NEW YORK, March 12 /PRNewswire/ -- A commonly-used form of money
laundering called "structuring" has recently emerged in the news.
Dr. Michael Recce, Chief Scientist at Fortent, the risk and compliance
technology and information company, explains: "Structuring is a favorite
method used by money launderers to attempt to avoid detection.
"Due to the Bank Secrecy Act and the USA PATRIOT Act regulations, banks
are required to report customer transactions of $10,000 or more to federal
authorities. So in order to get around these requirements, an individual
could 'structure' or divide payments into a set of transactions where each
individual transaction is below this $10,000 threshold. This maneuver
increases the chances that the individual would fly under the radar of
banks' compliance departments.
"Divided transactions raise suspicion levels, and banks have systems in
place to detect just this sort of criminal behavior."
Common signs of structuring, says Dr. Recce, include:
1. Movement of cash in multiple transactions under $10,000 -- "Obviously,
not every transaction of under $10,000 is suspect, but if banks see a
pattern of cash movement to the same account when it doesn't seem to
make sense, this raises red flags."
2. Attempts to take sender's name off wire transfers -- "If you have
nothing to hide, why would you try to conceal your transactions?"
3. Large cash deposits made to ATMs -- "Most people deposit checks, not
cash, into ATMs, so banks' systems tend to raise red flags for these
types of transactions."
"To detect structuring," says Dr. Recce, "anti-money laundering
systems, such as Fortent's, look for situations in which multiple
transactions of slightly under $10,000 are performed within short periods
of time, possibly at multiple branches or locations of a bank."
If you would like more information about structuring, or to speak with
Dr. Recce, please contact Suzanne Oaks or Davia Temin of Temin and Company,
at 212-588-8788 or firstname.lastname@example.org.
Fortent provides risk and compliance solutions to financial
institutions, government agencies, and individuals in more than 100
countries. With advanced systems endorsed by the American Bankers
Association, Fortent's market-leading technology, information, and training
businesses help clients fight financial crime and achieve regulatory
compliance throughout their global operations.