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IdentityMind Presents: Anti-Money Laundering

IdentityMind’s SuperiorAML solution includes Trusted Digital Identities, transaction monitoring, rules, case management, rules and alerts. IdentityMind increases both speed and accuracy of compliance and risk management.  While a fully manual AML process can be highly resource intensive with varying quality across individual analysts, ldentityMind delivers automated transaction monitoring that is fast and consistent across any volume. Rules can be set to automatically approve some transactions, decline others, and flag yet others for manual review as needed.

At the heart of our SuperiorAML solution is a SaaS platform that securely tracks the entities involved in each transaction (e.g. consumers, merchants, cardholders, payment wallets, alternative payment methods) to build identities with verified reputations.  These reputations, along with IdentityMind’s powerful automation capabilities, allow companies to easily and quickly identify and reduce potential fraud, to onboard accounts, to perform KYC, and identify and to report suspicious activity for money laundering.  

White Paper

KYC Fundamentals Guide

Sponsored by IdentityMind | July 10, 2017

An essential guide to getting to know your customer (KYC).

White Paper

Digital Identity Evaluation Guide

Sponsored by IdentityMind | July 10, 2017

This guide provides a framework that will help you think through your strategy with a focus on the functionality and technology that can help you achieve the right acquisition, risk and compliance balance.

White Paper

Best Practices for Mitigating Fraud in the Onboarding Process

Sponsored by IdentityMind | July 10, 2017

IdentityMind created this Best Practice report for online lending executives looking for ways to integrate strong identity verification into the loan origination and customer onboarding process.

White Paper

Balancing Risk Management & The Mobile User Experience

Sponsored by IdentityMind | July 10, 2017

This guide provides ideas on how to combat fraud while maintaining an inviting user experience.

News Article

U.K. FCA issues strong new financial crime reporting rules

Neil Hodge | September 13, 2016

Taking issue with numerous reports that London is an ideal environment for money laundering and other financial crimes, the city is fighting back, writes Neil Hodge.

The Filing Cabinet Blog

FinCEN wants to extend AML programs to all banks

Joe Mont | August 25, 2016

Banks lacking a Federal functional regulator have been hit with proposed rules by the Treasury Department’s Financial Crimes Enforcement Network that would require them to implement anti-money laundering programs. Joe Mont has more.

The Filing Cabinet Blog

Poll: Panama Papers will cause financial crime enforcement to spike

Jaclyn Jaeger | August 25, 2016

As the Panama Papers saga continues to unfold, global enforcement of financial crimes are expected to spike over the next year, according to a recent poll conducted by Deloitte Advisory. Jaclyn Jaeger reports.


e-Book: The Challenges of Fighting Money Laundering

Sponsored by Pitney Bowes | June 30, 2016

In this e-Book, produced by Compliance Week in cooperation with Pitney Bowes, we explore this evolving AML regulatory and enforcement landscape, as well as how to reduce AML risk. We also take a look at how Pitney Bowes Entity Resolution for Financial Crimes and Compliance software is aiding in the fight against money laundering to improve bank compliance.

Enforcement Action Blog

Mega Bank fined $180 million for AML violations

Jaclyn Jaeger | August 23, 2016

The New York Department of Financial Services has ordered Mega International Commercial Bank of Taiwan to pay a $180 million penalty and install an independent monitor for violating New York’s anti-money laundering laws. Jaclyn Jaeger reports.

The Big Picture Blog

It’s time for a risk-based approach to KYC

Neil Jeans | August 16, 2016

One size definitely does not fit all when it comes to managing know-your-customer and anti-money laundering exposures, but a risk-based approach to these challenges still poses a complex solution that requires time, energy, and dedication, writes Neil Jeans.

The Man From FCPA Blog

AML due diligence for non-financial institutions

Tom Fox | August 8, 2016

What does the 1MDB scandal portend for non-financial companies and anti-money laundering compliance? Plenty, especially if they haven't reviewed their AML policies and procedures in the last 12 months. Tom Fox reports.

Global Glimpses Blog

Basel Index finds slippage in AML efforts

Joe Mont | August 3, 2016

The Basel Committee on Banking Supervision, an international consortium that develops banking standards, has issued its “Basel AML Index,” an annual ranking of country risk regarding money laundering and terrorism financing. The overall conclusion this year, says Joe Mont: A majority of countries fall short in the effective implementation and enforcement of AML laws.

News Article

Artifacts and artwork can collect trouble

Joe Mont | July 11, 2017

Craft supply giant Hobby Lobby is in hot water for illegally importing historical artifacts. Other collections, including artwork, can also be a big problem for unsuspecting firms.

The Man From FCPA Blog

Your business is being sold; what is your compliance response?

Tom Fox | June 19, 2017

Tom Fox takes a closer look at the continuing saga of the 1 MDB scandal involving the Malaysian sovereign wealth fund and the need to have robust corporate compliance around all parties.

The Man From FCPA Blog

A new chapter in anti-corruption enforcement?

Tom Fox | June 19, 2017

Jorge Luis Arzuaga, a former managing director at the Swiss bank Julius Baer, pled guilty to having arranged the transfers of more than $25 million in bribes for corrupt FIFA officials. This is the first guilty plea in the plethora of service provides who facilitated the massive corruption scandal engaged in by FIFA officials.

Enforcement Action Blog

SEC slams CCO for anti-money laundering violations

Joe Mont | June 16, 2017

The SEC has once again punished a CCO for neglecting their duties and ignoring red flags at a firm under investigation for suspect activities. Failing to file suspicious activity reports was at the root of the problem.

Enforcement Action Blog

SEC charges brokerage firm with AML failures

Joe Mont | June 12, 2017

The SEC has charged a Utah-based brokerage because it "routinely and systematically failed to file Suspicious Activity reports for stock transactions that it flagged as suspicious."

GRC Announcements Blog

CCO Checkup helps financial firms test AML program effectiveness

GRC Announcements | June 12, 2017

QuantaVerse recently announced the launch of CCO Checkup, a free service financial institutions can use to test the effectiveness of their AML programs, empowered by  QuantaVerse’s AI solution that analyzes transaction data to detect “false negatives” or anomalous behaviors that may have been missed by an institution’s existing transaction monitoring system.

Enforcement Action Blog

Banamex USA to forfeit $97M for Bank Secrecy Act violations

Jaclyn Jaeger | May 30, 2017

Total combined penalties paid by Banamex USA following criminal and regulatory investigations for violations of the Bank Secrecy Act and anti-money laundering laws and regulations reached $237.4 million this month.

News Article

Compliance, data sharing empower FinCEN war on terror and crime

Joe Mont | May 9, 2017

Addressing Congress, FinCEN Acting Director Jamal El-Hindi discussed how his agency prevents bad actors from infiltrating the financial system.

The Man From FCPA Blog

Corporations and the financing of terrorism

Tom Fox | April 24, 2017

The recent case of LafargeHolcim’s involvement in keeping a cement facility in Syria safe and operational during civil war has raised questions regarding a company’s responsibilities for ensuring monies it pays out do not go to fund terrorism.

The Man From FCPA Blog

Acquisitions, data privacy, and national security concerns

Tom Fox | April 6, 2017

The attempted takeover of the U.S. company MoneyGram International Inc. by China-based Ant Financial Services raises regulatory concerns and questions.

What is money laundering? 

Money laundering is a criminal process in which illegally-gained revenue is made to appear legitimate through a number of transactions within the legitimate financial system. In this manner, so-called “dirty” money is made to appear “clean,” by obfuscating its origin.

Money laundering is often conflated with terrorism financing, since the methods used to channel funds into terrorist networks often make use of money laundering to do it.

How does money laundering work? 

First, money is secretly introduced into the legitimate financial system. There are many methods for this, such as use of cash-intensive businesses to make the funds look like they are part of a legitimate cash flow, buying real estate, smuggling the cash in bulk to another jurisdiction and then introducing it into the financial system there as legitimate funds, use of money services businesses such as check cashers or stored value cards, or running the money through various shell companies and trusts to obscure its origin and owner.

Then, the money is often transferred between multiple owners to further confuse its sense of origin and ownership. 

Finally, once the money is considered to be “clean,” it is transferred into the legitimate financial system as ordinary currency that no longer has an obvious connection to criminal activity. Once illegal proceeds no longer have a clear trail connecting them to their point of origin, the money is considered to have been fully laundered.

How do you report money laundering? 

While anti money laundering regulations vary, financial institutions are generally expected to file a Suspicious Activity Report (SAR) to government authorities, typically within 30 days of detecting any signs of potential money laundering activity, such as cash transactions over $10,000.

In the United States, financial institutions such as banks must use the Bank Secrecy Act BSA E-Filing System to submit an SAR. Futures commission merchants (FCMs) and introducing brokers (IBs) must use Form 101, Suspicious Activity Report by the Securities and Futures Industries (SAR-SF). Commodity pool operators (CPOs) and commodity trading advisors (CTAs) are not yet required to file SARs, but are encouraged to do so voluntarily, also using the SAR-SF.

The United Kingdom suggests SARs be reported through the SAR Online system, which provides instant acknowledgement of the report, as well as a reference number. SARs in the UK are overseen by the National Crime Agency.

What is AML?

Anti money laundering, or AML, are those rules, policies and procedures established by government regulators and enforcement agencies, to prevent the activities and financial transactions that are meant to hide the true origin of money (especially that which is generated illegally). Government agencies that oversee AML law typically also issue AML guidelines to aid with their compliance.

In the United States, the first AML regulations were codified by the Bank Secrecy Act of 1970, and have since been updated by other pieces of legislation, including:

  • the Money Laundering Control Act (1984)
  • the Anti-Drug Abuse Act of 1988
  • the Annunzio-Wylie Anti Money Laundering Act (1992),
  • the Money Laundering Suppression Act (1994),
  • the Money Laundering and Financial Crimes Strategy Act (1998),
  • the USA PATRIOT Act (2001)
  • the Intelligence Reform & Terrorism Prevention Act of 2004

The United Kingdom’s AML regime are codified by:

What is AML compliance? 

AML compliance programs are the formal set of internal policies, procedures, and controls that 1) oversee all internal monitoring for signs of money laundering activities, 2) report said activities, and 3) independently test those first two capabilities to ensure they are working properly. Many industries within the financial services sector are required to have a formal AML program, which must be in writing, and must include a formally designated compliance officer, ongoing employee training, and an independent audit function to test the program. 

In the United States, the Financial Industry Regulatory Authority—a self-regulatory organization, has also set forth minimum standards for AML compliance programs under FINRA Rule 3310

The USA PATRIOT Act amended the Bank Secrecy Act to require various financial institutions to formally adopt AML compliance programs. Similar laws mandate AML compliance programs for mutual funds; credit card companies; money service businesses; broker-dealers; insurance companies; and dealers in precious metals, stones, or jewels.