Chapter 4 & 5 Flashcards
ABC bank was served with subpoena compelling the production of certain documents on personal checking account. What are the first steps the bank should take after being served with its subpoena.
-Organization should ensure its senior management and or legal council reviews as subpoena anf independently confirms its legitimacy
- if there is no grounds for contesting, the subpoena, organization should take all appropriate measures to comply with the summons or subpoena on a timely and complete basis. Financial organization should never notify the customer being investigated.
How should financial organization monitor the receipt of of subpoena, summons, or other questions from government agencies?
-Should ensure grand jury subpoena and other information request from government agencies reviewed by senior management and investigation group or legal counsel determine how best to respond to inquiry, and whether inquiry or the underlying activity might pose a risk to the organization
-In addition, organization should maintain centralized control overall request, and responses to ensure their response to request on a complete and timely basis. It maintains complete record of information provided.
-This centre will assist in the organization, internal investigation
If a financial organization is under investigation by government agency, what information should it give employees?
-employees should be informed of the investigation instructed not to directly produce corporate documents.
-Should inform senior management or counsel all request for documentation and provide the documents to them for production
-Organization know what is being requested and what has been produced.
-In addition, organization can determine what, if any common request should be contested. The same procedure should be followed request for employee interviews.
In what ways can financial organization cooperate with law-enforcement during an investigation?
-provide investigators with information they need to an investigative conclusion might be the most effective way to terminate an investigation before it has devastating effects on the resources and reputation of an organization
-Cooperation include making employees, including corporate officers, available for interviews, and producing documents without the requirement of a subpoena
-Could also include voluntary disclosure by providing investigators with in report written by counsel regarding the subject under investigation
And internal investigation, who exactly does the attorney for the organization represent?
-entity and not its employees
-Council should understand these issues and conduct an internal investigation accordantly. Work Product and communications might be protected under attorney – client privilege. There can be serious consequences when the interest of an entity as employees diverge or conflict, and when an employee implicates, the employer or vice versa and such cases, separate counsel should be required
Following a investigation a financial organization decides to file suspicious activity report. What should they do as soon as possible?
Notify the investigators or prosecutors
What types of documents do financial organizations typically have that could assist financial investigator in tracking money movements
-Signature card. Collected at opening of account, account statements, deposit tickets, checks and withdrawal items and credit and debit memorandum.
-Keep records on loans, cashier checks, certified checks, traveler, checks, and money orders
-Exchange currency, cash, party checks and conduct wire transfers as do most MSb
-Keep deposit boxes and issue credit cards
-Online based financial organizations, login activity logs, IP addresses and geographical location information
During a law-enforcement investigation against financial organization, why is it important to interview knowledgable employees as soon as practical
So that their memories are fresh and they can direct management or counsel to relevant documents and people on a timely basis
When council for a financial organization prepares a written record of an investigation. What steps should the organization take to retain attorney client privilege
-Take steps to not inertly waive the attorney claim privileged by distributing their report her person who should not have received it
-Every page of report should contain a statement that is confidential and subject to the attorney client privilege and work product privilege
-copies other report should be numbered. List of people who are given copies to should be maintained. After a period of time, all copies should be returned. Individuals receive a report should be instructed not to make notes on copies. All copies maintain in the file from regular organization files to maintain the highest level objection.
According to the eggMont group, what best practises should be observed by an FIU requesting information from another FIU
- All fiu should submit request for information in compliance with the principles of information exchange
- when applicable the provisions of information sharing arrangements among Fiu should be observed. request for information should be submitted as soon as the precise assistance required as identified. When FIU has information that might be useful to another FIU, it should consider supplying it spontaneously as soon as a relevance of sharing this information is identified exchange information among should take place a secure way to this end they should use egmont secure web (sew) when appropriate.
What is the purpose of international money laundry information network (imolin)
-serves as clearing house of money, laundering information for the benefit of national and international ML agencies
-Developed an administrated by the global program against money, laundering, proceeds of crime and a financing of terrorism of the United Nations office on drugs and crimes on behalf of the UN other international organizations, including Interpol
Recommendations 36–40 from FATS 40 recommendations pertains specifically to international corporation in the AML investigations. what do these recommendations address?
-International instruments, mutual legal assistance, mutual legal assistance regarding freezing and confiscation, expedition, and other forms of international cooperation
What is a commission rogatoire
-also known as letters of rogatory, or letter of request commission rogatoire is a written request for evidence sent by the central authority of the requesting country to the central authority of the other country. The letter includes information sought, nature of the request, criminal charges in request and country and legal provision under which the request is made.
What is meant by a country’s extra territorial reach?
-extension of one countries, policies and laws to the citizens and organizations of another
-US laws contains several provisions that stand its prohibit and sanctions into other countries. Example of the principle US AL can apply to non-US citizen if the conduit occurs in part in the US.
What is an international business company? (IBC.)
-Entities formed outside a persons or business country of residence, typically in offshore jurisdictions for confidentiality or asset protection purposes
-They permit the person to reduce transparency between the owner and her home country and the offshore entity where the company is registered
