Cybercrimes continue to be a topic of concern for financial institutions as technology grows more sophisticated and progresses rapidly. Broadly, money laundering in cyberspace is defined as an illegal activity carried out by means of a computer or the internet. Compliance professionals have come to know it as cybersecurity threats in the form of social engineering, network attacks, phishing and malware, business email compromise (BEC), ransomware, and the exploitation of software vulnerabilities.
Over a decade ago, the commonality of these terms scarcely existed in our everyday language. The proliferation of cyber threats due to their speed, reach, magnitude, and accessibility of the U.S. financial system has enabled illegal activity, such as fraud, money laundering, and identity theft. In an effort to magnify the weight of these growing threats, in June 2021, the Financial Crime Enforcement Network (FinCEN) released a list of anti-money laundering and countering terrorism financing priorities of national concerns, citing cybercrime as one of the most significant threats.
Recognizing the signs of cyber-enabled money laundering
Here are a few red flags credit union staff should be on the lookout for to detect cyber-enabled money laundering:
There’s still time to register!
Corporate One’s annual BSA/AML and OFAC training with ProBank’s Mark Dever
Mark is back again this year with his usual flair to efficiently and cost-effectively help BSA/AML officers and compliance professionals meet the FFIEC’s expected training guidelines. This “BSA basics” webinar will cover the following topics: currency transaction reporting, Office of Foreign Asset Control, audit, suspicious activity reporting, member due diligence, risk assessment, “beneficial ownership,” and more.
Date: May 4
Time: 1:00 – 4:00 p.m. ET
Below are some actionable steps credit union can perform in response to cyber-enabled money laundering:
For a more comprehensive list of reg flag indicators and reporting of suspicious activity, BSA staff is encouraged to review FinCEN’s cyber guidance. Below is a list of helpful resources:
Kinya Knight, AVP
BSA/AML Compliance Manager