Banks can gain intelligence about suspected money laundering by sharing information with regulators and each other, whether about general trends they have spotted or irregularities in individual accounts. The latter is not always possible due to data protection regulations, but some regulators have recent...
The FATF is an intergovernmental body that devises and promotes the adoption of international standards to prevent money laundering. In October 2001, following the 9/11 terrorist attacks, FATF’s mandate grew to combat terrorist financing.
Anti-Money Laundering (AML) is a framework of legal and regulatory controls designed to prevent money laundering. Money laundering is the process of converting illegal proceeds into a legitimate form. This can involve a complex sequence of banking transfers or commercial transactions that obscure the...
For example, the European Union has the Directives on Money Laundering, which requires financial institutions to take measures to prevent money laundering, including customer due diligence and reporting of suspicious activity. Understanding Anti-Money Laundering (AML) It is important to understand that ...
So the next question is: What are authorities doing to prevent money laundering? Currency of Choice For decades, the U.S. dollar has been the most popular currency for launders to use. Its popularity is due to its wide acceptance and the volume of worldwide transactions that use the curren...
Smurfing involves depositing illegally gained money into multiple bank accounts for under-the-radar transfer in the near future. To prevent money laundering by criminals involved in illegal activities, such as drugs and extortion, countries such as the United States and Canada require acurrency transa...
Anti-money laundering is a serious issue in all industries. Read here why proper training and new technology can combat money laundering.
In 1990, the organization published a set of 40 recommendations that are widely considered to set the global standard for effective reforms. The recommendations covered changes countries could make to their laws, enforcement mechanisms and investigative practices to prevent money laundering within their ...
According to the Financial Action Task Force (FATF), an inter-governmental body that sets international standards that aim to prevent money laundering and terrorist financing, specific typologies for money laundering include criminals purchasing life insurance policies using illicitly obtained funds and ...
The scheme was coined by Chuck Saphos who said that people hired to make small denomination bank deposits reminded him of the Smurf cartoon characters. According to the author, banks can track and prevent money laundering using transaction monitoring systems, current technology solutions and employee...