Identity Resolution Daily Links 2007-09-05
[Daily Post from Infoglide Software] Reverse Money Laundering: When Clean Money Goes Dirty
“Banks have a tough job to do. To stem the flow of dirty money to drug dealers and terrorists, U.S. banking regulators currently hold financial institutions responsible for customers that attempt to turn ill-gotten gain into clean cash. And soon, if a new bill makes its way through Congress, banks will also have to account for “reverse money laundering” — i.e., when clean cash ultimately funds dirty deeds.”
News Leader: Fraudbuster helps keep insurance costs low
“When she first tells people what she does, Gajda faces a stigma from people who assume she’s part of a corporate ploy not to fulfill insurance claims. But eventually, she said, people realize her job actually helps keep insurance costs down. The National Insurance Crime Bureau, a nonprofit group founded by the insurance industry, estimates that insurance fraud costs Americans about $30 billion a year. This equates to $300 in higher insurance premiums for the average household.”
CNNMoney.com: Downey Savings to Strengthen its Bank Secrecy Act/Anti-Money Laundering Program
“Downey Financial Corp. has announced today that its subsidiary, Downey Savings and Loan Association, F.A., has consented to the issuance of a cease and desist order by its federal regulatory agency, the Office of Thrift Supervision (OTS), as a result of certain concerns of the OTS relating to Downey Savings’ compliance with the Bank Secrecy Act.”
Bankersalmanac.com: New survey finds compliance costs remain high for banks
“As anti-money laundering (AML) regulation continues to grow, the cost of conducting KYC checks on new counterparties and dealing with remediation remains a major factor facing banks, according to new findings released today by Bankersalmanac.com. In a survey aimed at people working within the financial services sector, a quarter of respondents confirmed that it takes them a month or more to collect KYC (Know Your Customer) data from other banks.”
“‘It is clear that the stored value industry is in for a major wake up call. While most stored value products are issued by regulated financial institutions, the majority of marketers and resellers operate largely outside of a regulated framework. These marketers and resellers include both mom and pop operators as well as big box retailers. Given the risks associated with money laundering and terrorist financing, financial institutions, marketers and resellers should anticipate significant regulation in the near future,’ said Jesse Torres, Executive Vice President of TomatoBank, N.A. and Committee Member of the West Coast Anti-Money Laundering Forum.”
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