Difference between revisions of "AML"

Revision as of 18:26, 9 January 2024

Full Title or Meme

Anti-Money Laundering Rules as established first in the US and then in international banking.

Context

Banks handle people's money with more or less discretion.

Taxonomy

• AML/CFT = anti-money laundering and countering the financing of terrorism
• Customer Due Diligence (CDD) Final Rule which seems to be an attempt to block some workarounds to AML. These are the goals of CDD:

1. identify and verify the identity of customers,
2. identify and verify the identity of the beneficial owners of companies opening accounts,
3. understand the nature and purpose of customer relationships to develop customer risk profiles,
4. conduct ongoing monitoring to identify and report suspicious transactions and, on a risk basis, to maintain and update customer information.

Financial Institutions

The following institutions are recognized by the US Financial Crimes Enforcement Network (FinCEN) as needing to comply:

• Casinos (betting parlors, sports book)
• Depository Institutions (Banks, thrifts)
• Insurance Industry (health, life, annuities, property, casualty)
• Money Services Businesses (Transmittals, Pay Day Loans)
• Mortgage Co/Broker (real-estate)
• Precious Metals/Jewelry Industry (bars, coins, bling)
• Securities and Futures (seems like blockchain has been added in here - think ICO = Initial Coin Offering)

Problems

Follow the money and you will find the crooks.

Solutions

• FinCEN Issues Analysis of Identity-Related Suspicious Activity for 2021 issued on 2024-01-09
• FinCEN Issues First National AML/CFT Priorities and Accompanying Statements 2021-06-30

References