Bankers are more frequently rejecting law enforcement requests to keep open accounts held for the targets of criminal probes despite assurances that the institutions won't be penalized for subsequent transactions, say sources. In 2007 guidance, the U.S. Treasury Department reiterated that banks should base decisions to maintain or close accounts on their internal anti-money laundering (AML) policies and procedures, but advised financial institutions to "be mindful" that continuing to process prohibited transactions at the request of investigators could help build legal cases against suspected financial criminals. But an unprecedented governmental focus on AML regulatory compliance has contributed to a growing...
Border banks are accepting potentially fraudulent copies of cash declaration forms to justify bulk cash deposits by individuals traveling from Mexico into the United States, say law enforcement officials.
Federal examiners have uncovered "systemic breakdowns" at some banks in terms of how AML compliance policies are drafted to address subpoenas and law enforcement inquiries, said Suzanne Williams, manager of compliance in the banking supervision and regulation division at the Federal Reserve.
Nearly half of the members of the Council of Europe's anti-money laundering watchdog organization forward less than ten percent of their suspicious transaction reports to law enforcement agencies, the group said Friday.