Featured
Russiaās Hope of Ice Hockey Glory Buried Under Sanctions
Over the past decade and a half, some of Russiaās wealthiest and most powerful people, with the blessing of President Vladimir Putin, have been working on boosting Russiaās soft power in the world of sports. The Russian Kontinental Hockey League (KHL) was to become the dominant ice hockey league in all of Eurasia, possibly equivalent to the National Hockey League (NHL), the North American ice hockey league, considered the best in the world.
Trade Finance Risk and Controls
Trade finance is described as the provision of finance and services by financial institutions (FIs) for the movement of goods and services between two points, either within a country or across borders. There are multiple methods by which an FI can participate in the financing of product movement. The type of trade finance transaction and the role the FI plays in the transaction is the starting point for determining the risk of the transaction to the FI.
From the Editor
Russia Is in the Penalty Box
When you grow up in cold weather and in a place where the license plate tagline is āGreatest Snow on Earthā and where the 2002 Olympics were held, you tend to get involved in winter sports. My winter sport of choice was ice skating, but many of my friends were involved in ice hockey leagues. I spent a significant amount of time cheering them on as they competed at the rink.
A Message from the Director of Editorial Content
Public Interest Versus Privacy Rights Play Out in CTA
In January 2021, the passage of the Anti-Money Laundering Act of 2020 (AMLA) was greeted with near jubilation by the anti-financial crime (AFC) community. Since then, regulations implementing the AMLA, specifically the Corporate Transparency Act (CTA) portion, have gotten a mixed reception from AFC professionals.
Inside this Edition
- AFC Challenges
- AFC Policy
- Aspects of APAC
- Career Guidance
- Community Banking Corner
- Compliance
- Global Financial Crime Review
- Interview
- Know Your Chapter
- Meet the ACAMS Staff
- Member Spotlights
- Practical Solutions
2023: Evolving Threats and Risk Landscapes Require Investment in Technology
The fight against money laundering is likely to get more challenging for many businesses in 2023, with global events likely shaping the compliance and regulatory landscape. With organized criminals increasingly becoming more tech-savvy and regulators increasing enforcement action for noncompliance, the stakes have never been higher for regulated entities to strengthen their defenses against financial crime risks.
The BSA Tractor
You may have read it in magazines or seen the news or videos of some altruistic country sending modern tractors to aid farmers in developing nations. It seems surprising when they return later to find all the tractors in disrepair, with some now even being pulled by teams of horses. Some reactions blame the farmers for either ignorance or ungratefulness.
Why FIs Should Consider Banking Marijuana Dispensaries
Former Financial Crime Enforcement Network (FinCEN) Director Kenneth Blanco once said, āBanks must be thinking about their crypto exposure. If banks are not thinking about these issues, it will be apparent when examiners visit.ā This advice can also be applied to marijuana banking.
The Hawala System: A Risky Alternative to Traditional Banking
Hawala, also known as hundi, is a traditional informal value transfer system that is not regulated in many countries. It relies on a network of hawala brokers (hawaladars), who transfer money on behalf of clients without the use of a traditional financial institution (FI).
FinCENās Terrorist Financing Policies
The article titled āFinCENās AML and Terrorist Financing Priorities: An Introduction,ā featured in the ACAMS Today 12th Law Enforcement Edition, shared general thoughts, basic definitions and practical examples on each of the national anti-money laundering (AML) priorities. This article, the fifth of the series, will discuss terrorist financing in greater detail.
Is It āGroundhog Dayā for Digital Assets?
2022 was a rollercoaster year for digital asset regulation and enforcementāat times fluctuating between a āGroundhog Dayā-esque barrage of been-there-before and an endless array of shock and awe.
Regulatory Ambiguity in IndiaāBreeding Ground for Crypto Criminals
When Satoshi Nakamoto penned the original white paper introducing the world to bitcoin and blockchain technology, no one had ever imagined that virtual currencies or cryptocurrencies would bring a tsunami of changes in the world of digital technology and financial services. Since its first use in 2009, there are approximately 300 million crypto users across the world as of 2021.
What Does a Recruiter Do?
Many people have trouble understanding what employment recruiters are and what they do for a living. The irony is that what they do is actually simpleārecruiters recruit. Some recruit nurses, while others recruit Java developers.
Making the Leap to Management
The world of anti-money laundering (AML) provides for many careers at all levels across many industries, including banking, financial technology (fintech), gaming, lending, insurance and many others. Career levels could include entry-level analysts, experienced investigators, team leads, supervisors, managers and department heads.
Information Sharing: Why Community Banks Should Participate
Section 314 of the USA PATRIOT Act, which was passed back in 2001, is a vital portion of the legislation. Anyone who had been in the anti-money laundering/Bank Secrecy Act (AML/BSA) space prior to 2001 understands how significant this change was to the industry. Section 314 specifically centered around the ability of financial institutions (FIs) and law enforcement (LE) to share information.
Defining āDigital Asset-related Businessā
What is a digital asset-related business (DARB)? All financial institutions (FIs) must have a clear answer to this question and take a vested interest in this complex asset class to effectively manage risk and monetize the opportunity.
Eyeing Compliance Blind Spots in Bank-fintech Partnerships
The digitization of banking is inevitable, and consumers are demanding it. PwC reported that direct (digital) banksā share of consumersā primary banking relationships rose by 80% from 2019 to 2021. Traditional banks have long seen the writing on the wall regarding sinking customer satisfaction. A 2022 Gallup Poll revealed that trust in banking fell six percentage points from the previous year to 27%.
Why Terrorist Organizations Use Human Trafficking
Human trafficking (HT) is used by terrorist organizations to exploit individuals and to carry out or support terrorist activities. In fact, terrorist organizations using HT for financial gain appear to be rarer than the trafficking of human beings for other exploitative purposes that support the organizationsā activities.
Russiaās Hope of Ice Hockey Glory Buried Under Sanctions
Over the past decade and a half, some of Russiaās wealthiest and most powerful people, with the blessing of President Vladimir Putin, have been working on boosting Russiaās soft power in the world of sports. The Russian Kontinental Hockey League (KHL) was to become the dominant ice hockey league in all of Eurasia, possibly equivalent to the National Hockey League (NHL), the North American ice hockey league, considered the best in the world.
Edwin W. Harris Jr.: Eradicating Corruption in West Africa
ACAMS Today interviewed Edwin W. Harris Jr., CAMS, director general of the Intergovernmental Action Group against Money Laundering in West Africa (GIABA), a role he assumed on August 1, 2022. Harris holds a masterās degree in public administration from Northeastern University, a Master of Business Administration degree from Strayer University and a Bachelor of Science in Economics and Political Science from the University of Liberia.
Spotlight on the ACAMS South Florida Chapter
The last few years proved to be transformative for how and where we work. Pushed by the pandemic, many in the anti-financial crime (AFC) community moved into remote-only or hybrid work environments. Many in the AFC community also made a far greater leap and moved across the country to be closer to families and friends or simply to seek better weather, lower taxes and amazing beaches like those found in South Florida.
Location, Location, Location and 2022 in Review
ACAMS Southern Nevada Chapter is happy to call Las Vegas its home. The city is an internationally renowned major resort destination known primarily for its entertainment, fine dining, gambling, shopping and nightlife. Las Vegas is among the top destinations in the U.S. for business travel, holding over 22,000 conventions of different sizes every year.
The Launch of the ACAMS Italy Chapter and What Comes Ahead!
On November 21, 2022, the ACAMS Italy Chapter hosted its first in-person event in Milano for the chapterās launch, making the Italy Chapter the 62nd chapter worldwide and 15th in Europe.
Marking its first meeting at the glamourous Excelsior Hotel Gallia, the newly formed Italy Chapter brought together a team of anti-money laundering (AML) and anti-financial crime (AFC) and compliance professionals with solid and complementary backgrounds.
Lash Kaur: Bettering the World Through Social Impact
ACAMSā Vice President of Global Strategic Communications and Diversity, Equity and Inclusion (DEI) Lash Kaur spoke to ACAMS Today about her responsibility for leading the organizationās stakeholder relations, which includes employee and external communications, all social impact initiatives and advisory board relations, and is newly responsible for ACAMSā environmental, social and governance (ESG) strategic planning and reporting.
Tarik Eker, CAMSāGermany
With over 25 years of experience in electrical engineering and computer science, and more than 15 years in the field of financial crime prevention, Tarik Eker, head of compliance and senior lecturer, is an expert in the fight against money laundering. Eker began his career as an electrical engineer in 1997 and quickly realized the potential for technology in the field of financial crime prevention.
Derek W. Smith, MBA, CAMS, CRCMPāThe Bahamas
Derek W. Smith, MBA, CAMS, CRCMP, is a senior contributor in the Bahamasā compliance and anti-money laundering (AML) space. He facilitates training in operational risk assessments, AML risk assessments, business continuity management, information security governance, organizational resilience and agility.
Currently, Smith serves as the assistant vice president of compliance and money laundering reporting officer (MLRO) for the CG Atlantic group family of companies (member of Coralisle Group Ltd.) in the Bahamas and Turks and Caicos.
Amy Wotapka, CAMSāWisconsin, USA
Amy Wotapka, CAMS, is the Office of Foreign Assets Control and Bank Secrecy Act Officer at First American Bank. Wotapkaās banking career started in 1982 as a teller, ultimately landing in anti-money laundering compliance in 2001 under her mentor Jackie Santos at PNC Bank. From there, Wotapka transitioned to Capital One in various management roles.
The Great Divide: Getting Convergence Right This Time
As the world becomes increasingly interconnected and digital, so too has the threat of financial crime. Traditionally, siloed methods of combating financial crime, such as anti-money laundering (AML) and fraud detection, must adapt to the changing landscape and find ways to effectively mitigate the risks posed by increasingly sophisticated cybercriminals.
The Big Impacts of Small, In-House BMAs: A Case Study in the Fight Against Corruption
Faced with the challenges imposed by COVID-19 and global economic downturns, what will differentiate strong businesses from weak ones going forward will be their ability to think ahead, adapt and innovate. Fighting corruption and other financial crimes continues to be a huge operational burden and a major pain point for many governments and private institutions, particularly when it comes to investigating and adjudicating underlying criminal activity.
The Rise of Real Estate Money Laundering
The growth of real estate money laundering has been prevalent throughout the past 15 years as the U.S. continues to see ever-changing criminal strategies that facilitate illicit funds to move through the financial system with real estate purchases. As many bank compliance professionals can attest, the regulatory environment has made significant strides to establish strong institutional controls over the movement of funds and bank-facilitated transactions.
Choppy Waters: Negotiating the Complexities of Sanctions Due Diligence in an Uncertain World
In the not-too-distant past, a large international financial institution (FI) was weighing a golden opportunity. It was asked to provide funding for a sizeable manufacturing project in Central Asia. The project appeared sustainable and well-placed to offer a solid return on investment.
Trade Finance Risk and Controls
Trade finance is described as the provision of finance and services by financial institutions (FIs) for the movement of goods and services between two points, either within a country or across borders. There are multiple methods by which an FI can participate in the financing of product movement. The type of trade finance transaction and the role the FI plays in the transaction is the starting point for determining the risk of the transaction to the FI.