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Detecting and Reporting Organized Retail Crime
Organized retail crime (ORC) is tempting to transnational criminal organizations due to its low-cost, high-value nature. In the U.S., jails are overcrowded, and instances of theft are becoming increasingly decriminalized; therefore, it can be an attractive revenue stream for criminal organizations.
DNA and the BSA
Deoxyribonucleic acid (DNA) made radical changes to law enforcement (LE) investigative strategies, originally facing the resistance to change ideas so commonly ingrained in our bureaucracies. However, that resistance was successfully countered by the similar susceptibility to popular culture, also steeped in our politics. Television shows like “CSI: Crime Scene Investigation” and similar LE programs and movies made DNA nearly a mandatory consideration in many LE investigative strategies to solve crimes.
From the Editor
Tying the Pieces of Collaboration Together
One of my fondest memories of growing up in a small town was the service projects and community collaborations that took place to further a common goal of improving the town or enriching someone’s life. My mom used to take me to quilt-tying parties. This is where a bunch of people get together, have a potluck and work on tying quilts laid out on quilt frames.
Inside this Edition
- AFC Challenges
- Compliance
- Interview
- Practical Solutions
- AFC Policy
- Global Financial Crime Review
- Staff Notes
- Know Your Chapter
- Meet the ACAMS Staff
- Member Spotlights
DNA and the BSA
Deoxyribonucleic acid (DNA) made radical changes to law enforcement (LE) investigative strategies, originally facing the resistance to change ideas so commonly ingrained in our bureaucracies. However, that resistance was successfully countered by the similar susceptibility to popular culture, also steeped in our politics. Television shows like “CSI: Crime Scene Investigation” and similar LE programs and movies made DNA nearly a mandatory consideration in many LE investigative strategies to solve crimes.
Ponzi Scheme: A Never-ending Global Battle
During the last few decades, fraud schemes have flourished one after another due to uncertain economic conditions. Throughout the years, people in financial hardship continue to fall victims to both large and small scams. Fraud and financial crimes are prevalent in today’s global economy and come in various forms. One such fraud scheme is the Ponzi scheme.
The Work Left Undone
Over the greater part of the past decade, anti-money laundering (AML) professionals have seen a parabolic rise in collaboration, via variations of public-private partnerships (PPP) to mitigate unique predicate offenses. Many of these offenses are not typically thought of when considering traditional financial crimes, but all of them impact the present-day communities in which financial institutions (FIs) operate.
Risk and Effects on the Economy Through a Unique Lens
Underground financial markets are avenues that offer a shadow banking system. Billions of transactions pass through these channels daily. Due to the advancement of technology, many criminals use this methodology to facilitate their legal and illegal enterprises by means of underground and/or cyber transactions. Even innocent members of the public can get caught unwittingly in criminal schemes through their use of technology.
Increased Focus on Human Trafficking Calls for More Public-private Collaboration
There is an unprecedented interest in the private sector’s role in anti-human trafficking efforts today. The Russian invasion of Ukraine and the COVID-19 pandemic have brought concerns about human trafficking (HT) to the forefront amid sensitivity to displaced persons and vulnerable workforces. These factors—combined with a growing public interest in environmental, social and governance (ESG) issues such as socially responsible investing—underscore an increased awareness in anti-human trafficking efforts.
Fighting Fraud in the 2020s: All Hands on Deck for the Crime of the Century
Police agencies have come a long way when it comes to financial crime investigations and the importance put on these cases. Although not necessarily considered a top five job to most officers, its importance is starting to show in almost every investigation. Financial crime investigators now work alongside organized crime, drug enforcement, homicide and anti-terrorist teams across the globe.
Detecting and Reporting Organized Retail Crime
Organized retail crime (ORC) is tempting to transnational criminal organizations due to its low-cost, high-value nature. In the U.S., jails are overcrowded, and instances of theft are becoming increasingly decriminalized; therefore, it can be an attractive revenue stream for criminal organizations.
STR Pro Tip: Know Your Suspect
The COVID-19 pandemic has seen a proliferation of fraud-related typologies throughout the world. These typologies range from romance scams to fraudulent contracts (promising the victims substantial financial windfalls in exchange for a modest investment). These schemes can range in their level of sophistication and are often transnational organized crimes.
Public-private Information Sharing Partnerships in South Africa
So much has been written about the COVID-19 pandemic. Its effect on human lives, the ability of certain people to earn a living and the way in which we engage has been altered forever. Perhaps the one thing we did not expect two years ago was how communities supported their population through the procurement and distribution of personal protective equipment (PPE) and materials.
Canada Honors Anti-human Trafficking Champion Peter Warrack
ACAMS Today talked to anti-human trafficking crusader and business executive Peter Warrack, who recently received Canada’s Meritorious Service Cross. The award recognizes Canadians from the military and civil sectors for exceptional accomplishments that bring honor to the country. The chief compliance officer at the cryptocurrency exchange Bitfinex and a resident of Niagara-on-the-Lake in Ontario, Canada, Warrack was presented with the prestigious award for his efforts in founding Project Protect, a public-private partnership he created to combat human trafficking (HT) by identifying traffickers using their financial footprints.
Transaction Monitoring of Alerts: A Guide to Holistic Reviewing
All financial institutions (FIs) need to conduct transaction monitoring to check for suspicious activity in customer accounts. Software exists for FIs to establish parameters that help identify unusual activity. Once suspicious activity is identified, the software generates an alert for further examination.
Exterminating Your Casino Money Laundering Termites
Like all financial institutions (FIs), casinos do not have limitless resources to look for every conceivable criminal and their associated money laundering schemes. Regulators acknowledge this and expect casinos to deploy a risk-based anti-money laundering (AML) program that prioritizes resources based on an assessment of risk. Designing a program to detect, report and prevent every conceivable crime is like an exterminator looking for every species of termites on Earth.
Managing Financial Crime Risks in Digital Payments
Payment services were long offered to companies and individuals by banks, but in the last 20 years, dedicated and specialized providers greatly expanded the market. In 2020, global payments revenues reached $1.9 trillion.1 Digital payments mechanisms include credit and debit cards as well as recent payments innovations, such as digital wallets. The shift to digital payments is expected to continue.
A Three-pronged Approach to Fighting Crypto Fraud
Cryptocurrency has transitioned from a niche concept to a mainstream one. (You know a topic has hit big time when it is popular on TikTok!) There are more than 19,000 cryptocurrencies in the world1—and the number continues to grow. Bitcoin, Ethereum and Dogecoin are the most well-known, but these are only the tip of the spear in a market allegedly worth more than $3 trillion.
FinCEN’s AML and Terrorist Financing Priorities: An Introduction
In 2021, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued its first set of anti-money laundering (AML) and terrorist financing priorities.
The Cali Cartel: Understanding the Rise and Fall of the Drug Trafficking Empire
On a cloudy day on December 14, 1994, a courier working for the Cali Cartel appeared at the Miami International Airport with nothing to declare to customs. Clutching an architect’s satchel close to her, the customs officers let her pass.1 A search through her belongings would have been fatal. Hiding inside her bag were three paintings—Head of the Beggar by Pablo Picasso, Saint Paul by the 17th century Flemish master, Peter Paul Reubens, and Portrait of a Gentleman by the 18th century English painter, Sir Joshua Reynolds.
History of U.S. and Russian Export Controls
“There are decades where nothing happens, and there are weeks where decades happen,” wrote Lenin in 1917.1 His statement was a prescient warning of the perils that lay before the world, namely World War I and two historic revolutions in Russia. The events of 1917 ushered in a then-novel legal posture dictating that international trade with foreign adversaries would no longer be permitted.
The Narcoterrorism Phenomena
The term “narcoterrorism”—much like “terrorism”—is one that is contested and exists without a universally agreed-upon definition. It is generally used to refer to the use of terrorist—style tactics by actors associated with the illicit drug trade. This is further complicated in the case of Latin America because the phenomenon manifests in two distinct ways.
Central Ohio Chapter: A Love Letter to Our Members and Guests of 2021
Dear members and guests from 2021: I wanted to send a love note to the members and guests of the Central Ohio ACAMS Chapter, as it is because of you that we were able to celebrate a successful “virtual” 2021. We love that we held four successful virtual events last year and that we have fantastic plans for 2022 that we hope you will embrace fondly.
Carolinas Chapter: Thoughts From Our Board Members
Since the inception of the ACAMS Carolinas Chapter1 in 2012, as the world of anti-money laundering (AML) has evolved, so has this chapter. Flexibility and adaptability are key to staying relevant in the industry. The success of any ACAMS chapter is dependent upon the strength and diversity of its all-volunteer board members working together.
Joby Carpenter: Analyzing the Threats and Risks Associated with Crypto Assets
ACAMS Today interviewed Joby Carpenter, an ACAMS staff member and authority on crypto assets, illicit finance and emerging threats. Carpenter discussed a range of topics, including his background in the U.K. government, the challenges facing governments throughout the world regarding crypto assets regulation and the ever-evolving threat environment presented by the release of new crypto assets.
Stephen Dennison, CAMS—New York, USA
Stephen Dennison manages the sanctions, geopolitics and trade portfolios on the U.S. Financial Crime Analysis team as part of HSBC’s compliance function. He is a Certified Anti-Money Laundering Specialist (CAMS) and recently participated as a panelist at the ACAMS Sanctions Summit in February 2022, where he discussed the mapping of sanctions evasion networks. Dennison joined HSBC in 2018 and conducts proactive intelligence analysis on emerging and evolving financial crime threats.
Cameron Field, CAMS—Toronto, Canada
Cameron Field is a senior manager with the anti-money laundering team at the Bank of Montreal (BMO). He leads the intelligence liaison, operational effectiveness and training team in the financial intelligence unit. Prior to that, he served with the Toronto Police Service for 32 years. Field worked in various areas, including uniform patrol, major crime, drug enforcement, internal affairs, sex crimes and the behavioral assessment team.
Sissy Oliver, CAMS, CGSS—Florida, USA
Sissy Oliver is a senior manager within Protiviti’s Internal Audit and Financial Advisory Practice, as well as a member of the ACAMS South Florida Chapter board. She holds both the Certified Anti-Money Laundering Specialist (CAMS) and Certified Global Sanctions Specialist (CGSS) certificates. Oliver has over a decade of anti-money laundering/Bank Secrecy Act (AML/BSA) and sanctions experience across different regulatory, internal auditing and consulting roles.