USA Patriot Act.

UN Security Council Resolution on Correspondent Banking.

Basel Due Diligence Principles for Banks

FATF Guidance on Terrorist Financing

Protect the integrity of banking systems.

Protect the safety and soundness of banks

Meet European Union guidelines.

Mirror FATF’s KYC Recommendations

A specified unlawful activity that is committed through concentration accounts deceiving customers that are not directly related to the account.

Unlawful activity whose proceeds, if involved in the transaction, can give rise to prosecution for the crime of money laundering.

An interface which is the underlying segment of a suspicious transaction monitoring system

Lawful or unlawful activity that involves willful blindness, and if there is an international element to the crime, can lead to a suspicious activity report

That is the originator and the destination of most (but not all) transactions conducted within the account, but who does not ultimately control such funds

That has direct signatory authority over an account, and whose name appears on the account

That is ultimately entitled to the funds in the account, even though his name may not appear on the account.

That is a gatekeeper, has the legal title to the account, and typically transfers the funds to a trust.

The Organization must have an Appropriately Qualified Compliance Officer.

Leadership Should Be Engaged

Information Should Be Shared Throughout the Organization

Leadership and Staff Should Understand How Their BSA Reports are Used.

Indicate whether it is relevant that a predicate offense may have been committed outside the local jurisdiction.

Criminalize conspiracy or association to engage in money laundering

Do not limit the number of specific predicate offenses for money laundering

Require money laundering offenses to prove that the offender has actual knowledge of a criminal connection to the funds.

Repeats the definition of a politically exposed person in previous Directives.

Updates European Community legislation to be further in line with the Financial Action Task Force (FATF) 40 Recommendations

Requires firms to apply the customer due diligence requirements to existing customers at appropriate times on a risk sensitive basis.

Repeats the customer due diligence requirements of the previous Directives, but adds more detail to the requirements by, for example, including a specific requirement to identify the beneficial owner and includes ongoing monitoring requirements

Not allow bearer shares and legal persons that are able to issue bearer shares

Not approve the establishment or accept the continued operation of shell banks.

Gather statistics on STRs; prosecutions and convictions; on property frozen, seized and confiscated; and on mutual legal assistance, but not necessarily on other international requests for co- operation

Consider the feasibility of a system where banks and other financial institutions and intermediaries would report currency transactions without indicating a minimum fixed amount.

The requesting FIU may make use of the information shared by a disclosing FIU for administrative purposes without the prior consent of the disclosing FIU.

Information exchanged between FIUs may be used only for the specific purpose for which the information was sought or provided

Information-sharing agreements must follow the model issued by the Egmont Group

Information which is shared under these agreements will be exempt from the local privacy laws of the countries involved

Integration

Placement.

Construction.

Structuring

Structuring

Construction.

Placement

Integration.

Financial institutions are not responsible for money laundering or suspicious transactions taking place within their accounts until the government places the customer on a watch list

Informing customers that their accounts and/or transactions are the subject of an AML investigation is not punishable

The dirty money undergoing money laundering will not be confiscated because of privacy laws.

It is required that the institution identifies the beneficial owner(s) of the account.

Structuring.

Paralleling

Investing.

Integration

A customer who owns a large supermarket and deposits large amounts of cash several times a day.

A customer who tries to move money that is suspected of being derived from criminal activity

A customer who deposits money of suspicious origins and refuses to answer questions from the financial institution’s staff

A customer whose account is showing transaction activities which are beyond his known financial capability.

Not open accounts for people from high risk jurisdictions.

Refuse small cash deposits under the reporting threshold

Depend solely on The State’s staff for combating money laundering

Designate a compliance officer.