Featured
Prepaid Debit Cards for Teens: A Target for Online Scammers
Gone are the days of the piggy bank! Today, teenagers can manage their finances with the use of prepaid debit cards through prepaid debit card accounts. Parents can register for prepaid debit card accounts through banks and fintech companies such as Chase Bank, Bluebird, BusyKid, Greenlight and GoHenry to provide the cards to their kids.
Small Town Politics, Big Time Thefts
The Front Royal-Warren County area of Virginia is known for its rolling hills and quiet suburbs. Despite its proximity to Washington, D.C., Front Royal remains far removed from the hustle of a larger city. Its citizens are tight-knit and proud of their local community. Thus, the shock felt by the community was palpable when one of their own betrayed them.
ACAMS Awards: Highlighting Professional Distinction and Merit
The accomplishments of three individuals and one ACAMS chapter took center stage when four ACAMS awards were presented during the 2022 ACAMS Las Vegas Conference. One of the biggest annual events in the anti-financial crime (AFC) industry, the conference took place October 11-13 at the Aria Resort and Casino.
From the Editor
Treats, Gift Bags and Fraud?
I volunteer and work with a group of teenage girls who have taught me a few tricks on how to take better pictures with my iPhone or how to create the perfect post for my social media accounts. These teenage girls are savvy beyond their years and are interested in making the world a better place.
A Message from the Director of Editorial Content
Saving the Crypto World From Itself
The cost to global markets of multiple recent failures of digital asset service providers, particularly Sam Bankman-Fried’s FTX, a collapse playing out as we close this issue of ACAMS Today, remains unknown. But because FTX’s bankruptcy is likely to result in billions of dollars in losses for its investors and users, efforts to assign blame are already raging.
Inside this Edition
- AFC Challenges
- AFC Policy
- Aspects of APAC
- Awards
- Career Guidance
- Compliance
- Global Financial Crime Review
- Interview
- Know Your Chapter
- Meet the ACAMS Staff
- Member Spotlights
- Practical Solutions
The Nature of Synthetic Identity Fraud
In January 2020, the Federal Bureau of Investigation reported that the fastest-growing financial crime in the U.S. is synthetic identity fraud. Banks and financial institutions (FIs) lost $20 billion in 2020 as a result of synthetic identity fraud.
The Balancing Act: How Technology Works for Inclusion
The financial industry is experiencing a big change. From any perspective, the trends are powerful and are ushering in a new reality for the challenge of balancing financial inclusion and managing risk. Many forces are coming together that are making this era so unique.
Invisible Money Laundering and Financial Crime
The 2020s are disrupting the world as we used to know it. As we observe the global financial pressures, rapid changes in the geopolitical situation; rising environmental, social and governance (ESG) expectations across stakeholders; and Web3 (with non-fungible tokens, decentralized finance, artificial intelligence [AI], the metaverse, crypto and open blockchain) continue to morph and evolve, big shifts and new opportunities are shaping the financial services industry of the future.
FinCEN’s Rule on a Federal Beneficial Ownership Database: What it Means for AML
The Financial Crimes Enforcement Network (FinCEN) is making progress. In October 2022, FinCEN issued its final rule establishing a nationwide beneficial ownership reporting requirement pursuant to the Corporate Transparency Act.
Money Laundering Risk, Customer Acceptance and Business Development Strategy
In practice, customer acceptance and business development strategy of financial institutions (FIs) based on money laundering risk is ambiguous, which tends to result in two extreme phenomena when balancing money laundering risk and customer marketing.
ACAMS Awards: Highlighting Professional Distinction and Merit
The accomplishments of three individuals and one ACAMS chapter took center stage when four ACAMS awards were presented during the 2022 ACAMS Las Vegas Conference. One of the biggest annual events in the anti-financial crime (AFC) industry, the conference took place October 11-13 at the Aria Resort and Casino.
Recognizing Trailblazers in 2022: AFC Professional of the Month Winners
The ACAMS AFC Professional of the Month Award program highlights the exceptional careers and accomplishments of anti-financial crime (AFC) professionals from the public and private sectors throughout the world. Please join us in commending the following winners for the last 12 months, who were nominated for demonstrating excellence in their leadership and knowledge, as well as their commitment to the AFC community.
The Fraudulent Candidate Phenomenon
I thought I had finished writing articles about the effects of the pandemic on work and the employment market. I discussed working from home, returning to the office, the growth of fintech and the renaissance of digital banking and how the new normal would look. But it is time to speak about one of the most interesting and scandalous byproducts of the COVID-19 pandemic: The fraudulent candidate.
The 2022 ACAMS Las Vegas Conference: AFC Experts Share Their Experience
Cryptocurrency regulation, elder financial abuse, human trafficking (HT) and the sanctions imposed against Russia and Belarus in the wake of the invasion of Ukraine were just several of the hot topics related to anti-financial crime/anti-money laundering (AFC/AML) that were explored throughout the nearly 50 illuminating and informative sessions presented at the 2022 ACAMS Las Vegas Conference.
Small Town Politics, Big Time Thefts
The Front Royal-Warren County area of Virginia is known for its rolling hills and quiet suburbs. Despite its proximity to Washington, D.C., Front Royal remains far removed from the hustle of a larger city. Its citizens are tight-knit and proud of their local community. Thus, the shock felt by the community was palpable when one of their own betrayed them.
To Navigate Compliance Hurdles, Fintechs Must Leverage Tech
Over the last decade, banking has gone through a digital revolution. Emerging fintechs have transformed the landscape from a branch-based banking model to one that is now comfortably digital first. With lower barriers to entry for these new fintech players, they have been able to operate with little to no oversight in a highly regulated market.
Evaluating AML Compliance Programs in MSBs
The number and types of financial products and services are rapidly expanding. Various organizations have developed applications for investing, sending money or paying bills. In addition, many businesses transfer money around the world or offer check-cashing services. These unique products have improved financial accessibility to underbanked populations and changed the traditional money services business (MSB) landscape.
IRS-CI—Who Are They and What Do They Do?
Did you know that the Internal Revenue Service (IRS) has a criminal investigation division (IRS-CI)? What started out as the IRS Intelligence Unit more than 100 years ago—out of the need to combat widespread tax evasion and bribery among bureau employees—is now the sixth largest federal law enforcement (LE) agency.
SAR Disclosure: A Conversation Worth Having
“For with great power, there must also come great responsibility!” is a well-known quote made famous by the comic series “Amazing Fantasy” where Spiderman’s Uncle Ben had the forethought to impart this sage wisdom to his nephew before combating evil doers. That lesson also applies to our everyday heroes—from Bank Secrecy Act (BSA) officers to law enforcement (LE) officers.
Indirect Exports and Transshipment Trade: Guarding Against Unlawful International Trade
In ancient China, archery was one of the Six Arts of the Zhou Dynasty, which reigned from 1146-256 B.C. Being an expert in various types of Chinese archery was a respected activity undertaken by many in distinguished positions of authority, including Confucius and the Daoist Lie Yukou.
High-risk Products and Frontier Markets: What Are the Risks?
Emerging economies accounted for almost two-thirds of the world’s gross domestic product (GDP) growth and more than half of new consumption between 2003 and 2018, according to a 2018 McKinsey report.
Pig Butchering: The ‘Super Scam’
The Greater Mekong Subregion (GMS) has become a hot spot for large-scale online scam operations with ties to groups based in China that have sprung up in the special economic zones of Cambodia, Laos and Myanmar. This cyberscam industry is also a conduit for human trafficking (HT) on a massive scale as a considerable number of innocent job seekers attracted by promises of well-paid and legitimate work across Southeast Asia are lured by criminal syndicates and then forced into doing cyberscamming activities.
Sarah Beth Felix: Building a Compliance-Focused Foundation
Co-founder and chief anti-money laundering (AML) officer of Acceleron Bank (in formation), Sarah Beth Felix, CAMS, took the time to speak to ACAMS Today about the creation of the financial institution (FI). With experience working with FIs, including banks, financial technology (fintech), trade finance institutions, money services businesses, broker/dealers and mortgage companies, Felix has a diverse background working with AML/sanctions and compliance.
Alex Egan: A Career Spanning the Military, Law Enforcement, Regulatory Compliance and ACAMS Chapter Leadership
Alex Egan, CAMS, is a director with Kaufman Rossin, a full-service public accounting and consulting firm, as well as a member of the ACAMS South Florida Chapter Board. Egan has years of experience in law enforcement (LE) and regulatory compliance environments with extensive exposure to the financial, securities and insurance industries.
Kicking Off the First Live Event Since 2020
The ACAMS Carolinas Chapter returned to live events this year by hosting its second annual AML and Sanctions Symposium. On September 13, 2022, more than 200 professionals across the southeast gathered at the Charlotte Convention Center for a full day of continuing education, followed by a networking reception.
An Eventful Day and Evening
It has been more than two years since the ACAMS Cyprus Chapter hosted its last face-to-face learning event before COVID-19 hit the world. And they came back with a bang!
Greater Philadelphia Chapter: Welcome Back, Philadelphia!
Since its inception, the ACAMS Greater Philadelphia Chapter has been serving its members in this diverse and emerging marketplace. The Greater Philadelphia area is known for its historically rich heritage but is also noted for being one of the leading financial centers in the country, with a diverse set of employers in both the public and private sectors.
John MacKessy: Learning From History
John MacKessy of the ACAMS New York Chapter has over 25 years of regulatory and compliance experience and is currently a managing director and global head of anti-money laundering (AML) for BlackRock, the largest global asset manager. Prior to joining BlackRock, MacKessy was the global head of AML Monitoring for Citi Cards and global AML and sanctions officer for MasterCard.
ACAMS Delaware Chapter: The Power of Sharing AML Information
The ACAMS Delaware Chapter hosted a virtual webinar in August titled “Conducting More Effective Customer Due Diligence: Requirements, Best Practices and Trends to Watch.” The event had over 100 registered participants and proved to be an informative session, even for seasoned anti-money laundering (AML) veterans.
Michel Nassif: Building Strategic Relationships in the Middle East and Africa
Michel Nassif joined ACAMS nearly three years ago as head of the Middle East and Africa. He focuses on helping strategic clients, companies and countries in this region to leverage ACAMS’ resources to address their compliance obligations and align with similar international organizations at the forefront of regulatory and industry developments.
Isabel Medrano, CAMS— Texas, USA
Isabel Medrano heads WestStar Bank’s Bank Secrecy Act (BSA) Department, Financial Intelligence Unit and is the BSA/Office of Foreign Assets Control (OFAC) officer. She has over 32 years of experience in the banking industry where she has worked in various capacities throughout her career. She has spent the last 16 years developing and overseeing WestStar Bank’s anti-money laundering (AML) and BSA/OFAC compliance programs.
Iris Smith, CAMS-Audit— North Carolina, USA
Located in Charlotte, North Carolina, Iris Smith is the managing director, chief AML and sanctions officer for TIAA and the dual-hatted board-appointed Bank Secrecy Act (BSA) officer for TIAA, FSB. Prior to assuming this role in 2021, Smith served as the head of AML governance for TIAA Financial Solutions, where she led the money laundering risk assessment and governance program.
Brandon Tate, CAMS, CGSS— Oregon, USA
Brandon Tate is a Columbia Bank vice president and Deputy Bank Secrecy Act (BSA) officer based in the Portland, Oregon, metropolitan area. He is responsible for managing anti-money laundering and enhanced due diligence investigations, and developing and enhancing written procedures, training and certification processes to maximize BSA compliance across the organization. He is the primary resource and subject-matter expert for Columbia staff and line management in meeting their compliance responsibilities.
Denise Spada, CAMS, CKYCA— Nevada, USA
Denise Spada is a compliance professional with more than 15 years of experience working in the gaming industry as an anti-money laundering (AML) expert. Currently, she serves as the director of AML compliance for Everi Payments Inc. in Las Vegas, Nevada.
Banking Cannabis in 2022: ‘Weeding Out’ the Right Answers Among Industry Complexity
Since the initial legalization of medical/recreational marijuana in California in 1996, the conversation has been open about how the legislation would affect financial institutions (FIs). Since then, many unique business lines have been developed as part of the expansion of the legal cannabis industry. Now, in 2022, the conversation is more open than ever as to which institutions in which states will choose to onboard the varying degrees of business customers involved in cannabis-related sales.
Elvis and the Fraud Triangle
In 2022, Warner Brothers released the movie Elvis, which explores the complex and sometimes contentious relationship between the King of Rock and Roll, Elvis Presley, and his longtime manager, Colonel Tom Parker, played by Hollywood icon Tom Hanks.
Prepaid Debit Cards for Teens: A Target for Online Scammers
Gone are the days of the piggy bank! Today, teenagers can manage their finances with the use of prepaid debit cards through prepaid debit card accounts. Parents can register for prepaid debit card accounts through banks and fintech companies such as Chase Bank, Bluebird, BusyKid, Greenlight and GoHenry to provide the cards to their kids.