Basics of Anti-Money Laundering : A Really Quick Primer What is Money Laundering? The act of concealing or disguising (laundering) of funds obtained through illegal activity so that they appear to have been generated through legal, legitimate sources. How is it Carried Out? Shell companies, intermediaries and money transmitters usually transfer these funds around the world Banks and other financial institutions are the chosen medium for laundering these illegal funds AML Regulations: The Bank Secrecy Act is the most important Anti-Money Laundering (AML) regulation The BSA requires financial institutions to: Keep records of cash purchases of negotiable instruments File reports of cash transactions exceeding $10,000 (daily aggregate amount) Report suspicious activity that might signify money laundering, tax evasion, or other criminal activities Implement a written, board-approved compliance monitoring program The USA Patriot Act Expands AML requirements to all financial institutions Augments existing BSA framework AML Best Practices: In order to combat money laundering, banks should implement the following best practices: Customer Identification Program (CIP) Customer Due Diligence (CDD) Program Bank Secrecy Act/Anti-Money Laundering Risk Assessment Identification and Reporting of Suspicious Activity Want to learn more about anti-money laundering process and best practices? ComplianceOnline webinars and seminars are a great training resource. Check out the following links: http://www.complianceonline.com/anti-money-laundering-aml-compliance-program-seminar-training-80114SEM-prdsm?channel=amlppt http://www.complianceonline.com/bsa-aml-ofac-risk-assessments-regulatory-requirements-seminar-training-80181SEM-prdsm?channel=ppt http://www.complianceonline.com/bsa-aml-compliance-reporting-requirements-webinar-training-703352-prdw?channel=amlppt http://www.complianceonline.com/bsa-aml-compliance-checklists-webinar-training-703178-prdw?channel=amlppt http://www.complianceonline.com/bsa-aml-ofac-risk-assessments-and-evaluation-compliance-program-webinar-training-703493-prdw?channel=amlppt http://www.complianceonline.com/best-practices-for-developing-risk-models-for-aml-bsa-monitoring-webinar-training-703628-prdw?channel=amlppt

1. Basics of Anti-Money
Laundering : A Really
Quick Primer

2. What is Money Laundering?
• The act of concealing or disguising
(laundering) of funds obtained through illegal
activity so that they appear to have been
generated through legal, legitimate sources.
Illegal
money/funds
Legal
money/assets

3. Money Laundering: A Three Stage
Process
Placement
• Illicit funds
are
physically
placed in the
financial
institution
Layering
• Multiple
transactions
• Wire
transfers
between
domestic
and foreign
accounts
Integration
• Real estate
investment
• Luxury
automobiles
• Investment
in securities
markets

4. How is it Carried Out?
– Shell companies, intermediaries and money
transmitters usually transfer these funds around
the world
– Banks and other financial institutions are the
chosen medium for laundering these illegal funds

5. AML Regulations
• The Bank Secrecy Act is the most important Anti-Money
Laundering (AML) regulation
• The BSA requires financial institutions to:
– Keep records of cash purchases of negotiable instruments
– File reports of cash transactions exceeding $10,000 (daily
aggregate amount)
– Report suspicious activity that might signify money laundering,
tax evasion, or other criminal activities
– Implement a written, board-approved compliance monitoring
program
• The USA Patriot Act
– Expands AML requirements to all financial institutions
– Augments existing BSA framework

6. AML Best Practices
• In order to combat money laundering, banks
should implement the following best
practices:
– Customer Identification Program (CIP)
– Customer Due Diligence (CDD) Program
– Bank Secrecy Act/Anti-Money Laundering Risk
Assessment
– Identification and Reporting of Suspicious Activity

7. Want to learn more about anti-money laundering process and best practices?
ComplianceOnline webinars and seminars are a great training resource. Check
out the following links:
• http://www.complianceonline.com/anti-money-laundering-aml-compliance-
program-seminar-training-80114SEM-prdsm?channel=amlppt
• http://www.complianceonline.com/bsa-aml-ofac-risk-assessments-regulatory-
requirements-seminar-training-80181SEM-prdsm?channel=ppt
• http://www.complianceonline.com/bsa-aml-compliance-reporting-requirements-
webinar-training-703352-prdw?channel=amlppt
• http://www.complianceonline.com/bsa-aml-compliance-checklists-webinar-
training-703178-prdw?channel=amlppt
• http://www.complianceonline.com/bsa-aml-ofac-risk-assessments-and-evaluation-
compliance-program-webinar-training-703493-
prdw?channel=amlppt
• http://www.complianceonline.com/best-practices-for-developing-risk-models-
for-aml-bsa-monitoring-webinar-training-703628-
prdw?channel=amlppt