Rules to thwart money laundering are not foolproof – news – northjersey. com

Banks are required by the federal government to pay close attention to suspicious cash transactions that may be evidence of illegal activity such as drug dealing, theft, prostitution or financing of terrorism. Money laundering eu But detection of money laundering can be much more difficult when an employee assists the bad guys, banking experts say.

Such may have been the case at Bank of New Jersey, where a 22-year-old assistant branch manager at the main Fort Lee office was accused last Friday of helping members of an alleged pot distribution ring convert small bills into large ones for easier transport.

Anthony Alberga of Cliffside Park, who faces money-laundering charges, was fired Monday for not logging the cash transactions as required under the bank’s policies and procedures. Money laundering definition uk Two tellers who were not charged with crimes were also fired for not bringing suspicious transactions to the attention of upper management.


“When you have collusion, you can’t stop it from happening because you are not over them 100 percent of the time,” said bank consultant Nicholas Ketcha, a former director of supervision for the Federal Deposit Insurance Corporation and a managing director of FinPro Inc., a bank management consulting firm.

Bergen County Prosecutor John Molinelli has described Matthew Martin, 43, and Danny Saleh, 34, both of Edgewater, as “high-level” distributors of marijuana they obtained in California. How to do money laundering Lawyer Marcanton Macri, who’s been suspended from his job as a municipal prosecutor for North Bergen, was charged with money laundering and financial facilitation for allegedly introducing Martin and Saleh to Alberga, Molinelli said.

Industry experts say the type of money laundering alleged in the case is known in the business as “structuring,” which involves breaking transactions into smaller amounts to avoid triggering the government’s reporting requirements.

“I wouldn’t call it common but it’s certainly not unknown,” said John Atkinson, the director of regulatory risk consulting at the Atlanta office of Protiviti Inc. Anti money laundering software and a former bank supervisor at the Federal Reserve Bank of Atlanta.

Structuring can be difficult for bank management to detect, even if the institution has strong anti-money laundering compliance procedures in place, he said.

Banks can safeguard against it by making sure everybody knows there are rules that have to be followed, what those rules are and what the consequences are for not following them, Atkinson said. Money laundering nz “A culture of compliance and ethics is paramount,” he said.

Most banks have computerized systems to track cash transactions and identify those that are suspicious, he noted, but a rogue employee can sometimes defeat those systems.

As a result of the incident, Bank of New Jersey “will probably receive more regulatory scrutiny to find out what happened and why this was not detected,” Atkinson said.

They may be forced to take actions to beef up controls, add new systems or add more personnel to handle new duties or to segregate duties, he said.

Depending on how long the problem went on and the amount of money involved, the bank could be fined or face other administrative sanctions, Atkinson said.

Albert F. Money laundering examples cases Buzzetti, chairman and chief executive officer of the bank, said it has reported the circumstances of the firings of Alberga and the tellers to the FDIC, the bank’s primary federal regulator.

Regulators have declined to comment in the wake of the arrest of Alberga. Money laundering mexico But Buzzetti said he does not expect that they will reexamine the bank’s anti-money laundering controls and procedures because of the incident.

“If somebody really wants to break the law, there is not much you can do unless you stand over every teller for every transaction,” he said. Money laundering 3 stages “That’s impossible.”

The Money Laundering and Control Act of 1986 made money laundering a criminal offense with penalties of up to 20 years in jail and fines up to $500,000 for each count.

And since the 9/11 terrorist attacks, oversight of banks’ money laundering controls has been more intense,” said Ketcha, the former FDIC supervisor.

“They are required to train any new people on procedures including how to determine if there is structuring going on, when they have to file [cash transaction] reports, and what constitutes suspicious activity,” Ketcha said.

“It’s very much a front-burner issue for banks of all sizes,” Atkinson said. Money laundering in canada “For smaller banks it’s a little bit tougher because they don’t always have the depth of resources or expertise to manage those risks.”

Meanwhile on Thursday, Saleh’s attorney, Brian Neary, said his client has waived his first appearance and that there is no court hearing scheduled. Importance of anti money laundering Saleh has been charged with conspiracy to distribute marijuana with intent to distribute, possession of marijuana with intent to distribute, and criminal facilitation.

Banks are required by the federal government to pay close attention to suspicious cash transactions that may be evidence of illegal activity such as drug dealing, theft, prostitution or financing of terrorism. Money laundering news But detection of money laundering can be much more difficult when an employee assists the bad guys, banking experts say.

Such may have been the case at Bank of New Jersey, where a 22-year-old assistant branch manager at the main Fort Lee office was accused last Friday of helping members of an alleged pot distribution ring convert small bills into large ones for easier transport.

Anthony Alberga of Cliffside Park, who faces money-laundering charges, was fired Monday for not logging the cash transactions as required under the bank’s policies and procedures. What do you mean by money laundering Two tellers who were not charged with crimes were also fired for not bringing suspicious transactions to the attention of upper management.

“When you have collusion, you can’t stop it from happening because you are not over them 100 percent of the time,” said bank consultant Nicholas Ketcha, a former director of supervision for the Federal Deposit Insurance Corporation and a managing director of FinPro Inc., a bank management consulting firm.

Bergen County Prosecutor John Molinelli has described Matthew Martin, 43, and Danny Saleh, 34, both of Edgewater, as “high-level” distributors of marijuana they obtained in California. Federal money laundering statute Lawyer Marcanton Macri, who’s been suspended from his job as a municipal prosecutor for North Bergen, was charged with money laundering and financial facilitation for allegedly introducing Martin and Saleh to Alberga, Molinelli said.

Structuring can be difficult for bank management to detect, even if the institution has strong anti-money laundering compliance procedures in place, he said.

Banks can safeguard against it by making sure everybody knows there are rules that have to be followed, what those rules are and what the consequences are for not following them, Atkinson said. Difference between fraud and money laundering “A culture of compliance and ethics is paramount,” he said.

Most banks have computerized systems to track cash transactions and identify those that are suspicious, he noted, but a rogue employee can sometimes defeat those systems.

As a result of the incident, Bank of New Jersey “will probably receive more regulatory scrutiny to find out what happened and why this was not detected,” Atkinson said.

They may be forced to take actions to beef up controls, add new systems or add more personnel to handle new duties or to segregate duties, he said.

Depending on how long the problem went on and the amount of money involved, the bank could be fined or face other administrative sanctions, Atkinson said.

Albert F. Preventing money laundering Buzzetti, chairman and chief executive officer of the bank, said it has reported the circumstances of the firings of Alberga and the tellers to the FDIC, the bank’s primary federal regulator.

Regulators have declined to comment in the wake of the arrest of Alberga. Money laundering activities But Buzzetti said he does not expect that they will reexamine the bank’s anti-money laundering controls and procedures because of the incident.

“If somebody really wants to break the law, there is not much you can do unless you stand over every teller for every transaction,” he said. What is money laundering mean “That’s impossible.”