Newsletter 56 / May 2008
Newsletter 56 / May 2008
In this issue
Industry News: Anti-Money Laundering Technology Used in Elliot Spitzer Case | Read More
Course Info: Learn to Recognize and Reduce Your Risk with CEU.com’s Anti-Money Laundering Course | Read More
industrynews
Anti-Money Laundering Technology Used in Elliot Spitzer Case
Suspicious Activity Reports exposed wrongdoing & led to Governor’s downfall
According to an article by Maria Bruno-Britz of FinanceTech.com, routine anti-money laundering processes led to the demise of Governor Elliot Spitzer. By trying to hide money transfers that he intended to use to pay for his illegal activities, Governor Spitzer actually drew attention to those transfers and alerted bank employees that something was amiss.
Banks are required to report transactions in excess of $10,000 to the IRS. Spitzer tried to circumvent this requirement by utilizing “structured transactions”; that is, splitting the transactions into smaller amounts. His actions triggered the alert at his bank, and an SAR (Suspicious Activity Report) was submitted to the Financial Crimes Enforcement Network.
In the article, Eve Weber (an anti-money laundering analyst with Aite Group) said, “Regulators continue to put a lot of pressure on banks to ensure their institutions are not being used to launder money. As a result, many institutions have turned to technology solutions that monitor customer transaction activity. Potential structuring of payments is something banks must look for, and it’s a common reason for the filing of SARs.”
Banks spend a lot of money on this technology in order to comply with regulatory requirements. Even with these systems in place, however, the success of the AML programs often comes down to the human element. According to Virginia Garcia of Towergroup, the transactions in the Spitzer case may or may not have warranted scrutiny on their own, but since the situation involved a public figure, an employee decided that it needed more attention. “In the Spitzer case, he made a request to remove his name from a wire, and likely someone in the wire room at the bank recognized this as strange,” she said. “So there really needs to be a combination of technology and humans.”
As a professional in the insurance industry, you need to stay up-to-date on anti-money laundering regulations and how they affect insurance products. Turn to CEU.com for the continuing education courses you need to stay complaint. To view our complete course catalog, visit us at www.ceu.com.
Source: www.financetech.com
courseinfo
Learn to Recognize and Reduce Your Risk with CEU.com’s Anti-Money Laundering Course
Money laundering is an elaborate and complex financial crime, involving the attempt to legitimize funds gained through illegal means. Companies that sell annuities, life insurance, or other policies that offer a cash value or investment feature are particularly vulnerable to money laundering schemes.
To help professionals in these industries better understand the threat, CEU.com has added an Anti-Money Laundering class to its catalog of continuing education courses. This course defines money laundering and explains how insurance professionals can address their unique risks. It also provides an overview of anti money laundering laws and the ways in which these laws affect the insurance industry.
According to Bruce MacMillian, president of CEU.com, “Money laundering is an unfortunate reality to people who work in the financial industry, and the criminals are getting more and more sophisticated. A course like this one is imperative for insurance professionals who want to understand their risk and take steps to stop the criminal activity.”
To sign up for this course or to view our complete course catalog, visit us at www.ceu.com.
