According to a recent CUNA article, credit union employees may not see the direct connection to law enforcement when reporting on BSA risks, however, they are making a major impact on fraud and criminal activities. FinCEN recently held its annual Law Enforcement Awards ceremony, which showcased the implications of financial institution BSA reporting. According to FinCEN, this includes:
According to FinCEN, this includes:
Flipping a suspected money launder to disrupt transitional organized crime.
“Investigators identified members of this criminal organization operating from all over the world. Analysis of financial activity indicated that this organization was bringing in $100 to $300 million in annual criminal proceeds in North America alone”
Identifying illegal activities on the web
“Several targets suspected of selling narcotics on the web and distributing them throughout the country through the USPS were arrested” according to a recent article published on CUNA’s website.
“The targets only accepted payment in the form of Bitcoin. The Bitcoins were then sent through a Bitcoin “blender” to conceal their source. The Bitcoins would then be redistributed back to the targets through several Bitcoin exchangers before being converted into U.S. dollars and deposited into several bank accounts.”
Uncovering a massive defense contract that was fraudulent
An investigation showed that a U.S. military official was receiving bribes from an individual for revealing sensitive bidding data.
“Investigators seized $12.3 million in assets from the primary target and his employer and the military official, including real property, vehicles, boats, aircrafts, firearms, gold coins and bank accounts.”
Taking down an illegal third-party money laundering organization
“Investigators discovered that the company was importing U.S. dollars and Mexican pesos from casas de cambio (currency exchange) in Mexico, and depositing them into shell company bank accounts that were opened and operated by the two individuals who owned and operated the company.”
“These BSA reporting examples illustrate a handful of the many successful results of effective BSA/AML reporting and programs,” said Jeff Kelly, vice president of governance, risk and compliance at OnCourse Learning. “Appropriate and timely training is critical to BSA/AML professionals as well as all employees involved in continuing to identify suspicious activities and proper BSA filings that contribute to law enforcement’s successes.”