A Thing
The Green SheetGreen Sheet

Thursday, March 28, 2013

FinCEN improves AML processes

In a March 19, 2013, talk before the Association of Certified Anti-Money Laundering Specialists, Jennifer Shasky Calvery, Director of the Financial Crimes Enforcement Network (FinCEN), said technological improvements at FinCEN are helping the agency combat money laundering schemes. She reported that improved processes have translated into over 50 percent match rates of suspected activity reports (SARs) and currency transaction reports (CTRs) sent in by financial institutions (FIs).

Calvery said in fall 2012, FinCEN began rolling out a key component in the agency's IT Modernization Program to improve its ability to conduct analysis of the reports and make its data available to federal and state agencies, including law enforcement and regulators. Using FinCEN Query on the agency's website, such entities can access and analyze 11 years of data compiled by FinCEN.

Calvery said the compilation process involves FinCEN analysts sifting through data from the millions of reports that FIs send to FinCEN annually. "For example, our advanced data matching algorithms have allowed us to increase match rates between CMIRs [reports of international transportation of currency or monetary instruments], CTRs, and SARs by over 50 percent in some jurisdictions," she noted. "This gives us insight into dollar flow from a foreign jurisdiction to the point the dollars are deposited into a U.S. bank, from which we can work to ultimately identify the foreign beneficiary of a wire emanating from the account."

Calvery pointed out that FinCEN analysts have also developed a tool that uses "red flag" financial indicators to assist the agency in identifying money services business agents, such as money transfer providers, that are acting as third-party money launderers. end of article

Editor's Note:

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
A Thing