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Money Laundering Prevention: Deterring, Detecting, and Resolving Financial Fraud

Book Description

A how-to guide for the discovery and prevention of the illegal transfer of money

Written for the private sector—where most money laundering takes place—this book clearly explains shows business professionals how to deter, detect, and resolve financial fraud cases internally. It expertly provides an understanding of the mechanisms, tools to detect issues, and action lists to recover hidden funds.

  • Provides action-oriented material that will show how to deter, detect, and resolve financial fraud cases

  • Offers an understanding of the mechanisms, tools to detect issues, and action list to recover hidden funds

  • Covers mechanisms for moving money, identifying risk exposures, and investigating money movement

  • Arming auditors, investigators, and compliance personnel with the guidance that, up until now, has been restricted to criminal investigators, Money Laundering Prevention provides nuts-and-bolts information needed to fully understand the money laundering process.

    Table of Contents

    1. Cover
    2. Title Page
    3. Copyright
    4. Dedication
    5. Preface
    6. Acknowledgements
    7. Chapter 1: Understanding the Process of Money
      1. What Is Money Laundering?
      2. Money Laundering Defined
      3. Why Do People Launder Money?
      4. The Money Laundering Cycle
      5. Money Laundering Is a Criminal Business
      6. Money Laundering Is Global
      7. Money Launderers Adapt Technology
      8. The Role of Technology
      9. The Role of Banks
      10. The Role of Nations
      11. Regional Hotspots
      12. The Birth of the Financial Action Task Force (FATF)
      13. Conclusion
    8. Chapter 2: Motivations for Getting Involved
      1. Involvement Is Personal
      2. People Weigh the Odds of Success
      3. Where Do Laundered Funds Come From?
      4. The Impact of Corruption
      5. Why Is Corruption Increasing?
      6. Corruption Always Begins Small
      7. Bribery and Corruption of Your Employees
      8. Bribery and Corruption by Your Employees
      9. Evolution of Government Attitudes
      10. Official Corruption Impacts Individual Corruption
      11. Tax Evasion as a Gateway to Money Laundering
      12. Moving from Taxes to Criminal Activity
      13. The Rise of Regional and Multinational AML Organizations
      14. The Connection between Fraud and Money Laundering
      15. Money Laundering as a Do-It-Yourself Activity
      16. The Service Providers: Bankers, Accountants, and Lawyers
      17. Conclusion
    9. Chapter 3: Mechanisms for Moving Money
      1. Money Laundering Requires Movement through the System
      2. Broken Windows Encourage Other Crimes
      3. Look Local, Think Global
      4. Expanding International Requirements
      5. Financial Havens Are Expanding
      6. Money Laundering Is a Growth Industry
      7. Law Enforcement Gets a Big Boost
      8. Profit Drives Criminal Activity
      9. Structuring the Scheme to Succeed
      10. Why Use a Bank, When You Can Own One?
      11. Learning from the Big Fraud Schemes
      12. Confronting the Inevitable
      13. Balancing Security and Cost
      14. Effective Fraud Prevention Strategies
      15. The Fraud Triangle
      16. Where to Start
      17. Mitigating Improper Behavior
      18. Conclusion
    10. Chapter 4: Going Global
      1. Taking Money around the World
      2. Moving the Money Offshore
      3. Avoiding Detection
      4. Historical Basis for Money Laundering
      5. Role of Private Banking
      6. Enhanced Regulations
      7. The Black Market Peso Exchange
      8. Increasing Cooperation in Regulation
      9. Regional Distinctions
      10. Global Efforts
      11. The Law Enforcement Focus
      12. Conclusion
    11. Chapter 5: Technology and Tomorrow
      1. The Impact of Technology
      2. The Next Phase of Money Laundering
      3. Everything Old Becomes New Again
      4. Being Anybody You Want to Be
      5. Welcome to the Future
      6. So What Is the AML Response?
      7. Evolution of AML Controls
      8. Adjusting to Rapidly Increasing Scale
      9. A Highly Flexible Methodology Results in Processes that Are Difficult to Stop
      10. AML Is a Process, Not a Destination
      11. All Countries' Regulatory Programs Are Not Equal
      12. Technology and Offshore Havens Intersect
      13. The Cost vs. the Benefit
      14. Consider the Pace of Change and Progress
      15. Conclusion
    12. Chapter 6: Discovery and Prevention
      1. Early Warning Is Essential to AML
      2. Proactive Means Active
      3. By the Numbers
      4. Paradigm Shift
      5. Testing Your Own AML Systems
      6. Expanding the Business Comparison
      7. The Regulatory Framework
      8. High-Risk Areas
      9. Money Laundering Meets Terror Financing
      10. Hiding in Plain Sight
      11. Criminalizing the Concealment Activities
      12. Creating Financial Fronts
      13. Keeping the Money Moving
      14. Keeping the Tax Man Happy
      15. Conclusion
    13. Chapter 7: Terror Financing
      1. Terrorists Use Money Laundering Techniques
      2. Similarities and Distinctions
      3. Application of the Methodology to Terror Financing
      4. Global Impact of Financial Crimes
      5. Alternative Laundering Mechanisms
      6. Regulatory Responses
      7. Conclusion
    14. Chapter 8: Identifying Risk Exposures
      1. AML Exposures: Assessing Financial Institution Risk
      2. Language, Culture, and Ethnicity
      3. The Legal Landscape
      4. Geography: Distance Matters
      5. The Goal of the Launderer Is to Hide
      6. The United States Takes a Different Approach
      7. Laundering Groups Seek to Evade Detection
      8. A Fractured Enforcement and Regulatory Picture
      9. The Regulatory Position on Cyber Risks
      10. Simple Fraud, Still Successful
      11. Conclusion
    15. Chapter 9: Investigating Money Movement
      1. Money Laundering Is Now Transnational Organized Crime
      2. Succeeding in the Investigative Process
      3. Government Access to Information
      4. Mining Data for Money Laundering
      5. Some Products Help the Perpetrators
      6. Investigating Virtual Payment Technologies
      7. Looking to the Future Investigative Issues
      8. Putting an Investigative Plan in Motion
      9. People Are Essential to Proof
      10. Finding Money Laundering Abroad
      11. Money Laundering Exposure during the Financial Industry Consolidation
      12. Conclusion
    16. Chapter 10: Reporting and Recovery
      1. Reporting to Law Enforcement
      2. Honest People Act Differently
      3. Anticipating Challenges with Cyber Recoveries
      4. Building Appropriate Controls into Online Payment Systems
      5. Global Coordination on Future Issues
      6. Weighing Access vs. Privacy
      7. Compliance Issues
      8. Putting Recovery Plans into Action
      9. Conclusion
    17. Chapter 11: Conclusion
    18. About the Author
    19. Index