Money laundering has been rising globally despite the growing laws and regulations and clamping down from enforcement agencies. The annual laundered sum is a staggering 2-5% of global GDP ($800 billion – $ 2 trillion) as per the UNODC estimate. While money laundering techniques grow more obscure, their exploitation of fiat and virtual currencies continues to …
FATF Red Flags for Money Laundering and Terrorist Financing Read More »
Financial Crime Compliance (FCC) is a process to ensure your bank or financial institution is meeting the policies, standards, and regulations laid by the Financial Crimes Enforcement Network (FinCEN) of the United States Treasury Department. Meeting financial crime compliance is a legal requirement for banks and financial institutions to combat the various financial crime risks …
The Financial Crimes Enforcement Network anti-money laundering whistleblower program was enacted on Jan 1, 2021. The program was created to receive information and tips related to the violations of the anti-money laundering laws, including, Inadequate or weak Know Your Customer (KYC) verification and Customer Due Diligence (CDD) processes Failure to report or file suspicious transactions …
FinCEN Strengthens the AML Whistleblower Program Read More »
Anti-money laundering or AML in banking and finance refers to the legal obligations, set of rules, procedures, and regulations to prevent and counter money laundering. Financial institutions need to implement dedicated frameworks and systems to monitor and report fraudulent activities to safeguard themselves from compliance risks and fulfill regulatory obligations. For instance, banks need to …
Guide to Anti-Money Laundering in Banking and Finance Read More »
Adopting a “risk-based approach” or RBA is crucial for financial institutions to meet compliance with anti-money laundering (AML) regulations. The Financial Action Task Force (FATF) maintains specific guidance for a risk-based approach in the banking sector, which states that “The risk-based approach (RBA) is central to the effective implementation of the revised FATF International Standards …
FATF Risk-Based Approach to Managing Financial Crime Compliance – Guidance for Banks Read More »
Automated Clearing House (ACH) frauds are among the most common financial crimes involving the illicit siphoning of money from one account to another. Financial institutions rely on the ACH network for transactions involving direct deposits, checks, cash transfers, and billing, underlining the prevalence of automated clearing. Therefore, the risk occurrences and monetary implications are growing …
The Bank Secrecy Act (BSA) obligates financial institutions to follow a stringent transaction monitoring process to track/monitor, investigate, and report suspicious transactions to U.S. government agencies. According to OCC, these obligations comprise imperatives such as monitoring cash purchases, reporting daily aggregated cash transactions in access of $10000, and reporting activities that might indicate money laundering. …
The High Costs of AML Transaction Monitoring: Can Machine Learning Help? Read More »
Money Laundering is a persistent problem globally. As per UNODC, 2-5% of global GDP ($800 billion – $2 trillion) is the estimated amount of money laundered in a year. The vast umbrella of Anti-Money Laundering (AML) Compliance obligates financial institutions to deter any potential money laundering activity, primarily through proactive tracking and reporting of suspicious …
Anti-Money Laundering Compliance – Checklist and Best Practices Read More »
Financial crimes have been a growing problem for banks and other financial institutions. Offenses like money laundering have drawn increased regulatory attention over the years. As a result, due diligence efforts like KYC processes and tracking and reporting suspicious transactions have become critical to combating financial crimes and meeting compliance. The high costs of meeting …
Why Adopt Robotic Process Automation to Fight Financial Crimes (5 Benefits) Read More »
The onset of the pandemic saw a humongous increase in the number of financial crimes all around the world. According to PwC’s Global Economic Crime and Fraud Survey 2022, 46% of the organizations admitted to experiencing fraud or other financial crimes in the past two years. In the year 2019, banks had to pay $10 billion …
Managing Financial Frauds with Intelligent Digital Solutions Read More »