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What precautions are required for US Anti-Money Laundering exposure?

Swisshtech is considering startup financing from local and overseas interests as a US based organization, we hope to eliminate any money laundering exposures and vulnerability. Please advise?

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3 answers

How To Comply With Regulations of Anti Money Laundering (AML) and Counter-Financing of Terrorism (CFT).

Under the Bank Secrecy Act and the USA Patriot Act, banks and financial institutions must take a risk-based approach to AML/CFT and implement the following compliance measures:

AML program: Firms must develop and implement an internal AML/CFT program designed to match the risk profile of their customers and business sectors. The program should consist of written policies and procedures detailing the firm’s approach to:

  • Customer due diligence
  • Transaction screening and monitoring
  • Adverse media and PEP screening
  • Sanctions screening

Reporting and Record-Keeping: In compliance with the BSA, firms must maintain detailed records on their customers and submit reports to the BSA when their customers engage in certain transactions or financial activities. Amongst these responsibilities is the submission of suspicious activity reports (SARs) for transactions over $5,000 or for transactions that are suspected to be in violation of the BSA.

Compliance Officer: An individual employee should be appointed as chief compliance officer to oversee their firm’s AML program and be responsible for arranging audits. The designated AML officer must have sufficient authority (ideally management level) and professional experience to carry out their duties effectively.

BSA Training: Firms should ensure their employees receive the training they need to fulfill their compliance responsibilities. Firms must also ensure a schedule is in place to deliver ongoing training to employees in line with changes to AML laws.

Source => https://complyadvantage.com/knowledgebase/aml-regulations-united-states/

Report Miguel 's answer

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In addition to Miguel's answer I have some suggestions to help you operationalize the collection of the data needed to meet these requirements, use a due diligence or KYC (know your customer) type questionnaire to collect the legal name, registered address, type of business, corporate & indirect tax IDs, related bank information, etc. Perform mini background checks of the data collected by using the internet (google), many countries provide free access to sites to verify tax ID (https://ec.europa.eu/taxation_customs/vies/)& name of company to validate the information you receive. Verify the company/person is not on the OFAC/ Sanctions list by using the Department of Treasury website (https://home.treasury.gov/policy-issues/financial-sanctions/specially-designated-nationals-and-blocked-persons-list-sdn-human-readable-lists). If you have the budget you can purchase verification services from a company such as Dun & Bradstreet to help review the corporate relationships, financial stability, etc.

You should be collecting this data for investors, customers, vendors. As a start up, this does not need to be an expensive or cumbersome process, however, you need to establish a policy and process to address these requirements and then make your best effort to collect, verify, and maintain the information.

Report Jennifer's answer

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In addition to the law, there are some things you need to pay attention to. Are there accidental injuries in the existing anti-money laundering laws? The answer is yes, because the review criteria for funds vary from place to place around the world, but for the inflowing countries, they only care about whether the inflowing funds will have a negative impact on their own capital markets. There are still many developing countries in Asia. The fortunes of many wealthy people may be legal in the local area, but they are illegal in the eyes of FinCEN.

The current outbreak of the Sino-US trade war has more or less affected Sino-US relations. It is also normal for the regulator to "extra care" for the exchange meeting with Chinese investors. I think that anti-money laundering has now become a financial sanctions weapon against Chinese investors, affecting many Chinese who invest in the United States.

One of the most cheating is the Federal Department of the Treasury’s autumn aftermath. In order to attract overseas funds to rescue American real estate (real estate is a hardest hit by money laundering), I would never tell you that the source of funds is not compliant, but once the matter is finished, it will start to unwind. Kill the donkey, say that you are not compliant and that you are not compliant. Behind this is obviously a tits deal that is dirtier than an asshole deal.

Report 泽广's answer

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