Wiki post type
According to the Federal Deposit Insurance Corporation (FDIC) a Customer Identification Program (CIP) imposes “the minimum standards for financial institutions and their customers regarding the identity of the customer that shall apply in connection with the opening of an account at a financial institution” (page 1). The CIP procedures are required to be appropriate regarding […]
A Currency Transaction Report (CTR) is a report made by United States financial institutions regarding all transactions that involve sums of money equal to or greater than $10,000. These reports can involve the exchange of currency, withdrawals, deposits, transfers of money between accounts, and many other types of transactions. With the evolution of technology over […]
Since the terrorist attacks on September 11th, 2001, terrorist financing has been a prevalent financial crime authority has been trying to crack down on. A variety of laws and regulations have been passed to reign in the financing of such criminal activity. These laws and regulations are collectively known as Counter-Terrorist Financing. Regulations regarding these […]
A Cash-Intensive Business is any business which the majority of customers pay with cash for their products or services provided. Some common examples of a cash-intensive business are restaurants, pizza delivery services, taxi firms, coin-operated machines, or car washes. It can also be an industry that takes cash payments for services where independent workers are […]
A beneficiary is a person who gains an advantage and/or profit from something. Financially, a beneficiary refers to someone eligible to receive distributions from a trust, will, or life insurance policy. Beneficiaries are either named by a specific person in these documents or have met stipulations that make them eligible for whatever distribution is specified. […]
A beneficial owner is someone who enjoys the benefits of ownership even though the title to some form of property is in another name. Also, any individual or group of individuals who, either directly or indirectly, has the power to vote or influence the transaction decisions—i.e. shares in a company. Early in 2016, the International […]
A Bank Secrecy Act (BSA) Officer works within a bank, credit union, or similar financial institution to ensure compliance with laws and regulations pertaining to the Bank Secrecy Act. The act requires financial institutions to help fight money laundering. The BSA Officer’s role is essential to a financial institution’s laws, regulations, and bank policies. Typical […]
The USA Patriot Act Section 352 states the BSA (Bank Secrecy Act) Compliance Program which requires financial institutions to establish anti-money laundering programs (AML), which at a minimum must include: the development of internal policies, procedures and controls; designation of a compliance officer; an ongoing employee training program; and an independent audit function to test […]
Correspondent Bank Correspondent Banks are financial institutions that provide services on behalf of another, equal or unequal, financial institution. Correspondent banks can facilitate wire transfers, conduct business transactions, accept deposits, and gather documents on behalf of a financial institution. They are typically used by domestic banks to service transactions that are completed in foreign countries; […]
The Bank Secrecy Act (BSA), properly known as the Currency and Foreign Transactions Reporting Act, was passed by the US Congress in 1970 as the first laws to fight money laundering. The International Revenue Service (IRS), established requirements for recordkeeping and reporting by private individuals, banks and other financial institutions. It is designed to help […]
