The US treasury intends to institutionalise partnerships between financial institutions and public bodies that share information to crack down on financial crime.
Trade-based financial crime is one of several typologies that will be better understood and tackled through public-private information sharing according to US treasury under secretary, Sigal Mandelker.
Speaking before the American Bankers Association and the American Bar Association Financial Crimes Enforcement Centre, Mandelker said that the treasury’s Financial Crimes Enforcement Network (FinCEN) Exchange will convene regular briefings.
Financial institutions will participate alongside FinCEN and law enforcement agencies in meetings that will be held every six to eight weeks.
Participants will exchange targeted information on priority illicit finance threats.
“We have been piloting this effort over the last few years and believe that it is time to institutionalise this programme within our AML framework,” Mandelker said.
In his view the pilot has been successful in better identifying and reporting potential money laundering or terrorist activities.
Trade-based money laundering
Mandelker added that information provided at the briefings has also helped the department define financial crime typologies.
Information provided after the briefings by financial institutions through Suspicious Activity Reports (SARs) meanwhile has helped the department map out and target trade-based money laundering networks and other criminal organisations using the financial system.
Categories: Trade Based Financial crimes News