Author: Tommy Hartono
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Day 26: BSA Compliance Program
#QuickBiteCompliance Day 26 Have you ever wondered about the significance of a Bank Secrecy Act (BSA) Compliance Program? It is a crucial framework that U.S.-based financial institutions, as outlined by the Bank Secrecy Act, must establish to combat money laundering and other financial crimes effectively. This program entails various essential components, including the development of…
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Day 25: Bank Secrecy Act (BSA)
#QuickBiteCompliance Day 25 Thinking about Bank Secrecy Act (BSA). What is it? Why does it matter? The primary U.S. anti-money laundering regulatory statute (Title 31, U.S. Code Sections 5311- 5355) enacted in 1970 and most notably amended by the USA PATRIOT Act in 2001. Among other measures, it imposes money laundering controls on financial institutions…
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Day 24: Bank Secrecy
#QuickBiteCompliance Day 24 This LinkedIn post educates me on the concept of Bank Secrecy, highlighting its significance in financial regulations. Bank Secrecy refers to laws preventing banks from disclosing account information without account holder consent, hindering cross-border information exchange among financial institutions and regulators. The post emphasizes the importance of aligning secrecy laws with international…
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Day 23: Bank Draft
#QuickBiteCompliance Day 23 This post introduces the risks associated with Bank Drafts in relation to money laundering. Bank Drafts, being international monetary instruments drawn on reputable institutions, pose vulnerability to money laundering. They are typically made payable in cash upon presentation at the issuing institution’s account in another country. Understanding these risks is crucial in…
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Day 22: Back to back Letter of Credit
#QuickBiteCompliance Day 22 What is Back-to-Back Letters of Credit? A form of financing in which Bank A issues a letter of credit as collateral to Bank B in order to issue a separate letter of credit to the beneficiary. This often happens when the underlying agreement between the applicant and beneficiary contains restrictions about the…
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Day 21: Autonomous Sanctions
#QuickBiteCompliance Day 21 The significance of Autonomous Sanctions lies in a single entity, be it a government or a group of governments like the EU, taking action to establish and uphold a sanctions framework. These measures, known as Unilateral Sanctions, play a crucial role in regulating and overseeing sanctions. Delve deeper into this concept to…
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Day 20: Automated Teller Machine (ATM)
#QuickBiteCompliance Day 20 What is the topic of the day? . . Today’s topic: Automated Teller Machine (ATM) 🏧 An ATM is an electronic banking outlet enabling customers to conduct basic transactions independently. These machines dispense cash, process check and cash deposits, facilitate transfers, and offer balance inquiries. Stay informed with #InclusiveRegtech #AutomatedTellerMachine #ATMLearn more…
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Day 19: Automated Screening Tools (AST)
#QuickBiteCompliance Day 19 Today, let’s we delve into the world of Automated Screening Tools (ASTs)! These software systems are essential for large financial institutions, streamlining the screening process by automating tasks that were previously done manually. ASTs primarily focus on screening against sanctions lists, generating hits that are consolidated into alerts based on customer records.…
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Day 18: Automated Clearing House (ACH)
#QuickBiteCompliance Day 18 Today, we are going to delve into Automated Clearing House (ACH). It’s an electronic banking network that handles high volumes of credit and debit transactions in batches. ACH credit transfers cover various payments like direct deposit payrolls, contractor, and vendor payments. On the other hand, ACH debit transfers involve consumer payments such…
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Day 17: Asset Protection Trusts
#QuickBiteCompliance Day 17 Let’s dive deeper into Asset Protection Trusts (APTs), a unique form of irrevocable trust designed to safeguard wealth from creditors. These trusts involve transferring asset ownership to a trustee, typically established offshore to shield assets while remaining tax neutral. APTs focus on asset protection and prioritize providing for beneficiaries, enabling foreign trustees…