5 ways to identify suspicious activity with safe deposit boxes
Swiss banks are synonymous with anonymity. But the threats of money laundering and terrorist financing are enough to force some banking changes — particularly when it comes to safe deposit boxes.
Recently, India and Switzerland have been working closely together to identify Indians who have potentially been stashing illicit money in Swiss safe deposit boxes. Switzerland has already disclosed account information at the request of the Indian government, an action that would not have taken place 20 years ago. But the Swiss government also issued assurances that its safe deposit box regulations are sufficient to deal with increased money laundering risks at this time.
Just how popular are safe deposit boxes today? Click here to read the rest of this story. . .
Two Secret Service agents, both of whom were members of the Baltimore Silk Road Task Force charged with breaking Silk Road’s ring of illegal online activity (primarily drug sales), have pled guilty to money laundering and other charges. Shaun Bridges was sentenced on December 7 to 71 months behind bars, and ordered to forfeit $651,000 of the $820,000 he reportedly stole and laundered. Bridges’ colleague, Carl Force, was convicted of a similar crime last October, sentenced to six and a half years in prison and ordered to pay $340,000 in compensation.
Two members of a task force ordered to bring down an online black market, become criminals themselves; how does this happen? To read the rest of this story, please click here.
When you think of financial fraud, you might envision money laundering activities conducted by members of organized crime syndicates. Or you might think of how a stolen identity helped thieves take your money or leverage your credit cards. In truth, the laws intended to help financial institutions thwart financial fraud are broad enough to cover these acts and much more involving everyday criminals — some who are not so smart, and some who are so sophisticated that it takes time to bring them down.
Last month, a used car dealer in Florida pled guilty to bank fraud for a check kiting scheme that defrauded an unnamed financial institution of over $1 million. The crime happened in 2011, and I’m willing to bet that the bank’s Know Your Customer (KYC) policies and its internal processes for approving check drafts against uncollected funds have since been tightened.
Also this past month, a woman who embezzled money in 2014 from her employer was convicted. . . to read the rest of the article, please click here.
I talk a lot about money laundering, but exactly what is it and how did it become a popular topic of conversation?
According to the U.S. Treasury, money laundering is simply how someone or some organization makes illegally-gained proceeds, or dirty money, clean. Typically, it involves three steps — placement, layering and integration — so that illegitimate funds can become part of the legitimate financial system.
As an illegal activity, it’s been going on for several thousand years; for example, we know that Chinese merchants were hiding their wealth from rulers as early as 2,000 BC. They would either move it, invest it in remote provinces (or outside of China) or bury it.
Fast forward to today, and. . .to read the rest of this article, please click here.
5 things you need to know about the fourth anti-money laundering directive underway in the European Union.
It isn’t always easy to get multiple stakeholders to agree to change. But after much discussion (and some bickering), the European Union finally passed the Fourth Anti-Money Laundering Directive earlier this year. Financial institutions operating in an EU member state have until 2017 to meet the new reporting and disclosure requirements aimed at disrupting terrorist financing, corruption and money laundering. And in just a few months, financial institutions need new account onboarding procedures put into place no later than January 1, 2016.
In a nutshell, here’s what you need to know:
- The entire gambling spectrum is now subject to these regulations, not just casinos.
- Enhanced customer due diligence is required.
- The cash payment threshold was lowered to €7500.
- Click here to read the rest of this post on Medium.com.