MONEY LAUNDERING

• Can we stop it?

• And its effects on world economy..

General Methods and Techniques of Money Laundering

• Smurfing

• Structuring

• Currency Smuggling 

• Cash Conversion

• Cash Intensive Bussinesses

• Shell Companies

• Casinos

The Financial Action Task Force on Money Laundering (FATF)

is an important inter-governmental body that develops and promotes policies to combat money laundering. It focuses on: • Spreading the anti-money laundering message to all continents and regions of the globe. • Monitoring the implementation of its Forty Recommendations. • Reviewing and publishing money laundering trends and countermeasures (“typologies exercise”).

PRINCIBLES AND CONTROL MEASURES AT COMBATING MONEY LAUNDERING

Know Your Customer

Record Keeping

Reporting Information

Respond to Information Requests

FOLLOWING ARE DESCRIPTIONS OF THESE LEGISLATIVE MEASURES.

The Bank Secrecy Act (BSA)

The Money Laundering Control Act of 1986

The Anti-Drug Abuse Act of 1988

Section 2532 of the Crime Control Act of 1990

Section 206 of The Federal Deposit Insurance Corporation Improvement Act (FDICIA) of 1991

The Annunzio-Wylie Anti-Money Laundering Act of 1992

The Money Laundering Suppression Act of 1994

Money Laundering and Financial Crimes Strategy Act of 1998

The Financial Action Task Force on Money Laundering (FATF) is an important inter-governmental body that develops and promotes policies to combat money laundering. It focuses on:

Spreading the anti-money laundering message to all continents and regions of the globe.

Monitoring the implementation of its Forty Recommendations.

Reviewing and publishing money laundering trends and countermeasures (“typologies exercise”).

ESTABLISH AN EFFECTIVE SUSPICIOUS ACTIVITY

MONITORING AND REPORTING PROCESS

Involves funds from illegal activities or is conducted to hide illicit funds or assets in a plan to violate or evade any law or regulation or to avoid transaction reporting requirements under federal law. 12 What Bankers Can Do

Is designed to evade any of the BSA regulations.

Has no business or apparent lawful purpose or is not the sort in which the customer would normally be expected to engage, and the bank knows of no reasonable explanation for the transaction after examining available facts, including the background and transaction purpose.

Wire Transfer/International Correspondent Banking

Private Banking Relationships

Electronic Banking

Develop Risk-Based Anti-Money Laundering Programs

High-Risk Products and Services