Your Questions About Money Laundering And Banks

Charles asks…

What would be involved with this job: anti money laundering investigator?

Could someone provide me with some information about money laundering, whats its about and what i could expect with this job role.


Pip answers:

Money laundering is using financial transactions to obscure the source or destination of funds to cover up gains from (or funding to) illegal activities, or to avoid taxes.

This may be anything from bribing a government official, to a drug dealer turning bad money into good money, a terrorist network sending funds, to good old fashion tax avoidance by business owners.

As an anti-money laundering investigator I’m guessing you will be working for a bank or other large financial institution in a compliance department making sure Patriot Act and Know Your Customer rules are being followed.

I don’t want to speculate about it and accidentally give away any effective methods (not that I know any) but generally it involves investigating transactions that may throw up a red flag, looking for transactions involving parties from sensitive or prohibited countries/industries, and making sure adequate background info is on file for clients.

There is a designation called the CFE (Certified Fraud Examiner) that covers all aspects of financial fraud that may be a good thing to have if you are serious about a career path.

Helen asks…

If I have my money in a bank and they close down or go bankrupt, will they steal my money?

I saw that Wachovia fired it’s CEO and that they are being investigated by the fed’s for possible money laundering. I have my main savings account with them and I am wondering if I should put my money in another bank to make sure I don’t lose it. Would I lose my money if they closed down? Would they close? They are one of the biggest banks. Also, is it better to distribute your money in different savings accounts anyways?

Pip answers:

Money in banks is insured by the federal government, known as FDIC insurance. It maxes out at $250,000 for your funds at an institution. So you would only really lose your money at an FDIC insured bank if the entire US government went bust.

Firing a CEO and a federal investigation will not cause a bank like Wachovia to fail. There’s far too much value for that to happen. At the very worst, it may be sold off, and bought by another firm or bank, who would then be your bank. You should be just fine, and I wouldn’t lose any sleep over it if I were you.

Michael asks…

What are “anti money laundering” and the “know your customer” regulations about, and what are they used for?

“Anti money launderingand “know your customer” are rules and regulations used within financial insituions, does anyone know what they are and why are they used?
“Anti money launderingand “know your customer” are rules and regulations used within financial insituions, does anyone know what they are and why are they used?

The anti money laundering analysts and the company affliated are required to answer to the financial regulatory bodies, does anyone know what the financial regulatory bodies are looking for from the analysts and the firm?

Pip answers:

They are for people who work in banks etc. They are told to look out for customers who do irregular things (look up carousel fraud) and report them to managers should they feel it is necessary.

Mary asks…

where is money laundering more likely to be taking place, in offshore banks or regular banks that are located?

in any country of the world? and if so, how is money laundering allowed to the point where it may not be disrupted even though bank officials know that its taking place in their bank?

Pip answers:

Senate and House of Representatives launder more money daily then we give them to launder.

James asks…

Would scamming people over the internet count as Money laundering?

We’ve all been there and seen those people who prey on peoples’ emotions. They tell fake and sympathetic and false stories just to steal peoples’ money. And with so many people being naive, they instantly hand over their wallets without thinking twice.

So would scam artists be considered as money launders? They do obtain money through illegal ways.

Pip answers:

No money laundering is were lets say you sell large amount of drugs and have lots of cash with no source of income and you want to buy that 5million dollar mansion a transaction like that will catch the eye of the irs and there going to know were you got the cash seeing you dont have a job so what you do is buy a business thats hard to track how much money comes in say like a laundry mat or bar you take the money from the business and put it in the bank your bar takes in 100000 dollars a month at least that what you report for tax purposes what is really happening is your bar is losing money but your drug money is going with the bar money

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