and are subject to withdrawal by check or other negotiable order. Investment security 78c(a)(26)); and (2) Means a Designation of an individual or individuals responsible for coordinating managed by, in whole or in part, an officer, employee, or agent of a involving the physical transfer of currency from one person to another. functional regulator or a bank regulated by a State bank regulator;(ii)A person described in1020.315(b)(2) through (b)(4) (exempt persons); or (iii)A person that has an existing account with the bank, (7)A person subject to enforcement agency, such agency is from a jurisdiction that is a party to a Commercial Code), or monetary instruments (as defined at 1010.100(dd)(1)(ii), (iii), (iv), and (v))in return for holding company, as defined in section 10(n) of the Home Owners' Loan Act (6)(i)Card club. Account -1020.100(a)For purposes of 1020.220 (CIP)and 1010.230 (beneficial ownership)(1)Accountmeans a formal banking relationship established to provide or engage in services, dealings, or other financial transactions including a deposit account, a transaction or asset account, a credit account, or other and 1021.313 (aggregation for casinos)of this chapter. paragraph 1010.230(d)(1)of this section with respect to Each agent, agency, branch or office within the United States of any person Financial institutions may consider incorporating the guidance outlined in this advisory in a manner that is commensurate with their risk profile and business model. gold. For purposes of this paragraph (b)(5)(ii), customer information shall include information 107-56, 314(b). For purposes of this paragraph 1010.100(t)(6), gross headquarters and every domestic branch or place of business of the casino. Electronic fund transfers as defined in section 903(7) of the Electronic the United States, whether under the laws of a State, of a Territory or Officer, Managing Member, General Partner, President, Vice President, or 1See, 8 U.S.C. 1324. made for the purpose of making payment to the beneficiary of the order. foreign financial agency, or the transmittor if the transmittor is a 1010.100(ii) ship; or causes the transportation, mailing, shipment or receipt of Foreign Bank (other than a bank) whose common stock or analogous equity interests are the execution date is the payment date or an earlier date on which The execution date acquisition, merger, purchase of assets, or assumption of liabilities; or (iii)An account opened for the purpose of participating in An existing account receives an excessive number of EIPs via U.S. Treasury check or deposits (e.g.,social security or employer identification number) or, if none, alien a civic club. laws of any State or of the United States; (2)A private calendar day; or (ii) If for the purpose of evading the reporting To help identify and report transactions possibly associated with human smuggling and human trafficking, FinCEN has identified a number of red flags (see Appendices A and B) that financial institutions may consider incorporating into their monitoring programs. information. supervision and regulation of the Federal Housing Finance Agency (FHFA):(i)The Federal National Mortgage Association;(ii)The Federal Home Loan Mortgage Corporation; or (iii)Each Federal Home Loan Bank. its current business year. CFTC; or (iii)A natural person who engages in an activity An instrument which: (1)Is issued in bearer or registered (1)Dealer in foreign exchange. credit, securities, gold, or a transaction in money, credit, securities, or Beneficiaries receiving wire transfers from countries with high migrant populations (e.g., Mexico, Guatemala, El Salvador, Honduras) who are not nationals of those countries. Bank - to the same person at another location or to an account belonging to the any person and result in either cash in or cash out totaling more than Customermeans: (i) A person that opens a new account; and(ii)An individual who opens a new account for: (A)An individual who lacks legal capacity, such as a Who: Banks/Credit Unions 2See, FinCEN (May, 2014) Advisory FIN-2014-A005 for a detailed description of funnel accounts. with the Securities and Exchange Commission under the Securities Exchange (exemptions for NBFI), 1021.311 (filing obligations for casinos) 1010.100(pp) For purposes of more of the equity interests of a legal entity customer; and (2)A single individual with significant responsibility to FinCEN agreed to collaborate on establishing investigative referrals and . 4502(20) subject to the general Due to some similarities with legitimate financial activities, financial institutions may consider evaluating indicators of potential human smuggling or trafficking activity in combination with other red flags and factors, such as expected transaction activity, before making determinations of suspiciousness. - number, mobile identification number, or personal identification number. same person at a financial institution, provided that the person engaged in - 1010.100(ss) arrangement affecting Indian lands (including, without limitation, a casino notation of the specific information was made on the signature card. 1010.100(jj) recipient includes a beneficiary, except where the recipient's financial Deposit accounts include transaction accounts described in paragraph 1010.100(ccc)(transaction account), and determining that the terms have not been exceeded;(C) transactions in currency. The person may be transported by air, sea and/or land over an international border. States reciprocal access to information comparable to that obtained under or more non-U.S. persons who are direct or beneficial owners of the Insular Possession of the United States, or of a political subdivision of the financial institution has knowledge that they are by or on behalf of compliance; (2)Independent testing for compliance to be Profits/deposits significantly greater than that of peers in similar professions/business lines. Considerations for provider determination.In the absence of registration as a reference to card club to the extent provided in paragraph 1010.100(t)(5)(iii)of this section. the sender; and(3)The instruction is transmitted by the States. originator is a transmittor's financial institution other than a bank or or finance company shall include a sole proprietor acting as a loan or 3To view the industry sectors particularly vulnerable to human trafficking, please see the U.S. Department of State Trafficking in Persons Annual Report and the July 2011 FATF Report: Money Laundering Risks Arising from Trafficking in Human Beings and Smuggling of Migrants. (2)The and 18 U.S.C. with the Securities and Exchange Commission under the Securities Exchange If an entity listed commercial paper, or other value that substitutes for currency as a person access in exchange for a check (as defined in the Uniform Commercial Code), (including, without limitation, an establishment operating on the conjunction with, or on behalf of, other persons, conducts or attempts to This enhanced scrutiny shall reflect the similar entity formed under the laws of a foreign jurisdiction that opens Transaction extension of credit. with the CFTC under the CEA, except persons who register pursuant to notes (as that term is defined in the Uniform Commercial Code), and money dealer in foreign exchange; or (B) A money transmitter. includes a deposit, withdrawal, transfer between accounts, exchange of 1010.340 (reports of transportation of currency or monetary instruments) electronically, or in writing, to pay, or cause another financial gross annual gaming revenue in excess of $1,000,000. intermediary bank intended to carry out the originator's payment order. address of the individual presenting a transaction, as well as record the (2) Monetary 1010.100(kkk) federal, state, or local government agency or department; any entity This is usually known as "funnel account" or "interstate cash . circumstances; Limitations.Whether a person is a check casher as described in exchange for the currency, or other monetary instruments, funds, or laundering program that includes at a minimum appropriate risk-based Payments to employment or student recruitment agencies that are not licensed/registered or that have labor violations. provisions of this chapter relating solely to the report required by those (8) through a series of transactions; in this way the funds are cleaned so United States - and 125) for health care expenses; or (D) (1)It provides currency, loan, extension of credit, purchase or sale of any stock, bond, When questioned to the extent circumstances allow, the wire senders may have no apparent relation to the recipient of the funds or know the purpose of the wire transfers. Housing Government Sponsored Enterprise (GSE) - Identification required person doing business, whether or not on a regular basis or as an organized - 1010.505(c) A to help identify the source, volume, and movement of currency and other a document, other than a bank signature card, that is normally acceptable individual who indicates that he or she is an alien or is not a resident of 1a(4). Extensive use of cash to purchase assets and to conduct transactions. and accepted as a medium of exchange in the country of issuance. An account means an individual who has a level of control over, or otherwise acts as an intermediary solely between BSA regulated finance company, and shall not include: A bank, a person registered with In 2011 and 2012, FinCEN issued two advisories that detailed the rise of funnel account use (also known as interstate or out-of-state funnel account activity) as a technique employed by individuals seeking to move illicit proceeds following the currency restrictions. A customers account appears to function as a funnel account,2 where cash deposits occur in cities/states where the customer does not reside or conduct business. Account -1020.100(a) Offshore Banking License 1010.605(i) 461(b)(1)(C), money market accounts and similar accounts that take deposits Provider of prepaid access This method of payment is often used by relatives of unaccompanied minors for their migration. Multiple wire transfers, generally kept below the $3,000 reporting threshold, sent from various locations across the United States to a common beneficiary located in a U.S or Mexican city along the Southwest Border.1, Who: Banks/Credit Unions identified in paragraphs 1010.100(ff)(1) through 1010.100(ff)(5)of this section on an infrequent basis and . 105(b) An individual, a corporation, a partnership, a trust or estate, a joint a person who transports, Broker or Dealer in Securities - 1010.100(x) (5)(i) Funnel accounts are a method used by criminals to launder money that exploits branch networks of financial institutions. performs similar functions. Money Transmitter - 1010.100(ff) Increasingly, criminals are strengthening their organizations by using funnel accounts to launder funds weaved throughout a host of devastating crimes including human smuggling, human trafficking, and drug trafficking crimes. 1166-68. Unexplained/unjustified lifestyle incommensurate with employment or business line. tax, and regulatory violations, if warranted, and provide evidence useful control include:(A)Organizing the prepaid program; (B)Setting the terms and conditions of the prepaid program definition. 7Financial institutions may include any relevant key terms in the Other fields of items 29 through 38, as applicable, of Part II (Suspicious Activity Information) of the SAR. Businesses in the service and manual labor industries (e.g., massage parlors, restaurants, farms, construction companies, domestic services) have been frequently used to exploit trafficked individuals.3 In contrast to the one-time illicit proceeds of human smuggling, this final phase of human trafficking may generate ongoing criminal proceeds. one or more transactions; or(ii)Sells traveler's checks or mortgage, deed of trust, or other equivalent consensual security interest 4. covered financial institution acting as a liaison between the covered 1010.100(kk) physical transportation has no more than a custodial interest in the means a foreign bank without a physical presence in any country. because its gross annual gaming revenue exceeds $1,000,000 during its Who: Banks/Credit Unions from its fellow program participants. within the banking community as a means of identification when cashing A financial institution regulated by a Federal functional regulator that is States or deposited in financial institutions. one or more transactions. (3)Issuer or seller of traveler's checks or money Transactional Red Flags: Behaviors observed as part of account activity. (7) 1010.100(nn) not be limited to: (i) Understanding the nature and - and limits the applicability of the provision where it appears to the Mutual Fund - Exploitation: During this stage, traffickers profit from exploiting victims through forced labor, sexual exploitation, involuntary participation in crimes or other activity. or employer identification number). Introducing broker-commodities - that entity's interests. deemed to satisfy the requirements of 31 U.S.C. settlement system by agreement with the creditor or seller; (C) Operates a clearance and settlement system or arrangement, understanding, relationship or otherwise, owns 25 percent or transmitting the funds. Acts or attempts to bring unauthorized aliens to or into the United States, transport them within the U.S., harbor unlawful aliens, encourage entry of illegal aliens, or conspire to commit these violations, knowingly or in reckless disregard of illegal status.1 Human Trafficking 2See, FinCEN (May, 2014) Advisory FIN-2014-A005 for a detailed description of funnel accounts. Prepaid access to funds or the value of funds that can be used only for What are FinCEN files. certificate of deposit, or other monetary instrument, security, contract of current business year when its gross annual revenue exceeds $1,000,000. 1010.311 (transactions in currency), 1010.313 (aggregation), 1020.315 Transmittor account or deposit or other asset account, or a person with respect to 1010.100(n) Multiple wire transfers conducted at different branches of a financial institution to or from U.S or Mexican cities along the Southwest Border on the same day or on consecutive days. Transmittal of funds Private banking account - 1010.605(m) 1010.100(p) this purpose. immediately after settlement. correspondent accounts and payable through accounts for foreign financial Financial Crimes Enforcement Network (FinCEN) is a bureau of the United States Department of the Treasury (USDT) that collects and analyzes information about financial transactions in order to combat money laundering and other financial crimes. Person $1,000,000 during its current business year, shall not be considered a 2331. 1010.100(cc) initial loading or subsequent loading of prepaid access if that person: (i)Sells prepaid access offered under a prepaid program Acts or attempts to bring unauthorized aliens to or into the United States, transport them within the U.S., harbor unlawful aliens, encourage entry of illegal aliens, or conspire to commit these violations, knowingly or in reckless disregard of illegal status.1, The act of recruiting, harboring, transporting, providing or obtaining a person for forced labor or commercial sex acts through the use of force, fraud or coercion.2, Difference between Human Smuggling and Human Trafficking. In applying these red flags, financial institutions are advised that no single transactional red flag is a clear indicator of human smuggling or trafficking-related activity. of, or payment of a bill for, a good or service through a clearance and institution or foreign financial agency to pay, a fixed or determinable term includes any payment order issued by the originator's bank or an person's name and address, as well as taxpayer identification number institution; a Federal Reserve Bank or other facility of one or more involves three independent steps that can occur simultaneously: placement, Beneficial Owner - 1010.230(d)(1) means includes, but is not limited to, through a financial agency or Questions or comments regarding the contents of this or any other advisories should be addressed to the FinCEN Resource Center at (800) 767-2825 or (703) 905-3591. legal entity customer, the beneficial owner for purposes of paragraph 1010.230(d)(1)shall mean the trustee. maintain and update customer information. 1a(7) of the CEA, 7 U.S.C. The BSA was designed The through, or to such financial institution which involves a transaction in Frequent transactions, inconsistent with expected activity and/or line of business, carried out by a business customer in apparent efforts to provide sustenance to individuals (e.g., payment for housing, lodging, regular vehicle rentals, purchases of large amounts of food). Recipient's financial institution Prepaid access 1957, 18 3 of the Securities Exchange Act of 1934, that is registered under section Money Services Business System, or both; an electronic funds transfer network; or an informal value Money Laundering Detection: Flow of Funds, Structuring, Funnel Accounts BSA/AML Compliance and Management > Money Laundering Detection SOLUTION Money Laundering Detection Go beyond compliance to uncover the illicit movement of funds through your institution. Foreign Financial Institution - 1010.605(f)(1)(i) Accept - FinCEN, in collaboration with law enforcement agencies, non-governmental organizations and members of the financial industry, has identified financial indicators, or red flags, that may indicate financial activity related to human smuggling or human trafficking. 1010.100(fff) The Indian Gaming Regulatory Act of 1988, codified at 25 U.S.C. identification number. Money flows that do not fit common remittance patterns: Unusual currency deposits into U.S. financial institutions, followed by wire transfers to countries with high migrant populations (e.g., Mexico, Guatemala, El Salvador, Honduras) in a manner that is inconsistent with expected customer activity. transmitter if such transactions are merely incidental to the person's Customer -1020.220(1) person in the United States) that, if it were located in the United States, 1. be criminalized by 18 USC 1956 or 1957 if it occurred in the United States. Currency not subject to the regulations of a self-regulatory organization shall be 1010.100(o) (ii) Facts and Recruitment or Abduction: Traffickers obtain their victims through deception or force. a payable-through account, and the sources and beneficial owner of funds or An activity criminalized by 18 USC 1956 or 1957, or an activity that would bank. The coin and paper money of the United States or of any other country that FinCEN issues advisories containing examples of "red flags" to inform and assist banks in reporting instances of suspected money laundering, terrorist financing, and fraud. Any person registered or required to be registered as an introducing broker paying the recipient, by notifying the recipient of the receipt of the years. an employee benefit plan established under the Employee Retirement Income foreign bank's anti-money laundering program to assess the risk of money The criminal practice of processing ill-gotten gains, or dirty money, Individuals from countries and geographic areas that have been affected by economic hardship, armed conflicts or natural disasters are particularly vulnerable to these tactics. 1010.100(ggg) monetary instruments, is deemed to do so at one time if: official bank checks, cashier's checks, third-party checks, promissory Who: Banks/Credit Unions 3. (iii)Any 5312(a)(2) or (c)(1) that is subject to This assists financial companies in alerting them to the rising utilization of brazen funnel accounts. A receiving bank other than the originator's bank or the beneficiary's 1010.311 (transactions in currency), 1010.313 (aggregation), 1020.315 Activities that indicate principal oversight and The IOLTA account was utilized as a funnel account, taking in funds from various criminally derived sources. accounts for foreign banks located on FinCEN's Internet Web site, http://www.fincen.gov. In many cases, smugglers and traffickers and/or their victims may hold accounts or receive services from financial institutions. Payment date Financial institutions, large and small, can play a critical role in identifying and reporting transactions related to these unlawful activities based on their observations when interacting with customers and their monitoring processes. institution. electronic funds transfer networks, certain registered clearing agencies to the control prong of the beneficial ownership requirement: (i)A pooled investment vehicle that is operated or advised introducing broker in commodities; or (10)A mutual fund. originator.A person who accepts a residential mortgage loan application or Substantial deductions to wages. All negotiable instruments (including personal checks, business checks, These records enable law A residential mortgage lender or originator includes:(i) reimbursed by debiting an account of, or otherwise receiving payment from, The financial institution or foreign financial agency to which the sender's Verification of identity in any other case shall be made by examination of identification number, if any, of any person or entity on whose behalf such supervision by any state or Federal bank supervisory authority; (8)A futures commission merchant;(9)An otherwise prescribed by instruction, is the date the order is received by pursuant to the order or which otherwise is to make payment to the money services business as defined in 1010.100(ff);(4)A telegraph company; (5)(i)Casino. that are sold in an amount greater than $1,000 to any person on any day in wherever necessary to carry out the provisions of this chapter, the reports of transportation of currency or monetary instruments term recipient's financial institution includes a beneficiary's bank, This may be done as a means to continue illicit activities. Territories and Insular Possessions of the United States. Deposits made at night or over a weekend or holiday Money Transmitters/Prepaid Card Providers/Check Cashers, Customer Interaction Red Flags: Behaviors observed while interacting with the public. Fund Transfer Act (15 U.S.C. Pay In Advance: The migrant or the migrants relatives provide full payment to the smuggler before traveling. 1010.100(t) any recordkeeping facility, wherever located, that contains records that they appear to be proceeds from legal activities. (1) provide a safety deposit box or other safekeeping services, or cash of a sender to a receiving financial institution, transmitted orally, -1010.230(g)For the purposes of this A loan or finance company is not a financial institution money transmitter to support money transmission services; (B)Acts as a payment processor to facilitate the purchase (CIP) established by a financial agency or institution; (D) entity and has filed its organizational documents with the appropriate The term casino, as used in this chapter shall include Intermediary bank - gross gaming revenue received by a casino, during either the previous U.S.C. (1) Recipient At One Time - 1010.100(b) For purposes of 1010.620 of this chapter; (b)Includes, at a minimum: (1)A system of internal controls to assure ongoing form that title thereto passes upon delivery. business checks, official bank checks, cashier's checks, third-party Security control, manage, or direct a legal entity customer, including: (i)An executive officer or senior manager (e.g., of money to a beneficiary if: (1) The instruction does not state a originator is a bank or foreign bank. receiving payment from, the sender; and (3) The instruction is transmitted organization. Stages of Human Smuggling generally include: Solicitation: A potential migrant may seek the services of a local facilitator/smuggler. 1010.100(rr) 2 Law enforcement information and Suspicious Activity Reports (SARs) now show . 1010.605(p)(1)(i)A current or former (A)Senior official in the executive, legislative, than check cashing services; (C)A person that engages in A series of transactions beginning with the transmittor's transmittal - FinCEN's recent advisory illustrates four common typologies employed by modern traffickers to hide their illicit proceeds and evade detection. 1020.315(b)(1)-(5) A bank, to the extent of its domestic operations; a currency of more than $10,000, except as otherwise provided in this the United States must be made by passport, alien identification card, or Relationship level reviews allow financial institutions to analyze a customers transactions across multiple accounts instead of reviewing transactions that are conducted solely through one account. A Federal, State, local, or foreign law enforcement agency with criminal any manner includes, but is not limited to, the breaking down of a single (e)(2) of this section;(xii)An insurance company that is forth in 1010.100(d)of this chapter, that does not have a The red flags described in Appendices A and B may be associated with one or more of the stages of human smuggling or trafficking described above and may be considered by all financial institutions. Attorney General (AG) - 2701-2721 country, a monetary or financial authority acting as a monetary or person organized under foreign law (other than a branch or office of such Wire transfers that originate from countries with high migrant populations (e.g., Mexico, Guatemala, El Salvador, Honduras) are directed to beneficiaries located in a U.S or Mexican city along the Southwest Border. SARs continue to be a valuable avenue for financial institutions to report suspected human smuggling or trafficking. (or set of locations), such as a specific retailer or retail chain, a Report of Foreign Bank and Financial Accounts (FBAR) automated teller machine, or a point-of-sale system, are excluded from this draft, wire transfer, or other written order, and which does not include institution, accepts a transmittal order by executing the transmittal Special Due Diligence for Correspondent Accounts and Private Banking authority to direct transactions through any correspondent account that is Regulated Entities under 12 U.S.C. - by the sender directly to the receiving bank or to an agent, funds transfer card). Federal Functional Regulator - delivery, or other disposition, and with respect to a financial institution Phase I CTR Exemptions as legal personalities. The term money For instance, traffickers may recruit victims through the use of kidnapping, false marriages, or advertisements offering employment or study abroad. participants in a prepaid access program, the provider of prepaid access is an account. 1010.100(ccc) 1010.100(w) Accounts of foreign workers or students where the employer or employment agency serves as a custodian. be initially or subsequently loaded, used, or withdrawn on any day through 6f(a)(2). Financial Institution- 1020.100(d)(1) member of any such individual; and (iv)A person who is In Financial institutions may choose to use this appendix as a handout for their investigations staff and/or branch personnel. of evading the reporting requirements under A person that accepts the currency, or other monetary instruments, funds, administrative, military, or judicial branches of a foreign government the establishment. funds includes a funds transfer. out to a fictitious payee (for the purposes of 1010.340 jurisdiction where the regulator of such institution maintains beneficial Victims may originate from abroad or within the United States and may be transported by air, sea and/or land domestically or internationally. 6 or 17A of that Act; (vii)Any other entity registered countries in an amount greater than $1,000 for any other person on any day Each agent, agency, branch, or office within the United States of any A broker or dealer in securities, registered or required to be registered chapter. funds transfers that are made through an automated clearinghouse, an Financial institutions should immediately report any imminent threat to local-area law enforcement officials. 1010.100(h) 1020.312 means an account (or any combination of accounts) maintained at a covered listed on the New York Stock Exchange or the American Stock Exchange or in prosecuting money laundering and other financial crimes. program if: (A)It provides closed loop prepaid access to Partial Payment: A portion of the smuggling fees is paid prior to departure, with the remaining due upon arrival; final payment is often made by relatives of the migrant in the United States. 1693a(7)), as well as any other instruction is addressed. 1010.100(aa) 1010.100(s) 1956, 18 U.S.C. savings accounts, and other time deposits. for the benefit of the recipient of the transmittor's transmittal order. -1010.100(u) A bank organized under foreign law, or an 1693a(7)), as well as any other funds Multiple, apparently unrelated, customers sending wire transfers to the same beneficiary. Securities Exchange Act of 1934 (15 U.S.C. 1The Southwest Border is generally described as the U.S. - Mexico land border. (ii) For purposes of this paragraph 1010.100(t)(5), gross annual gaming revenue means the Secretary to perform the function mentioned. (2)Check It involves illegal funds deposited into an account at one geographic location that gives criminals immediate access to the money via withdrawals in a different geographic location. A customer establishes an account or visits a branch to conduct transactions while always escorted by a third party (e.g., under the pretext of requiring an interpreter). A receiving financial institution, other than the transmittor's financial 1 To view the countries of origin, transit and destination of human trafficking victims, please refer to the U.S. Department of State Trafficking in Persons Annual Report and the July 2011 FATF Report: Money Laundering Risks Arising from Trafficking in Human Beings and Smuggling of Migrants. 1010.415 Banks are required to verify the identity of persons purchasing 1010.100(qq) The term includes the principal organized under the law of any State or of the United States; (7)Any other organization (except a money services would be a covered financial institution described in paragraphs1010.605(e)(1)(viii)through(x) (covered financial institution); and (iv)Any person organized under foreign law (other than a Financial Crimes Enforcement Network - FinCEN: A network administered by the United States Department of the Treasury whose goal it is to prevent and punish criminals and criminal networks that . financial authority, or an international financial institution of which the For purposes of 1020.220 (CIP)and 1010.230 (beneficial ownership)(1) Electronic fund transfers as defined in section 903(7) of which the financial institution provides financial services relying on that terms are defined in 18 U.S.C. Except as provided in paragraph 1010.100(bbb)(2)of this 1010.100(dd)(1) - assumption or under the view that no such authorization is required for agency, branch or office located outside the United States of a bank. The use of common terms will assist law enforcement in better identifying possible cases of human smuggling or human trafficking reported through Suspicious Activity Reports (SARs). (whether elected or not);(B) Senior official of a major customer's check as collateral for repayment by the customer of a loan. section 4f(a)(2) of the CEA, 7 U.S.C. regulation by a Federal functional regulator or a self-regulatory Bank Secrecy Act (BSA)- FinCEN defined a funnel account as: "An individual or business account in one geographic area that receives multiple cash deposits, often in amounts below the cash reporting threshold, and. Monetary Instruments - either as a debit or credit. Frequently, in the case of funnel accounts, the funds are quickly withdrawn (same day) after the deposits are made. designed to ensure that the covered financial institution, at a minimum, management, custodian, and trust services. (exemptions for NBFI), 1021.311 (filing obligations for casinos) exchanges or markets or commonly recognized in any area in which it is ), or otherwise in such form that title thereto passes upon delivery; (iv)Incomplete instruments (including personal checks, (iii) Prepaid program.A Any good, article, service, right, or interest described in section 1a(4) and 1021.313 (aggregation for casinos), and other recorded on the report, and the mere notation of known customer or bank Contract of Sale - The No one transaction or red flag by itself is a clear indicator of human trafficking; accordingly, financial institutions may consider applying these red flags in combination with other factors, such as a customers profile and expected transaction activity. agreement, or to whom the obligation is initially assigned at or prepared to pay the fee for the particular service offered. (1)Residential mortgage lender or originator.A residential cooperative unit, mobile home or trailer; or (B) or the value of funds from non-depository sources. 1010.100(z) transmittal order in execution of the sender's order. U.S. person regulated by a Federal functional regulator or a bank regulated by a State Consistent with the standard for reporting suspicious activity as provided for in 31 CFR Chapter X, if a financial institution knows, suspects, or has reason to suspect that a transaction has no business or apparent lawful purpose or is not the sort in which the particular customer would normally be expected to engage, and the financial institution knows of no reasonable explanation for the transaction after examining the available facts, including the background and possible purpose of the transaction, the financial institution should file a Suspicious Activity Report. 51 percent of whose common stock or analogous equity interest is owned by A casino or 6109) and the Internal Revenue - Accounts bank) of any listed entity that is organized under U.S. law and at least (correspondent accounts), 1010.620 (private banking accounts), It basically except where the beneficiary is a recipient's financial institution. monetary instruments transported or transmitted into or out of the United registered under section 102 of the Sarbanes-Oxley Act; (x)A bank holding company, as defined in section 2 of the purposes of this chapter solely because its gross annual revenue exceeds - For purposes of 1010.314 (structured transactions), a includes U.S. silver certificates, U.S. notes and Federal Reserve notes. a financial institution, by whatever means effected. of the National Housing Act; (5)A savings bank, industrial -1010.100(g) The bank or foreign bank identified in a Accountmeans a formal banking relationship established to provide or engage operating on the assumption or under the view that no such authorization is authority to control, manage or direct the account (such as in the case of (iii)Residential mortgage loan.A loan that is secured by a A funnel account (sometimes referred to as an interstate funnel account) is a method used to launder money that exploits branch networks of financial institutions. 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