Regulatory Alerts2006-11-09
Added
Potential Money Laundering Risks Related to Shell Companies
Financial institutions subject to the Bank Secrecy Act must review their anti-money laundering programs to ensure money laundering risks associated with shell companies are appropriately assessed and managed. Institutions are required to monitor these entities for indicators such as inability to identify originators or beneficiaries, payments with no stated purpose, and transactions inconsistent with normal business patterns. If suspicious activity involving shell companies is detected, institutions must file Suspicious Activity Reports that fully describe the conduct, including details on originators, beneficiaries, and registered agents.
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