#QuickBiteCompliance Day 117
Why Banks Need Super-Smart Security Systems to Catch the Bad Guys
Imagine you’re playing a video game where you have to stop villains from sneaking treasure out of a castle. But these villains are really sneaky! They try to hide the treasure in different places, wear disguises, or trick the guards. Banks and financial institutions face a similar challenge in the real world. Bad guys try to send money illegally, fund criminal activities, or hide stolen money. That’s why we need super-smart security systems to catch them—just like the Final Rule Part 504 from the New York State Department of Financial Services (DFS) says!
How Do the Bad Guys Trick the System?
1️⃣ Breaking the Rules in Small Bits – Instead of moving $1 million at once (which would be suspicious), criminals move $9,999 multiple times to stay under the radar.
2️⃣ Using Fake Names – They create fake companies or use stolen identities to make it seem like a normal transaction.
3️⃣ Dodging Sanctions – Some countries or people aren’t allowed to do business because of illegal activities. But criminals try to move money through other countries to hide who they’re really dealing with.
How Do Banks Stop This?
Final Rule Part 504 says that banks must have Transaction Monitoring and Filtering Programs (TMPs)—kind of like superhero computers! These systems:
✅ Spot unusual patterns in money movements
✅ Block transactions that break U.S. laws
✅ Report suspicious activity to law enforcement
Without these safeguards, criminals could get away with their tricks, funding things like terrorism, drug trafficking, and corruption. Strong AML (Anti-Money Laundering) rules help protect everyone from financial crime!
Learn more about financial crime prevention: ACAMS Glossary of Terms
#AML #FinancialCrime #Compliance #Regulations #RiskManagement #InclusiveRegtech #OpenSourceAML #100HariNulis
