New Accounts

Financial institutions, misleading titles account approval may unwittingly be negative for the detection of suspicious activities. One area of particular interest include cash book of foreign private investment (PICS). Those responsible should be used to hold personal property. But it is not unusual that PICS be used for other purposes. Sometimes those accounts which contain words that indicate the type of account is different than it is. It is problematic, especially when the words by beating the account is a financial institution. Words and phrases such as "Trust Company", "Investment Services", "Banque", "Investors" Investment Company "," Financial Services "," securities "," investment ", etc.. Inserted in the title of the account may confuse and mislead Anti-money laundering personnel for review of potentially suspicious activity. If for example a money launderer opened a PIC with the phrase "management" in the title and then often move large amounts of money through this activity that they might not be unusual. The reason is often cash flow and wiring rare account by a financial institution, it is not expected. Since the term "investment" showed up in the account title, the fact that there really is not a financial institution account, it is unclear who the monitoring personnel are often looking for guidance on what measures can be taken. If account activity appears to be the title, no further testing can be granted. Therefore, increasing the risk of misleading account book that some data may not be an appropriate level of contribution. More importantly, this raises the possibility of money laundering or worse still undiscovered.

Fortunately, companies can reduce the incidence of this problem by refusing to give reasons or accounts with misleading headlines. Customer-facing employees in the stores are the first line of defense against the problem. They are best positioned for the misleading title of the account opening process in place. The second line of defense is the new accounting rules, if the request is sent as soon as the end branch. The department is responsible for the efficient construction and maintenance of the organizations official account record. Associates in this area is necessary familiarity with different types of documents for each account. If they have a title given to the line with the type of device in the documentation, it can be treated on site, before officially opening the account. Desired track changes in existing accounts should also check a trigger for the misleading words.

Finally, financial institutions can prevent, detect the problem by carrying out regular keyword search existing accounts with the inappropriate tracks. For example, an automated search for accounts, not as a financial institution that has one or more of the deceptive words that are encoded. The elimination of misleading titles will still maintain a loose end in the global fight against money laundering and terrorist financing. Although this article focuses on the use of financial titles of non-financial corporations, misleading title of any kind should be avoided, and a red flag worth more.

Thomas J. Burns, CFE
Certified Fraud Examiner
E-mail: tj.burns @ gmail.com