financial crimes enforcement network june 17, 2009 julie hadley regulatory policy and programs...
TRANSCRIPT
Financial Crimes Enforcement Network
June 17, 2009
Julie Hadley
Regulatory Policy and Programs Division
FinCEN MissionFinCEN Mission
To enhance U.S. national security, deter and detect criminal activity, and safeguard financial systems
from abuse by promoting transparency in the U.S. and
international financial systems.
How we achieve our mission
How we achieve our mission
• Administering the Bank Secrecy Act;
• Supporting law enforcement, intelligence, and regulatory agencies through sharing and analysis of financial intelligence;
• Building global cooperation with our counterpart financial intelligence units; and
• Networking people, ideas, and information.
FinCEN – Administrator of the Bank Secrecy ActFinCEN – Administrator of the Bank Secrecy Act
Commodity Futures Trading Commission
(CFTC)
Federal LawEnforcement Agencies
Financial Intelligence Units (FIUs)
Bank Secrecy Act
Securities and Exchange
Commission (SEC)
Internal Revenue Service (IRS) Financial Industry
Federal Banking Agencies (FBAs)
State SupervisoryAgencies
Depository Institutions Non-Bank Financial Institutions
• Money Services Businesses • Travel Check Businesses• U.S. Postal Service• Casinos/Card Clubs• Tribal Casinos• Broker Dealers• Futures Commission • Merchants/Introducing Brokers• Dealers in Precious Metals and Jewels• Insurance Companies
• Money Services Businesses • Travel Check Businesses• U.S. Postal Service• Casinos/Card Clubs• Tribal Casinos• Broker Dealers• Futures Commission • Merchants/Introducing Brokers• Dealers in Precious Metals and Jewels• Insurance Companies
Financial Institutions Subject to the Bank Secrecy ActFinancial Institutions Subject to the Bank Secrecy Act
• Commercial Banks• Credit Unions• Savings and Thrift Institutions• Trust Companies• Branches of Foreign chartered
banks doing business
in the U.S.
• Commercial Banks• Credit Unions• Savings and Thrift Institutions• Trust Companies• Branches of Foreign chartered
banks doing business
in the U.S.
• Federal Deposit Insurance Corporation
• Federal Reserve Board
• Office of the Comptroller of the Currency
• Office of Thrift Supervision
• National Credit Union Administration
• Securities and Exchange Commission
• Commodity Futures Trading Commission
• Internal Revenue Service – SB/SE
• State Regulatory Departments
Regulatory PartnersRegulatory Partners
Law Enforcement Partners
Law Enforcement Partners
• Alcohol, Tobacco and Firearms (ATF)• Federal Bureau of Investigation (FBI)• Immigration and Customs Enforcement (ICE)• U.S. Secret Service (USSS)• Internal Revenue Service-Criminal Investigations Division (IRS-
CID)• U.S. Postal Inspection Service• Drug Enforcement Agency (DEA)• Naval Criminal Investigative Service• Department of Homeland Security (DHS)• Army – Criminal Investigations Division• Department of Justice (DOJ)
Global PartnersGlobal Partners
FinCEN is one of 107 recognized national Financial Intelligence Units (FIU) across the globe
FIUs play a lead role in international efforts to combat money laundering and terrorist financing
Egmont Group• Formed in 1995 to establish an informal
group for the stimulation of international co-operation
• Meet regularly to find ways to cooperate, especially in the areas of information exchange, training & sharing of expertise
Global PartnersGlobal Partners
Membership in the Egmont Grouppermits FinCEN to:
• Support U.S. anti-money laundering policy initiatives on a global basis
• Provide technical assistance & training
• Exchange information
Global PartnersGlobal Partners
AlbaniaAndorraAntigua & BarbudaArgentinaArmeniaArubaAustraliaAustriaBahamasBahrainBarbadosBelarusBelgiumBelizeBermudaBosnia & HerzegovinaBrazilBritish Virgin Isl.BulgariaCanadaCayman Isl.ChileColombiaCook Isl.Costa Rica
CroatiaCyprusCzech RepublicDenmarkDominicaEgyptEl SalvadorEstoniaFinlandFranceGeorgiaGermanyGibraltarGreeceGrenadaGuatemalaGuernseyHondurasHong KongHungaryIcelandIndiaIndonesiaIrelandIsle of ManIsrael
ItalyJapanJerseyKoreaLatviaLebanonLiechtensteinLithuaniaLuxembourgMacedoniaMalaysiaMaltaMarshall Isl.MauritiusMexicoMoldovaMonacoMontenegroNetherlandsNetherlands AntillesNew ZealandNigeriaNiueNorwayPanamaParaguay
PeruPhilippinesPolandPortugalQatarRomaniaRussiaSan MarinoSerbiaSingaporeSlovakiaSloveniaS. AfricaSpainSt. Kitts & NevisSt. Vincent & the GrenadinesSwedenSwitzerlandSyriaTaiwanThailandTurkeyTurks & CaicosUkraineUAEUnited Kingdom
United StatesVanuatuVenezuela
BSAAG: Bank Secrecy Act Advisory Group
BSAAG: Bank Secrecy Act Advisory Group
A Convergence of…
Law Enforcement
Industry
Regulators
FinCEN
BSAAGBSAAG
• Created by the Secretary of the Treasury as directed by Congress
• Active solicitation of advice on the administration of the BSA
• Forum to examine the benefits of the BSA, enhancing utility, and strive for increased efficiency and effectiveness.
Industry PartnersIndustry Partners
• BSA reports are the cornerstone of the U.S. government’s efforts to disrupt illicit financial activity
• These reports do help put criminals in jail
• FinCEN does recognize the significant costs and resources the industry invests in complying with these responsibilities
SAR SAR-C SAR-SF
CTR CTR-C DEP
Form 8300
SAR-MSB
CMIR
RMSBFBAR
• FinCEN analysts use BSA data to:– support investigative efforts– conduct geographical threat assessments– study currency flows– develop information on emerging trends and
issue comprehensive analytical reports
Industry PartnersIndustry Partners
Law Enforcement Partners
Law Enforcement Partners
The SAR Activity ReviewThe SAR Activity Review
Total SARs: 78,682
Suspicious Activity Report Filing Trend for the State of Virginia For the Period April 1,
1996 through December 31, 2008
1,269 1,208 1,501 1,5352,001
3,0143,536
4,771
6,053
8,109
11,836
15,711
18,138
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Characterizations of Suspicious Activity for the State of VirginiaFor the Period April 1, 1996 through December 31, 2008
Additional Characterizations15,60715%False
Statement4,2464%
Counterfeit Check4,1514%
Identity Theft4,6214%
Wire Transfer Fraud6,3026%
Mortgage Loan Fraud7,2627%
Other9,3529%
Check Fraud12,30212%
Credit Card Fraud15,54815%
BSA/Structuring/Money Laundering
25,88624%
3,484
2,850
2,231
1,666
1,327
1,088
1,079
739
448
260
195
192
48
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
Check Kiting
Consumer Loan Fraud
Defalcation/Embezzlement
Counterfeit Credit/Debit Card
Misuse Of Position Or Self-Dealing
Unknown/Blank
Mysterious Disappearance
Debit Card Fraud
Counterfeit Instrument (Other)
Commercial Loan Fraud
Terrorist Financing
Computer Intrusion
Bribery/Gratuity
Note: The pie chart represents the top nine characterizations plus additional characterizations in total. An individual SAR may cite more than one characterization. Hence, the number of characterizations detailed here significantly exceeds the total number of SARs. Total numbers are calculated by Filing Branch Address – not subjects address.
Virginia Mortgage Loan Fraud SAR Filing Trend For the Period April 1, 1996 through December 31, 2008
Note: Suspicious Activity Report statistical data is continuously updated as additional reports are filed and processed. For this reason, there may be minor discrepancies between the statistical figures contained in this report and those in previous FinCEN reports. Total numbers are calculated by Subjects Address – not filing address.
18 31 49 37 62 81 94168
351
581
821
1,338
1,993
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Total SARs: 5,624
Suspicious Activity Report Geographic Pattern for the State of Virginia
For the Period January 1, 2007 through December 31, 2007
Note: Statistics based on Filer Branch Address
SAR Filings by ZIP Code
101 to 5,510 (17)31 to 100 (66)21 to 30 (32)11 to 20 (62)0 to 10 (1050)
Suspicious Activity Report Geographic Pattern for the State of Virginia
For the Period January 1, 2008 through December 31, 2008
Note: Statistics based on Filer Branch Address
SAR Filings by ZIP Code
101 to 5,170 (21)31 to 100 (76)21 to 30 (28)11 to 20 (75)0 to 10 (1022)
BSA Value - Sources of Feedback
BSA Value - Sources of Feedback
• The SAR Activity Review, Trends, Tips, and Issues
• SAR Activity Review – By the Numbers
• Analytic Assessments
• NEW FinCEN web site – Law Enforcement Cases and Success Stories
ResourcesResources
• FFIEC BSA/AML Examination Manual
• Guidance/Rulings/Advisories
• 314(a) Secure Information Sharing System
• Guidance on Preparing SAR Narratives
• Electronic filing – Enrollment Information
• New FinCEN website - www.fincen.gov
Contact InformationContact Information
FinCEN Regulatory Helpline1-800-949-2732
Financial Institutions Hotline1-866-556-3974
www.fincen.gov