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<DIV dir=ltr align=left><SPAN class=902292320-12032008><FONT face=Arial
color=#0000ff size=2>Just another pitch I got today</FONT></SPAN></DIV>
<DIV align=left>
<DIV align=left><FONT size=2><FONT size=2>
<P>Larry Seltzer<BR>eWEEK.com Security Center Editor<BR></FONT><A
href="http://security.eweek.com/"><U><FONT color=#0000ff
size=2>http://security.eweek.com/</U></FONT></A><FONT face=Arial><BR></FONT><A
href="http://blogs.pcmag.com/securitywatch/"><U><FONT color=#0000ff size=2><A
href="http://blogs.pcmag.com/securitywatch/Contributing">http://blogs.pcmag.com/securitywatch/</U></FONT></A><FONT
size=2><BR>Contributing</A> Editor, PC
Magazine<BR>larry.seltzer@ziffdavisenterprise.com</FONT></FONT>
<HR tabIndex=-1>
<FONT face=Tahoma size=2><B>From:</B> Temin and Company
[mailto:news@Teminandco.com] <BR><B>Sent:</B> Wednesday, March 12, 2008 4:18
PM<BR><B>To:</B> Temin and Company<BR><B>Subject:</B> What Is "Structuring" and
How Do Banks Detect It?<BR></FONT><BR></P></DIV></DIV>
<DIV></DIV>
<DIV><FONT face=Garamond>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><A name=OLE_LINK2><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal">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 </SPAN></A><A
title=blocked::mailto:news@teminandco.com
href="mailto:news@teminandco.com"><SPAN style="mso-bookmark: OLE_LINK2"><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal">news@teminandco.com</SPAN></SPAN><SPAN
style="mso-bookmark: OLE_LINK2"></SPAN></A><SPAN
style="mso-bookmark: OLE_LINK2"><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal">. </SPAN></SPAN><SPAN
style="mso-bookmark: OLE_LINK2"><SPAN
style="FONT-FAMILY: 'Times New Roman'; mso-bidi-font-weight: normal"><o:p></o:p></SPAN></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="mso-bookmark: OLE_LINK2"><A name=OLE_LINK1><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal"><o:p> </o:p></SPAN></A></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="mso-bookmark: OLE_LINK2"><SPAN style="mso-bookmark: OLE_LINK1"><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal"><o:p> </o:p></SPAN></SPAN></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center"
align=center><SPAN style="mso-bookmark: OLE_LINK2"><SPAN
style="mso-bookmark: OLE_LINK1"><B style="mso-bidi-font-weight: normal"><SPAN
style="FONT-FAMILY: Arial">A Primer on “Structuring” as a Form of Money
Laundering <BR style="mso-special-character: line-break"><BR
style="mso-special-character: line-break"><o:p></o:p></SPAN></B></SPAN></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="mso-bookmark: OLE_LINK2"><SPAN style="mso-bookmark: OLE_LINK1"><st1:place
w:st="on"><st1:State w:st="on"><B style="mso-bidi-font-weight: normal"><SPAN
style="FONT-FAMILY: Arial">NEW YORK</SPAN></B></st1:State></st1:place><B
style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial"> – March
12, 2008 –</SPAN></B></SPAN></SPAN><SPAN style="mso-bookmark: OLE_LINK2"><SPAN
style="mso-bookmark: OLE_LINK1"><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal"> A commonly-used form
of money laundering called “structuring” has recently emerged in the news.
<o:p></o:p></SPAN></SPAN></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="mso-bookmark: OLE_LINK2"><SPAN style="mso-bookmark: OLE_LINK1"><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal"><o:p> </o:p></SPAN></SPAN></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="mso-bookmark: OLE_LINK2"><SPAN style="mso-bookmark: OLE_LINK1"><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal">Dr. Michael Recce,
Chief Scientist at Fortent, the risk and compliance technology and information
company, explains: “<B style="mso-bidi-font-weight: normal">Structuring is a
favorite method used by money launderers to attempt to avoid detection.</B>
<o:p></o:p></SPAN></SPAN></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="mso-bookmark: OLE_LINK2"><SPAN style="mso-bookmark: OLE_LINK1"><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal"><o:p> </o:p></SPAN></SPAN></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="mso-bookmark: OLE_LINK2"><SPAN style="mso-bookmark: OLE_LINK1"><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal">“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.<o:p></o:p></SPAN></SPAN></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="mso-bookmark: OLE_LINK2"><SPAN style="mso-bookmark: OLE_LINK1"><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal"><o:p> </o:p></SPAN></SPAN></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="mso-bookmark: OLE_LINK2"><SPAN style="mso-bookmark: OLE_LINK1"><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal">“Divided transactions
raise suspicion levels, and banks have systems in place to detect just this sort
of criminal behavior.”<o:p></o:p></SPAN></SPAN></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="mso-bookmark: OLE_LINK2"><SPAN style="mso-bookmark: OLE_LINK1"><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal"><o:p> </o:p></SPAN></SPAN></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="mso-bookmark: OLE_LINK2"><SPAN style="mso-bookmark: OLE_LINK1"><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal">Common signs of
structuring, says Dr. Recce, include:</SPAN></SPAN></SPAN><SPAN
style="mso-bookmark: OLE_LINK2"><SPAN style="mso-bookmark: OLE_LINK1"><SPAN
style="FONT-FAMILY: 'Times New Roman'; mso-bidi-font-weight: normal"><o:p></o:p></SPAN></SPAN></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="mso-bookmark: OLE_LINK2"><SPAN style="mso-bookmark: OLE_LINK1"><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal"><BR>1. <B
style="mso-bidi-font-weight: normal">Movement of cash in multiple transactions
under $10,000</B> – “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.”<o:p></o:p></SPAN></SPAN></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="mso-bookmark: OLE_LINK2"><SPAN style="mso-bookmark: OLE_LINK1"><SPAN
style="FONT-SIZE: 6pt; FONT-FAMILY: Arial; mso-bidi-font-weight: normal"><SPAN
style="mso-spacerun: yes"> </SPAN><o:p></o:p></SPAN></SPAN></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="mso-bookmark: OLE_LINK2"><SPAN style="mso-bookmark: OLE_LINK1"><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal">2. <B
style="mso-bidi-font-weight: normal">Attempts to take the sender’s name off wire
transfers</B> – “If you have nothing to hide, why would you try to conceal your
transactions?”<o:p></o:p></SPAN></SPAN></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="mso-bookmark: OLE_LINK2"><SPAN style="mso-bookmark: OLE_LINK1"><SPAN
style="FONT-SIZE: 6pt; FONT-FAMILY: Arial; mso-bidi-font-weight: normal"><SPAN
style="mso-spacerun: yes"> </SPAN><o:p></o:p></SPAN></SPAN></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="mso-bookmark: OLE_LINK2"><SPAN style="mso-bookmark: OLE_LINK1"><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal">3. <B
style="mso-bidi-font-weight: normal">Large cash deposits made to ATMs</B> –
“Most people deposit checks, not cash, into ATMs, so banks’ systems tend to
raise red flags for these types of transactions.”<BR><BR>“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.”</SPAN></SPAN></SPAN><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal"><o:p></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal"><o:p> </o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal"><o:p> </o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><B
style="mso-bidi-font-weight: normal"><I
style="mso-bidi-font-style: normal"><SPAN style="FONT-FAMILY: Arial">About
Fortent</SPAN></I></B><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal"><o:p></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><I
style="mso-bidi-font-style: normal"><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal">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.</SPAN></I><SPAN
style="FONT-FAMILY: Arial; mso-bidi-font-weight: normal"><o:p></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center"
align=center><SPAN style="FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center"
align=center><SPAN
style="FONT-FAMILY: Arial">###<o:p></o:p></SPAN></P></FONT></DIV></BODY></HTML>