Your suppliers aren’t the only risk for your company. When was the last time you investigated your customers? Even a single, high-risk transaction can cause far-reaching repercussions for your organization. There’s an estimated $800 billion to $2 trillion dollars worth of laundered money circulating in the U.S., and it will only get worse unless better guidelines and fail-safes are in place. Jane Jee joins Tom to discuss the importance of customer due diligence and beneficial ownership regulations in corporate compliance.

  • Money laundering is a serious topic for compliance officers, but some business owners don’t seem to realize that even non-financial companies can fall prey to money laundering schemes. Tom and Jane share a deep conversation on how this common misconception and why it remains prevalent today.
  • Beneficial ownership is described as an individual who benefits from property ownership even though the legal title to some form of property belongs to or is in another person’s name. This is often the guise money launderers use to avoid getting caught.
  • A way to combat this is by implementing appropriate, risk-based procedures for conducting ongoing customer due diligence to monitor, identify, and report suspicious transactions carried out by beneficial owners.
  • Not all processes and methods are created equally. Despite being the biggest search engine on the planet, Google can only provide searches for 5% of the necessary data required to conduct customer due diligence. That’s why companies like Kompli-Global Limited exist. They develop and provide real-time search platforms for thorough due diligence so companies can better comply with state anti-laundering legislation.

Here are the highlights of this week’s conversation:

  • Developments in the US financial regulatory schemes that have the potential to impact transparency around beneficial ownership.
  • Why customer due diligence is so important in a financial institution and how changes in customer due diligence (as promulgated by finCEN) differ from its predecessor.
  • The best process to screen for beneficial ownership and why you should have a real-time search platform in your toolkit.

Ongoing Education

If you’re a compliance professional looking for a convenient and effective way to fulfill your continuing education requirements, go to FCPAComplianceReport.com/Courses and choose from 4 hour-long training packages that will keep you up to date with the latest developments in the compliance field.

Resources:

Jane Jee LinkedIn

Jane Jee Twitter

Kompli-Global

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