{"id":103579,"date":"2022-02-17T15:01:56","date_gmt":"2022-02-17T15:01:56","guid":{"rendered":"https:\/\/feedzai.com\/?page_id=103579"},"modified":"2022-10-17T14:01:03","modified_gmt":"2022-10-17T14:01:03","slug":"faqs","status":"publish","type":"page","link":"https:\/\/feedzai.com\/resources\/faqs\/","title":{"rendered":"FAQs"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row row_height_percent=&#8221;0&#8243; override_padding=&#8221;yes&#8221; h_padding=&#8221;0&#8243; top_padding=&#8221;2&#8243; bottom_padding=&#8221;0&#8243; overlay_alpha=&#8221;50&#8243; gutter_size=&#8221;3&#8243; column_width_percent=&#8221;100&#8243; shift_y=&#8221;0&#8243; z_index=&#8221;0&#8243; uncode_shortcode_id=&#8221;160651&#8243; shape_dividers=&#8221;&#8221;][vc_column width=&#8221;2\/12&#8243;][\/vc_column][vc_column width=&#8221;8\/12&#8243;][vc_custom_heading text_color=&#8221;color-853579&#8243; heading_semantic=&#8221;h1&#8243; text_size=&#8221;h1&#8243; text_weight=&#8221;700&#8243; uncode_shortcode_id=&#8221;212593&#8243; text_color_type=&#8221;uncode-palette&#8221;]FAQs[\/vc_custom_heading][\/vc_column][vc_column width=&#8221;2\/12&#8243;][\/vc_column][\/vc_row][vc_row row_height_percent=&#8221;0&#8243; override_padding=&#8221;yes&#8221; h_padding=&#8221;2&#8243; top_padding=&#8221;2&#8243; bottom_padding=&#8221;3&#8243; overlay_alpha=&#8221;50&#8243; gutter_size=&#8221;3&#8243; column_width_percent=&#8221;100&#8243; shift_y=&#8221;0&#8243; z_index=&#8221;0&#8243; uncode_shortcode_id=&#8221;151095&#8243;][vc_column width=&#8221;2\/12&#8243;][\/vc_column][vc_column width=&#8221;8\/12&#8243;][vc_custom_heading text_size=&#8221;h3&#8243; text_weight=&#8221;700&#8243; uncode_shortcode_id=&#8221;750570&#8243;]For <a href=\"https:\/\/feedzai.com\/use-cases\/anti-money-laundering\">AML Product Suite<\/a>[\/vc_custom_heading][vc_accordion active_tab=&#8221;0&#8243;][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;Why is AML necessary?&#8221; tab_id=&#8221;1639578285-1-23&#8243;][vc_column_text uncode_shortcode_id=&#8221;151485&#8243;]Criminals turn to money laundering practices to keep their sources of dirty money hidden from banks and law enforcement. This means they will try to make their ill-gotten funds resemble legitimate business operations. According to the latest statistics from the United Nations Office on Drugs and Crime, the global value of money laundering is between $800 billion and $2 trillion per year. That\u2019s roughly 2-5% of global GDP. UNODC notes that this figure may be inaccurate because it is difficult to measure the value of money that is laundered each year.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What are the requirements of an AML compliance program?&#8221; tab_id=&#8221;1639578285-2-31&#8243;][vc_column_text uncode_shortcode_id=&#8221;178524&#8243;]Banks must adopt an anti-money laundering (AML) compliance program as part of their role in and commitment to stopping money laundering activities. A bank\u2019s AML program must be in writing and include policies, procedures, and workflows designed to meet AML compliance laws, such as those outlined by the Bank Secrecy Act (BSA). A bank\u2019s AML program should also include a designated AML compliance officer, independent assessment of a program\u2019s effectiveness, regular AML employee training, and procedures for conducting ongoing customer due diligence.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What are the risks of being non-compliant with AML?&#8221; tab_id=&#8221;1640003804226-2-5&#8243;][vc_column_text uncode_shortcode_id=&#8221;185802&#8243;]Legal penalties for banks and FIs that are found to be non-compliant with AML regulations can include civil actions, criminal charges or investigations, and increased regulatory scrutiny, depending on the specific type of violation. But that\u2019s not the end of the bank\u2019s problems. Charges of AML non-compliance and of giving criminal actors and organizations safe haven in a legitimate financial system can also severely harm the bank\u2019s public reputation resulting in customer abandonment and lost revenue.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What is the record fine for AML violations?&#8221; tab_id=&#8221;1640015760970-3-7&#8243;][vc_column_text uncode_shortcode_id=&#8221;100347&#8243;]In 2020, financial regulators fined Australian bank Westpac a record $1.3 billion AUD ($961M USD) in AML non-compliance fines. In court documents, Austrac, the Australian financial regulatory agency, accused Westpac of committing more than 23 million violations of its own AML and CTF regulations.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What illegal activities does money laundering support?&#8221; tab_id=&#8221;1640015794178-4-6&#8243;][vc_column_text uncode_shortcode_id=&#8221;210446&#8243;]Criminal activities supported by money laundering can include tax evasion, market manipulation, illegal narcotic trading, illegal weapon sales, human trafficking, slave labor, child pornography, and terrorism financing, just to name a few.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What are the stages of money laundering?&#8221; tab_id=&#8221;1640015846807-5-0&#8243;][vc_column_text uncode_shortcode_id=&#8221;122443&#8243;]Money laundering usually includes three distinct stages.<\/p>\n<p>Placement: First, criminals work to move the money they collected from illegal activities into a legitimate financial system.<br \/>\nLayering: Next, criminals work to disguise the source of their money using a series of transactions combined with accounting and bookkeeping tactics.<br \/>\nIntegration: After the illicit funds have been made to look legitimate, criminals can withdraw them and use them to make purchases. These purchases can include luxury items like fancy cars or rich investments to further bolster their wealth.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;Why is money laundering hard to detect?&#8221; tab_id=&#8221;1640015913895-6-0&#8243;][vc_column_text uncode_shortcode_id=&#8221;488251&#8243;]It\u2019s these last two stages of money laundering (layering and integration) that makes this activity so difficult to uncover. If dirty money manages to get deposited into a legitimate financial system it can be very challenging to track its source back to criminal activity or organization.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;How do banks prevent money laundering?&#8221; tab_id=&#8221;1640015935280-7-9&#8243;][vc_column_text uncode_shortcode_id=&#8221;664841&#8243;]Money laundering activities will continue to exist as long as criminals seek ways to profit from their activities. Banks must implement a robust strategy that includes regular and ongoing KYC\/CDD, watchlist management for both transactions and customer screening, and a strong AML transaction monitoring system. These measures must be in place from the moment a customer onboards with the bank and throughout the duration of their relationship.[\/vc_column_text][\/vc_accordion_tab][\/vc_accordion][\/vc_column][vc_column width=&#8221;2\/12&#8243;][\/vc_column][\/vc_row][vc_row row_height_percent=&#8221;0&#8243; override_padding=&#8221;yes&#8221; h_padding=&#8221;2&#8243; top_padding=&#8221;2&#8243; bottom_padding=&#8221;3&#8243; overlay_alpha=&#8221;50&#8243; gutter_size=&#8221;3&#8243; column_width_percent=&#8221;100&#8243; shift_y=&#8221;0&#8243; z_index=&#8221;0&#8243; uncode_shortcode_id=&#8221;151095&#8243;][vc_column width=&#8221;2\/12&#8243;][\/vc_column][vc_column width=&#8221;8\/12&#8243;][vc_custom_heading text_size=&#8221;h3&#8243; text_weight=&#8221;700&#8243; uncode_shortcode_id=&#8221;195622&#8243;]For <a href=\"https:\/\/feedzai.com\/use-cases\/anti-money-laundering\/aml-transaction-monitoring\">AML Transaction Monitoring<\/a>[\/vc_custom_heading][vc_accordion active_tab=&#8221;0&#8243;][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What are red flags for AML?&#8221; tab_id=&#8221;1640015981535-8-9&#8243;][vc_column_text uncode_shortcode_id=&#8221;267892&#8243;]For banks, detecting money laundering activities can be challenging, especially as criminals shift their tactics. However, here are some red flags that banks should be aware of, including:<\/p>\n<p>Accounts that draw a significant share of funding from cash-based operations, deposits from individuals or businesses with no clear connection to the account holder, large deposits or withdrawals that don\u2019t match the account holder&#8217;s lifestyle or business model, transactions originating overseas from countries with poor money laundering reputations, or account holders with criminal histories or linked to individuals with troubling backgrounds.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;How can money laundering be stopped?&#8221; tab_id=&#8221;1640016086997-9-2&#8243;][vc_column_text uncode_shortcode_id=&#8221;188067&#8243;]Money laundering will continue to be a reality for banks as long as there are criminals who find ways to profit from illegal activities. This means banks must constantly monitor their systems for deposits that could be linked to money laundering organizations by tracking the origin of funds, large cash deposits, and investigating suspicious activities and transactions linked to the account.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What triggers a money laundering investigation?&#8221; tab_id=&#8221;1640016114044-10-4&#8243;][vc_column_text uncode_shortcode_id=&#8221;136677&#8243;]A single SAR can trigger a money laundering investigation. Investigations can also be triggered by adverse media or by a referral from law enforcement.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What are suspicious transactions? What is a SAR?&#8221; tab_id=&#8221;1640016142501-11-0&#8243;][vc_column_text uncode_shortcode_id=&#8221;563395&#8243;]A suspicious transaction is a banking transaction that appears out of the ordinary and could be in violation of AML regulations, such as the BSA. These can include transactions involving large volumes of cash or an increase in cash deposits, or account activity that does not align with the type of business the account holder claims to represent.<\/p>\n<p>Any of these types of suspicious activities observed by a bank can trigger a suspicious activity report (SAR), a method of reporting unusual banking activity outlined under the BSA. SARs are filed with FinCEN, which reports to the U.S. Treasury Department. SARs must be reported within 30 days of a bank uncovering a suspicious pattern. SARs are sometimes referred to as suspicious transaction reports (STRs).[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;Are there exceptions to the SAR reporting requirements?&#8221; tab_id=&#8221;1640016186588-12-2&#8243;][vc_column_text uncode_shortcode_id=&#8221;786966&#8243;]There are few exceptions to the SAR reporting requirements. SARs are not required in the case of:<\/p>\n<ul>\n<li aria-level=\"1\">A burglary or robbery of a bank or FI;<\/li>\n<li aria-level=\"1\">Lost, stolen, counterfeit, or missing securities;<\/li>\n<li aria-level=\"1\">An insurance company who receives a false or fraudulent insurance claim, unless it is believed that the false claim relates to money laundering or terrorist financing.<\/li>\n<\/ul>\n<p>[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;Is a financial institution required to terminate a customer relationship following the filing of a SAR or multiple SARs?&#8221; tab_id=&#8221;1640016660784-13-5&#8243;][vc_column_text uncode_shortcode_id=&#8221;171904&#8243;]Banks are not required to terminate their relationship with a customer if one or multiple SARs are filed. However, banks are encouraged to take a risk-based approach to determine whether the ongoing relationship with the customer is worth maintaining.[\/vc_column_text][\/vc_accordion_tab][\/vc_accordion][\/vc_column][vc_column width=&#8221;2\/12&#8243;][\/vc_column][\/vc_row][vc_row row_height_percent=&#8221;0&#8243; override_padding=&#8221;yes&#8221; h_padding=&#8221;2&#8243; top_padding=&#8221;2&#8243; bottom_padding=&#8221;3&#8243; overlay_alpha=&#8221;50&#8243; gutter_size=&#8221;3&#8243; column_width_percent=&#8221;100&#8243; shift_y=&#8221;0&#8243; z_index=&#8221;0&#8243; uncode_shortcode_id=&#8221;151095&#8243;][vc_column width=&#8221;2\/12&#8243;][\/vc_column][vc_column width=&#8221;8\/12&#8243;][vc_custom_heading text_size=&#8221;h3&#8243; text_weight=&#8221;700&#8243; uncode_shortcode_id=&#8221;108831&#8243;]For <a href=\"https:\/\/feedzai.com\/use-cases\/anti-money-laundering\/watchlist-management-transaction-screening\/\">Watchlist Management Transaction Screening<\/a>[\/vc_custom_heading][vc_accordion active_tab=&#8221;0&#8243;][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What is Watchlist Management (WLM)?&#8221; tab_id=&#8221;1640016716881-14-0&#8243;][vc_column_text uncode_shortcode_id=&#8221;125052&#8243;]WLM tools are an essential part of any bank\u2019s AML compliance program. Individuals, organizations, government agencies, and foreign governments are frequently targeted by sanctions or the subject of adverse media for money laundering, terrorist financing, drug trafficking, and other serious financial crimes. Individuals targeted by sanctions can also include PEPs and RCAs. When this happens, their names are added to a watchlist to alert banks that regulators consider these individuals to be high-risk.<\/p>\n<p>Watchlists are frequently updated, sometimes depending on the global political developments. Because watchlists are constantly changing, making it difficult for banks to keep up with the most updated sanctions developments. For example, a bank may not realize that a customer they onboarded years ago has been sanctioned and is now considered high-risk.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;Why do transactions need to be screened against watchlists?&#8221; tab_id=&#8221;1640016971810-15-8&#8243;][vc_column_text uncode_shortcode_id=&#8221;113859&#8243;]Transactions and payments need to be screened in real-time to identify risks across the sender, receiver, intermediaries and more. Screening in real-time allows you to block high-risk transactions that may be funding illegal activities before they are processed, while simultaneously allowing safe transactions to process without delay or customer friction.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What are some global watchlists to be aware of?&#8221; tab_id=&#8221;1640017010841-16-3&#8243;][vc_column_text uncode_shortcode_id=&#8221;167026&#8243;]There are many global watchlists to leverage and screen against, depending on your business. Some examples are:<\/p>\n<ul>\n<li aria-level=\"1\">The Office of Foreign Assets Control (OFAC) Consolidated List<\/li>\n<li aria-level=\"1\">Specially Designated Nationals (SDN) List<\/li>\n<li aria-level=\"1\">Department of Foreign Affairs and Trade (DFAT) Australia Consolidated Sanctions List<\/li>\n<li aria-level=\"1\">European External Action Service<\/li>\n<li aria-level=\"1\">United Nations Security Council Consolidated List<\/li>\n<li aria-level=\"1\">HM Treasury\u2019s Office of Financial Sanctions Implementation (OFSI)<\/li>\n<\/ul>\n<p>[\/vc_column_text][\/vc_accordion_tab][\/vc_accordion][\/vc_column][vc_column width=&#8221;2\/12&#8243;][\/vc_column][\/vc_row][vc_row row_height_percent=&#8221;0&#8243; override_padding=&#8221;yes&#8221; h_padding=&#8221;2&#8243; top_padding=&#8221;2&#8243; bottom_padding=&#8221;3&#8243; overlay_alpha=&#8221;50&#8243; gutter_size=&#8221;3&#8243; column_width_percent=&#8221;100&#8243; shift_y=&#8221;0&#8243; z_index=&#8221;0&#8243; uncode_shortcode_id=&#8221;151095&#8243;][vc_column width=&#8221;2\/12&#8243;][\/vc_column][vc_column width=&#8221;8\/12&#8243;][vc_custom_heading text_size=&#8221;h3&#8243; text_weight=&#8221;700&#8243; uncode_shortcode_id=&#8221;893886&#8243;]For <a href=\"https:\/\/feedzai.com\/use-cases\/anti-money-laundering\/watchlist-management-customer-screening\">Watchlist Management Customer Screening<\/a>[\/vc_custom_heading][vc_accordion active_tab=&#8221;0&#8243;][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;Can Watchlist Management (WLM) be automated?&#8221; tab_id=&#8221;1640017219799-17-3&#8243;][vc_column_text uncode_shortcode_id=&#8221;108379&#8243;]There are Watchlist Management (WLM) solutions that can automatically scan hundreds of watch lists and stay current on whether an individual, business, or organization has been added to a sanctions list, labeled a PEP or RCA, or has been the center of adverse media. WLM solutions can alert banks if a customer has recently been added to one of these categories. With these insights, banks can take measures to protect their reputations or decline to onboard a customer deemed too risky or that could harm the bank\u2019s reputation.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What is a Politically Exposed Person (PEP)?&#8221; tab_id=&#8221;1640017348207-18-9&#8243;][vc_column_text uncode_shortcode_id=&#8221;113178&#8243;]A politically exposed person (PEP) is an individual with a level of political influence that could put them at a higher risk of bribery. PEPs can include lawmakers or another type of political officeholder, a diplomat, a staff member at a government agency, members of a board of directors, judges, legal clerks, or officials from a major political party, to name a few. PEPs should be subject to ongoing monitoring as part of a bank\u2019s AML program to track changes to a PEP\u2019s profile.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What is a Relative or Close Associate (RCA)?&#8221; tab_id=&#8221;1640017380784-19-4&#8243;][vc_column_text uncode_shortcode_id=&#8221;175483&#8243;]A relative or close associate (RCA) is an individual with a direct or indirect connection to a PEP. Connections can include family relationships like spouse, sibling, parents, children, or close friend. It can also include professional relationships such as business associates or lawyers. RCA screening should be part of a bank\u2019s AML program.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What is adverse media?&#8221; tab_id=&#8221;1640017431876-20-3&#8243;][vc_column_text uncode_shortcode_id=&#8221;254141&#8243;]Adverse media is negative media coverage that a customer has received based on their history. It can include news reports of a customer\u2019s criminal or checkered history, stories that harm the customer\u2019s reputation and credibility, or that draw attention to the customer\u2019s relationships and connections to problematic individuals like known criminals or suspected terrorist groups. It can also include reports of a customer\u2019s financial problems that indicate they are vulnerable to bribery, corruption, or fraud.[\/vc_column_text][\/vc_accordion_tab][\/vc_accordion][\/vc_column][vc_column width=&#8221;2\/12&#8243;][\/vc_column][\/vc_row][vc_row row_height_percent=&#8221;0&#8243; override_padding=&#8221;yes&#8221; h_padding=&#8221;2&#8243; top_padding=&#8221;2&#8243; bottom_padding=&#8221;3&#8243; overlay_alpha=&#8221;50&#8243; gutter_size=&#8221;3&#8243; column_width_percent=&#8221;100&#8243; shift_y=&#8221;0&#8243; z_index=&#8221;0&#8243; uncode_shortcode_id=&#8221;151095&#8243;][vc_column width=&#8221;2\/12&#8243;][\/vc_column][vc_column width=&#8221;8\/12&#8243;][vc_custom_heading text_size=&#8221;h3&#8243; text_weight=&#8221;700&#8243; uncode_shortcode_id=&#8221;591167&#8243;]For Customer Due Diligence[\/vc_custom_heading][vc_accordion active_tab=&#8221;0&#8243;][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What is Customer Due Diligence (CDD)?&#8221; tab_id=&#8221;1640017469625-21-8&#8243;][vc_column_text uncode_shortcode_id=&#8221;915160&#8243;]Banks will perform ongoing and frequent customer due diligence (CDD) assessments when establishing a new relationship with a potential bank customer as part of their AML program. CDD requires banks to verify the customer\u2019s identity, the beneficial ownership of the customer\u2019s business, and the nature of the business relationship.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What is Know Your Customer (KYC)?&#8221; tab_id=&#8221;1640017508891-22-3&#8243;][vc_column_text uncode_shortcode_id=&#8221;942403&#8243;]Know Your Customer (KYC) are the protocols banks and FIs use to verify the identity of their customers, understand the customers\u2019 source of wealth, and establish risk profiles to assess whether the customer is connected to money laundering or other financial crimes. KYC processes can occur both when onboarding a new customer or during the customers\u2019 relationship with the bank.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What\u2019s the difference between KYC and CDD?&#8221; tab_id=&#8221;1640017564843-23-6&#8243;][vc_column_text uncode_shortcode_id=&#8221;483924&#8243;]CDD is a key component of the KYC process. Both are interconnected, but there are key differences between the two. While KYC is performed before a potential customer is onboarded to build a risk profile of a customer. CDD, meanwhile, is an ongoing process that checks whether the information provided during onboarding is correct and if the customer\u2019s risk profile has changed since they first joined the bank. In other words, CDD enables KYC by establishing a customer\u2019s identity and predicting the types of transactions the customer is most likely to engage in, and the extent the customer exposes the bank to a range of risks (such as money laundering or sanctions violations).[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What is the difference between AML and KYC?&#8221; tab_id=&#8221;1640017616589-24-9&#8243;][vc_column_text uncode_shortcode_id=&#8221;516438&#8243;]AML is a broad set of policies that banks implement to thwart money laundering and the flow of money to criminal or terrorist organizations. KYC, on the other hand, is part of a bank\u2019s broader AML policies that is focused on verifying a customers\u2019 identity and risk profile.[\/vc_column_text][\/vc_accordion_tab][\/vc_accordion][\/vc_column][vc_column width=&#8221;2\/12&#8243;][\/vc_column][\/vc_row][vc_row row_height_percent=&#8221;0&#8243; override_padding=&#8221;yes&#8221; h_padding=&#8221;2&#8243; top_padding=&#8221;2&#8243; bottom_padding=&#8221;3&#8243; overlay_alpha=&#8221;50&#8243; gutter_size=&#8221;3&#8243; column_width_percent=&#8221;100&#8243; shift_y=&#8221;0&#8243; z_index=&#8221;0&#8243; uncode_shortcode_id=&#8221;190948&#8243;][vc_column width=&#8221;2\/12&#8243;][\/vc_column][vc_column width=&#8221;8\/12&#8243;][vc_custom_heading text_size=&#8221;h3&#8243; text_weight=&#8221;700&#8243; uncode_shortcode_id=&#8221;755517&#8243;]Extras[\/vc_custom_heading][vc_accordion active_tab=&#8221;0&#8243;][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What is Anti-Money Laundering (AML)?&#8221; tab_id=&#8221;1640017679427-25-3&#8243;][vc_column_text uncode_shortcode_id=&#8221;728491&#8243;]Anti-Money Laundering (AML) is a series of regulations, policies, procedures, and laws designed to make it harder for criminals to hide the sources of their illegal actions, prevent bad actors from profiting off criminal activities, and ensure banks don\u2019t unintentionally (or intentionally) support criminal activities.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What is combating the financing of terrorism (CFT)?&#8221; tab_id=&#8221;1640017726916-26-0&#8243;][vc_column_text uncode_shortcode_id=&#8221;213408&#8243;]Combating the Financing of Terrorism (CFT) laws are designed to stop the flow of money to groups labeled as terrorist organizations by government agencies and bodies. CFT laws are designed to prevent terrorist activities and attacks by cutting off funding to terrorist organizations.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What are some ways money is laundered?&#8221; tab_id=&#8221;1640017766532-27-8&#8243;][vc_column_text uncode_shortcode_id=&#8221;736514&#8243;]Criminals will use a variety of tactics to \u201claunder\u201d money through legitimate financial services. A common tactic is for criminals to funnel money they collected from illegal activities through a legitimate business like a restaurant that relies on cash transactions. The criminals\u2019 money is handed off to the business and deposited as revenue. The criminal can withdraw the cash later. Other tactics include recruiting money mules (either suspecting or unsuspecting) to accept money transfers, depositing cash in foreign countries, or crooked investments.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;Who needs to perform AML checks?&#8221; tab_id=&#8221;1640017811255-28-7&#8243;][vc_column_text uncode_shortcode_id=&#8221;197954&#8243;]Banks should perform AML checks during the customer onboarding process, as part of the customer due diligence (CDD) routine, and when hiring new bank employees. AML checks should also be performed on an ongoing basis to check deposits and transactions for suspicious activities.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;Why is it important to audit an AML compliance program?&#8221; tab_id=&#8221;1640017859931-29-7&#8243;][vc_column_text uncode_shortcode_id=&#8221;114424&#8243;]AML compliance programs should be audited to ensure that the program operates as it is intended. This process is sometimes referred to as a \u201creview\u201d or a \u201ctest\u201d of an AML program.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;Which countries pose the greatest money laundering risk?&#8221; tab_id=&#8221;1640017904967-30-1&#8243;][vc_column_text uncode_shortcode_id=&#8221;192746&#8243;]According to the Basel AML Index, the countries that pose the greatest risk of AML are Haiti, the Democratic Republic of the Congo, Mauritania, Myanmar, Mozambique, Cayman Islands, Madagascar, Mali, Senegal, and Uganda.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;Which countries pose the lowest money laundering risk?&#8221; tab_id=&#8221;1640017944601-31-1&#8243;][vc_column_text uncode_shortcode_id=&#8221;716257&#8243;]On the flip side, the Basel AML Index noted the following countries ranked for the lowest AML risk: Andorra, Finland, Cook Islands, Slovenia, Norway, Sweden, San Marino, Denmark, Lithuania, New Zealand, and Spain.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;Who are the AML regulatory bodies?&#8221; tab_id=&#8221;1640018041900-32-3&#8243;][vc_column_text uncode_shortcode_id=&#8221;686472&#8243;]There are numerous agencies, bodies, organizations, and regulations worldwide that are responsible for enforcing existing AML regulations. They include:<\/p>\n<ul>\n<li aria-level=\"1\">The Financial Action Task Force (FATF) | Global<\/li>\n<li aria-level=\"1\">European Banking Authority (EBA) | EU<\/li>\n<li aria-level=\"1\">Anti-Money Laundering Directive (AMLD) | EU<\/li>\n<li aria-level=\"1\">Bank Secrecy Act (BSA) | USA<\/li>\n<li aria-level=\"1\">Office of the Comptroller of the Currency (OCC) | USA<\/li>\n<li aria-level=\"1\">Financial Crimes Enforcement Network (FinCEN) | USA<\/li>\n<li aria-level=\"1\">Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) | Canada<\/li>\n<li aria-level=\"1\">Financial Conduct Authority (FCA) | UK<\/li>\n<li aria-level=\"1\">Autorit\u00e9 des March\u00e9s Financiers (AMF) | France<\/li>\n<li aria-level=\"1\">Federal Financial Supervisory Authority (BaFIN) | Germany<\/li>\n<li aria-level=\"1\">Federal Service for Financial Monitoring (FSFM) | Russia<\/li>\n<li aria-level=\"1\">China Banking and Insurance Regulatory Commission (CBIRC) | China<\/li>\n<li aria-level=\"1\">Financial Services Agency (FSA) | Japan<\/li>\n<li aria-level=\"1\">Hong Kong Monetary Authority (HKMA) | Hong Kong<\/li>\n<li aria-level=\"1\">The Financial Intelligence Centre (FIC) | South Africa<\/li>\n<li aria-level=\"1\">Australian Transaction Reports and Analysis Centre (Austrac) | Australia<\/li>\n<li aria-level=\"1\">Financial Intelligence Unit (FIU) | India<\/li>\n<li aria-level=\"1\">Monetary Authority of Singapore (MAS) | Singapore<\/li>\n<\/ul>\n<p>[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What types of AML technology are available?&#8221; tab_id=&#8221;1640018562387-33-2&#8243;][vc_column_text uncode_shortcode_id=&#8221;787904&#8243;]There are four key types of AML screening technology currently available.<\/p>\n<ul>\n<li aria-level=\"1\"><b>Transaction Monitoring: <\/b><span style=\"font-weight: 400;\">These solutions operate on an ongoing basis and use both historical information and profile information to identify transactions that could trigger a SAR filing.<\/span><\/li>\n<li aria-level=\"1\"><b>Currency Transaction Reporting (CTR):<\/b> CTR systems track cash transactions that are large enough to require reporting.<\/li>\n<li aria-level=\"1\"><b>Customer identity management systems:<\/b> These systems review numerous watchlists during the initial KYC process to monitor for risks. They continue to work beyond onboarding to monitor how a customers\u2019 risk profile has shifted.<\/li>\n<li aria-level=\"1\"><b>Compliance software:<\/b> These solutions are designed to help banks and FIs ensure they meet their regulatory compliance obligations, demonstrate proof of compliance, enable training and education for bank personnel and staff, and offer audit tools for compliance offers to demonstrate how alerts are addressed.<\/li>\n<\/ul>\n<p>[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;Why are AML regulations important for cryptocurrency?&#8221; tab_id=&#8221;1640019079770-34-9&#8243;][vc_column_text uncode_shortcode_id=&#8221;257944&#8243;]Cryptocurrencies are a relatively new type of payment method. Like all payment methods, they have drawn the attention of criminals and fraudsters. Criminals like crypto and bitcoin disguise the sources of their funds, which can help their illegal activities go undetected by regulators. If left undetected, banks and regulators will struggle to bring criminals\u2019 activity to light. Cryptocurrency regulations can also vary widely by geographic region. That\u2019s why it\u2019s critical that AML professionals understand the latest AML compliance regulations and requirements.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;Who should I contact If I suspect money laundering?&#8221; tab_id=&#8221;1640019107591-35-3&#8243;][vc_column_text uncode_shortcode_id=&#8221;174170&#8243;]Your financial organization is required to have its AML policies and procedures outlined related to how to address suspected money laundering or other types of suspicious behaviors. Either you or a designated compliance officer will then file a SAR with the relevant authorities. In some jurisdictions, a SAR must be filed within 30 days after suspicious activity is detected.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;What happens to someone accused of money laundering?&#8221; tab_id=&#8221;1640019213479-36-4&#8243;][vc_column_text uncode_shortcode_id=&#8221;808831&#8243;]Individuals charged with money laundering can face serious legal trouble, depending on the nature of the charges. The severity of the penalties can also vary depending on whether the charges are filed at the state or federal level. A misdemeanor money laundering charge can result in up to a year in prison and court fines. In the case of felony convictions, individuals can face more than a year in prison. If the individual charged is a repeat offender or if the activity is found to be connected to terrorist financing or a broader criminal enterprise, individuals can face prison sentences of 35 years or longer.[\/vc_column_text][\/vc_accordion_tab][vc_accordion_tab gutter_size=&#8221;2&#8243; column_padding=&#8221;2&#8243; title=&#8221;How do casinos prevent money laundering?&#8221; tab_id=&#8221;1640019268874-37-4&#8243;][vc_column_text uncode_shortcode_id=&#8221;351238&#8243;]Criminals are drawn to the gambling industry because it operates with large amounts of cash. Casinos and other gambling establishments are required to report transactions in which they suspect someone is attempting to launder money through their organization. Casino staff should also be trained in how to spot money laundering activities and how to report suspected crimes.[\/vc_column_text][\/vc_accordion_tab][\/vc_accordion][\/vc_column][vc_column width=&#8221;2\/12&#8243;][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row row_height_percent=&#8221;0&#8243; override_padding=&#8221;yes&#8221; h_padding=&#8221;0&#8243; top_padding=&#8221;2&#8243; bottom_padding=&#8221;0&#8243; overlay_alpha=&#8221;50&#8243; gutter_size=&#8221;3&#8243; column_width_percent=&#8221;100&#8243; shift_y=&#8221;0&#8243; z_index=&#8221;0&#8243; uncode_shortcode_id=&#8221;160651&#8243; shape_dividers=&#8221;&#8221;][vc_column width=&#8221;2\/12&#8243;][\/vc_column][vc_column width=&#8221;8\/12&#8243;][vc_custom_heading text_color=&#8221;color-853579&#8243; heading_semantic=&#8221;h1&#8243; text_size=&#8221;h1&#8243; text_weight=&#8221;700&#8243; uncode_shortcode_id=&#8221;212593&#8243; [&hellip;]<\/p>\n","protected":false},"author":56,"featured_media":0,"parent":82857,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"acf":[],"yoast_head":"\n<title>FAQs | Feedzai<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/feedzai.com\/resources\/faqs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FAQs | Feedzai\" \/>\n<meta property=\"og:description\" content=\"[vc_row row_height_percent=&#8221;0&#8243; 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