Sullivan Anti-Money Laundering in a Nutshell

Awareness and Compliance for Financial Personnel and Business Managers
1. ed
ISBN: 978-1-4302-6161-2
Verlag: Apress
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 190 Seiten

Anti–Money Laundering in a Nutshellis a concise, accessible, and practical guide to compliance with anti–money laundering law for financial professionals, corporate investigators, business managers, and all personnel of financial institutions who are required, under penalty of hefty fines, to get anti–money laundering training.Money laundering is endemic. As much as 5 percent of global GDP ($3.6 trillion) is laundered by criminals each year. It’s no wonder that every financial institution in the United States—including banks, credit card companies, insurers, securities brokerages, private funds, and money service businesses—must comply with complex examination, training, and reporting requirements mandated by a welter of federal anti–money laundering (AML) laws. Ignorance of crime is no excuse before the law. Financial institutions and businesses that unknowingly serve as conduits for money laundering are no less liable to prosecution and fines than those that condone or abet it.In Anti–Money Laundering in a Nutshell: Awareness and Compliance for Financial Personnel and Business Managers, Kevin Sullivan draws on a distinguished career as an AML agent and consultant to teach personnel in financial institutions what money laundering is, who does it, how they do it, how to prevent it, how to detect it, and how to report it in compliance with federal law. He traces the dynamic interplay among employees, regulatory examiners, compliance officers, fraud and forensic accountants and technologists, criminal investigators, and prosecutors in following up on reports, catching launderers, and protecting the integrity and reputations of financial institutions and businesses. In particular, corporate investigators will gain rich insights winnowed from the author's experiences as a New York State and federal investigator.

Kevin Sullivan is the director of the Anti–Money Laundering (AML) Training Academy, which provides AML, BSA, and compliance training, AML consulting, and AML independent reviews. He was the New York State money laundering investigations coordinator of the Immigration and Customs Enforcement (ICE) El Dorado Federal Task Force (NY/NJ HIFCA) in Manhattan. Sullivan’s responsibilities included case reverse-engineering, SAR review and analysis, and special projects developing intelligence on emerging money-laundering threats, trends, and patterns. He was first exposed to money laundering while a New York State Police investigator on an undercover narcotics detail. He was subsequently detailed to a money laundering and financial crimes unit of the FBI White Collar Crimes Task Force. Sullivan was a lead instructor for ICE’s Operation Cornerstone, which assisted financial institutions with their AML and BSA compliance programs and provided a liaison between private financial institutions and law enforcement. Sullivan holds a master’s degree in economic crime management from Utica College of Syracuse University and a certificate in executive management from Cornell University. He is a Certified Anti–Money Laundering Specialist, a founding member and past president of the NY Chapter of the Association of Certified Anti–Money Laundering Specialists (ACAMS), the Chairman of the ACAMS Education Task Force, and a member of the Association of Certified Fraud Experts. He is an adjunct professor at Utica College, an ACAMS instructor, a frequent speaker on AML at seminars, conferences, and webinars, and an expert commentator on money laundering in national magazines and television.

Autoren/Hrsg.

Sullivan, Kevin

Inhaltsverzeichnis

1;Contents;3
2;About the Author;189
3;Acknowledgments;190
4;Introduction;4
5;Chapter 1: What Is Money Laundering?;6
5.1; Turning “Bad” Money into “Legitimate” Money;7
5.2; Money Laundering All Around Us;9
5.3; How Money Is Laundered;10
5.4; Why AML Efforts Are Important;11
5.5; The Three Stages of Money Laundering;11
5.5.1; Placement;12
5.5.2; Layering;13
5.5.2.1;Why Layering Works;14
5.5.3; Integration;15
5.5.4; Putting It All Together for a Payday;15
5.6; Who Launders Money;16
5.7; Summary;18
6;Chapter 2: Methods of Money Laundering;19
6.1; Structuring;20
6.2; Bulk Cash Smuggling;21
6.2.1; Gold;21
6.3; Money Service Businesses;22
6.3.1; Money Orders;22
6.3.2; Money Service Business;23
6.3.3; Regulations Involving Money Service Businesses;23
6.4; Wire Transfers;23
6.4.1; How a Wire Works;25
6.5; Casinos;26
6.6; Trade-Based Money Laundering;27
6.6.1; Over- and Under-Invoicing of Goods;28
6.6.2; Black Market Peso Exchange;29
6.6.3; Underground Banking System (Hawala);29
6.7; Cyber Banking;31
6.7.1; Smart Cards;31
6.7.2; Internet;31
6.8; ATMs;32
6.8.1; Prepaid Cards;34
6.8.2; Autos;35
6.8.3; Correspondent Banking;36
6.8.4; Credit Cards;36
6.8.5; Real Estate;36
6.8.6; Cash-Intense Business;37
6.8.7; Insurance;38
6.8.8; Digital Currencies;38
6.9; Summary;39
7;Chapter 3: Federal Regulations;40
7.1; 1970: Bank Secrecy Act;41
7.1.1; What Constitutes a Financial Institution;41
7.1.2; Currency Transaction Report;41
7.1.2.1;Currency Transaction Exemptions;42
7.1.2.2;Why a CTR Is Important to Law Enforcement;42
7.1.2.3;United States to World Comparison: Currency Transaction Reporting;43
7.1.2.4; Form 8300;43
7.2; 1986: Money Laundering Control Act;43
7.3; 1990: FinCEN;44
7.4; 1992: Annunzio-Wylie Act;44
7.5; 1994: Money Laundering Suppression Act;45
7.6; 1998: Money Laundering and Financial Crimes Strategy Act;45
7.7; 2001: USA PATRIOT Act;46
7.8; Office of Foreign Assets and Control;49
7.9; Foreign Account Tax Compliance Act;49
7.10; Summary;50
8;Chapter 4: Building a Quality AML Program;51
8.1; Recommended Elements of a Quality AML Program;54
8.2; The Four Pillars;55
8.2.1; Internal Policies and Procedures;55
8.2.2; Designated Compliance Officer;57
8.2.3; Independent Audit Function;59
8.2.4; Training;60
8.3; Risk Management;61
8.4; Conducting Due Diligence;65
8.4.1; Customer Risk;65
8.4.2; Product and Service Risk;66
8.4.3; Geographic Risk;67
8.5; Common Program Deficiencies;67
8.6; Summary;69
9;Chapter 5: Know Your Customer and Customer Identification Program;70
9.1; Elements of a KYC Program;72
9.1.1; Customer Identification;72
9.1.2; Basic Customer Due Diligence;74
9.1.2.1;Beware Shell Companies;75
9.1.2.2;Identifying Customers Online;76
9.1.3; Monitor Transactions;76
9.2; The Diligences;77
9.2.1; Start with a Checklist;79
9.2.2; Beware of “Voo-Due” Diligence;83
9.2.3; When to Perform Due Diligence or Enhanced Due Diligence;84
9.3; The Investigative Mind-Set;85
9.3.1; Trust Your Gut;86
9.4; Perform Risk-Based Due Diligence;88
9.5; Sources of Intelligence;92
9.6; Other Special Considerations;97
9.6.1; Transaction Monitoring;97
9.6.2; Correspondent Banking - Know Your ­Correspondents;98
9.6.3; Politically Exposed Persons;99
9.7; Summary;100
10;Chapter 6: A SAR Is Born;102
10.1; The Back Story;103
10.1.1; Getting to Suspicious;104
10.1.2; Hidden Value of SARs;105
10.1.3; 30/60/90 Rule;106
10.1.4; Completing the SAR;106
10.2; Why Financial Institutions Need to File;111
10.3; What Happens After You File;111
10.3.1; Law Enforcement Contact;112
10.4; Suspicious Activity Report Statistics;113
10.5; Summary;115
11;Chapter 7: Tips for Law Enforcement and Financial Crimes Investigators;116
11.1; The “You Must Be An Accountant Theory”;117
11.2; What Do Bankers Do;119
11.3; What Regulators Do;119
11.3.1; Who Are the Regulators?;121
11.3.2; Getting in Touch with Regulators;121
11.4; SAR Power;122
11.5; Other Information Financial Institutions May Provide;124
11.6; Developing the Investigative Mind;127
11.6.1; Use Your Instincts;129
11.6.2; Tips for Developing the Investigative Mind;130
11.7; How I Got Here;132
11.8; Summary;135
12;Chapter 8: International Standards;137
12.1; Various Organizations That Create Guidelines;138
12.2; The Financial Action Task Force;138
12.3; Basel Committee on Banking Supervision;140
12.4; Wolfsberg;141
12.5; Egmont;142
12.6; European Union;143
12.7; International Monetary Fund;144
12.8; Transparency International;145
12.9; Economic Sanctions;145
12.10; USA PATRIOT ACT;148
12.10.1; Section 311;148
12.10.2; Section 312;149
12.10.3; Section 313;149
12.10.4; Section 319;149
12.11; Summary;150
13;Chapter 9: Fraud and Anti-money Laundering;151
13.1; Merging the Fraud and AML Units;153
13.2; Law Enforcement’s Role;154
13.3; A Suggestion for Dealing with Your Own Personnel;157
13.4; Types of Fraud;157
13.5; Summary;158
14;Appendix A: Money-Laundering Red Flags;159
15;Appendix B: Code of Federal Regulations Title 31 Section 103.18;170
16;Glossary;173
17;Index;179