Can you describe what methods criminals typically use to launder money through the financial system? Money laundering is usually described as a three-phase process: placement, layering, and integration. Criminals who make cash from drugs, robberies, or other types of crime will try to get rid of the cash by putting it in the banking system (placement). They will send the money through various transactions within the financial system to disguise the initial placement (layering). Then, they will try to take that money at the end of the process and merge it into their assets (integration). The criminals then get the integrated assets and break the link with their original crime. Here is an example: In many countries, when you deposit $10,000 in cash, the bank will have to report it. So the criminal will deposit separate amounts of $9,000 each in different branches of the bank (placement). The money goes into the criminal’s account, mixes with their own money, and goes through … [Read more...] about Fighting money laundering with tech
Whats money laundering
Business Beat (13-06-2005) Govt attempts to curb money laundering by Nguyen Van Cam After three years of working on a draft, the Government finally introduced the first regulations on prevention of money laundering. Decree 74/CP requires that banks and other financial institutions report daily transactions of individuals or organisations involving VND200 million (US$12,650) and over to the central agency in charge of fighting money laundering. The regulation also lists other suspicious activities that could be involved in money laundering. Banks must also make reports about any clients having savings deposits of VND500 million ($31,650) and over. The deposits can be from several separate accounts bearing the name of the same depositor. Since the regulation has just been announced, bankers said they would have to study it more carefully before gauging its impact on deposits made beginning on August 1, the date when the new decree takes effect. If they are not careful, clients will shift … [Read more...] about Govt attempts to curb money laundering
Earlier, the National Assembly focused on economic restructuring which is considered an urgent task. Nguyen Duc Kien, Vice Chairman of the National Assembly Economic Committee, said there is a need to work out specific plans for financial market restructuring. Mr. Kien said of the Government’s 1.4 billion USD package to support enterprises, the key will be distributing and using this fund effectively: "We will support enterprises but not by every means. The State will promulgate a policy for applying the fund. Meanwhile, enterprises themselves must reform their operation and restructure their production with State support". During the afternoon, the NA debated the draft law to combat money laundering, which deals with the detection, prevention and the arrest and punishment of offenders, international cooperation to prevent money laundering and supporting terrors. Many deputies stressed on the urgent need to issue a law to combat money laundering. Some said that a clearer … [Read more...] about NA discusses draft laws on harmful effects of tobacco, money laundering (VOVworld) – National Assembly deputies today continued their discussion of a draft law on countering the harmful effects of tobacco at the ongoing third session of the 13th National Assembly. Most agreed that it is essential to establish a fund to mitigate tobacco’s effects, to define the responsibilities of tobacco companies and tobacco users, and to broaden the fight against tobacco.
These are unsettling times for digital currency businesses and the venture capitalists backing them. On Tuesday, the authorities in Spain, Costa Rica and New York arrested five people at the digital currency firm Liberty Reserve, including its founder Arthur Budovsky, and seized related bank accounts and Internet domains. It was a further wake-up call for those involved in digital currencies, such as the most prominent, Bitcoin, that they need to comply with anti-money laundering rules or risk facing a crackdown. They had already been put on notice - first by an April 2012 report from the U.S. Federal Bureau of Investigation that explained how Bitcoin was being used by criminals to secretly transfer money around the world, and then this March by the U.S. Treasury Department. Its anti-money laundering arm, the Financial Crimes and Enforcement Network (FinCEN) stated that digital currency firms needed to comply with the same anti-money laundering rules as other financial institutions, … [Read more...] about Digital currency firms rush to adopt anti-money laundering rules
HSBC said Tuesday that it had agreed to pay US authorities a record $1.92 billion to settle allegations of money laundering as part of a deal that would ensure the bank will not prosecuted provided it strengthens internal controls. In this July 30, 2012 photo people walk past a logo of HSBC at the bank’s headquarters in Hong Kong. Photo by AP. Banking giant HSBC said Tuesday that it had agreed to pay US authorities a record $1.92 billion to settle US money laundering accusations. The investigation into Europe’s largest bank had focused on the transfer of billions of dollars on behalf of nations such as Iran and the transfer of money from Mexican drug cartels. A US law enforcement official said Monday that HSBC would pay $1.25 billion in forfeiture and pay $655 million in civil penalties. The $1.25 billion figure is the largest forfeiture ever in a case involving a bank. Under what is known as a deferred prosecution agreement, the financial institution will be … [Read more...] about HSBC to pay $1.92 billion in US money laundering case