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Tax Fraud Case Offers AML Lessons for Banking Charitable Groups
By Matt Squire
printU.S. prosecutors have focused a great deal of attention in recent years on charities funneling money to terrorist organizations; a recent tax fraud case involving the leader of an Orthodox Jewish sect serves as a reminder that financial institutions also must closely monitor charity accounts for evidence of more traditional money laundering crimes. Naftali Tzi Weisz, the grand rabbi of Spinka, a Hassidic sect based in New York, was charged on December 18 with money laundering and mail fraud for his role the multimillion-dollar tax fraud, federal prosecutors in Los Angeles said. The case is "a reminder to the financial...
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