FinCEN improves AML processes

In a March 19, 2013, talk before the Association of Certified Anti-Money Laundering Specialists, Jennifer Shasky Calvery, Director of the Financial Crimes Enforcement Network (FinCEN), said technological improvements at FinCEN are helping the agency combat money laundering schemes. She reported that improved processes have translated into over 50 percent match rates of suspected activity reports (SARs) and currency transaction reports (CTRs) sent in by financial institutions (FIs).

Calvery said in fall 2012, FinCEN began rolling out a key component in the agency's IT Modernization Program to improve its ability to conduct analysis of the reports and make its data available to federal and state agencies, including law enforcement and regulators. Using FinCEN Query on the agency's website, such entities can access and analyze 11 years of data compiled by FinCEN.

Calvery said the compilation process involves FinCEN analysts sifting through data from the millions of reports that FIs send to FinCEN annually. "For example, our advanced data matching algorithms have allowed us to increase match rates between CMIRs [reports of international transportation of currency or monetary instruments], CTRs, and SARs by over 50 percent in some jurisdictions," she noted. "This gives us insight into dollar flow from a foreign jurisdiction to the point the dollars are deposited into a U.S. bank, from which we can work to ultimately identify the foreign beneficiary of a wire emanating from the account."

Calvery pointed out that FinCEN analysts have also developed a tool that uses "red flag" financial indicators to assist the agency in identifying money services business agents, such as money transfer providers, that are acting as third-party money launderers.

Editorial Note:

Whether you want to upgrade your POS offerings, find a payment gateway partner, bone up on fintech regs or PCI requirements, find an upcoming trade show, read about faster payments, or discover the latest innovations in merchant acquiring, The Green Sheet is the resource for you. Since 1983, we've helped empower and connect payments professionals, starting with the merchant level salespeople who bring tailored payment acceptance and digital commerce tools, along with a host of other business services to merchants across the globe. The Green Sheet Inc. is also a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals.

Notice to readers: These are archived articles. Contact information, links and other details may be out of date. We regret any inconvenience.