Analysis of money laundering risks in priority banking: A unit if Standard Chartered Bank

Money laundering, at its simplest, is the act of making money that comes from Source A look like it comes from Source B. In practice, criminals are trying to disguise the origins of money obtained through illegal activities so it looks like it was obtained from legal sources. Otherwise, they can't use the money because it would connect them to the criminal activity, and law-enforcement officials would seize it. ¬The most common types of criminals who need to launder money are drug traffickers, embezzlers, corrupt politicians and public officials, mobsters, terrorists and con artists.

Priority Banking –A business unit of the Consumer Banking Division, of Standard Chartered Bank. Its business is that of managing the liability accounts of customers who hold deposit account balances over a threshold limit. The dedicated service managers provide enhanced and personalized services, while the Relationship Managers focuses on providing value add by managing the savings, current and term deposit accounts and the investment advisory proposition to the captive group of clients. This seems to be both a “service retention” and “service sales policy” adopted by the Bank. In addition it seems an attrition prevention and “new to bank” customer acquisition, methodology; given the competitive environment of the Banking Industry today. It needs to be kept in mind that the unit is a part of a Bank, providing financial throughput, involving large sums of money, hence a need for laws and practices that are regulated, standardized, and transparent ; to evoke trust in individuals and non-individuals who choose to avail of their services.

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[...] Free Personalized Self Carbonising At PAR cheque book KEY ANTI MONEY LAUNDERING PRACTICES IN PRIORITY BANKING UNIT OF STANDARD CHARTERED BANK (BASED ON KNOW YOUR CUSTOMER, APPROACH) 1. Know your customer at the time of account opening Monitoring customer transactions daily 3. Study trends in customer account behavior Standardized diary notes on customers. 1.KNOW YOUR CUSTOMER AT THE TIME OF ACCOUNT OPENING: The Priority Banking unit captures basic customer information at the time of account opening itself namely 1. Name Date of Birth / Date of Incorporation Address Permanent and mailing Introducer if any Registration of PAN / Registrations if any Requirements for Cheque Books, Internet Banking, Debit Card , Credit Card , Loans , e statements Educational Qualification, Occupation, Nature of Work/ Business Sources and value of Income / Revenue Value and Volume of Transactions in the stated account on a monthly basis. [...]

[...] Financial institutions should not accept proof of deposit to a bank account as being equivalent to proof of a legitimate origin Carrying illegal proceeds as cash across national borders remains an important method of money laundering The need for enforcement agencies to be familiar with the general rules and practice regarding the purchase of property in relevant jurisdictions, and the need to be aware that transfers involving nominal amounts can be easily structured in some jurisdictions. Case study 4 Lawyers Facts A prominent attorney operated a money laundering network which used sixteen domestic and international financial institutions, many of which were in offshore jurisdictions. [...]