AML/BSA/Sanctions
Acronyms
Acronyms
ML Scandals
AML/Fraud-Movie/TV
100
What are the three stages of Money Laundering?
Placement: The physical disposal of cash or other assets derived from criminal activity.
Layering: The separation of illicit proceeds from their source by layers of financial transactions intended to conceal the origin of the proceeds.
Integration: Supplying apparent legitimacy to illicit wealth through the reentry of the funds into the economy in what appears to be normal business or personal transactions.
100
HRJ
High-risk jurisdiction
100
BSA
Bank Secrecy Act
100
Who is this money laundering Chicago gangster?
Al Capone. He practiced hiding criminal proceeds in cash-only laundromats in the 1920s. Though he eventually was only convicted only on tax evasion he is known to be tied to numerous other crimes. It’s estimated that Capone laundered upwards of $1 billion through various shady fronts.
100
After a money-laundering scheme for a Mexican drug cartel goes wrong, financial advisor Marty Byrde proposes to make amends by offering to set up a bigger laundering operation in the region of central Missouri
OZARKS
200
What does OFAC stand for?
Office of Foreign Asset Control
200
FATF
Financial Action Task Force
200
FIU
Financial Intelligence Unit
200
who was the mastermind of the largest Ponzi scheme in history, worth about $64.8 billion. He was at one time chairman of the Nasdaq stock exchange.
Bernie Madoff
200
A daughter of Russian immigrants in Germany, she created a fake identity, calling herself Anna Delvey, and posed as a rich German heiress to be on a par with her audience. She uses this persona to receive hundreds of thousands of dollars in cash, goods and services while working towards reaching the goal of opening an exclusive art-themed club.
Inventing Anna (Anna Sorokin)
300
What is the money laundering method described below: An individual wants to send a $5,000 money transfer. Knowing that there is a threshold of $3,000 for the recording of funds transfers, she sends a $2,500 money transfer and asks her friend to send another $2,500 money transfer.
(A large transaction is broken up into two or more smaller transactions)
Structuring
300
CFT
Countering The Financing Of Terrorism
300
FDIC
Federal Deposit Insurance Corporation
300
It was found that the bank allowed drug cartels in Mexico between 2004 and 2007 to allow money laundering of close to USD 390 billion through its branches. The bank thereafter was acquired by Wells Fargo & Company.
Wachovia Corporation
300
Based on one of the biggest financial leaks in history, the movie exposes the true nature of wealth, hidden behind front companies, no-name trusts, and offshore financial structures. The law firm Mossack Fonseca created a complex web of offshore entities using lies, deception, and greed as their main building blocks. The Panama Papers revealed how fragile and unstable that network was.
The Laundromat
400
How would we categorize the described person: An individual who are or have in the past been entrusted domestically with prominent public functions.
Politically Exposed Person (PEP)
400
FinCEN
Financial Crimes Enforcement Network
400
SEC
Securities Exchange Commission
400
Founded in Luxembourg in 1972 by businessman Agha Hassan Abedi, soon expanded globally and operated mainly outside the U.K. However, they were involved in fraud and money laundering activities of up to U.S. $ 23 billion. In 1990, allegations surfaced following an investigation that the bank falsified transactions. It has also been alleged that the bank uses a number of sophisticated techniques such as shell companies, privacy havens, commissions, and bribery to avoid regulatory scrutiny.
Bank of Credit and Commerce International (BCCI)
400
Inmate Andy Dufresne gets a job in the prison laundry. Later in the movie, he does a different kind of laundering. An experienced banker, Andy is hired by the warden to help him with a scheme where he uses prison labors to win public project contracts, with Andy laundering the money under the alias Randall Stephens.
The Shawshank Redemption
500
Which 4 countries have the longest-standing sanctions against them?
Cuba, Iran, North Korea, and Syria
500
S.W.I.F.T.
Society for Worldwide Interbank Financial Telecommunications
500
BMPE
Black Market Peso Exchange
500
In 2012, this bank paid a fine totaling $1.9 billion because it failed to prevent drug cartels from using the bank to launder nearly one billion dollars.
Investigators determined that the bank’s poor regulations led them to be the primary conduit for the drug cartels, with one being in Mexico and the other in Colombia. They combined for a total of $881 million in drug money.
HSBC Holdings
500
This Netflix show describes one of the largest diversion and money laundering investigations in Brazilian history. Brazil’s former president, Luiz Inacio Lula da Silva, was found guilty of corruption and money laundering and sentenced to 10 years in prison; his successor, Dilma Rousseff, was impeached and her successor, Michel Temer, in turn is being investigated for corruption and obstruction of justice.
The Mechanism