Anti-Money Laundering in a Nutshell: Awareness and Compliance for Financial Personnel and Business Managers

Anti–Money Laundering in a Nutshellis a concise, accessible, and practical guide to compliance with anti–money laundering law for financial professionals, corporate investigators, business managers, and all personnel of financial institutions who are required, under penalty of hefty fines, to get anti–money laundering training.

Money laundering is endemic. As much as 5 percent of global GDP ($3.6 trillion) is laundered by criminals each year. It’s no wonder that every financial institution in the United States—including banks, credit card companies, insurers, securities brokerages, private funds, and money service businesses—must comply with complex examination, training, and reporting requirements mandated by a welter of federal anti–money laundering (AML) laws. Ignorance of crime is no excuse before the law. Financial institutions and businesses that unknowingly serve as conduits for money laundering are no less liable to prosecution and fines than those that condone or abet it.

In Anti–Money Laundering in a Nutshell: Awareness and Compliance for Financial Personnel and Business Managers, Kevin Sullivan draws on a distinguished career as an AML agent and consultant to teach personnel in financial institutions what money laundering is, who does it, how they do it, how to prevent it, how to detect it, and how to report it in compliance with federal law. He traces the dynamic interplay among employees, regulatory examiners, compliance officers, fraud and forensic accountants and technologists, criminal investigators, and prosecutors in following up on reports, catching launderers, and protecting the integrity and reputations of financial institutions and businesses. In particular, corporate investigators will gain rich insights winnowed from the author's experiences as a New York State and federal investigator.

What you’ll learn

• US federal and international AML laws
• The AML measures and program that financial institutions must have in place to control money laundering, such as KYC, CIP, and AML/CFT risk assessment
• The practical steps that personnel at every level from the teller window to the C-suite must know to ensure institutional compliance with AML regulations, such as filling out SARs and CTRs

Who this book is for

Under federal acts such as the Bank Secrecy Act of 1970, the Money Laundering Suppression Act of 1994, and the Intelligence Reform and Terrorism Prevention Act of 2004, every financial institution in the United States must have an anti–money laundering program in place that includes annual training of all relevant employees. This short book is an educational text or supplemental reader for such training by anti–money laundering compliance officers, examiners, agents, and consultants.

Table of Contents

Chapter 1. What is Money Laundering?

Chapter 2. Methods of Money Laundering

Chapter 3. Federal Regulations

Chapter 4. Building a Quality AML Program for Financial Institutions

Chapter 5. Know Your Customer and Customer Identification Program

Chapter 6. A SAR Is Born

Chapter 7. Money Laundering for Law Enforcement

Chapter 8. International Standards

Chapter 9. FRAML

Glossary

Appendix A: Red Flags

Appendix B: Code of Federal Regulations Title 31 Section 103.18