- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2024-01-10T17:48:00
Fraud remains the leading form of identity-related suspicious activity cited in Bank Secrecy Act (BSA) reports by a large margin, while technologies enable greater overall risks around exploitation, according to new research from the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
FinCEN’s latest “Financial Trend Analysis,” published Tuesday, reviews data from BSA reports filed in calendar year 2021. The agency identified at least 14 typologies that bad actors use to exploit the validation, verification, and authentication processes at financial institutions.
Of the approximately 1.6 million identity-related BSA reports FinCEN analyzed, general fraud was the most frequently reported suspicious activity at 1.2 million instances. Behind it was false records (423,000 reports), followed by identity theft (222,000), third-party money laundering (154,000), and circumventing standard processes (110,000).
THIS IS MEMBERS-ONLY CONTENT. To continue reading, choose one of the options below.
News and analysis for the well-informed compliance or audit exec.
Annual Membership best value
Subscribe now for $365
Our lowest price ($1 per day) for one year.
The Financial Crimes Enforcement Network issued a notice of proposed rulemaking that would require the handlers of all-cash residential real estate transactions in all U.S. cities and counties to disclose the beneficial owners.
Al-Huda Bank faces severance from the U.S. financial system for being a conduit of terrorist financing, according to the Financial Crimes Enforcement Network, while its owner, Hamad al-Moussawi, was sanctioned by the Office of Foreign Assets Control.
A survey of financial crime professionals found that while three of every four companies added more anti-money laundering employees in 2023, nearly all respondents said growing their department’s headcount alone won’t keep up with emerging risks.
A Bank of England report warned of private equity risk management deficiencies as interest rates remain stagnant, with international coordination important.
Compliance departments at financial institutions must become more involved in ensuring their firm’s operational resiliency to address emerging risks, the Treasury Department’s Office of the Comptroller of the Currency said in its semi-annual risk perspective.
Compliance has been “sleeping on” artificial intelligence, two panelists discussed at Compliance Week’s Women in Compliance Summit. The profession should be positioned to lead on AI governance at the business level.
