NCJ Number
158966
Date Published
1989
Length
13 pages
Annotation
Money is laundered to conceal criminal activity, such as drug trafficking, and financial institutions have been both witting and unwitting participants in money laundering activities.
Abstract
Banks have become major targets of money laundering operations because they provide a variety of services and instruments that can be used to conceal the source of money. To protect themselves, banks need to know the way in which money laundering schemes operate. Background information on money laundering laws is provided, money laundering schemes involving banks are described, and warning signs to help bankers avoid involvement with money launderers are identified. Money laundering schemes of particular interest encompass real estate loans, fictitious accounts, and an international money laundering operation referred to as C-Chase. Reports that can help bankers identify suspicious transactions include demand deposit account activity reports, large transaction or cash-in and cash-out reports, suspected kiting reports, and incoming and outgoing wire transfer logs.