| |
| |
Preface | |
| |
| |
Acknowledgments | |
| |
| |
| |
Understanding the Process of Money Laundering | |
| |
| |
What Is Money Laundering? | |
| |
| |
Money Laundering Defined | |
| |
| |
Why Do People Launder Money? | |
| |
| |
The Money Laundering Cycle | |
| |
| |
Money Laundering Is a Criminal Business | |
| |
| |
Money Laundering Is Global | |
| |
| |
Money Launderers Adapt Technology | |
| |
| |
The Role of Technology | |
| |
| |
The Role of Banks | |
| |
| |
The Role of Nations | |
| |
| |
Regional Hotspots | |
| |
| |
The Birth of the Financial Action Task Force (FATF) | |
| |
| |
Conclusion | |
| |
| |
| |
Motivations for Getting Involved | |
| |
| |
Involvement Is Personal | |
| |
| |
People Weigh the Odds of Success | |
| |
| |
Where Do Laundered Funds Come From? | |
| |
| |
The Impact of Corruption | |
| |
| |
Why Is Corruption Increasing? | |
| |
| |
Corruption Always Begins Small | |
| |
| |
Bribery and Corruption of Your Employees | |
| |
| |
Bribery and Corruption by Your Employees | |
| |
| |
Evolution of Government Attitudes | |
| |
| |
Official Corruption Impacts Individual Corruption | |
| |
| |
Tax Evasion as a Gateway to Money Laundering | |
| |
| |
Moving from Taxes to Criminal Activity | |
| |
| |
The Rise of Regional and Multinational AML Organizations | |
| |
| |
The Connection between Fraud and Money Laundering | |
| |
| |
Money Laundering as a Do-It-Yourself Activity | |
| |
| |
The Service Providers: Bankers, Accountants, and Lawyers | |
| |
| |
Conclusion | |
| |
| |
| |
Mechanisms for Moving Money | |
| |
| |
Money Laundering Requires Movement through the System | |
| |
| |
Broken Windows Encourage Other Crimes | |
| |
| |
Look Local, Think Global | |
| |
| |
Expanding International Requirements | |
| |
| |
Financial Havens Are Expanding | |
| |
| |
Money Laundering Is a Growth Industry | |
| |
| |
Law Enforcement Gets a Big Boost | |
| |
| |
Profit Drives Criminal Activity | |
| |
| |
Structuring the Scheme to Succeed | |
| |
| |
Why Use a Bank, When You Can Own One? | |
| |
| |
Learning from the Big Fraud Schemes | |
| |
| |
Confronting the Inevitable | |
| |
| |
Balancing Security and Cost | |
| |
| |
Effective Fraud Prevention Strategies | |
| |
| |
The Fraud Triangle | |
| |
| |
Where to Start | |
| |
| |
Mitigating Improper Behavior | |
| |
| |
Conclusion | |
| |
| |
| |
Going Global | |
| |
| |
Taking Money around the World | |
| |
| |
Moving the Money Offshore | |
| |
| |
Avoiding Detection | |
| |
| |
Historical Basis for Money Laundering | |
| |
| |
Role of Private Banking | |
| |
| |
Enhanced Regulations | |
| |
| |
The Black Market Peso Exchange | |
| |
| |
Increasing Cooperation in Regulation | |
| |
| |
Regional Distinctions | |
| |
| |
Global Efforts | |
| |
| |
The Law Enforcement Focus | |
| |
| |
Conclusion | |
| |
| |
| |
Technology and Tomorrow | |
| |
| |
The Impact of Technology | |
| |
| |
The Next Phase of Money Laundering | |
| |
| |
Everything Old Becomes New Again | |
| |
| |
Being Anybody You Want to Be | |
| |
| |
Welcome to the Future | |
| |
| |
So What Is the AML Response? | |
| |
| |
Evolution of AML Controls | |
| |
| |
Adjusting to Rapidly Increasing Scale | |
| |
| |
A Highly Flexible Methodology Results in Processes that Are Difficult to Stop | |
| |
| |
AML Is a Process, Not a Destination | |
| |
| |
All Countries' Regulatory Programs Are Not Equal | |
| |
| |
Technology and Offshore Havens Intersect | |
| |
| |
The Cost vs. the Benefit | |
| |
| |
Consider the Pace of Change and Progress | |
| |
| |
Conclusion | |
| |
| |
| |
Discovery and Prevention | |
| |
| |
Early Warning Is Essential to AML | |
| |
| |
Proactive Means Active | |
| |
| |
By the Numbers | |
| |
| |
Paradigm Shift | |
| |
| |
Testing Your Own AML Systems | |
| |
| |
Expanding the Business Comparison | |
| |
| |
The Regulatory Framework | |
| |
| |
High-Risk Areas | |
| |
| |
Money Laundering Meets Terror Financing | |
| |
| |
Hiding in Plain Sight | |
| |
| |
Criminalizing the Concealment Activities | |
| |
| |
Creating Financial Fronts | |
| |
| |
Keeping the Money Moving | |
| |
| |
Keeping the Tax Man Happy | |
| |
| |
Conclusion | |
| |
| |
| |
Terror Financing | |
| |
| |
Terrorists Use Money Laundering Techniques | |
| |
| |
Similarities and Distinctions | |
| |
| |
Application of the Methodology to Terror Financing | |
| |
| |
Global Impact of Financial Crimes | |
| |
| |
Alternative Laundering Mechanisms | |
| |
| |
Regulatory Responses | |
| |
| |
Conclusion | |
| |
| |
| |
Identifying Risk Exposures | |
| |
| |
AML Exposures: Assessing Financial Institution Risk | |
| |
| |
Language, Culture, and Ethnicity | |
| |
| |
The Legal Landscape | |
| |
| |
Geography: Distance Matters | |
| |
| |
The Goal of the Launderer Is to Hide | |
| |
| |
The United States Takes a Different Approach | |
| |
| |
Laundering Groups Seek to Evade Detection | |
| |
| |
A Fractured Enforcement and Regulatory Picture | |
| |
| |
The Regulatory Position on Cyber Risks | |
| |
| |
Simple Fraud, Still Successful | |
| |
| |
Conclusion | |
| |
| |
| |
Investigating Money Movement | |
| |
| |
Money Laundering Is Now Transnational Organized Crime | |
| |
| |
Succeeding in the Investigative Process | |
| |
| |
Government Access to Information | |
| |
| |
Mining Data for Money Laundering | |
| |
| |
Some Products Help the Perpetrators | |
| |
| |
Investigating Virtual Payment Technologies | |
| |
| |
Looking to the Future Investigative Issues | |
| |
| |
Putting an Investigative Plan in Motion | |
| |
| |
People Are Essential to Proof | |
| |
| |
Finding Money Laundering Abroad | |
| |
| |
Money Laundering Exposure during the Financial Industry Consolidation | |
| |
| |
Conclusion | |
| |
| |
| |
Reporting and Recovery | |
| |
| |
Reporting to Law Enforcement | |
| |
| |
Honest People Act Differently | |
| |
| |
Anticipating Challenges with Cyber Recoveries | |
| |
| |
Building Appropriate Controls into Online Payment Systems | |
| |
| |
Global Coordination on Future Issues | |
| |
| |
Weighing Access vs. Privacy | |
| |
| |
Compliance Issues | |
| |
| |
Putting Recovery Plans into Action | |
| |
| |
Conclusion | |
| |
| |
| |
Conclusion | |
| |
| |
About the Author | |
| |
| |
Index | |