Narconon, International. Retrieved from http://www.friendsof narconon.org/drug_distribution_in_the_united_states/delaware_drug_facts/delaware_fact
Drug threats in Wilmington. (2014). Drug Enforcement Edu.org. Retrieved from http://www.
Business Law Berkeley Premium Nutraceuticals
The grand jury returned a 112-count indictment against Steve Warshak, company president; his mother, Harriet Warshak; general counsel Paul Kellogg; and former employees Charles Clarke Jr., Steven Pugh and Amar Chavan. A company called TCI Media, which was allegedly used to launder money, was also part of the indictment. The charges include 77 counts of money laundering, 12 counts of mail fraud and four counts of bank fraud (Berkeley president, others indicted for fraud, 2006). After the Grand Jury indictments were handed down The U.S. Attorney's Office in Cincinnati filed a new complaint against Berkeley Premium Nutraceuticals that included the freezing of various assets worth almost $2 million. The complaint alleged that Berkeley owner Steven Warshak and others participated in a complex, large scale mail and wire fraud operation. This amounted to another felony charge being added to the long list that had already been handed down. The frozen assets…
1. Berkeley Nutraceuticals files for Chapter 11 bankruptcy. (2008). Retrieved June 10, 2009, from Business Courier Web site:
2. Berkeley Premium Nutraceuticals, Inc. (2009). Retrieved June 10, 2009, from Business Courier
Combating Terrorism a Policy
Policy ecommendation in Combating Terrorism Policy Project Part 1: Project outline In the aftermath of the September 11 terrorist attacks, the U.S. government and the international community reviewed typologies for the financing of transnational terrorism and examined ways to combat such financing. Unfortunately, evidence indicates that al Qaeda and other terrorist groups apparently affiliated with or inspired by al Qaeda have worked quite economically, using low-budget methods to operate. After reviewing two typologies, this part of the paper discusses applicable legal mechanisms for preventing and prosecuting the financing of transnational terrorist networks and considers proposals for improving the effectiveness of efforts to combat foreign-affinity terrorist financing (euter & Truman, 2004; Carter, 2008). Typologies The evolving effects of globalization and the transnational nature of terrorism have combined to create almost limitless possibilities for terrorists looking to finance operations (Sheppard, 2008). One problem with combating terrorist financing is that many forms of…
Alexander, Yonah, and Donald J. Musch, eds. (2012). Terrorism, Documents of International and Local Control. Vol. 35. Dobbs Ferry, New York: Oceana.
Andreas, Peter, and Ethan Nadelmann. (2013). Policing the Globe: Criminalization and Crime Control in International Relations. Oxford: Oxford University Press.
Carter, Barry E. (2008) International Economic Sanctions: Improving the Haphazard U.S. Legal Regime. Cambridge: Cambridge University Press.
Cesari, Jocelyne. (2009) Muslims in the West after 9/11. New York: Routledge.
IRS-CID the Internal Revenue Service
There are ten Fraud Detection Centers across the United States, and these are meant to detect refund fraud and to identify prevention measures. Each of these offices has a Resident Agent in Charge to direct, monitor, and coordinate operations supporting electronic and paper tax filing, and each Center performs activities that include educating Submission Processing Center and Customer Service Center personnel on fraud awareness and detection. Criminal investigation in the agency started shortly after the Revenue Act of 1913 was passed, and that act imposed a modest tax of 1% on net incomes of individuals, estates, trusts, and corporations. In addition, another tax, or surtax, graduated from 1 to 6%, was applied to income exceeding $20,000. Over time, many laws have been passed that have changed the rates and other aspects of revenue assessment. Tax evasion was noted as early as 1919, when many serious allegations concerning alleged tax frauds…
Baker, Jeremy and Rebecca Young. "False Statements and False Claims." American Criminal Law Review, Volume 42, Issue 2 (2005), 427.
Berlau, John. "Return of the 'Audits from Hell': IRS Commissioner Charles Rossotti Once Pledged to Champion Taxpayer Rights, but Instead Americans Find Themselves Facing the Resurrection of Random Audits." Insight on the News, Volume 18, Issue 27 (July 29, 2002), 15.
Cochran, Amanda a. "Evidence Handed to the IRS Criminal Division on a 'Civil' Platter: Constitutional Infringements on Taxpayers." Journal of Criminal Law and Criminology, Volume 91, Issue 3 (2001), 699.
Craig Jr., James L. "Guidance on Financial Status Audits: It's Not Just for CPAs." The CPA Journal (2007), http://www.nysscpa.org/cpajournal/1996/0796/features/Guida.htm .
New Ways to Combat Organized Crime
Organized crime presents certain unique challenges for law enforcement in the 21st century. As noted by Bjelopera & Finklea (2012) in their report to Congress on the history of organized criminal activity in the United States, modern organized criminal networks tend to be more fluid and less hierarchical than organized associations of the past. Organized crime networks are also more apt to outsource critical aspects of their operations, which can make building a unified case a challenge for law enforcement agencies (Bjelopera & Finklea, 2012, p.1). Diverting resources to combat terrorism have also left law enforcement agencies in the United States with fewer financial resources to combat other forms of organized crime, although some of the methods to trace both types of organizations, such as patterns of money laundering, are similar between both of these types of illicit associations. Organized crime is defined as "criminal activity that, through violence or…
Bjelopera, J. & Finklea, K. (2012). Organized crime: An evolving challenge for U.S. law
Enforcement. CRS Report for Congress. Retrieved from: https://fas.org/sgp/crs/misc/R41547.pdf
Bradley, T. (2015).Cybercrime is the modern-day mafia. Forbes. Retrieved from:
Illicit finance has come to be a significant issue not only locally, but also internationally. There are numerous delineations of illicit finance, but fundamentally it comes about from the practices, approaches and crimes targeting to transfer financial capital within and out of a nation in violation of national and global laws. Across the world, government administrations are working in tandem and joining forces to combat different illicit financial flows, which include tax evasion, global bribery and money laundering (OECD, 2014). Despite the fact that the precise scale of the problem is unidentified, illicit finance has had shattering and disparaging effects on developing nations. In the recent number of years, nations have executed and put into practice standards and abided by most recommendations provided (OECD, 2014). The fight against illicit finance is largely dependent on the quality of state regulations and whether they abide by the set global best practices. This…
Gossel, S. (2016). Africa Needs New Ways to Stem Illicit Financial Flows. Eyewitness News. Retrieved from: http://ewn.co.za/2016/05/10/OPINION-Africa-needs-to-develop-new-ways-to-stem-illicit-financial-flows
Herkenrath, M. (2014). Illicit Financial Flows and their Developmental Impacts: An Overview. International Development Policy.
OECD. (2014). Illicit Financial Flows from Developing Countries: Measuring OECD Responses. Retrieved from: https://www.oecd.org/corruption/Illicit_Financial_Flows_from_Developing_Countries.pdf
The World Bank. (2016). Illicit Financial Flows (IFFs). Retrieved from: http://www.worldbank.org/en/topic/financialmarketintegrity/brief/illicit-financial-flows-iffs
bin laden al qaeda financing crime
R.T. Naylor has a unique, and some might say even rogue, interpretation of bin Laden and al Qaeda. While Naylor spends the entire Wages of Crime focusing on the flows of black market and blood money, he does so within a morally relativist framework. Chapter Seven of Wages of Crime is an addendum, new to the most recent edition of the book that was originally published prior to September 11. Responding to the pressing push to apply the economist’s approach to terrorist financing, Naylor understandably adds this chapter as part of his ongoing narrative on the wages of crime. Given the tenor and themes contained in the rest of the book, it comes as little surprise that Naylor reaches the conclusion that cutting off sources of terrorist financing is an unfeasible, ineffective, and perhaps even morally inappropriate method of addressing the problem of non-state actors. In an interview with Standard…
Sealing Up the Cracks Security in a Post-9/11 World On September 11, 2001, America was changed forever. From out of the ruins of the World Trade Center, and over the unmarked graves of nearly three thousand innocent people, a new world took shape. It was a world in which the citizens of the United Sates found themselves suddenly vulnerable to the murderous plots of a handful of fanatics. A trip to the mall, a drive over a bridge, a meeting at the office: an everyday event could spell disaster. Americans were discovering for the first time what so many around the globe had known for years, that the scenes of daily life could become the settings of terror. ut what was to be done? Were the people of the United States to spend their lives looking over their shoulders? Was the free and open society so cherished by each and…
American Civil Liberties Union. "USA Patriot Act Boosts Government Powers While Cutting Back on Traditional Checks and Balances." American Civil Liberties Union Freedom Network: In Congress. American Civil Liberties Union. November 1, 2001.
Ashcroft, John, Attorney General of the United States. "Reorganization and Mobilization of the Nation's Justice and Law Enforcement Resources." Address given November 8, 2001. http://www.usdoj.gov/ag/speeches/2001/agcrisisremarks11_08.htm
EFF Analysis of the Provisions of the U.S.A. PATRIOT Act that Relate to Online Activities." Electronic Frontier Foundation. October 31, 2001. http://www.eff.org/Privacy/Surveillance/Terrorism_militias/20011031_eff_usa_patriot_analysis.html
Evoy, Susan. Computer Professionals for Social Responsibility. "Comments on Legislative Proposals to Protect National Security and Their Impact on the Communications Infrastructure." October, 2001.
Disrupting Terror Group Finances to
Financial and law enforcers, military and reporting of intelligence are carried out by respective agencies drawn on limited coordination efforts (Whitmore, 2002). While agencies can pull and push intelligence data, these structures lack a centralized system for collecting intelligence. This limits the ability to conduct a meta-analysis of data across inter-agencies systems. Lack of proper coordination efforts reduces the usefulness of financial intelligence thus making it difficult to link the financial intelligence with other useful information. Critics claim that financial evidence is useful in supporting a case; it does not lead to prevention of terrorism attacks (Linden, 2007). However, a centralized system of coordination may be an effective way of exploring financial data through linking it with other useful information. This can be made useful if the agencies improve their overall understanding of the financial networks of terrorists. The new homeland security departments are signals that there are efforts for…
Amos, M. & Petraeus, D. (2009). The U.S. Army Marine Corps Counterinsurgency Field
Manual. New York: Signalman Publishing
Center for Excellence Defense against Terrorism (2008). Responses to Cyber Terrorism.
California: IOS Press
Terrorism and Illicit Finance as
S. interests. What is different is that we have names and faces to go with that warning."3 This emphasis on recognizing the adaptability 3 Dennis C. Blair, Annual Threat Assessment of the U.S. Intelligence Community for the Senate Select Committee on Intelligence, (U.S. Senate Armed Services Committee, 2010). of the terrorist is central to the government's overall response, in terms of both planning and execution, as evidenced by findings presented in the wealth of threat assessment material released to the public each year. With the oft mentioned terrorist training camps and secret underground bases littered throughout the Middle East long since located and reduced to rubble, jihadists the world over have increasingly turned to the internet to lure potential borrowers and launder funds on a global scale.4 the last Homeland Security Threat Assessment, delivered to the Senate Select Committee on Intelligence in 2008 and covering the period from that date…
Bennetch, Paul. 2012. "Terrorism expert: al-Qaida's 9/11 tactics an 'abject failure'." Cornell Chronicle [Ithaca, NY] 13 Mar 2012. Retrieved from http://www.news.cornell.edu/stories/March12/BergenCover.html
Blair, Dennis C. 2010. United States Senate Select Committee on Intelligence. Annual Threat Assessment of the U.S. Intelligence Community for the Senate Select Committee on Intelligence. Washington, DC: Government Printing Office, Retrieved from http://intelligence.senate.gov/100202/blair.pdf
Esposito, Richard, Matthew Cole, and Brian Ross. 2009. Officials: U.S. Army Told of Hasan. ABC World News. Retrieved from http://abcnews.go.com /Blotter/fort-hood-shooter- contact-al-qaeda-terrorists-officials/story?id=9030873
Holt, B. 2010. Islamic wealth management. Unpublished raw data, Thomas Jefferson School of Law, San Diego, CA.
Russia Iran the US and China at Work in the Middle East
The UAE and IsraelIntroductionIsrael has been, for most of its existence, involved in some form of conflict with the Arab world. However, the Arab world itself is largely conflicted between the Sunni and Shia states. Israels recent pivot toward forming greater relations with the Sunni states has indicated an improvement in relations between Israel and at least part of the Arab world. Yet, making matters more complicated is the fact that Palestine remains largely Sunni, and Palestine has viewed the Sunni states relations with Israel as a betrayal of the Palestinian peoples fight for independence and autonomy. For that reason, Palestine has disapproved the new relations between Israel and the UAE. As a Sunni majority state, the UAE has long sided with the rest of the Sunni Arab world in support of Palestine (Soriano, 2014). But now that has changed to some extent. This paper will discuss why the UAE…
ReferencesAlshuwaiter, M. (2020). President Hadi and the future of legitimacy in Yemen. Retrieved from https://www.mei.edu/publications/president-hadi-and-future-legitimacy-yemen Alterman, J. (2020). The Significance of the Israel-UAE Deal. Retrieved from https://www.csis.org/analysis/significance-israel-uae-deal Arnone, M & Padoan, P. (2007). Anti-Money Laundering by International Institutions: A Preliminary Assessment. CIDEI Working paper No. 74Bahi, R. (2018). Qatar Crisis: A Genuine struggle for power. Retrieved from shorturl.at/xBT89Baker, P., Kershner, I., Kirkpatrick, D. & Bergman, R. (2020). Israel and United Arab Emirates Strike Major Diplomatic Agreement. Retrieved from https://www.nytimes.com/2020/08/13/us/politics/trump-israel-united-arab-emirates-uae.html BBC. (2017). Qatar crisis: What you need to know. Retrieved from https://www.bbc.com/news/world-middle-east-40173757 Belenkaya, M. (2019). Why did UAE foreign minister go to Russia following his meeting with Pompeo? Retrieved from https://www.al-monitor.com/originals/2019/06/russia-uae-us-iran-egypt-peace-plan.html Bowen, J. (2020). Five reasons why Israel\\\\\\\\\\\\\\\'s peace deals with the UAE and Bahrain matter. Retrieved from https://www.bbc.com/news/world-middle-east-54151712 Khakhar, P., & Rammal, H. G. (2013). Culture and business networks: International business negotiations with Arab managers. International Business Review, 22(3), 578-590.Neuman, S. (2021). Intelligence Chiefs Say China, Russia Are Biggest Threats To U.S. Retrieved from https://www.npr.org/2021/04/14/987132385/intelligence-chiefs-say-china-russia-are-biggest-threats-to-u-s Ramani, S. (2020). Russian and Chinese views on the Israel-UAE normalization deal. Retrieved from https://www.mei.edu/publications/russian-and-chinese-views-israel-uae-normalization-deal Reuters Staff. (2020). Israel, U.S. near deal to exclude China from Israeli 5G networks: U.S. official. Retrieved from https://www.reuters.com/article/us-israel-usa-5g-china/israel-u-s-near-deal-to-exclude-china-from-israeli-5g-networks-u-s-official-idUSKCN25A2CF Scollon, M. (2015). Who has a stake in Yemen fight? Retrieved from https://www.rferl.org/a/who-has-a-stake-in-yemen-fight/26925287.html Sly, L. (2018). Princely feuds in the Persian Gulf thwart Trump’s efforts to resolve the Qatar dispute. Retrieved from https://www.washingtonpost.com/world/princely-feuds-in-the-persian-gulf-thwart-trumps-efforts-to-resolve-the-qatar-dispute/2018/05/13/7853cc88-39cf-11e8-af3c-2123715f78df_story.html?utm_term=.ebe5fd3adafa Soriano, M. A. (2014). United Arab Emirates & Mexico: Do\\\\\\\\\\\\\\\'s and dont\\\\\\\\\\\\\\\'s in negotiation strategies,\\\\\\\\\\\\\\\" A Mexican perspective\\\\\\\\\\\\\\\". The Business & Management Review, 5(1), 378.Tasmin News. (2020). Envoy: Iran-Russia Military Cooperation to Enter New Level. Retrieved from https://www.tasnimnews.com/en/news/2020/08/22/2333123/envoy-iran-russia-military-cooperation-to-enter-new-level Weir, D. T. H. (2003). Management development and leadership in the Middle East: An alternative paradigm. Leadership in the Management Theory at Work Series Conference, JuneWilson Center. (2020). Russia in the Middle East: National Security Challenges for the United States and Israel in the Biden Era. Retrieved from https://www.wilsoncenter.org/publication/report-russia-middle-east-national-security-challenges-united-states-and-israel-biden Zhenqing, H. (2019). Turkey or generals aid Libya, the dispute over the delimitation of the Eastern Mediterranean has become a regional hot spot. Retrieved from https://www.thepaper.cn/newsDetail_forward_5252577 Zhongming, L. (2020). Professor Liu Zhongmin was interviewed by Shangguan News on the normalization of relations between Israel and the UAE. Retrieved from http://mideast.shisu.edu.cn/06/8e/c3991a132750/page.htm
Administrative Agency the Proposed Regulation
(Olson, 1999) the feminist theory is when you are making the arguments that the social structure in place is unfair or targeting a particular group of people. The critical legal studies theory is when you are looking beyond the issues of civil liberties and are instead focused on if the action is effective in supporting particular rights. The moral theory is when you are arguing that the best way to interpret the law is based upon what is best for society using: case precedent, established legal principals and the law. Intellectual capitalism is when you are arguing that freedom of speech is the best way for the minority of having their voices heard. Where, you are using the different actions to justify that the government could be stifling this free speech, which is leading the activity in question. The over regulation theory is when the federal / state government will…
Amendment to the Bank Secrecy Act Regulations Reports of Foreign Financial Accounts. (2010). Retrieved May 19, 2010 from Regulations.gov website: http://www.regulations.gov/search/Regs/home.html#documentDetail?R=0900006480aaf473
History of Anti-Money Laundering Laws. (n.d.). Retrieved May 19, 2010 from Treasury Department website: http://www.fincen.gov/news_room/aml_history.html
Olson, B. (1999). Application of American Legal Theories. Retrieved May 19, 2010 from Boston College website: http://www.bc.edu/bc_org/avp/law/st_org/iptf/commentary/content/1999122601.html
Schlick, a. (2010). A Third Way Legal Framework for Addressing Comcast Dilemma. Retrieved May 19, 2010 from FCC website: http://www.broadband.gov/third-way-legal-framework-for-addressing-the-comcast-dilemma.html
USA Patriot Act the Uniting
The result is thousands of people denied the necessary refuge that they seek. Clintora condemns this as a "major policy gap (that) threatens not only human rights in individual countries but also jeopardizes international and regional stability and American regional influence and economic interests." Kreimer (2007) expounds upon the fact that few legislators had time to fully read the PATIOT Act, when it was first proposed. Once enacted, there was significant concern about the expansion of powers for unchecked surveillance. However, many of the Acts provisions were subject to a four-year sunset requirement. It was believed that Congress would carefully examine how organizations, such as the FBI, utilized their power under the PATIOT Act, when deciding whether or not to certain provisions would go by the wayside come 2005. Yet, in 2006, after much political wrangling, most of the PATIOT Act was reenacted, with little change to the original wording,…
Clintora, E. (2008). Refugees or terrorists? Kennedy School Review, 8. Retrieved December 4, 2008, from Academic Search Complete database.
Kreimer, S. (Winter 2007). Rays of sunlight in a shadow 'war': FOIA, the abuses of anti-terrorism, and the strategy of transparency. Lewis & Clark Law Review, 11(4). Retrieved December 4, 2008, from Academic Search Complete database.
Yager, L. (30 Oct 2008). USA PATRIOT Act. GAO Report. Retrieved December 4, 2008, from MasterFILE Premier database.
The USA PATRIOT Act
Terrorism Compare and Contrast a
Jewish people believed they were promised land of their own, and the Palestinians believed that they would be given a defined homeland as well. However, the governments making these decisions were outside the Middle East and were acting in their own interests, not the interests of the people living in the areas affected. When the United Nations recognized Israel as a political entity after World War II, it did so in response to the outrage of Germany's Holocaust. While this was understandable to Western countries, Palestinians felt that they had been cheated out of their homeland and that instead it had been given to Israel. The differences between fundamentalist and more moderate Islam comes down to the nature of Islamic belief. Islam does not make any real distinction between religion and government. In the Koran, religion and government are completely intertwined. So to fundamentalist Moslems, a non-fundamentalist Islamic country in…
Merey, Can. 2004. "Still no trace of Osama bin Laden."
Manila Bulletin, December 29.
Staff writer. 2005. "Irish Republicans in crisis over money laundering probe. Agence France Presse English, Feb. 19
Weisbach, Jessica. 2004. "The Psychology of the Terrorist Mind: Attempting to Understand as a Possible Means towards Prevention," in Peace, War and Human Nature. Accessed via the Internet 8/4/05. http://gseweb.harvard.edu/~t656_web/peace/Articles_Spring_2004/Weisbach_Jessica_terrorist_mind.htm
Criminology Counterrorism the USA Patriot
These liberties are those on which this country was formed and have been upheld for many years as absolute certainties. The Patriot Act has put a lot of doubt on whether these liberties are still protected guarantees. With this act giving the Government the power to use wiretaps to spy on people, search warrants to look for things that they don't even have to tell you about and the ability to look at ones private computer records it makes you wonder what this country is coming to. How is it that we the people have allowed it to come to this? What has happened to the guts on which this country was built? Back then this type of act would never have been passed and put into practice. Although it can be argued that this is because times are so much different now than they were back in the day,…
Patriot Act. (2010). Retrieved February 26, 2010, from Conservapedia Web site:
Patriot Act - Eight Years Later. (2009). Retrieved February 26, 2010, from American Civil
Liberties Union Web site: http://www.reformthepatriotact.org/
The finance world is finally abuzz with news of bitcoin and other cryptocurrency. What are cryptocurrencies, and what do potential investor need to know about them? This bitcoin essay offers a brief background of bitcoin and other cryptocurrencies, also referring to the blockchain software that underlies them. Then, this bitcoin essay explores what financial analysts say about the viability of bitcoin as an investment. Finally, this essay will how and why people purchase bitcoin, as well as how bitcoin can be used as both currency or as investment. Because they are taking the financial world by storm, is important to learn about bitcoin and other cryptocurrencies. This bitcoin essay will explain bitcoin in simple terms anyone can understand. Ultimately, this essay will show that bitcoin is a risky but potentially lucrative investment. Although the numbers of “bitcoin billionaires” is low, there are a lot of ordinary people who have made…
How to be a Good Leader
I work in a Kuwait finance house bank in the anti-money laundering department. The department is under the oversight of the risk management department. My job is to assist in making sure that the finance house is in compliance with all anti-money laundering regulations. It is a very important job because failure to abide by the rules can lead to severe penalties for the institution. The bank must also work with larger regulatory bodies so as to prevent money used by terrorists from being laundered through the bank. This job requires a lot of thinking and monitoring and it is important to pay attention to the details. As a leader in my department, I have to be in communication with various people and stakeholders because of the nature of the work. I am always in contact with different people and looking at data and making important decisions that will impact…
Criminal Justice RICO in 1970
Since ICO focuses on a pattern of behavior instead of just on the criminal acts that are involved prosecutors find it relatively easy to prove these cases. If an organization is convicted of committing two of the specified crimes within a ten-year period then they can be convicted of racketeering. Legitimate business owners deserve to have protection from groups that wish to pursue illegal activity. The ICO Act was put into place in order to afford these legitimate businesses this protection. Since the interpretation of the ICO Act has been expanded we have also seen protections from mail fraud and wire tapping to be included in the protections that are guaranteed to the people. The ICO Act is always going to be subject to interpretation, but the protections that if gives business owners will always be seen as good. eferences Cecil, Greek. (1991). Is This The End of ico? Or…
Cecil, Greek. (1991). Is This The End of Rico? Or Only The Beginning: The Ongoing Debate
Over the Expanded Use of Criminal and Civil Rico. Retrieved April 20, 2009, from Web
Chapter 96 -- Racketeer Influenced and Corrupt Organizations. (2000). Retrieved April 20, 2009,
Offshore Financial Centers Info Definition
Similarly, an offshore might set up a wholly owned subsidiary in an OFC to extend offshore fund administration facilities or other facilities. (the future for offshore financial centers (OFCs)) multinational corporation establishes an offshore bank to deal with its foreign exchange operations or to ease out financing of a joint venture spanning on a global basis. An onshore bank sets up a wholly owned subsidiary in an OFC to extend offshore fund administration services. The proprietor of an onshore bank coming under legal regulation sets up a branch "satellite" bank in an OFC. The appeal of an OFC might comprise no capital tax, no restraining tax on dividends or interest, nil taxation on transfers, nil corporation taxes, no capital gains tax, no exchange controls, lenient legal rules and management, less strict reporting necessities, and trading limitations. Offshore corporations or international business corporations -IBCs are means having restricted liability recorded in…
Dwyer, Terry. Harmful Tax Competition and the future of Offshore Financial Centers such as Vanuatu. Pacific Economic Bulletin. Retrieved at http://www.freedomandprosperity.org/dwyer-11-00.pdf . Accessed on 22 April, 2005
Lavoie, Franaois. Canadian Direct Investment in 'Offshore Financial Centers. Balance of Payments Division. Retrieved at http://www.statcan.ca/english/research/11-621-MIE/11-621-MIE2005021.htm . Accessed on 22 April, 2005
Offshore Financial Centers: IMF Background Paper. Monetary and Exchange Affairs Department. June 23, 2000. Retrieved at
Factors that led to Enron Downfall in 2001
Enron Corporation was the American company that specialized in supplying of energy. Prior to its collapse in 2001, Enron was one of the most admired companies in the United States recording superior profits year by year, however, in 2001, series of the Enron questionable financial transactions were finally made opened when the company's stock price collapsed within one day. This study investigates several factors that led to the fall of Enron Corporation, the outcome of the investigation reveals that the top management did not promote culture of ethics within the organization. The paper reveals that the management was intoxicated with power manipulating information to their benefits. Moreover, top officials used power ruthlessly intimidating the subordinated. The company did not promote the culture of checks and balances by allowing only one entity performing both the functions of internal and external auditing. The study recommends that integration of ethical business is an…
Enron was the'seventh largest
Enron could engage in their derivative trading strategy with no fear of government intervention because derivative trading was specifically exempted from government regulation. Due in part to a ruling by the Commodity Futures Trading Commission's (CFTC) chairwoman, Wendy Graham, derivatives remained free of regulatory oversight. Ms. Graham, wife of Texas senator Phil Graham, made this ruling 5 weeks before resigning as chairwoman of the CFTC and joining the Enron oard of Directors in 1993. Derivative accounting is further complicated because there is no consistent way to fairly report their value and risk in a company's financial report. In 1998 Rule No. 133, "Accounting for Derivative Instruments and Hedging Activities" was developed by the Financial Accounting Standards oard (FAS), an independent agency that sets guidelines for corporate auditors. Rule 133 contains more than 800 pages, which further complicates its adoption and consistent interpretation by various companies. SFAS No. 133 was subsequently…
Dettmer, Jamie, and John Berlau. "Requiem for Enron: There's Enough Blame to Go around for the Collapse of the Energy Giant From Executives to Auditors to Financial Analysts to Congress." Insight on the News 7 Jan. 2002: 12+. Questia. 10 Mar. 2005 .
Folbre, Nancy. "Blowing the Whistle on Poverty Policy." Review of Social Economy 61.4 (2003): 479+. Questia. 10 Mar. 2005 .
Gup, Benton E., ed. Too Big to Fail: Policies and Practices in Government Bailouts / . Westport, CT: Praeger, 2003.
Hartgraves, Ai L., and George J. Benston. "The Evolving Accounting Standards for Special Purpose Entities and Consolidations." Accounting Horizons 16.3 (2002): 245+..
Stratton Oakmont Scandal
Wolf of Wall Street, Jordan Belfort, committed a classic pump and dump scam, under the guise of his investment firm, Stratton Oakmont. This crime went on for several years before the company was investigated, closed, and Belfort sent to prison. The following paper outlines this case in detail. The Crime & How it was Committed The securities industry is governed by the Securities Exchange Commission, which exists in part to ensure that the capital markets are trustworthy. When investor trust in the markets is compromised, this makes it more difficult for firms to raise capital. Thus, it is imperative for any country to have securities regulators that ensure a fair and honest capital market system, including the stock market. There are many ways to commit fraud in the stock market, one of which is the pump and dump scheme that Stratton Oakmont committed. The principle is fairly simple. The company…
Services Sector Comprises Vast Groups
Banks have thus the role of distributing these products to their customers. Added to that in the international arena banks are dealing more with derivatives and foreign exchange, making the role of the bank far more important in the overall well being of the economy. Banks are diversifying and redefining themselves as trading, banking and service institutions. The banks are multifunctional and are known by various terms like the 'clearing bank' in UK, 'Commercial banks' and 'Investment banks' or 'Merchant banks'. Banks are thus redefining themselves to suit the wider rage of operation sand services offered. (Cranston, 1997, p. 3) 2. Globalization of banking sector Globalization is a phenomenon that has invaded all industries and human life. The changes that have come about after the break down of the cold war and the new social interaction between nations have affected the financial sector as well. Globalization has removed restrictions for…
Ashdown, Neil H. (2002) the Impact of Banking Policy on Trade and Global Stability.
Quorum Books. Westport, CT.
Chambliss, William J; Block, Alan a; Weaver, Constance a. (2004) All Is Clouded by Desire: Global Banking, Money Laundering, and International Organized Crime. Praeger. Westport, CT.
Cranston, Ross. (1997) Principles of Banking Law. Clarendon Press. Oxford.
Sex Slavery ABC News 2006
(2009, Oct. 4). 25,000 Nepli girls involved in sex trde in Indin cities. Commercil sex brothels in the towns of Delhi, Mumbi, Pune nd Kolkt feture young girls believed to hve been kidnpped from Nepl, ccording to the rticle. There re n estimted fifty brothels in Pune, nd mny of them re reportedly owned by dult women from Nepl. In those 50 brothels there re bout 500 Neplese girls working in sexul slvery, the rticle sserts. This informtion comes through report tht ws intended to get the medi interested in reporting these terrible crimes. Retrieved Feb. 13, 2010, from http://www.expressindi, com/fullstory.php?newsid=55901. Hwii News Now. (2010, Februry 10). Hwii mn chrged with sex trfficking t Super Bowl. A mn who is lleged to be pimp from Hwii is being chrged with bringing teenge Hwiin girl to the Super Bowl in Mimi -- nd llegedly used her to mke money. Fred Collins…
and Customs Enforcement agents that they were promised good jobs and a better life in the United States, so they came to the U.S. with high hopes. But when they arrived it turned out that they had to work in the bar for $20 a day until they paid off their "smuggling fees" of around $4,500. Part of their job was to have sex with customers "for money."
Retrieved Feb. 14, 2010, from the Monitor http://www.themonitor.com .
WTOV9.com. (2010, Feb. 14). Report: Human Trafficking Big Business in Ohio. This article on WTOV9 tells the story of how teenager Theresa Flores was raped and had photos taken of the act of being raped. The attacker said unless she submitted to being a hooker for his gang, her photo would be on the Internet and everyone would know she had sex (even her priest) So she went along for 2 years. Moreover, the story claims that as many as 1,000 children born in Ohio each year are forced into sex slavery. Retrieved Feb. 14, 2010, from http://www.wtov9.com/news/22553109/detail.html .
Role of Civil Sanctions in
If police officers are not sufficiently deterred by the prospect of evidence being suppressed at a hearing where a person's liberty is in jeopardy, it is a fortiori that they will not be deterred by the possibility of suppression at a civil forfeiture hearing where only the person's property is in jeopardy. Law enforcement officials have much to gain in the outcome of the issues raised in Scott, and will likely bring challenges to the exclusionary rule in civil forfeiture. While the court's trend is moving away from applying the exclusionary rule in civil contexts, law enforcement agencies are increasingly relying on civil tools to attack crime. At the forefront of this movement is the use of civil forfeiture to seize the fruits and instrumentalities of the narcotics trade. Civil forfeiture statutes allow law enforcement officers to seize privately held assets that have been used in a crime, a practice…
Crandley, Mark J (2001) a Plymouth, a parolee, and the police: the case for the exclusionary rule in civil forfeiture after Pennsylvania Board of Probation and Parole v. Scott.
Albany Law Review
Bilionis, Louis D. (1998) Process, the Constitution, and substantive criminal law.
Michigan Law Review
Predominantly Latino Gangs Mara Salvatrucha
Government Since gang-related crimes fall within the jurisdiction of state, this research will give an insight on the need to find solutions that increasingly include all levels of government. Congress needs to pass legislation that will change immigration enforcement laws and make more aliens deportable. In addition, the federal government should take a more active participation in helping local and state jurisdictions develop anti-gang responses. The local, state and federal governments must take a stand, and combine forces to combat the immigration problem that continue to plague this country into the next generation. Importance of the Study The die has been cast, there is no turning the clock back now and the Mara Salvatrucha and 18th Street Gang have established themselves in the United States and far beyond. The origins of the current situation with MS-13 and the 18th Street Gang date back to the late 1980s and early 1990s…
Armstrong, W. (2009, February 16). 'Sanctuary cities' protect murderous illegal aliens. Human Events, 64(37), 8.
Bansal, M. (2006) Chertoff: Street Gangs a Threat to National. Retrieved November 12,
2006 from http://www.CNSNews.com .
Barber, B. (1996). Jihad vs. McWorld: How Globalism and Tribalism are Reshaping the World. New York: Ballantine Book.
Financial Crimes Knights Templar the Order of
Financial Crimes Knights Templar The Order of the Knights Templar (Poor Knights of Christ and the Temple of Solomon) was founded in 1118 to protect Christians on pilgrimage to Jerusalem (Blacktorne, 2011). The Order was sanctioned by King Baldwin II of Jerusalem and he quartered the nine original knights in the old stables at the Temple of Solomon. All members had to give over all of their wealth and goods to the Order and take vows of poverty, chastity, piety, and obedience just like other monks (Langue, 2011). A majority of the members joined for life, although a select few were also allowed to join for specific duration. The Templars' were considered the first international banking organizations. Although this wasn't there specific title they charge a fee (interest) for issuing letters of deposits (checks). Some also view them as a multinational corporation; however the banking reference seems to hold more…
6- BCCI "Bank of Credit and Commerce International
The Bank of Credit and Commerce International (BCCI) was a major international bank founded in 1972 by Agha Hasan Abedi, a Pakistani financier. The Bank was registered in Luxembourg. It operated in 78 countries, had over 400 branches, and had assets in excess of twenty billion making it the seventh largest private bank in the world by assets (Kanas, 2005). In the late 1980's BCCI became the target of a two-year undercover operation conducted by the U.S. Customs Service. This operation concluded with a fake wedding that was attended by BCCI officers and drug dealers from around the world who had established a personal friendship and working relationship with undercover Special Agent Robert Mazur (Lohr, 1991).
After a six-month trial in Tampa, some of the key bank officers were convicted and received lengthy prison sentences. BCCI came under the scrutiny of regulatory bodies and intelligence agencies in the 1980s due to its perceived avoidance of falling under one regulatory banking authority. It was actually set up to be not under any regulatory bodies' control at all. Thus the international bank could help people who wanted to hide money from taxation or even launder money. The true extents of the ties with other banking institutions were never fully uncovered. The prosecutors claimed that they busted the largest money laundering system ever yet many reports at the time feel like they barely scratched the surface (Baquet, 1991).
Analyzing Foreign Corrupt Practices Act Fcpa
FCPA The following till take a look at Foreign Corrupt Practice Act or in other words the FCPA. Discovering the corporate payments difficulty in the middle of the 70s from a blend of work by the Watergate Special Prosecutor office, this includes related additional work and inquiry by SEC-Security and Exchange Commission and the Multinational Corporations Subcommittee by Senator Frank Church. In 1975, within four months, separate hearings were held by the Church Committee on Gulf Oil, Mobil Oil, Northrop, and Lockheed (Koehler). Every one of these corporations became the main subjects of allegations, concerning uncertain payments made either directly or indirectly to officials of foreign government or foreign political parties bearing a business purpose in mind. For example, the Gulf Oil primarily involved the contributions made to political campaigns of the epublic of Korea President. Northrop was mainly involved in making payments to a general in Saudi Arabia. Principally,…
Burns, D., Sullivan, & Gibson. (2009). Navigating the FCPA's Complex Scienter Requirements. Retrieved March 18, 2016, from http://www.gibsondunn.com/publications/Documents/Burns-Sullivan-NavigatingTheFCPAComplexScienterReq.pdf
Harris, A. (2011). Scholarship @ Claremont -- Claremont Colleges Research. The Impact of the Foreign Corrupt Practices Act on American Business from 1977-2010. Retrieved March 18, 2016, from http://scholarship.claremont.edu/
International Whistleblower Reward Law Information Center. (n.d.). History of the Foreign Corrupt Practices Act. Retrieved March 17, 2016, from http://www.internationalwhistleblower.com/history.html
KOEHLER, M. The Story of the Foreign Corrupt Practices Act. Ohio State Law Journal, 73(5). Retrieved, from http://moritzlaw.osu.edu/students/groups/oslj/files/2013/02/73.5.Koehler
Trafficking Victims Protection Reauthorization Act
Government The Trafficking Victims Protection eauthorization Act Final Project / Dissertation Degree: Juris Doctorate Specialized Major: Specialization: Constitutional Law Full Address: The Trafficking Victims Protection eauthorization Act This paper reviews the rights and protection that a state and federal government official provides to citizens that have been the subject of human trafficking crimes. Citizens need the protection of the police and other law enforcement officials to report human trafficking crimes and to protect and assist those that need their assistance. This paper will seek to explain the definition of human trafficking, how it works, victim support, issues with upholding and implementing legislature and the solutions which can be used to satisfy the public. Table of Contents Introduction eview Elements of Human Trafficking Victims of Trafficking and Violence Protection Act of 2000 TVPA (2008) Mann Act Travel Act Alien Smuggling, Harboring and Transportation United States New York State's Human Trafficking Law…
1. The Crime of Human Trafficking: A Law Enforcement Guide to Identification and Investigation. (n.d.). http://www.vaw.umn.edu/documents/completehtguide/completehtguide.pdf
2. Trafficking in Persons Report. (2006). Washington, DC.: U.S. Department of State.
3. United States Constitution Bill of Rights. (n, d.). http://topics.law.cornell.edu/constitution/billofrights
4. 13th Amendment to the U.S. Constitution: Abolition of Slavery (1865). (n.d.)
Combating Future Terrorism
Combating Future Terrorism The Continuing Threat Posed by Islamic Terrorists Brinkley. J. (2013). Islamic Terror: Decentralized, Franchised, Global. World Affairs, 176(2), Professor of Journalism Joel Brinkley explains that many countries around the world have been attacked by Muslim radicals (he includes Tanzania, where extremists beheaded a Christian pastor because he was training to become a meat butcher and the radicals asserted this trade was "theirs alone"), and that "…jihadist atrocities" have become a "status quo to be lived with" in many parts of the world. His point? There is violence all around the world due to the hatred and intolerance by radical groups, most of them Islamic, and Americans may as well get used to this chaotic and bloody situation. And indeed, he sees that more terrorist attacks against the U.S. are likely. He doesn't offer any way to avoid those attacks, however. Loss of Some Civil Liberties and Americans'…
Terrorism Coady Notes That it
The government has authority to impose a civil penalty on a domestic entity or organization, and may bring charges pursuant to the Racketeer Influenced and Corrupt Organization Act based on predicate crimes that "include the offenses of providing material support or resources to a foreign terrorist organization, or intentionally or knowingly collecting or providing funds for use in carrying out terrorist activities, as well as money laundering" (Crimn 2004). Moreover, the Internal Revenue Service may suspend the tax-exempt status under the Internal Revenue Code of any organization that is identified or designated as a terrorist organization (Crimn 2004). The attacks of September 11th were a wake-up call to authorities to the need for cooperation between the various agencies. The Patriot Act provided American local, state and federal agencies an arsenal of tools to investigate, prosecute, and deter terrorist activities. orks Cited Bulzomi, Michael J. (2002, July 01). Investigating international terrorism…
Bulzomi, Michael J. (2002, July 01). Investigating international terrorism overseas:
constitutional considerations. The FBI Law Enforcement Bulletin. Retrieved November 10, 2006 from HighBeam Research Library.
Crimn, Nina J. (2004, March 01). High alert: the government's war on the financing of terrorism and its implications for donors, domestic charitable organizations, and global philanthropy. William and Mary Law Review. Retrieved November 10, 2006 from HighBeam Research Library.
Donohue, Laura K. (2006, March 22). Anglo-American privacy and surveillance.
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- What Is Anti Money Laundering?
- How AML Works
History of Anti Money Laundering
- Frequently Asked Questions
- Laws & Regulations
Anti Money Laundering (AML) Definition: Its History and How It Works
Investopedia / Julie Bang
What Is Anti Money Laundering (AML)?
Anti money laundering (AML) refers to the web of laws, regulations, and procedures aimed at uncovering efforts to disguise illicit funds as legitimate income. Money laundering seeks to conceal crimes ranging from small-time tax evasion and drug trafficking to public corruption and the financing of groups designated as terrorist organizations.
AML legislation was a response to the growth of the financial industry, the lifting of international capital controls and the growing ease of conducting complex chains of financial transactions.
A high-level United Nations panel has estimated annual money laundering flows at $1.6 trillion, accounting for 2.7% of global GDP in 2020.
- Anti Money Laundering (AML) efforts seek to make it harder to hide profits from crime.
- Criminals use money laundering to make illicit funds appear to have a legitimate origin.
- AML regulations require financial institutions to develop sophisticated customer due diligence plans to assess money laundering risks and detect suspicious transactions.
What's Anti-Money Laundering?
Understanding anti money laundering (aml).
AML regulations in the U.S. have expanded from the 1970 Bank Secrecy Act 's requirement that banks report cash deposits of more than $10,000 to a complex regulatory framework requiring financial institutions to conduct due diligence on customers and to seek out and report suspicious transactions. The European Union and other jurisdictions have adopted similar measures.
Know Your Customer
For banks, compliance starts with verifying the identity of new clients, a process sometimes called Know Your Customer (KYC) . In addition to establishing the customer's identity, banks are required to understand the nature of a client's activity and verify deposited funds are from a legitimate source.
The KYC process also requires banks and brokers to screen new customers against lists of crime suspects, individuals and companies under economic sanctions , and "politically exposed persons"—foreign public officials, their family members and close associates.
Money laundering can be divided into three steps:
- Deposit of illicit funds into the financial system
- Transactions designed to conceal the illicit origin of the funds, known as "layering"
- Use of laundered funds to acquire real estate , financial instruments or commercial investments
The KYC process aims to stop such schemes at the first deposit window.
Customer Due Diligence
Customer due diligence is integral to the KYC process, for example by ensuring the information a potential customer provides is accurate and legitimate. But it is also a constant process extending to customers old and new, and their transactions.
Customer due diligence requires ongoing assessment of the risk of money laundering posed by each client and the use of that risk-based approach to conduct closer due diligence for those identified as higher non-compliance risks. That includes identifying customers as they are added to sanctions and other AML lists.
According to the U.S. Treasury's Financial Crimes Enforcement Network , the four core requirements of customer due diligence in the U.S. are:
- Identifying and verifying the customer's identity
- Identifying and verifying the identity of beneficial owners with a stake of 25% or more in a company opening an account
- Understanding the nature and purpose of customer relationships to develop customer risk profiles
- Conducting ongoing monitoring to identify and report suspicious transactions and update customer information
Customer due diligence seeks to detect money laundering strategies including layering and structuring, also known as " smurfing "—the breaking up of large money laundering transactions into smaller ones to evade reporting limits and avoid scrutiny.
One rule in place to foil layering is the AML holding period, which requires deposits to remain in an account for a minimum of five trading days before they can be transferred elsewhere.
Financial institutions are required to develop and implement a written AML compliance policy, which much be approved in writing by a member of senior management and overseen by a designated AML compliance officer . These programs must specify "risk-based procedures for conducting ongoing customer due diligence" and conduct "ongoing monitoring to identify and report suspicious transactions."
Some AML requirements apply to individuals as well as financial institutions. Notably, U.S. residents are required to report receipts of more than $10,000 in cash to the Internal Revenue Service on IRS Form 8300 . The requirement extends to multiple related payments within 24 hours or multiple related transactions within 12 months totaling more than $10,000.
Efforts to police illicit gains have a history stretching back centuries, while the term "money laundering" is only about 100 years old and in wide use for less than 50.
The first major piece of U.S. AML legislation was the 1970 Bank Secrecy Act, passed in part to thwart organized crime. In addition to requiring banks to report cash deposits of more than $10,000, the legislation also required banks to identify individuals conducting transactions and to maintain records of transactions. The U.S. Supreme Court upheld the Bank Secrecy Act's constitutionality in 1974, the same year "money laundering" entered wide use amid the Watergate scandal.
Additional legislation passed in the 1980s amid increased efforts to fight drug trafficking, in the 1990s to expand financial monitoring and in the 2000s to cut off funding for terrorist organizations.
Anti-money laundering assumed greater global prominence in 1989, when a group of countries and international organizations formed the Financial Action Task Force (FATF) . Its mission is to devise international standards to prevent money laundering and promote their adoption. In October 2001, following the 9/11 terrorist attacks, FATF expanded its mandate to include combating terrorist financing.
Another important organization in the fight against money laundering is the International Monetary Fund (IMF) . Like the FATF, the IMF has pressed its member countries to comply with international standards to thwart terrorist financing.
The United Nations included AML provisions in its 1998 Vienna Convention addressing drug trafficking, the 2001 Palermo Convention against international organized crime and the 2005 Merida Convention against corruption.
The Anti-Money Laundering Act of 2020 , passed in early 2021, was the most sweeping overhaul of U.S. AML regulations since the Patriot Act of 2001 . The 2021 legislation included the Corporate Transparency Act, which made it harder to use shell companies to evade anti-money laundering and economic sanctions measures.
The legislation also subjected cryptocurrency exchanges as well as arts and antiquities dealers to the same customer due diligence requirements as financial institutions.
What Are Some Ways That Money Is Laundered?
Money launderers often funnel illicit funds through associates' cash-generating businesses, or by inflating invoices in shell company transactions. Layering transactions are money transfers designed to disguise the source of illicit funds. Structuring, or smurfing, refers to the practice of breaking up a large transfer into smaller ones to evade reporting limits and AML scrutiny.
Can Money Laundering Be Stopped?
Given estimated annual flows approaching 3% of global economic output, increasingly aggressive AML enforcement can at best aim to contain money laundering rather than stop it entirely. Money launderers never seem to run short of money or accomplices, though AML measures certainly make their lives harder.
What's the Difference Between AML, CDD and KYC?
Anti-money laundering (AML) is the broad category of the laws, rules and procedures aimed at deterring money laundering, while customer due diligence (CDD) describes the scrutiny financial institutions (and others) are required to perform to thwart, identify and report violations. Know your client (KYC) rules apply customer due diligence to the task of screening and verifying prospective clients.
U.S. Treasury Financial Crimes Enforcement Network. " What Is Money Laundering? "
United Nations Department of Economic and Social Affairs. " Tax Abuse, Money Laundering and Corruption Plague Global Finance ."
U.S. Treasury Financial Crimes Enforcement Network. " History of Anti-Money Laundering Laws ."
U.S. Treasury Financial Crimes Enforcement Network. " BSA Timeline ."
Office of the Comptroller of the Currency. " Bank Secrecy Act (BSA) & Related Regulations ."
IBA Anti Money Laundering Forum. " History of the European Union Anti-Money Laundering and Financing of Terrorism Directives ."
Financial Action Task Force. " Countries ."
SWIFT. " What Does KYC Mean? "
SWIFT. " The KYC Process Explained ."
Federal Financial Institutions Examination Council. " Politically Exposed Persons ."
United Nations Office on Drugs and Crime. " Money Laundering ."
SWIFT. " What Is Customer Due Diligence (CDD)? "
U.S. Treasury Financial Crimes Enforcement Network. " Information on Complying with the Customer Due Diligence (CDD) Final Rule ."
Jumio. " Guidance on Anti-Money Laundering (AML) in Banking and Finance for 2021 ."
FINRA. " Frequently Asked Questions (FAQ) Regarding Anti-Money Laundering (AML) ."
Internal Revenue Service. " Form 8300-Report of Cash Payments Over $10,000 Received in a Trade or Business ."
Internal Revenue Service. " Cash Payment Report Helps Government Combat Money Laundering ."
Inter-American Observatory on Drugs. " Changing Paradigms on Money Laundering ," Page 1.
Jumio. " The Bank Secrecy Act Turns 50: Five Decades of Anti-Money Laundering in the U.S. "
The New York Times. " An Explanation: How Money That Financed Watergate Was Raised and Distributed ."
Financial Action Task Force. " What Do We Do ."
International Monetary Fund. " IMF and the Fight Against Money Laundering and the Financing of Terrorism ."
The National Law Review. " The Anti-Money Laundering Act of 2020: Congress Enacts the Most Sweeping AML Legislation Since Passage of the USA PATRIOT Act ."
U.S. Treasury Financial Crimes Enforcement Network. " FinCEN Issues Proposed Rule for Beneficial Ownership Reporting to Counter Illicit Finance and Increase Transparency ."
U.S. Treasury Financial Crimes Enforcement Network. " FinCEN Informs Financial Institutions of Efforts Related to Trade in Antiquities and Art ," Pages 1-2.
JD Supra. " FinCEN Crypto & Ransomware Guidance: Will 2022 Bring More Changes? "
Institute of International Banking Law and Practice. " Trade Based Money Laundering – A Primer ."
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Home — Essay Samples — Law, Crime & Punishment — Money Laundering — Key Attributes of Money Laundering and the Impacts
Key Attributes of Money Laundering and The Impacts
- Subject: Law, Crime & Punishment
- Category: Crime
- Essay Topic: Money Laundering
- Words: 2168
- Published: 12 March 2019
- Downloads: 38
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Thesis Paper On Anti-Money Laundering
Money laundering is one of today’s widespread financial frauds that are met in all the parts of the world. It is a practice of disguising and changing origins of money that were obtained illegally . In this way, the proceeds of crime appear legitimate. The methods of money laundering vary greatly, some of them being simple and others complex.
There can be distinguished three steps in money laundering : placement , when cash appears in the financial system; layering , when financial transactions are performed to hide the actual source of money; integration , when funds are obtained by the criminal. These steps can be changed due to the peculiarities of each particular case.
There are different forms of money laundering and the most widely spread of them are the following: structuring or smurfing , when cash is broken into smaller amounts of money; cash-intensive businesses , when business has legal and illegal cash flows, but claims all earnings as legitimate; bulk cash smuggling , when cash is smuggled to another jurisdiction; black salaries, when companies have unregistered employees that receive cash payments; real estate , when it is purchased with illegal money, and then sold to receive legitimate income; and others.
Anti-money laundering is a complex of actions directed at financial institutions that are required to prevent and report any money laundering activities that they spot. Guidelines on anti-money laundering became globally known after September 11, 2001. Now financial institutions have to request as much information as possible from their clients, but in different countries these process vary. There is also anti-money laundering software developed and implemented in different institutions, which filters information received from clients and classifies it according to suspicion levels.
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Money laundering essays (page 1), financial money laundering.
Example essay. Last modified: 3rd Jul 2019
Financial Money Laundering. Money Laundering is commonly referred to as the concept of concealing, relocating or seeking to retain the profits conducted from a crime. The European Communities Directive of March 1990 defines it as...
Money Laundering Legislation
Example essay. Last modified: 30th Jun 2019
Free money laundering legislation Law Essays!...
Money Laundering and Corporate Crimes
Example essay. Last modified: 25th Jun 2019
Money Laundering and Corporate Crimes. The comparison of regulatory regimes for Money Laundering and Corporate Crimes is an interesting one given that, first of all, the former is a crime committed by a natural person and the latter encompasses an umbrella of crimes committable by the corporate entity....
Money Laundering Regulations
Money Laundering Regulations. Before discussing the legislative arrangements in the United Kingdom in particular relation to money laundering, it is necessary to outline the wider changes in financial regulation that have occurred since 1997....
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New judge takes over Najib's RM27 million SRC money laundering case
Judge K Muniandy replaces Mohamed Zaini Mazlan, who was promoted to the Court of Appeal.
Indonesia judicial body to question judges over election delay ruling
Better things to come, rosmah says after najib's acquittal, russia must be punished for ukraine war, says blinken, guan eng allowed temporary release of passport to attend uncle's funeral in singapore, cambodia opposition leader jailed 27 years for treason.
Former prime minister Najib Razak's money laundering trial over RM27 million in SRC International funds was heard before a new judge at the Kuala Lumpur High Court today.
Judge K Muniandy replaced Mohamed Zaini Mazlan, who was promoted to the Court of Appeal.
During the proceedings, deputy public prosecutor Mohd Ashrof Adrin Kamarul said both parties had previously informed the court that the trial should be postponed as a decision on Najib's application for a review of his RM42 million SRC International case at the Federal Court had not yet been made.
"The date of the review decision has not yet been decided, and it (the date) will be notified by the Federal Court Registrar soon. Both the prosecution and the defence would like to request that the date for the management of this case be fixed in May," he said.
Lawyer Alaistair Brandah Norman, representing Najib, agreed. Muniandy then set May 29 for case management. On Feb 3, 2019, Najib claimed trial to three charges of laundering money by accepting proceeds from illegal activities amounting to RM27 million through his three AmPrivate Banking accounts.
He allegedly committed the offences at AmIslamic Bank, Ambank Group Building, No. 55, Jalan Raja Chulan on July 8, 2014, under Section 4 (1) (a) of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001.
He faces a maximum fine of RM5 million, imprisonment of up to five years, or both, upon conviction.
Najib began serving a 12-year jail sentence at Kajang Prison after the Federal Court, on Aug 23, 2022, upheld his conviction, jail term and fine of RM210 million after finding him guilty of misappropriating SRC International funds amounting to RM42 million.
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Anti-Money Laundering (AML) is a set of policies, procedures, and technologies that prevents money laundering. There are three major steps in money laundering (placement, layering, and integration), and various controls are put in place to monitor suspicious activity that could be involved in money laundering.
Essay on money laundering Money laundering is the routing of illegal profits from bank to bank to disguise its existence. The illegal profits are usually made through activities such as drug trafficking, prostitution rings, illegal arms sales, and various other things.
Money Laundering: Most Effective Combat Strategies Essay Exclusively available on IvyPanda Updated: Aug 20th, 2019 Money laundering refers to acts, whereby, criminals mask the nature of their illegal activities, sources of their finances, and proceeds of their activities.
Traditionally, money laundering has been regarded as "a process by which criminals attempt to hide the origins and ownership of the proceeds of their criminal activities" (Hopton, 2009, p. 1). The aforementioned definition presents an objective that will allow criminals to retain control of the proceeds by means of covering their income and wealth.
Money laundering allows criminals to enjoy these illegal proceeds without law enforcement noticing. Money laundering can be used in drug trafficking, terrorism financing, or tax evasion. Obviously selling drugs is illegal. The drug industry is known to turn out a pretty hefty profit.
Establishment of a more formal and stricter Anti- Money Laundering Policy can be done. Moreover, everyone must have sufficient knowledge about the different money laundering schemes that may happen. ... Money Laundering Essay: Issues And Solutions [Internet]. Edubirdie. 2022 Feb 21 [cited 2023 Mar 1]. Available from: https://edubirdie.com ...
Analysis of Anti-Money Laundering Strategies. Money-laundering has been a significant problem for Canada because such a practice enables and facilitates many criminal activities such as drug trade, fraud or even global terrorism. It should be noted that many financial institutions of the country are engaged in the transactions that enable ...
Essays on Money Laundering. Essay examples. Essay topics. What Do We Know About Money Laundering . 3008 words | 7 Pages . ... Tax evasions and Money Laundering have always been perceived and widely believed to be the demise of all economies. Tax havens on the other hand are considered by many as tax shelters for tax evaders and money launderers.
This motive the needs for intelligent system (Anti Money Laundering) to learned and help Financial Institutions to fight money laundering in a diversity way such as intelligent filtering of bank operations, intelligent analysis of suspicious activity trained and learned new objectives and rules that restricts, stop and identify the suspicious …
Anti Money Laundering (AML) Training - Essay Sample. AML training is essential to the operation of regulated financial services firms in that it familiarizes employees with the legislative and compliance information necessary to stay abreast of current developments in the field and best practices. In the current global financial environment ...
1. New technologies. Recommendation E: Advance Regulatory Innovations of the Notice states that the Anti-Money Laundering (AML) regime should " promote the use of responsible innovations to ...
Money laundering is the central pivot of many serious offences. Hacking systems or laundering money has become a great profession of people where they take advantage of different financial...
The Money Laundering and Terrorist Financing Regulations 2019 All of the above-mentioned conventions, legislations, and acts have either identified gaps or introduced robust guidance regularly over the years, making it a requirement to reasonably identify and report an offence of Money Laundering (ML).
Money laundering, as defined by Bartlett (2002), is the set of activities through which criminals generate profit by disguising the origin of the profit as a legal origin rather than an illegal one.
Anti-money laundering (AML) is the broad category of the laws, rules and procedures aimed at deterring money laundering, while customer due diligence (CDD) describes the scrutiny financial...
December 12, 2022. The Senate has blocked a critical bill to curb financial crime and corruption in the United States, a setback for what advocates have called the most significant reform to the country's anti-money laundering laws in 20 years. The Enablers Act would for the first time require trust companies, lawyers, art dealers and others ...
the banking sector is often the focal point for anti-money laundering initiatives. In this paper, we define the money laundering phenomenon, pointing out the demand side characteristics. Then, it is proposed a survey of some money laundering techinques and it is provided a quantitative analysis of the phenomenon.
In other words, the source of illegally obtained funds is obscured through a succession of transfers and deals in order that those same funds can eventually be made to appear as legitimate income.The term money laundering is said to come from the mafia in the 20 s and 30 s. Gangsters at that time, such as Al Capone were profiting from illegal ...
Anti-Money Laundering Money laundering is one of today's widespread financial frauds that are met in all the parts of the world. It is a practice of disguising and changing origins of money that were obtained illegally. In this way, the proceeds of crime appear legitimate.
Major anti-money-laundering reform passes US House. The Enablers Act, included in the annual defense bill, was first proposed shortly after ICIJ's Pandora Papers investigation exposed widespread exploitation of lax financial disclosure rules in the U.S. A major overhaul of America's anti-money laundering laws is another step closer, after ...
Example essay. Last modified: 25th Jun 2019. Money Laundering and Corporate Crimes. The comparison of regulatory regimes for Money Laundering and Corporate Crimes is an interesting one given that, first of all, the former is a crime committed by a natural person and the latter encompasses an umbrella of crimes committable by the corporate ...
View Essay - Money Laundering from BUSINESS A BBM/139/11 at University of Kabianga. ANTI MONEY LAUNDERING 1 Money Laundering Name: Course Title: Instructors Name: Date: ANTI MONEY LAUNDERING 2 Money ... ANTI MONEY LAUNDERING 3 financing of the terrorism where security guards in the borders are paid a lot of cash to allow the transaction by the ...
What's the definition of Anti money laundering in thesaurus? Most related words/phrases with sentence examples define Anti money laundering meaning and usage.
He allegedly committed the offences at AmIslamic Bank, Ambank Group Building, No. 55, Jalan Raja Chulan on July 8, 2014, under Section 4 (1) (a) of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001. He faces a maximum fine of RM5 million, imprisonment of up to five years, or both, upon conviction.