Anti-money Laundering and Financial Fraud Consulting under the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001 and the EU Revised Money Laundering Directive of 2001

The LUBRINCO Group helps reduce loss from fraud, and liability from failure to exercise financial due diligence under the terms of the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001 and the EU Revised Money Laundering Directive of 2001. Know your Customer requirements involve more than just verifying that a potential customer is not on the OFAC and known terrorist lists. It requires a range of procedures ranging from verification of sources of funds to answering subpoenas with minimum disruptions to the organization. It also includes outside verification of procedures, which can no longer be done by the consulting arm of your auditors. If the terms OFAC, AML, financial gatekeeper, or enhanced due diligence aren't an ntegral part of your vocabulary, talk to us.

Financial Institutions

LUBRINCO works with financial institutions to provide AML training, financial due diligence outside their home jurisdictions, and as part of the enhanced due diligence team.

Financial Gatekeepers

The definition of financial gatekeeper is expanding, and includes brokerage firms, attorneys, auditors. external accountants, tax advisors, real estate agents, and dealers in valuable goods where large cash payments are made. LUBRINCO works with financial gatekeepers both to help establish compliance protocols, as independent auditors of their AML/FF procedures, and by providing financial due diligence outside their home jurisdictions.

Training

AML legislation was designed to help reduce the benefits of money laundering to terrorists, drug dealers, organized crime, and fraudsters. Unfortunately, AML programs are implemented to meet two different goals.

• Reduce potential liability for non-compliance with the new statutes.
• Reduce potential liability for handling of funds involved in financial fraud, as international recovery agents look to recover funds from financial institutions that have, either intentionally or unintentionally, become pregnant with liability for their participation in the transfer of tainted funds.

If these two goals are met the program is considered to be successful, independent of the consequences of the measures taken.

Unfortunately, this approach has three inevitable consequences.

• Money is wasted on measures that serve no purpose, and are not required by any rational standard.
• Customers will be driven to institutions with less-unreasonable policies.
• Fear of risk will be so high that the institution will refuse customers that they should be taking, and thus needlessly lose revenues.

Lubrinco can work with you to build a program – or revise an existing program – that will meet two goals:

• Fulfill the mandates of both local and international law.
  This MUST be done to avoid compliance issues.
• Build a set of policies and measures designed to have a high probability of detecting tainted money and being able to reject it.
  This will allow the institution to avoid becoming pregnant with liability for handling tainted funds from those clever enough to appear legitimate - no reasonable policy can be effective 100% of the time, largely by having different policies and measures available for different kinds of clients, and for client's changing circumstances.

The benefits of implementing a program that meets both statute and intent are:

• Reduction of cost by not implementing measures that to not address the desired goals of compliance to statute, and detecting and rejecting tainted measures.
• Reduction of liability by demonstration of reasonable and prudent efforts to detect and reject tainted money.
• Increases of profitability by allowing a wider range of risks to be managed.

When dealing with institutions outside the U.S and E.U., LUBRINCO will help implement a program that not only meets the appropriate goals, but is is appropriate to the technological and economic realities of the region.

Contact the LUBRINCO Group about Anti-money Laundering and Financial Fraud Consulting under the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001.

Contact the LUBRINCO Group about Anti-money Laundering and Financial Fraud Consulting under the EU Revised Money Laundering Directive of 2001.

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