The Road Ahead: Opportunities and Challenges in the Money Transfer Industry. Presentation Prepared for the Money Transmitter Regulators Association Annual Conference. Opportunities and Challenges. Compliance and control Bank account discontinuance
The Road Ahead: Opportunities and Challenges in the Money Transfer Industry
Presentation Prepared for the
Money Transmitter Regulators Association Annual Conference
Bank account discontinuance
Compliance as a shared responsibility
New areas such as internet gambling payments need to be built into compliance programs
Spillover of immigration debate into money transfer operations, as happened in Arizona, will continue
General pressure on the agent model: agents vs. branches
Critical nature of agent receivables in safety and soundness
Israel Discount Bank to pay $12M in probeBy: David JonesPublished: October 31, 2006 - 3:41 pmIsrael Discount Bank of New York agreed to pay $12 million in civil penalties to settle state and federal money laundering charges.The New York State Banking Department said that the bank processed $35.4 billion in suspect wire transfers from March 2004 to March 2005. A large number of the 181,000 wire transfers showed patterns, like moving large amounts of funds through high risk countries, that are often associated with money laundering, according to court records.The investigation found that the bank had no system for tracking alerts generated by these wire transfers, and that it failed to collect adequate information on customers making these transactions."The size of the settlement should serve as a reminder to all financial institutions that detecting and reporting violations of Bank Secrecy Act and anti-money laundering regulations is necessary if we are to keep our financial system free from fraud and abuse," said New York State Superintendent of Banks Diana Taylor, in a statement.Half the $12 million will be paid to the U.S. Treasury Department and the other half to New York state. .The Federal Deposit Insurance Corp. and the Financial Crimes Enforcement Network were also part of the investigation.The settlement stems from an investigation by Manhattan District Attorney Robert Morgenthau of the bank for allegedly allowing $2.2 billion in illegal money transfers from Transmar Tourismo of Brazil. ...
Why is this a problem?
Why is this a problem?
Bank of America Settles Money Laundering Probe and Pays $7.5 Fine
September 27, 2006
RUN THE GAUNTLET - “To be hounded on all sides. Corruption of gantlope, the passage between two files of soldiers. (German, ganglaufen or gassenlaufen.) The reference is to a punishment common among sailors. If a companion had disgraced himself, the crew, provided with gauntlets or ropes' ends, were drawn up in two rows facing each other, and the delinquent had to run between them, while every man dealt him, in passing, as severe a chastisement as he could. … The punishment itself came into use in the Royal Navy in 1661 but was abolished in 1813.”
THROW DOWN THE GAUNTLET - "The English language contains two wholly different words spelled and pronounced gauntlet. The gauntlet in this expression means glove derives from the medieval French gauntlet, 'a little glove.' Knights of the age of chivalry, though not as noble as they seem in romances, did play by certain rules. When one knight wanted to cross swords with another, he issued a challenge by throwing down his mailed glove, or gauntlet, and his challenge was accepted if the other knight picked up the metal-plated leather glove. This custom gave us the expression 'to throw down the gauntlet,' 'to make a serious challenge."
These factors will lead to continued pressure on margins in some markets and channels, and drive a continuing need for MTOs to strive for greater efficiencies in operations.
A steady, non-volatile, growing source of balance of payments support
Source: World Bank (Dilip Ratha). 2003. “Workers’ Remittances—An Important and Stable Source of External Development Finance.” In Global Development Finance 2003 (chapter 7). Washington, D.C.: World Bank.
FDI, Capital Market Flows