Electronic Funds Transfer (EFT), also known as an ePayment, is a broad term that covers many types of electronic payments, such as automated clearing house (ACH) transfers and wire transfers. These have become popular within business-to-business (B2B) payments since many businesses are shifting away from physical checks and toward more efficient, and cost effective, ACH. […]
According to the Federal Deposit Insurance Corporation (FDIC) a Customer Identification Program (CIP) imposes “the minimum standards for financial institutions and their customers regarding the identity of the customer that shall apply in connection with the opening of an account at a financial institution” (page 1). The CIP procedures are required to be appropriate regarding […]
A Currency Transaction Report (CTR) is a report made by United States financial institutions regarding all transactions that involve sums of money equal to or greater than $10,000. These reports can involve the exchange of currency, withdrawals, deposits, transfers of money between accounts, and many other types of transactions. With the evolution of technology over […]
A Cash-Intensive Business is any business which the majority of customers pay with cash for their products or services provided. Some common examples of a cash-intensive business are restaurants, pizza delivery services, taxi firms, coin-operated machines, or car washes. It can also be an industry that takes cash payments for services where independent workers are […]
Correspondent Bank Correspondent Banks are financial institutions that provide services on behalf of another, equal or unequal, financial institution. Correspondent banks can facilitate wire transfers, conduct business transactions, accept deposits, and gather documents on behalf of a financial institution. They are typically used by domestic banks to service transactions that are completed in foreign countries; […]
The Bank Secrecy Act (BSA), properly known as the Currency and Foreign Transactions Reporting Act, was passed by the US Congress in 1970 as the first laws to fight money laundering. The International Revenue Service (IRS), established requirements for recordkeeping and reporting by private individuals, banks and other financial institutions. It is designed to help […]
Automated Clearing House (ACH) is an electric network for financial transactions in the United States. ACH processes large volumes of credit and debit transactions in batches. ACH credit transfers include direct deposit, payroll, direct deposits, tax refunds, vendor payments, and many more payment services. Other examples would be online bill pay and mobile transfers. Essentially, […]
The “washing” of proceeds of criminal activity (often cash) to legitimize or disguise their true source and/or owner. The primary goals of money laundering consist of: (1) Launder Cash, (2) Reduce Volume of Cash on Hand, (3) Convert stored cash and (4) Legitimize ill-gotten gains. The process of the activity has three steps: • Placement […]
Beginning with the Reporting and Recordkeeping Act of 1970, better known as the Bank Secrecy Act, the legal pursuit of money laundering began. Originally aimed at tracking cash movements to hamper the activities of drug lords and dealers, human traffickers, organized crime networks and tax evaders, the law has seen a number of revisions. The […]
