U.S. flag

An official website of the United States government, Department of Justice.

NCJRS Virtual Library

The Virtual Library houses over 235,000 criminal justice resources, including all known OJP works.
Click here to search the NCJRS Virtual Library

Detecting Money Laundering

NCJ Number
126133
Journal
Texas Banking Dated: (February 1990) Pages: 8-10,12
Author(s)
B K Lary
Date Published
1990
Length
4 pages
Annotation
Because of strict Federal currency reporting requirements, many money launderers are turning away from using banks to hide their profits to using the banks under the guise of legitimate customers. This article explores the money laundering that occurs in the Texas banking system.
Abstract
Because Currency Transaction Reports (CTRs) must be filed with the Internal Revenue Service (IRS) on major transactions, the banks have had to assume more responsibility in ascertaining that their customers are actually involved in legitimate businesses. Because money launderers can no longer "structure" deposits, they have begun to use well-established accounts by paying cash through goods and services, by acquiring legitimate businesses, or by blackmailing businesses facing financial difficulties. Congressional hearings have been held to gather information and assess the problem of money laundering in Texas and other locations in close proximity to narcotics trafficking activity. The hearings focused on the effectiveness of CTRs regulation and reporting requirements of non-banks, including foreign exchange houses and check-cashing services. An international clearinghouse for money laundering data was established to counter illegal transactions through wire transfers, and a reward and incentive program for bank employees who detect launderers has been created. By knowing their customers, bank employees can both detect suspicious activity and protect the bank from non-compliance liability.

Downloads

No download available

Availability