anti-money laundering program

**theworm**[$] · #1 12-19-2005, 02:43 PM

Apparently the Patriot Act is requiring an antin-money laundering program to be in place by Jan 1st. My boss handed it to me and said figure out what we need to do. I researched. We need to test:

Quote:

1. perform risk assessment in order to evaluate their particular risks of being exploited for money laundering purposes;
2. appoint an employee as compliance officer responsible for implementation and administration of the anti-money laundering program;
3. design and implement a written anti-money laundering program, based on prior performed risk assessment;
4. train their employees; 5. periodically test the anti-money laundering program independently to ensure that the program functions as designed. The tester cannot be the same person as the compliance officer, but can be an independent service provider.

Ok - so now what?
I don't know nothin 'bout launderin no money.

**mjfrombuffalo**[$] · #2 12-19-2005, 02:47 PM

All I know about money laundering is when I find a dollar bill stuck against the vent in the dryer.

**theworm**[$] · #3 12-19-2005, 02:49 PM

Yep. Me too, but usually I just find coins.
I have NO idea what I'm supposed to do. I'm reading a long long Federal Register document from the web. Mostly I need a lawyer to translate it for me. It's not helping.

**mjfrombuffalo**[$] · #4 12-19-2005, 02:57 PM

Are you POSITIVE your business falls within the group of businesses that must do it?

If so, is your business part of a larger trade association, who may have designed forms and policies already?

**theworm**[$] · #5 12-19-2005, 03:01 PM

Yes - we have to do it.
And the quoted stuff above is what I got from the larger trade associations website.

**mjfrombuffalo**[$] · #6 12-19-2005, 03:04 PM

We did something similar with our agencies regarding HIPAA - gave an overview of what they needed to do, then hired an atty to draw up the policies and stuff when the agencies needed something more specific.

**theworm**[$] · #7 12-19-2005, 03:09 PM

I'm reading the register. It refers me to the FinCen website for more info, but the FinCen website is the site that I'm reading from.

**AuntieEmma**[$] · #8 12-19-2005, 03:42 PM

Sounds like this isn't a do-it-yourself project. Does your company have a lawyer that you use for odds and ends? Or can you call the trade association on the phone and talk to someone there?

**theworm**[$] · #9 12-19-2005, 03:44 PM

We might need to do that. I read it and I get the gist of what is required, but I don't see any specifics, and if the govt is requiring it, you'd assume there would be someplace to send it and prove that we are in compliance. The documents say nothing about that. the directions say the detail will depend on the risk on a per company basis. It's beyond vague.

**pippadaisy**[$] · #10 12-19-2005, 03:54 PM

I double dog dare you to go in and say "Apparently all we have to do in order to be in compliance is fire CCW1 and CCW2."

**mjfrombuffalo**[$] · #11 12-19-2005, 03:57 PM

**theworm**[$] · #12 12-19-2005, 04:03 PM

boss just had a vasectomy. I'm not going to mess with him now!

**AuntieEmma**[$] · #13 12-19-2005, 04:18 PM

Ha.

BTW, google shows that there is a whole industry that has sprung up to deal with anti-money-laundering compliance -- there are seminars and consultants and software packages. Apparently, it's costing banks billions of dollars to comply.

Anyway first thing, I think, would be to find out if your business actually needs to do anything or not (as MJ said). My guess is that you won't be able to find that out with an internet search, but need to talk to someone who knows about regs that affect small businesses in Florida.

**mjfrombuffalo**[$] · #14 12-19-2005, 04:19 PM

Didn't Boss just get married?

**theworm**[$] · #15 12-19-2005, 04:31 PM

Emma - yes, I was able to read enough to know that we do have to comply. Unless they change the rules - which they might, we are definately effected.

MJ - yes

**AuntieEmma**[$] · #16 12-19-2005, 04:37 PM

How did you (or your boss) find out about this? Did you/he get any kind of notice? If so, was there any contact information there?

**theworm**[$] · #17 12-19-2005, 04:39 PM

no - we got a letter from a supplier saying that they are in compliance and that we (and all there customers) should get our own program in place.

**AuntieEmma**[$] · #18 12-19-2005, 04:48 PM

Can you ask your supplier who set up their program for them?

**theworm**[$] · #19 12-19-2005, 04:50 PM

My boss is going to deal with it now. The requirements are a bit silly for a company of our size. Dollar wise we need to do this, but there are 4 of us here in the office. How do we establish a training program when 1 is an owner and two of the others need to oversee the program?

**mjfrombuffalo**[$] · #20 12-19-2005, 04:52 PM

Can one of the overseers be a contract employee, like an accountant or something?

**theworm**[$] · #21 12-19-2005, 04:54 PM

Yes - the tester can be on outside person.

**theworm**[$] · #22 12-19-2005, 04:55 PM

Boss will talk to some of his buddies and figure this out. We have to do it, obviously, but I don't think it's a big deal. I'm not sure how you audit to make sure that you don't deal with any money-launderers though.