[privacy] FW: What Is "Structuring" and How Do Banks Detect It?

[Michael Graham]

Richard just admitted to being a terrorist :(

On Wed, Mar 12, 2008 at 4:35 PM, Richard M. Smith
<rms at computerbytesman.com> wrote:
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> I used trick #1 to pay my daughter's college tuition via a debit card.  My
> bank limits me to $1,000 maximum for  an single online transaction.  So I
> end having to do multiple transactions to get her tuition paid.  The total
> payments are under $10,000, so I don't think I'm raising any red flags.
> However the payments are going to Canada which might make a difference.
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> Richard
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> From: Larry Seltzer [mailto:Larry at larryseltzer.com]
>  Sent: Wednesday, March 12, 2008 4:24 PM
>  To: privacy at whitestar.linuxbox.org
>  Subject: [privacy] FW: What Is "Structuring" and How Do Banks Detect It?
>
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> Just another pitch I got today
>
> Larry Seltzer
>  eWEEK.com Security Center Editor
>  http://security.eweek.com/
>  http://blogs.pcmag.com/securitywatch/
>  Contributing Editor, PC Magazine
>  larry.seltzer at ziffdavisenterprise.com
>  ________________________________
>
>
> From: Temin and Company [mailto:news at Teminandco.com]
>  Sent: Wednesday, March 12, 2008 4:18 PM
>  To: Temin and Company
>  Subject: What Is "Structuring" and How Do Banks Detect It?
>
>
> Fortent has been getting numerous calls asking for an explanation of
> "structuring" and how banks detect it. Following is a primer on the form of
> money laundering called "structuring." If you would like more information
> about this, or to speak with Fortent experts, please contact Suzanne Oaks or
> Davia Temin of Temin and Company at 212-588-8788 or news at teminandco.com.
>
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> A Primer on "Structuring" as a Form of Money Laundering
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> NEW YORK – March 12, 2008 – A commonly-used form of money laundering called
> "structuring" has recently emerged in the news.
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> Dr. Michael Recce, Chief Scientist at Fortent, the risk and compliance
> technology and information company, explains: "Structuring is a favorite
> method used by money launderers to attempt to avoid detection.
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> "Due to the Bank Secrecy Act and the USA PATRIOT Act regulations, banks are
> required to report customer transactions of $10,000 or more to federal
> authorities. So in order to get around these requirements, an individual
> could 'structure' or divide payments into a set of transactions where each
> individual transaction is below this $10,000 threshold. This maneuver
> increases the chances that the individual would fly under the radar of
> banks' compliance departments.
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> "Divided transactions raise suspicion levels, and banks have systems in
> place to detect just this sort of criminal behavior."
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> Common signs of structuring, says Dr. Recce, include:
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>  1. Movement of cash in multiple transactions under $10,000 – "Obviously,
> not every transaction of under $10,000 is suspect, but if banks see a
> pattern of cash movement to the same account when it doesn't seem to make
> sense, this raises red flags."
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> 2. Attempts to take the sender's name off wire transfers – "If you have
> nothing to hide, why would you try to conceal your transactions?"
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> 3. Large cash deposits made to ATMs – "Most people deposit checks, not cash,
> into ATMs, so banks' systems tend to raise red flags for these types of
> transactions."
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>  "To detect structuring," says Dr. Recce, "anti-money laundering systems,
> such as Fortent's, look for situations in which multiple transactions of
> slightly under $10,000 are performed within short periods of time, possibly
> at multiple branches or locations of a bank."
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> About Fortent
>
> Fortent provides risk and compliance solutions to financial institutions,
> government agencies, and individuals in more than 100 countries. With
> advanced systems endorsed by the American Bankers Association, Fortent's
> market-leading technology, information, and training businesses help clients
> fight financial crime and achieve regulatory compliance throughout their
> global operations.
>
>
>
> ###
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