Financial Crimes Compliance (FCC) Investigations

Question 1

Money Laundering Definition?

Answer 1

Is the process of moving funds derived from illicit activity by disguising the source, nature, or ownership so that the funds can be legally accessed or distributed via legitimate financial channels and credible institutions.

aka - converting ‘dirty money’ into ‘clean money’

Question 2

“Dirty Money” is money derived from illegal or criminal sources - such as? (name examples)

Answer 2

• Narcotics / Human Trafficking / Smuggling
• Illegal Gambling
• Racketeering (organised crime), Black Market schemes
• Fraud (credit card, Mortgages, Cheques)
• Kidnapping / Ransom / Extortion
• Selling illegal goods / knock offs
• Insider Trading / Embezzlement

Question 3

What are the three stages of Money Laundering?

Answer 3

Placement
Layering
Integration

Question 4

FinCEN AML/CFT National Priorities

Answer 4

• Corruption
• Cybercrime
• Foreign and Domestic Terrorist Financing
• Fraud
• Drug Trafficking Organizations
• Transactional Criminal Organizations
• Human Trafficking
• Human Smuggling
• Proliferation Financing

Question 5

Correspondent Banking Overview

Answer 5

Is the provision of a current or other liability account, cash management, international fund transfers, check clearing, foreign exchange, or other financial services to another financial institution.

• Can be defined as the act of one financial institution (the correspondent) providing banking services to another financial institution (the respondent).
• Correspondent banking services may be used for the execution of third-party payments or for a financial institution’s own (e.g. proprietary) cash clearing, liquidity management, and foreign exchange transactions.
• For third-party payments, the bank providing correspondent services effectively acts as the correspondent banking customer’s agent, executing and/or processing payments or other transactions on behalf of their customer’s clients