The critical role of bank compliance officers in revealing money laundering operations

Money is “laundered” to hide illegal activity including crimes that generate the money itself such as drug trafficking. Money laundering which is rising significantly in U.S. financial institutions conceals the source of the illegal proceeds so that the money can be used without detection. Financial institutions including the money services businesses and major banks are the targets of major money-laundering operations. The Financial Crimes Enforcement Network is a bureau within the U.S. Department of Treasury and issues regulations pursuant to the Bank Secrecy Act. Here is a summary of certain BSA regulations:\

  • A business is a Money Services Business solely because it serves as an agent of another MSB;
  • A Suspicious Activity Report (SAB) is required if MSBs are serving as money transmitters; currency dealers or exchangers; issuers, sellers, or redeemers of money orders; issuers or redeemers of traveler’s checks;
  • All MSBs are required to develop and implement an AML compliance program;
  • Each program must be commensurate with the risks posed by the location, size, and nature of the volume of financial services provided by the MSB;
  • The program must be in writing and provide training and education of appropriate personnel;
  • Suspicious activity reports must be filed when MSBs suspect that potentially illegal activity has occurred and the relevant reporting threshold has been

JEFFREY NEWMAN, A FORMER PROSECUTOR IS NOW A WHISTLEBLOWER LAWYER WITH THE FIRM NEWMAN & SHAPIRO WHICH HANDLES MAJOR MONEY LAUNDERING WHISTLEBLOWER CASES UNDER THE BANK SECRECY ACT. IF YOU ARE AWARE OF SIGNIFICANT MONEY LAUNDERING OR WISH MORE INFORMATION ABOUT IT, CONTACT ATTORNEY NEWMAN AT 617-823-3217 OR AT JNEWMAN@NEWMANSHAPIRO.COM