What is AML investigation?
What is AML investigation?
An anti-money laundering analyst, also known as an AML analyst or AML surveillance analyst, has multiple responsibilities, including helping monitor and limit suspicious bank transactions. They often provide identification services for a bank or other financial institution to reduce the risk of a bad transaction.
What tools can be used to detect money laundering?
There are four basic types of software that address anti-money laundering: transaction monitoring systems, currency transaction reporting (CTR) systems, customer identity management systems and compliance management software.
What are the common techniques of money laundering?
Common money laundering techniques
- Structuring. Also known as smurfing, it is a method of placement whereby money is broken into smaller deposits.
- Bulk cash smuggling.
- Cash-intensive businesses.
- Investments in commodities.
- Trade-based laundering.
- Shell companies and trusts.
- Round-tripping.
- Bank capture.
What is a 360 investigation?
The six step 360 Degree Risk-Based Investigations Model provides consistency of approach and applies critical thinking thought processes by anti-money laundering (AML) investigators conducting their investigations to determine if the transactional activity (or attempted activity) under review is suspicious or not.
How do you identify suspicious transactions?
An STR should include the following details:
- personal particulars (name, identity card or passport number, date of birth, address, telephone number, bank account number) of the person(s) or company involved in the suspicious transaction;
- details of the suspicious financial activity;
What are suspicious transactions?
A suspicious transaction is a transaction that causes a reporting entity to have a feeling of apprehension or mistrust about the transaction considering its unusual nature or circumstances, or the person or group of persons involved in the transaction.
What stage of money laundering is difficult to detect?
Stage Two: Layering Layering meaning is the process of separating the proceeds of criminal activity from their origin through the use of layers of complex financial transactions. Layering for money laundering is gradually adding legitimacy to the source of illicit money, making it as difficult to detect as possible.
What are the three steps of money laundering?
Money laundering is the process of making illegally-gained proceeds (i.e. “dirty money”) appear legal (i.e. “clean”). Typically, it involves three steps: placement, layering and integration. First, the illegitimate funds are furtively introduced into the legitimate financial system.
What are the different types of money laundering?
There are several different types of money laundering, often related to drug trafficking, dirty politics, and terrorist activities. The basic money laundering methods involve black market foreign exchange, offshore banking, business investments in fake or legitimate companies, and smurfing.
Is money laundering corruption?
Corruption and money laundering are intrinsically linked. Corruption offences, such as bribery or theft of public funds, are generally committed for the purpose of obtaining private gain. Money laundering is the process of concealing illicit gains that were generated from criminal activity.
What does money laundering accomplish?
Money laundering is accomplished in many ways, though most include three common steps, including Obtaining the money or introducing it into the financial system in some way Transferring or concealing the source of the money through complex or multiple transactions Returning the money back into the financial world so that it appears legitimate.
