Regulatory Alerts2001-06-01 | PDF OnlyAdded
Suspicious Activity Related to Phone Card Businesses
A review of Suspicious Activity Reports filed with FinCEN identified over 160 reports indicating suspicious financial activity related to businesses involved in phone card sales across fourteen states. The bulletin details specific problematic transaction patterns, such as large unexplained cash flow increases, transactions structured to stay below Currency Transaction Report requirements, and frequent structured transactions followed by immediate withdrawals. Reported dollar volumes associated with these activities range from $300,000 to $50 million. Financial institutions are instructed to alert key personnel to these risks and to fully describe the involvement of participants in foreign countries in the narrative section of any relevant Suspicious Activity Report.