News
Ruling on eBay’s Online Auction Liability Increases Online AML Vulnerabilities, Say Analysts
By Brian Monroe
printA federal judge's ruling that online auctioneer eBay is not responsible for determining whether items sold on its website are counterfeit is likely to increase online vulnerabilities to money launderers, say analysts. Judge Richard Sullivan of the Southern District of New York said Monday that eBay was not negligent for failing to police the sale of hundreds of thousands of silver items between 2003 and 2006 falsely represented as jewelry from New York-based Tiffany & Co. In a 66-page opinion, Sullivan said that the jewelry store must shoulder the burden to police the sale of merchandise carrying its name. The...
TO READ THE FULL STORY
Related News
Midweek Roundup: Switzerland to Limit Cash Payments, Horse Meat Sales Linked to Laundering, and More
Switzerland's Federal Council says it may limit cash purchases of property, jewelry and other assets, Iran appeals European Union sanctions imposed in March, and more, in this midweek roundup.
Three recently adopted international treaties drafted to foster trade between the Americas and Europe will also make it easier for financial criminals to launder money, say attorneys and former investigators.
Faced with raised compliance expectations, many large financial institutions are expanding the types of corporate clients they ask to implement anti-money laundering controls to include import-export businesses, payroll companies and payday lending firms.
Criminals are exploiting inadequate safeguards in free trade zones to launder money, evade taxes and illegally ship material used to build weapons of mass destruction, according to an intergovernmental group.
The U.S. Treasury Department's financial intelligence unit issued guidance Thursday on how to spot and report transactions tied to trade-based money laundering, a type of crime on the rise.
A recent penalty by an Australian financial regulator against e-commerce site PayPal for weak anti-money laundering controls could prod U.S. regulators to more closely scrutinize companies with similar business models.
Financial institutions providing credit in international transactions should check for suspicious activity pointing to trade-based money laundering, a banking consortium said Thursday.
FATF's new president talks to reporter Larissa Bernardes about the organization's plans to revisit its 40 + 9 recommendations and address emerging money laundering threats.
Though headlines are focused on the subprime mortgage crisis and recessionary fears, criminals are still finding ways to launder funds, including through trade-based finance , says Elaine Carey, Senior Vice President and National Director of Control Risks, an independent risk consultancy office.
Countries need to establish training programs to help bank regulators and law enforcement agents detect the growing problem of trade-based money laundering, FATF said in guidance issued Tuesday.
The United Kingdom may turn over trade data to U.S. officials in exchange for access to a U.S. computer system designed to detect trade-based money laundering, according to the British customs service.
Since 2000, organized criminal syndicates and terrorist organizations have "dramatically" increased efforts to counterfeit goods, a crime that can be both highly profitable and difficult to detect, money laundering experts say.
The growth of the online auction industry, which is not subject to anti-money laundering requirements, has translated into opportunity for criminals to launder ill-gotten cash because there are few checks on the legitimacy of online transactions, say AML compliance professionals.
Evidence that high-profile terrorist groups are increasingly seeking to move money for their operations under the guise of legitimate trade has spurred financial experts to push for greater regulation, compliance professionals say.
The Financial Action Task Force, the global anti-money laundering watchdog, may issue a formal recommendation on standards to minimize the use of international trade to help launder money and finance terrorism, a person familiar with the organization says.
Marc Hambach, an assistant director of the Dubai Financial Services Authority and head of its AML department, spoke with reporter Brian Orsak about the process of developing regulations for one of the fast growing financial hubs in the world.
After a two-year delay, the U.S. government on Thursday released an anti-money laundering (AML) strategy focused on nine areas including money services businesses and trade-based finance. It did not include plans for combating terrorist financing, a break from previous strategies.
To commit carousel fraud, criminals obtain VAT registration, set up shell companies that sell the same goods among themselves, and submit false invoices to EU tax authorities.
Bank consultants say they are concerned that the cost of complying with Bank Secrecy Act (BSA) regulations for trade finance transactions could force some banks out of that line of business.
Jewelry dealers left an AML seminar last week in New York with unanswered questions about their Bank Secrecy Act responsibilities. The IRS representative who led the session said she couldn't give certain answers in part because she doesn't yet know the particulars of the industry.